SUN COUNTRY AIRLINES HOLDING (SNCY) Stock Fundamental Analysis
NASDAQ:SNCY - Nasdaq - US8666831057 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SNCY. SNCY was compared to 22 industry peers in the Passenger Airlines industry. SNCY scores excellent on profitability, but there are some minor concerns on its financial health. SNCY has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes SNCY very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
SNCY had positive earnings in the past year.
In the past year SNCY had a positive cash flow from operations.
SNCY had positive earnings in 4 of the past 5 years.
In the past 5 years SNCY always reported a positive cash flow from operatings.
1.2 Ratios
SNCY has a better Return On Assets (3.79%) than 72.73% of its industry peers.
Looking at the Return On Equity, with a value of 9.61%, SNCY is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
SNCY has a better Return On Invested Capital (7.19%) than 68.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNCY is below the industry average of 9.04%.
The last Return On Invested Capital (7.19%) for SNCY is above the 3 year average (6.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.61% | ||
| ROIC | 7.19% |
ROA(3y)2.95%
ROA(5y)2.87%
ROE(3y)8.97%
ROE(5y)8.42%
ROIC(3y)6.16%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.35%, SNCY is doing good in the industry, outperforming 72.73% of the companies in the same industry.
SNCY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 10.25%, SNCY belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of SNCY has declined.
Looking at the Gross Margin, with a value of 67.78%, SNCY belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
SNCY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.25% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.78% |
OM growth 3Y15.83%
OM growth 5Y-4.1%
PM growth 3Y-27.74%
PM growth 5Y-5.64%
GM growth 3Y1.33%
GM growth 5Y2.66%
2. Health
2.1 Basic Checks
SNCY 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 SNCY has been reduced compared to 1 year ago.
Compared to 5 years ago, SNCY has less shares outstanding
SNCY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that SNCY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, SNCY is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
SNCY has a debt to FCF ratio of 4.12. This is a neutral value as SNCY would need 4.12 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.12, SNCY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
SNCY has a Debt/Equity ratio of 0.72. This is a neutral value indicating SNCY is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.72, SNCY is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.8
WACC9.02%
2.3 Liquidity
SNCY has a Current Ratio of 0.63. This is a bad value and indicates that SNCY is not financially healthy enough and could expect problems in meeting its short term obligations.
SNCY has a Current ratio (0.63) which is comparable to the rest of the industry.
SNCY has a Quick Ratio of 0.63. This is a bad value and indicates that SNCY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SNCY (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
SNCY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.43%, which is quite impressive.
SNCY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.48% yearly.
The Revenue has been growing slightly by 3.76% in the past year.
The Revenue has been growing by 8.93% on average over the past years. This is quite good.
EPS 1Y (TTM)21.43%
EPS 3Y50.18%
EPS 5Y3.48%
EPS Q2Q%133.33%
Revenue 1Y (TTM)3.76%
Revenue growth 3Y19.97%
Revenue growth 5Y8.93%
Sales Q2Q%3.63%
3.2 Future
The Earnings Per Share is expected to grow by 36.05% on average over the next years. This is a very strong growth
SNCY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.08% yearly.
EPS Next Y26.18%
EPS Next 2Y40.04%
EPS Next 3Y36.05%
EPS Next 5YN/A
Revenue Next Year3.75%
Revenue Next 2Y7.4%
Revenue Next 3Y8.08%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
SNCY is valuated reasonably with a Price/Earnings ratio of 9.14.
Compared to the rest of the industry, the Price/Earnings ratio of SNCY indicates a rather cheap valuation: SNCY is cheaper than 86.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SNCY to the average of the S&P500 Index (26.54), we can say SNCY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.28, the valuation of SNCY can be described as very cheap.
Based on the Price/Forward Earnings ratio, SNCY is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.28. SNCY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 5.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNCY indicates a somewhat cheap valuation: SNCY is cheaper than 77.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SNCY is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.39 | ||
| EV/EBITDA | 4.09 |
4.3 Compensation for Growth
SNCY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SNCY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SNCY's earnings are expected to grow with 36.05% in the coming years.
