FRONTIER GROUP HOLDINGS INC (ULCC) Stock Fundamental Analysis
NASDAQ:ULCC - Nasdaq - US35909R1086 - Common Stock - Currency: USD
Taking everything into account, ULCC scores 3 out of 10 in our fundamental rating. ULCC was compared to 23 industry peers in the Passenger Airlines industry. ULCC has a bad profitability rating. Also its financial health evaluation is rather negative. ULCC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ULCC had positive earnings in the past year.
ULCC had a negative operating cash flow in the past year.
ULCC had negative earnings in 4 of the past 5 years.
In the past 5 years ULCC reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of ULCC (1.03%) is comparable to the rest of the industry.
ULCC has a better Return On Equity (11.75%) than 69.57% of its industry peers.
The Return On Invested Capital of ULCC (0.77%) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 11.75% | ||
| ROIC | 0.77% |
ROA(3y)0.11%
ROA(5y)-1.68%
ROE(3y)1.49%
ROE(5y)-17.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ULCC (1.75%) is better than 60.87% of its industry peers.
In the last couple of years the Profit Margin of ULCC has declined.
The Operating Margin of ULCC (1.15%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ULCC has declined.
Looking at the Gross Margin, with a value of 55.70%, ULCC is in line with its industry, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Gross Margin of ULCC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.15% | ||
| PM (TTM) | 1.75% | ||
| GM | 55.7% |
OM growth 3YN/A
OM growth 5Y-33.83%
PM growth 3YN/A
PM growth 5Y-25.97%
GM growth 3Y5.57%
GM growth 5Y-1.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ULCC is destroying value.
The number of shares outstanding for ULCC has been increased compared to 1 year ago.
The number of shares outstanding for ULCC has been increased compared to 5 years ago.
The debt/assets ratio for ULCC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that ULCC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ULCC (0.54) is worse than 60.87% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ULCC is not too dependend on debt financing.
The Debt to Equity ratio of ULCC (0.43) is better than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.54 |
ROIC/WACC0.08
WACC9.34%
2.3 Liquidity
A Current Ratio of 0.49 indicates that ULCC may have some problems paying its short term obligations.
With a Current ratio value of 0.49, ULCC is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
ULCC has a Quick Ratio of 0.49. This is a bad value and indicates that ULCC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.45, ULCC is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.50% over the past year.
Measured over the past years, ULCC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.57% on average per year.
The Revenue has been growing slightly by 5.99% in the past year.
Measured over the past years, ULCC shows a quite strong growth in Revenue. The Revenue has been growing by 8.52% on average per year.
EPS 1Y (TTM)62.5%
EPS 3YN/A
EPS 5Y-20.57%
EPS Q2Q%-111.11%
Revenue 1Y (TTM)5.99%
Revenue growth 3Y22.37%
Revenue growth 5Y8.52%
Sales Q2Q%5.43%
3.2 Future
Based on estimates for the next years, ULCC will show a very strong growth in Earnings Per Share. The EPS will grow by 67.65% on average per year.
Based on estimates for the next years, ULCC will show a quite strong growth in Revenue. The Revenue will grow by 9.91% on average per year.
EPS Next Y-146.88%
EPS Next 2Y55.77%
EPS Next 3Y67.65%
EPS Next 5YN/A
Revenue Next Year3.39%
Revenue Next 2Y8.49%
Revenue Next 3Y9.91%
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
A Price/Earnings ratio of 26.38 indicates a quite expensive valuation of ULCC.
ULCC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. ULCC is around the same levels.
With a Price/Forward Earnings ratio of 6.15, the valuation of ULCC can be described as very cheap.
73.91% of the companies in the same industry are more expensive than ULCC, based on the Price/Forward Earnings ratio.
ULCC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 6.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ULCC is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
ULCC's earnings are expected to grow with 67.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.77%
EPS Next 3Y67.65%
5. Dividend
5.1 Amount
No dividends for ULCC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.43
-0.32 (-8.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners26.75%
Inst Owner Change3.2%
Ins Owners34.05%
Ins Owner Change-0.29%
Market Cap780.94M
Analysts54.12
Price Target4.79 (39.65%)
Short Float %25.45%
Short Ratio3.27
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)1
Avg EPS beat(2)-14.8%
Min EPS beat(2)-117.23%
Max EPS beat(2)87.63%
EPS beat(4)2
Avg EPS beat(4)-23.8%
Min EPS beat(4)-117.23%
Max EPS beat(4)87.63%
EPS beat(8)6
Avg EPS beat(8)10.46%
EPS beat(12)10
Avg EPS beat(12)14.6%
EPS beat(16)13
Avg EPS beat(16)15.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-4.7%
Max Revenue beat(2)-0.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.67%
Min Revenue beat(4)-7.07%
Max Revenue beat(4)-0.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)1
Avg Revenue beat(12)-2.63%
Revenue beat(16)3
Avg Revenue beat(16)-2.63%
PT rev (1m)-2.31%
PT rev (3m)-54.2%
EPS NQ rev (1m)-20.12%
EPS NQ rev (3m)-169.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-112.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.44%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-12.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.38 | ||
| Fwd PE | 6.15 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.37 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)0.13
EY3.79%
EPS(NY)0.56
Fwd EY16.27%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)-0.64
OCFYN/A
SpS16.79
BVpS2.5
TBVpS2.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 11.75% | ||
| ROCE | 0.97% | ||
| ROIC | 0.77% | ||
| ROICexc | 0.9% | ||
| ROICexgc | 0.91% | ||
| OM | 1.15% | ||
| PM (TTM) | 1.75% | ||
| GM | 55.7% | ||
| FCFM | N/A |
ROA(3y)0.11%
ROA(5y)-1.68%
ROE(3y)1.49%
ROE(5y)-17.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-37.21%
ROICexc growth 3YN/A
ROICexc growth 5Y-37.1%
OM growth 3YN/A
OM growth 5Y-33.83%
PM growth 3YN/A
PM growth 5Y-25.97%
GM growth 3Y5.57%
GM growth 5Y-1.83%
F-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 101.32% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 0.54 |
F-Score4
WACC9.34%
ROIC/WACC0.08
Cap/Depr(3y)99.56%
Cap/Depr(5y)83.64%
Cap/Sales(3y)1.56%
Cap/Sales(5y)1.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)62.5%
EPS 3YN/A
EPS 5Y-20.57%
EPS Q2Q%-111.11%
EPS Next Y-146.88%
EPS Next 2Y55.77%
EPS Next 3Y67.65%
EPS Next 5YN/A
Revenue 1Y (TTM)5.99%
Revenue growth 3Y22.37%
Revenue growth 5Y8.52%
Sales Q2Q%5.43%
Revenue Next Year3.39%
Revenue Next 2Y8.49%
Revenue Next 3Y9.91%
Revenue Next 5YN/A
EBIT growth 1Y588.89%
EBIT growth 3YN/A
EBIT growth 5Y-28.19%
EBIT Next Year1349.18%
EBIT Next 3Y303.35%
EBIT Next 5YN/A
FCF growth 1Y-265.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-812.5%
OCF growth 3YN/A
OCF growth 5YN/A