ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALK - US0116591092 - Common Stock
42.86 USD
+1.6 (+3.88%)
Overall ALK gets a fundamental rating of 4 out of 10. We evaluated ALK against 22 industry peers in the Passenger Airlines industry. There are concerns on the financial health of ALK while its profitability can be described as average. ALK is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years ALK 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.75%, ALK perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
ALK has a better Return On Equity (3.72%) than 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.28%, ALK is in line with its industry, outperforming 54.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALK is significantly below the industry average of 13.76%.
| 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
ALK has a Profit Margin (1.06%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ALK has declined.
With a Operating Margin value of 4.26%, ALK perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
ALK's Operating Margin has declined in the last couple of years.
ALK has a Gross Margin (55.33%) which is comparable to the rest of the industry.
ALK's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ALK has been reduced compared to 1 year ago.
ALK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for ALK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.14, we must say that ALK is in the distress zone and has some risk of bankruptcy.
ALK has a Altman-Z score of 1.14. This is comparable to the rest of the industry: ALK outperforms 59.09% of 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 | 1.14 |
ROIC/WACC0.43
WACC7.67%
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.
With a Current ratio value of 0.52, ALK perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that ALK may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, ALK perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
ALK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.51%.
Measured over the past years, ALK shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.48% on average per year.
The Revenue has grown by 31.50% in the past year. This is a very strong growth!
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
Based on estimates for the next years, ALK will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.51% on average per year.
The Revenue is expected to grow by 11.69% on average over the next years. This is quite good.
EPS Next Y-49.45%
EPS Next 2Y5.55%
EPS Next 3Y18.51%
EPS Next 5YN/A
Revenue Next Year22.03%
Revenue Next 2Y14.4%
Revenue Next 3Y11.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.15, which indicates a correct valuation of ALK.
Based on the Price/Earnings ratio, ALK is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.98, ALK is valued a bit cheaper.
The Price/Forward Earnings ratio is 7.93, which indicates a rather cheap valuation of ALK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALK indicates a rather cheap valuation: ALK is cheaper than 81.82% of the companies listed in the same industry.
ALK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALK is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.36 |
4.3 Compensation for Growth
ALK's earnings are expected to grow with 18.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.55%
EPS Next 3Y18.51%
5. Dividend
5.1 Amount
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ALK (11/26/2025, 3:03:51 PM)
42.86
+1.6 (+3.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners91.09%
Inst Owner Change-1.18%
Ins Owners0.57%
Ins Owner Change-1.5%
Market Cap4.94B
Revenue(TTM)14.14B
Net Income(TTM)150.00M
Analysts82
Price Target67.79 (58.17%)
Short Float %7.01%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-1.98%
PT rev (3m)3.54%
EPS NQ rev (1m)-56.99%
EPS NQ rev (3m)-63.46%
EPS NY rev (1m)-18.31%
EPS NY rev (3m)-27.48%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 7.93 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | 3.69 | ||
| P/B | 1.23 | ||
| P/tB | 10.36 | ||
| EV/EBITDA | 4.36 |
EPS(TTM)3.03
EY7.07%
EPS(NY)5.4
Fwd EY12.61%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)11.6
OCFY27.07%
SpS122.63
BVpS34.94
TBVpS4.14
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.81
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 | 1.14 |
F-Score6
WACC7.67%
ROIC/WACC0.43
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-49.45%
EPS Next 2Y5.55%
EPS Next 3Y18.51%
EPS Next 5YN/A
Revenue 1Y (TTM)31.5%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%22.59%
Revenue Next Year22.03%
Revenue Next 2Y14.4%
Revenue Next 3Y11.69%
Revenue Next 5YN/A
EBIT growth 1Y-26.46%
EBIT growth 3YN/A
EBIT growth 5Y-3.7%
EBIT Next Year94.04%
EBIT Next 3Y43.4%
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 4 / 10 to ALK.
What is the valuation status of ALASKA AIR GROUP INC (ALK) stock?
ChartMill assigns a valuation rating of 5 / 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 14.15 and the Price/Book (PB) ratio is 1.23.
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%.