SKYWEST INC (SKYW) Stock Fundamental Analysis
NASDAQ:SKYW - Nasdaq - US8308791024 - Common Stock - Currency: USD
Overall SKYW gets a fundamental rating of 5 out of 10. We evaluated SKYW against 23 industry peers in the Passenger Airlines industry. While SKYW has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SKYW.
1. Profitability
1.1 Basic Checks
SKYW had positive earnings in the past year.
In the past year SKYW had a positive cash flow from operations.
SKYW had positive earnings in 4 of the past 5 years.
In the past 5 years SKYW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.52%, SKYW is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
SKYW's Return On Equity of 13.41% is fine compared to the rest of the industry. SKYW outperforms 78.26% of its industry peers.
The Return On Invested Capital of SKYW (6.93%) is better than 73.91% of its industry peers.
SKYW had an Average Return On Invested Capital over the past 3 years of 3.59%. This is significantly below the industry average of 11.08%.
The last Return On Invested Capital (6.93%) for SKYW is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 13.41% | ||
| ROIC | 6.93% |
ROA(3y)2%
ROA(5y)1.49%
ROE(3y)6.05%
ROE(5y)4.54%
ROIC(3y)3.59%
ROIC(5y)N/A
1.3 Margins
SKYW has a Profit Margin of 9.15%. This is amongst the best in the industry. SKYW outperforms 91.30% of its industry peers.
In the last couple of years the Profit Margin of SKYW has declined.
The Operating Margin of SKYW (14.02%) is better than 91.30% of its industry peers.
SKYW's Operating Margin has declined in the last couple of years.
SKYW has a better Gross Margin (74.74%) than 100.00% of its industry peers.
SKYW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 9.15% | ||
| GM | 74.74% |
OM growth 3YN/A
OM growth 5Y-4.69%
PM growth 3Y30.45%
PM growth 5Y-4.37%
GM growth 3Y7.76%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
SKYW 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, SKYW has more shares outstanding
The number of shares outstanding for SKYW has been reduced compared to 5 years ago.
Compared to 1 year ago, SKYW has an improved debt to assets ratio.
2.2 Solvency
SKYW has an Altman-Z score of 1.71. This is a bad value and indicates that SKYW is not financially healthy and even has some risk of bankruptcy.
SKYW's Altman-Z score of 1.71 is fine compared to the rest of the industry. SKYW outperforms 78.26% of its industry peers.
The Debt to FCF ratio of SKYW is 7.34, which is on the high side as it means it would take SKYW, 7.34 years of fcf income to pay off all of its debts.
SKYW has a better Debt to FCF ratio (7.34) than 73.91% of its industry peers.
SKYW has a Debt/Equity ratio of 0.89. This is a neutral value indicating SKYW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, SKYW is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.84
WACC8.24%
2.3 Liquidity
SKYW has a Current Ratio of 0.78. This is a bad value and indicates that SKYW is not financially healthy enough and could expect problems in meeting its short term obligations.
SKYW has a Current ratio of 0.78. This is in the better half of the industry: SKYW outperforms 73.91% of its industry peers.
SKYW has a Quick Ratio of 0.78. This is a bad value and indicates that SKYW is not financially healthy enough and could expect problems in meeting its short term obligations.
SKYW has a Quick ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 215.52% over the past year.
SKYW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
SKYW shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.53%.
The Revenue has been growing slightly by 3.49% on average over the past years.
EPS 1Y (TTM)215.52%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%66.9%
Revenue 1Y (TTM)20.53%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%18.02%
3.2 Future
Based on estimates for the next years, SKYW will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.72% on average per year.
The Revenue is expected to grow by 7.23% on average over the next years.
EPS Next Y22.71%
EPS Next 2Y17.17%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year10.84%
Revenue Next 2Y7.99%
Revenue Next 3Y7.23%
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 11.65, which indicates a very decent valuation of SKYW.
