4.96 USD
-0.17 (-3.31%)
4.95 USD
-0.01 (-0.2%)
We assign a fundamental rating of 2 out of 10 to ULCC. ULCC was compared to 22 industry peers in the Passenger Airlines industry. Both the profitability and financial health of ULCC have multiple concerns. ULCC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- ULCC had negative earnings in the past year.
- In the past year ULCC has reported a negative cash flow from operations.
- ULCC had negative earnings in 4 of the past 5 years.
- ULCC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- ULCC has a Return On Assets of -2.04%. This is comparable to the rest of the industry: ULCC outperforms 50.00% of its industry peers.
- ULCC's Return On Equity of -31.57% is in line compared to the rest of the industry. ULCC outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.04% | ||
| ROE | -31.57% | ||
| ROIC | 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
1.3 Margins
- ULCC's Profit Margin has declined in the last couple of years.
- In the last couple of years the Operating Margin of ULCC has declined.
- ULCC has a Gross Margin of 55.51%. This is in the better half of the industry: ULCC outperforms 63.64% of its industry peers.
- ULCC's Gross Margin has declined in the last couple of years.
- ULCC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 55.51% |
OM growth 3YN/A
OM growth 5Y-47.25%
PM growth 3YN/A
PM growth 5Y-25.97%
GM growth 3Y5.57%
GM growth 5Y-1.83%
2. Health
2.1 Basic Checks
- ULCC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for ULCC has been increased compared to 1 year ago.
- ULCC has more shares outstanding than it did 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 0.36, we must say that ULCC is in the distress zone and has some risk of bankruptcy.
- ULCC has a Altman-Z score of 0.36. This is comparable to the rest of the industry: ULCC outperforms 40.91% of its industry peers.
- ULCC has a Debt/Equity ratio of 0.70. This is a neutral value indicating ULCC is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.70, ULCC belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.36 |
ROIC/WACCN/A
WACC9.7%
2.3 Liquidity
- A Current Ratio of 0.40 indicates that ULCC may have some problems paying its short term obligations.
- With a Current ratio value of 0.40, ULCC is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- ULCC has a Quick Ratio of 0.40. This is a bad value and indicates that ULCC is not financially healthy enough and could expect problems in meeting its short term obligations.
- ULCC has a worse Quick ratio (0.36) than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- The earnings per share for ULCC have decreased strongly by -4395513236313604608.00% in the last year.
- Measured over the past years, ULCC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.53% on average per year.
- The Revenue has been growing slightly by 1.77% 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)-4395513236313604600%
EPS 3YN/A
EPS 5Y-20.53%
EPS Q2Q%-580%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y22.37%
Revenue growth 5Y8.52%
Sales Q2Q%-5.24%
3.2 Future
- ULCC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.13% yearly.
- Based on estimates for the next years, ULCC will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
EPS Next Y-433.62%
EPS Next 2Y-53.53%
EPS Next 3Y37.13%
EPS Next 5YN/A
Revenue Next Year-1.64%
Revenue Next 2Y7.12%
Revenue Next 3Y9%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for ULCC. In the last year negative earnings were reported.
- Also next year ULCC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- ULCC's earnings are expected to grow with 37.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-53.53%
EPS Next 3Y37.13%
5. Dividend
5.1 Amount
- No dividends for ULCC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRONTIER GROUP HOLDINGS INC / ULCC FAQ
Can you provide the ChartMill fundamental rating for FRONTIER GROUP HOLDINGS INC?
ChartMill assigns a fundamental rating of 2 / 10 to ULCC.
Can you provide the valuation status for FRONTIER GROUP HOLDINGS INC?
ChartMill assigns a valuation rating of 1 / 10 to FRONTIER GROUP HOLDINGS INC (ULCC). This can be considered as Overvalued.
What is the profitability of ULCC stock?
FRONTIER GROUP HOLDINGS INC (ULCC) has a profitability rating of 1 / 10.
How financially healthy is FRONTIER GROUP HOLDINGS INC?
The financial health rating of FRONTIER GROUP HOLDINGS INC (ULCC) is 2 / 10.
How sustainable is the dividend of FRONTIER GROUP HOLDINGS INC (ULCC) stock?
The dividend rating of FRONTIER GROUP HOLDINGS INC (ULCC) is 0 / 10 and the dividend payout ratio is 0%.