PEG (NY)0.35
PEG (5Y)2.63
EPS Next 2Y40.04%
EPS Next 3Y36.05%
5. Dividend
5.1 Amount
SNCY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.88
+0.32 (+3.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners112.32%
Inst Owner Change0.69%
Ins Owners4.3%
Ins Owner Change24.34%
Market Cap578.92M
Analysts80
Price Target16.83 (54.69%)
Short Float %8.26%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.67%
Min EPS beat(2)-0.42%
Max EPS beat(2)15.77%
EPS beat(4)3
Avg EPS beat(4)13.63%
Min EPS beat(4)-0.42%
Max EPS beat(4)34.14%
EPS beat(8)5
Avg EPS beat(8)26.63%
EPS beat(12)8
Avg EPS beat(12)36.28%
EPS beat(16)10
Avg EPS beat(16)64.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)0.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)0.95%
Revenue beat(8)1
Avg Revenue beat(8)-1.92%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-1.12%
PT rev (1m)2.85%
PT rev (3m)2.29%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)-53.96%
EPS NY rev (1m)-8.73%
EPS NY rev (3m)-18.5%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-3.98%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 5.28 | ||
| P/S | 0.53 | ||
| P/FCF | 4.39 | ||
| P/OCF | 3.57 | ||
| P/B | 0.94 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)1.19
EY10.94%
EPS(NY)2.06
Fwd EY18.93%
FCF(TTM)2.48
FCFY22.79%
OCF(TTM)3.05
OCFY28.02%
SpS20.68
BVpS11.52
TBVpS5.93
PEG (NY)0.35
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.61% | ||
| ROCE | 9.42% | ||
| ROIC | 7.19% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 11.31% | ||
| OM | 10.25% | ||
| PM (TTM) | 5.35% | ||
| GM | 67.78% | ||
| FCFM | 11.99% |
ROA(3y)2.95%
ROA(5y)2.87%
ROE(3y)8.97%
ROE(5y)8.42%
ROIC(3y)6.16%
ROIC(5y)N/A
ROICexc(3y)7.45%
ROICexc(5y)N/A
ROICexgc(3y)10.79%
ROICexgc(5y)N/A
ROCE(3y)8.07%
ROCE(5y)N/A
ROICexcg growth 3Y20.66%
ROICexcg growth 5Y-13.64%
ROICexc growth 3Y27.21%
ROICexc growth 5Y-6.14%
OM growth 3Y15.83%
OM growth 5Y-4.1%
PM growth 3Y-27.74%
PM growth 5Y-5.64%
GM growth 3Y1.33%
GM growth 5Y2.66%
F-Score9
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.12 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 30.6% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.59% | ||
| Profit Quality | 224.04% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.38 |
F-Score9
WACC9.02%
ROIC/WACC0.8
Cap/Depr(3y)190.26%
Cap/Depr(5y)196.53%
Cap/Sales(3y)15.4%
Cap/Sales(5y)17.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.43%
EPS 3Y50.18%
EPS 5Y3.48%
EPS Q2Q%133.33%
EPS Next Y26.18%
EPS Next 2Y40.04%
EPS Next 3Y36.05%
EPS Next 5YN/A
Revenue 1Y (TTM)3.76%
Revenue growth 3Y19.97%
Revenue growth 5Y8.93%
Sales Q2Q%3.63%
Revenue Next Year3.75%
Revenue Next 2Y7.4%
Revenue Next 3Y8.08%
Revenue Next 5YN/A
EBIT growth 1Y8.81%
EBIT growth 3Y38.96%
EBIT growth 5Y4.46%
EBIT Next Year103.42%
EBIT Next 3Y41.39%
EBIT Next 5YN/A
FCF growth 1Y332.69%
FCF growth 3Y48.9%
FCF growth 5YN/A
OCF growth 1Y-12.77%
OCF growth 3Y2.74%
OCF growth 5Y21.1%