Based on the Price/Earnings ratio, SKYW is valued a bit cheaper than 69.57% of the companies in the same industry.
SKYW is valuated cheaply when we compare the Price/Earnings ratio to 26.70, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.55, the valuation of SKYW can be described as reasonable.
SKYW's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.49, SKYW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
SKYW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKYW is cheaper than 65.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKYW is valued a bit cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.32 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SKYW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SKYW's earnings are expected to grow with 14.72% in the coming years.
PEG (NY)0.51
PEG (5Y)2.64
EPS Next 2Y17.17%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
No dividends for SKYW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.85
-0.82 (-0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners93.01%
Inst Owner Change-0.8%
Ins Owners1.45%
Ins Owner Change12.43%
Market Cap4.12B
Analysts80
Price Target118.93 (16.77%)
Short Float %3.31%
Short Ratio2.65
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)2
Avg EPS beat(2)19.09%
Min EPS beat(2)10.29%
Max EPS beat(2)27.88%
EPS beat(4)4
Avg EPS beat(4)14.23%
Min EPS beat(4)2.94%
Max EPS beat(4)27.88%
EPS beat(8)8
Avg EPS beat(8)57.21%
EPS beat(12)11
Avg EPS beat(12)228.17%
EPS beat(16)14
Avg EPS beat(16)277.01%
Revenue beat(2)2
Avg Revenue beat(2)0.89%
Min Revenue beat(2)0.66%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)2.84%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.7%
PT rev (1m)-9.47%
PT rev (3m)-1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)3.58%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.55 | ||
| P/S | 1.17 | ||
| P/FCF | 11.32 | ||
| P/OCF | 5.95 | ||
| P/B | 1.71 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)8.74
EY8.58%
EPS(NY)10.67
Fwd EY10.47%
FCF(TTM)9
FCFY8.84%
OCF(TTM)17.11
OCFY16.8%
SpS87.17
BVpS59.52
TBVpS59.52
PEG (NY)0.51
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 13.41% | ||
| ROCE | 8.66% | ||
| ROIC | 6.93% | ||
| ROICexc | 9.13% | ||
| ROICexgc | 9.13% | ||
| OM | 14.02% | ||
| PM (TTM) | 9.15% | ||
| GM | 74.74% | ||
| FCFM | 10.32% |
ROA(3y)2%
ROA(5y)1.49%
ROE(3y)6.05%
ROE(5y)4.54%
ROIC(3y)3.59%
ROIC(5y)N/A
ROICexc(3y)4.66%
ROICexc(5y)N/A
ROICexgc(3y)4.66%
ROICexgc(5y)N/A
ROCE(3y)4.49%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.35%
ROICexc growth 3YN/A
ROICexc growth 5Y2.35%
OM growth 3YN/A
OM growth 5Y-4.69%
PM growth 3Y30.45%
PM growth 5Y-4.37%
GM growth 3Y7.76%
GM growth 5Y0.68%
F-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.34 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 85.52% | ||
| Cap/Sales | 9.31% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 78.82% | ||
| Profit Quality | 112.76% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.71 |
F-Score8
WACC8.24%
ROIC/WACC0.84
Cap/Depr(3y)113.69%
Cap/Depr(5y)118.03%
Cap/Sales(3y)14.27%
Cap/Sales(5y)17.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)215.52%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%66.9%
EPS Next Y22.71%
EPS Next 2Y17.17%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)20.53%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%18.02%
Revenue Next Year10.84%
Revenue Next 2Y7.99%
Revenue Next 3Y7.23%
Revenue Next 5YN/A
EBIT growth 1Y375.07%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year108.73%
EBIT Next 3Y33.14%
EBIT Next 5YN/A
FCF growth 1Y-13.29%
FCF growth 3Y34.28%
FCF growth 5Y125.11%
OCF growth 1Y-5.96%
OCF growth 3Y-5.93%
OCF growth 5Y-0.8%