ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALK - US0116591092 - Common Stock
50.03 USD
-0.1 (-0.2%)
We assign a fundamental rating of 3 out of 10 to ALK. ALK was compared to 22 industry peers in the Passenger Airlines industry. While ALK is still in line with the averages on profitability rating, there are concerns on its financial health. ALK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ALK was profitable.
ALK had a positive operating cash flow in the past year.
ALK had positive earnings in 4 of the past 5 years.
ALK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, ALK is in line with its industry, outperforming 59.09% of the companies in the same industry.
ALK's Return On Equity of 3.72% is fine compared to the rest of the industry. ALK outperforms 63.64% of its industry peers.
The Return On Invested Capital of ALK (3.28%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ALK is below the industry average of 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.72% | ||
| ROIC | 3.28% |
ROA(3y)1.34%
ROA(5y)-0.4%
ROE(3y)5.42%
ROE(5y)-3.09%
ROIC(3y)5.24%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.06%, ALK perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Profit Margin of ALK has declined.
ALK has a Operating Margin (4.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ALK has declined.
ALK's Gross Margin of 55.33% is in line compared to the rest of the industry. ALK outperforms 54.55% of its industry peers.
In the last couple of years the Gross Margin of ALK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 1.06% | ||
| GM | 55.33% |
OM growth 3YN/A
OM growth 5Y-9.13%
PM growth 3Y-24.24%
PM growth 5Y-17.41%
GM growth 3Y3.86%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
ALK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALK has less shares outstanding
The number of shares outstanding for ALK remains at a similar level compared to 5 years ago.
ALK has a worse debt/assets ratio than last year.
2.2 Solvency
ALK has an Altman-Z score of 1.18. This is a bad value and indicates that ALK is not financially healthy and even has some risk of bankruptcy.
ALK has a Altman-Z score (1.18) which is in line with its industry peers.
ALK has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.12, ALK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.4
WACC8.19%
2.3 Liquidity
ALK has a Current Ratio of 0.52. This is a bad value and indicates that ALK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ALK (0.52) is comparable to the rest of the industry.
A Quick Ratio of 0.49 indicates that ALK may have some problems paying its short term obligations.
ALK has a Quick ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for ALK have decreased strongly by -27.51% in the last year.
ALK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.48% yearly.
ALK shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.50%.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)-27.51%
EPS 3Y-6.46%
EPS 5Y-5.48%
EPS Q2Q%-53.33%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%22.59%
3.2 Future
ALK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.82% yearly.
ALK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
EPS Next Y-55.08%
EPS Next 2Y7.66%
EPS Next 3Y19.82%
EPS Next 5YN/A
Revenue Next Year21.83%
Revenue Next 2Y14.43%
Revenue Next 3Y11.67%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.51 indicates a correct valuation of ALK.
Compared to the rest of the industry, the Price/Earnings ratio of ALK indicates a somewhat cheap valuation: ALK is cheaper than 68.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALK to the average of the S&P500 Index (26.77), we can say ALK is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.90 indicates a reasonable valuation of ALK.
Based on the Price/Forward Earnings ratio, ALK is valued cheaper than 81.82% of the companies in the same industry.
ALK is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALK indicates a somewhat cheap valuation: ALK is cheaper than 77.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
ALK's earnings are expected to grow with 19.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.66%
EPS Next 3Y19.82%
5. Dividend
5.1 Amount
ALK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ALK (12/31/2025, 11:35:22 AM)
50.03
-0.1 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners91.84%
Inst Owner Change-1.16%
Ins Owners0.57%
Ins Owner Change-1.19%
Market Cap5.80B
Revenue(TTM)14.14B
Net Income(TTM)150.00M
Analysts82
Price Target66.81 (33.54%)
Short Float %7.01%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.23%
Min EPS beat(2)-7.79%
Max EPS beat(2)14.26%
EPS beat(4)2
Avg EPS beat(4)30.21%
Min EPS beat(4)-7.79%
Max EPS beat(4)116.17%
EPS beat(8)6
Avg EPS beat(8)25.85%
EPS beat(12)7
Avg EPS beat(12)15.26%
EPS beat(16)11
Avg EPS beat(16)13.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)0.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-2%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)8
Avg Revenue beat(16)-0.23%
PT rev (1m)-1.45%
PT rev (3m)-3.95%
EPS NQ rev (1m)-62.25%
EPS NQ rev (3m)-86.57%
EPS NY rev (1m)-11.13%
EPS NY rev (3m)-33.24%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 4.34 | ||
| P/B | 1.44 | ||
| P/tB | 12.17 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)3.03
EY6.06%
EPS(NY)5.62
Fwd EY11.24%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)11.54
OCFY23.06%
SpS121.92
BVpS34.74
TBVpS4.11
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.72% | ||
| ROCE | 4.52% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.95% | ||
| ROICexgc | 5.82% | ||
| OM | 4.26% | ||
| PM (TTM) | 1.06% | ||
| GM | 55.33% | ||
| FCFM | N/A |
ROA(3y)1.34%
ROA(5y)-0.4%
ROE(3y)5.42%
ROE(5y)-3.09%
ROIC(3y)5.24%
ROIC(5y)N/A
ROICexc(3y)6.57%
ROICexc(5y)N/A
ROICexgc(3y)9.14%
ROICexgc(5y)N/A
ROCE(3y)7.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-7.41%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.28%
OM growth 3YN/A
OM growth 5Y-9.13%
PM growth 3Y-24.24%
PM growth 5Y-17.41%
GM growth 3Y3.86%
GM growth 5Y0.81%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 177.1% | ||
| Cap/Sales | 9.84% | ||
| Interest Coverage | 2.77 | ||
| Cash Conversion | 96.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.18 |
F-Score6
WACC8.19%
ROIC/WACC0.4
Cap/Depr(3y)317.88%
Cap/Depr(5y)215.36%
Cap/Sales(3y)14.19%
Cap/Sales(5y)10.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.51%
EPS 3Y-6.46%
EPS 5Y-5.48%
EPS Q2Q%-53.33%
EPS Next Y-55.08%
EPS Next 2Y7.66%
EPS Next 3Y19.82%
EPS Next 5YN/A
Revenue 1Y (TTM)31.5%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%22.59%
Revenue Next Year21.83%
Revenue Next 2Y14.43%
Revenue Next 3Y11.67%
Revenue Next 5YN/A
EBIT growth 1Y-26.46%
EBIT growth 3YN/A
EBIT growth 5Y-3.7%
EBIT Next Year70.92%
EBIT Next 3Y41.57%
EBIT Next 5YN/A
FCF growth 1Y91.04%
FCF growth 3Y-37.18%
FCF growth 5Y-29.16%
OCF growth 1Y20.32%
OCF growth 3Y12.43%
OCF growth 5Y-3.19%
ALASKA AIR GROUP INC / ALK FAQ
What is the ChartMill fundamental rating of ALASKA AIR GROUP INC (ALK) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALK.
What is the valuation status of ALASKA AIR GROUP INC (ALK) stock?
ChartMill assigns a valuation rating of 4 / 10 to ALASKA AIR GROUP INC (ALK). This can be considered as Fairly Valued.
How profitable is ALASKA AIR GROUP INC (ALK) stock?
ALASKA AIR GROUP INC (ALK) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ALK stock?
The Price/Earnings (PE) ratio for ALASKA AIR GROUP INC (ALK) is 16.51 and the Price/Book (PB) ratio is 1.44.
Can you provide the dividend sustainability for ALK stock?
The dividend rating of ALASKA AIR GROUP INC (ALK) is 0 / 10 and the dividend payout ratio is 0%.