SKYWEST INC (SKYW) Stock Fundamental Analysis
USA - NASDAQ:SKYW - US8308791024 - Common Stock
99.05 USD
-1.57 (-1.56%)
101.118 USD
+2.07 (+2.09%)
SKYW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 21 industry peers in the Passenger Airlines industry. SKYW scores excellent on profitability, but there are some minor concerns on its financial health. SKYW is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make SKYW a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SKYW was profitable.
In the past year SKYW had a positive cash flow from operations.
Of the past 5 years SKYW 4 years were profitable.
SKYW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SKYW (5.69%) is better than 80.95% of its industry peers.
SKYW's Return On Equity of 15.80% is fine compared to the rest of the industry. SKYW outperforms 76.19% of its industry peers.
With a decent Return On Invested Capital value of 8.18%, SKYW is doing good in the industry, outperforming 76.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SKYW is significantly below the industry average of 14.46%.
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 has a Profit Margin of 10.62%. This is amongst the best in the industry. SKYW outperforms 90.48% of its industry peers.
SKYW's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 15.23%, SKYW belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of SKYW has declined.
With an excellent Gross Margin value of 73.08%, SKYW belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
SKYW's Gross Margin has been stable in the last couple of years.
| 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
SKYW 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 SKYW has been increased compared to 1 year ago.
Compared to 5 years ago, SKYW has less shares outstanding
SKYW has a better debt/assets ratio than last year.
2.2 Solvency
SKYW has an Altman-Z score of 1.81. 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.
The Altman-Z score of SKYW (1.81) is better than 80.95% of its industry peers.
The Debt to FCF ratio of SKYW is 9.85, which is on the high side as it means it would take SKYW, 9.85 years of fcf income to pay off 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 | 1.81 |
ROIC/WACC0.99
WACC8.26%
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.
SKYW has a better Current ratio (0.73) than 76.19% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.63, SKYW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
SKYW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 131.84%, which is quite impressive.
Measured over the past 5 years, SKYW shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
SKYW shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.45%.
SKYW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.49% yearly.
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.
SKYW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.28% yearly.
EPS Next Y31.6%
EPS Next 2Y20.18%
EPS Next 3Y16.19%
EPS Next 5YN/A
Revenue Next Year14.88%
Revenue Next 2Y9.06%
Revenue Next 3Y7.28%
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
SKYW is valuated reasonably with a Price/Earnings ratio of 10.08.
SKYW's Price/Earnings ratio is rather cheap when compared to the industry. SKYW is cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKYW to the average of the S&P500 Index (27.67), we can say SKYW is valued rather cheaply.
The Price/Forward Earnings ratio is 8.83, which indicates a very decent valuation of SKYW.
Based on the Price/Forward Earnings ratio, SKYW is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, SKYW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SKYW.
SKYW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.78 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
SKYW's 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)0.32
PEG (5Y)2.28
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 |
99.05
-1.57 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners92.54%
Inst Owner Change-0.03%
Ins Owners0.85%
Ins Owner Change-9.21%
Market Cap4.00B
Revenue(TTM)3.84B
Net Income(TTM)407.91M
Analysts81.82
Price Target134.44 (35.73%)
Short Float %2.7%
Short Ratio2.9
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)0%
PT rev (3m)9.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)0%
EPS NY rev (3m)6.68%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.85%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 8.83 | ||
| P/S | 1.04 | ||
| P/FCF | 15.78 | ||
| P/OCF | 5.01 | ||
| P/B | 1.55 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)9.83
EY9.92%
EPS(NY)11.22
Fwd EY11.33%
FCF(TTM)6.28
FCFY6.34%
OCF(TTM)19.75
OCFY19.94%
SpS95.12
BVpS63.95
TBVpS63.95
PEG (NY)0.32
PEG (5Y)2.28
Graham Number118.93
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.81 |
F-Score8
WACC8.26%
ROIC/WACC0.99
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 Year14.88%
Revenue Next 2Y9.06%
Revenue Next 3Y7.28%
Revenue Next 5YN/A
EBIT growth 1Y97.6%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year110.3%
EBIT Next 3Y33.14%
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%