Overall SKYW gets a fundamental rating of 6 out of 10. We evaluated SKYW against 22 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SKYW was profitable.
SKYW had a positive operating cash flow in the past year.
SKYW had positive earnings in 4 of the past 5 years.
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 81.82% of its industry peers.
The Return On Equity of SKYW (15.80%) is better than 77.27% of its industry peers.
SKYW's Return On Invested Capital of 8.18% is fine compared to the rest of the industry. SKYW outperforms 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKYW is significantly below the industry average of 20.53%.
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 90.91% of its industry peers.
SKYW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.23%, SKYW belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
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 95.45% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
The debt/assets ratio for SKYW has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.80, we must say that SKYW is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.80, SKYW is doing good in the industry, outperforming 77.27% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 9.85, SKYW is doing good in the industry, outperforming 68.18% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that SKYW is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.78, SKYW is doing good in the industry, outperforming 68.18% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.78
Debt/FCF	9.85
Altman-Z	1.8

ROIC/WACC0.93

WACC8.81%

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.
The Current ratio of SKYW (0.73) is better than 72.73% of its industry peers.
A Quick Ratio of 0.63 indicates that SKYW may have some problems paying its short term obligations.
SKYW's Quick ratio of 0.63 is fine compared to the rest of the industry. SKYW outperforms 63.64% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.73
Quick Ratio	0.63

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 79.15% over the past year.
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.
Looking at the last year, SKYW shows a quite strong growth in Revenue. The Revenue has grown by 19.27% in the last year.
Measured over the past years, SKYW shows a small growth in Revenue. The Revenue has been growing by 3.49% on average per year.

EPS 1Y (TTM)79.15%

EPS 3Y30.83%

EPS 5Y4.42%

EPS Q2Q%30.09%

Revenue 1Y (TTM)19.27%

Revenue growth 3Y9.14%

Revenue growth 5Y3.49%

Sales Q2Q%15.04%

3.2 Future

The Earnings Per Share is expected to grow by 16.56% on average over the next years. This is quite good.
Based on estimates for the next years, SKYW will show a small growth in Revenue. The Revenue will grow by 7.54% on average per year.

EPS Next Y34.14%

EPS Next 2Y20.8%

EPS Next 3Y16.56%

EPS Next 5YN/A

Revenue Next Year15.05%

Revenue Next 2Y9.53%

Revenue Next 3Y7.54%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.30 indicates a reasonable valuation of SKYW.
SKYW's Price/Earnings ratio is rather cheap when compared to the industry. SKYW is cheaper than 95.45% of the companies in the same industry.
SKYW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
Based on the Price/Forward Earnings ratio of 8.60, the valuation of SKYW can be described as reasonable.
SKYW's Price/Forward Earnings ratio is rather cheap when compared to the industry. SKYW is cheaper than 86.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.83. SKYW is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.3
Fwd PE	8.6

4.2 Price Multiples

SKYW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SKYW is cheaper than 86.36% of the companies in the same industry.
SKYW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SKYW is cheaper than 63.64% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.43
EV/EBITDA	5.19

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 16.56% in the coming years.