SKYWEST INC (SKYW) Stock Fundamental Analysis
NASDAQ:SKYW - US8308791024 - Common Stock
107.85 USD
-4.65 (-4.13%)
109 USD
+1.15 (+1.07%)
SKYW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 industry peers in the Passenger Airlines industry. While SKYW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SKYW scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SKYW could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SKYW was profitable.
SKYW had a positive operating cash flow in the past year.
Of the past 5 years SKYW 4 years were profitable.
In the past 5 years SKYW always reported a positive cash flow from operatings.
1.2 Ratios
SKYW has a better Return On Assets (5.69%) than 80.95% of its industry peers.
SKYW has a better Return On Equity (15.80%) than 76.19% of its industry peers.
SKYW has a Return On Invested Capital of 8.18%. This is in the better half of the industry: SKYW outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKYW is significantly below the industry average of 14.49%.
The last Return On Invested Capital (8.18%) for SKYW is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 15.8% | ||
| ROIC | 8.18% |
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's Profit Margin of 10.62% is amongst the best of the industry. SKYW outperforms 90.48% of its industry peers.
SKYW's Profit Margin has declined in the last couple of years.
SKYW's Operating Margin of 15.23% is amongst the best of the industry. SKYW outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of SKYW has declined.
SKYW's Gross Margin of 73.08% is amongst the best of the industry. SKYW outperforms 95.24% of its industry peers.
In the last couple of years the Gross Margin of SKYW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.23% | ||
| PM (TTM) | 10.62% | ||
| GM | 73.08% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SKYW is destroying value.
The number of shares outstanding for SKYW has been increased compared to 1 year ago.
Compared to 5 years ago, SKYW has less shares outstanding
Compared to 1 year ago, SKYW has an improved debt to assets ratio.
2.2 Solvency
SKYW has an Altman-Z score of 1.88. This is not the best score and indicates that SKYW is in the grey zone with still only limited risk for bankruptcy at the moment.
SKYW's Altman-Z score of 1.88 is amongst the best of the industry. SKYW outperforms 80.95% of its industry peers.
SKYW has a debt to FCF ratio of 9.85. This is a negative value and a sign of low solvency as SKYW would need 9.85 years to pay back of all of its debts.
SKYW has a Debt to FCF ratio of 9.85. This is in the better half of the industry: SKYW outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that SKYW is somewhat dependend on debt financing.
SKYW has a better Debt to Equity ratio (0.78) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.85 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.93
WACC8.79%
2.3 Liquidity
SKYW has a Current Ratio of 0.73. This is a bad value and indicates that SKYW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.73, SKYW is doing good in the industry, outperforming 76.19% of the companies in the same industry.
SKYW has a Quick Ratio of 0.73. 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 better Quick ratio (0.63) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 131.84% over the past year.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
Looking at the last year, SKYW shows a very strong growth in Revenue. The Revenue has grown by 20.45%.
The Revenue has been growing slightly by 3.49% on average over the past years.
EPS 1Y (TTM)131.84%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%59.89%
Revenue 1Y (TTM)20.45%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%19.39%
3.2 Future
SKYW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.19% yearly.
The Revenue is expected to grow by 7.82% on average over the next years.
EPS Next Y31.6%
EPS Next 2Y20.18%
EPS Next 3Y16.19%
EPS Next 5YN/A
Revenue Next Year14.23%
Revenue Next 2Y9.47%
Revenue Next 3Y7.82%
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.
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
Based on the Price/Earnings ratio of 10.97, the valuation of SKYW can be described as reasonable.
Based on the Price/Earnings ratio, SKYW is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.07, SKYW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.61, the valuation of SKYW can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKYW indicates a somewhat cheap valuation: SKYW is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SKYW to the average of the S&P500 Index (22.59), we can say SKYW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKYW indicates a somewhat cheap valuation: SKYW is cheaper than 61.90% of the companies listed in the same industry.
SKYW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 5.81 |
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.
The decent profitability rating of SKYW may justify a higher PE ratio.
A more expensive valuation may be justified as SKYW's earnings are expected to grow with 16.19% in the coming years.
PEG (NY)0.35
PEG (5Y)2.48
EPS Next 2Y20.18%
EPS Next 3Y16.19%
5. Dividend
5.1 Amount
SKYW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
107.85
-4.65 (-4.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-1.2%
Ins Owners1.06%
Ins Owner Change-9.21%
Market Cap4.35B
Analysts81.82
Price Target134.44 (24.65%)
Short Float %2.61%
Short Ratio2.91
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)17.97%
Min EPS beat(2)16.19%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)18.53%
Min EPS beat(4)10.29%
Max EPS beat(4)27.88%
EPS beat(8)8
Avg EPS beat(8)36.93%
EPS beat(12)11
Avg EPS beat(12)-57.69%
EPS beat(16)15
Avg EPS beat(16)226.14%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)3.42%
Revenue beat(4)3
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)3.42%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.68%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)9.29%
PT rev (3m)13.04%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)6.68%
EPS NY rev (3m)7.25%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 9.61 | ||
| P/S | 1.13 | ||
| P/FCF | 17.19 | ||
| P/OCF | 5.46 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)9.83
EY9.11%
EPS(NY)11.22
Fwd EY10.41%
FCF(TTM)6.28
FCFY5.82%
OCF(TTM)19.75
OCFY18.31%
SpS95.12
BVpS63.95
TBVpS63.95
PEG (NY)0.35
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 15.8% | ||
| ROCE | 10.23% | ||
| ROIC | 8.18% | ||
| ROICexc | 9.38% | ||
| ROICexgc | 9.38% | ||
| OM | 15.23% | ||
| PM (TTM) | 10.62% | ||
| GM | 73.08% | ||
| FCFM | 6.6% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.85 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 141.75% | ||
| Cap/Sales | 14.17% | ||
| Interest Coverage | 5.41 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 62.13% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.88 |
F-Score8
WACC8.79%
ROIC/WACC0.93
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)131.84%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%59.89%
EPS Next Y31.6%
EPS Next 2Y20.18%
EPS Next 3Y16.19%
EPS Next 5YN/A
Revenue 1Y (TTM)20.45%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%19.39%
Revenue Next Year14.23%
Revenue Next 2Y9.47%
Revenue Next 3Y7.82%
Revenue Next 5YN/A
EBIT growth 1Y97.6%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year107.87%
EBIT Next 3Y32.58%
EBIT Next 5YN/A
FCF growth 1Y96%
FCF growth 3Y34.28%
FCF growth 5Y125.11%
OCF growth 1Y33.35%
OCF growth 3Y-5.93%
OCF growth 5Y-0.8%