ALLEGIANT TRAVEL CO (ALGT) Stock Fundamental Analysis
NASDAQ:ALGT - Nasdaq - US01748X1028 - Common Stock - Currency: USD
ALGT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Passenger Airlines industry. Both the profitability and financial health of ALGT have multiple concerns. ALGT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALGT was profitable.
ALGT had a positive operating cash flow in the past year.
In multiple years ALGT reported negative net income over the last 5 years.
ALGT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.55%, ALGT is in line with its industry, outperforming 47.83% of the companies in the same industry.
ALGT has a Return On Equity (-2.03%) which is in line with its industry peers.
ALGT has a Return On Invested Capital of 1.74%. This is comparable to the rest of the industry: ALGT outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.55% | ||
| ROE | -2.03% | ||
| ROIC | 1.74% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALGT has a Operating Margin (3.34%) which is comparable to the rest of the industry.
ALGT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 67.65%, ALGT belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
ALGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.34% | ||
| PM (TTM) | N/A | ||
| GM | 67.65% |
OM growth 3Y5.16%
OM growth 5Y-23.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALGT is destroying value.
There is no outstanding debt for ALGT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that ALGT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALGT (1.13) is better than 65.22% of its industry peers.
ALGT has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
ALGT has a Debt to Equity ratio (1.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.13 |
ROIC/WACC0.23
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.75 indicates that ALGT may have some problems paying its short term obligations.
The Current ratio of ALGT (0.75) is better than 65.22% of its industry peers.
A Quick Ratio of 0.72 indicates that ALGT may have some problems paying its short term obligations.
ALGT's Quick ratio of 0.72 is fine compared to the rest of the industry. ALGT outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for ALGT have decreased strongly by -68.12% in the last year.
Measured over the past years, ALGT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.09% on average per year.
Looking at the last year, ALGT shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
ALGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.42% yearly.
EPS 1Y (TTM)-68.12%
EPS 3Y12.05%
EPS 5Y-30.09%
EPS Q2Q%1809.09%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%2.73%
3.2 Future
Based on estimates for the next years, ALGT will show a very strong growth in Earnings Per Share. The EPS will grow by 67.69% on average per year.
The Revenue is expected to grow by 12.54% on average over the next years. This is quite good.
EPS Next Y217.78%
EPS Next 2Y97.95%
EPS Next 3Y67.69%
EPS Next 5YN/A
Revenue Next Year12.45%
Revenue Next 2Y11.9%
Revenue Next 3Y12.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.74, the valuation of ALGT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ALGT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 29.63. ALGT is around the same levels.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of ALGT.
60.87% of the companies in the same industry are more expensive than ALGT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ALGT to the average of the S&P500 Index (22.68), we can say ALGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.74 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGT is valued cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
ALGT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALGT's earnings are expected to grow with 67.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y97.95%
EPS Next 3Y67.69%
5. Dividend
5.1 Amount
ALGT has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
ALGT's Dividend Yield is rather good when compared to the industry average which is at 2.75. ALGT pays more dividend than 95.65% of the companies in the same industry.
ALGT's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of ALGT decreases each year by -15.33%.
ALGT has paid a dividend for at least 10 years, which is a reliable track record.
ALGT has decreased its dividend recently.
Dividend Growth(5Y)-15.33%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of ALGT are negative and hence is the payout ratio. ALGT will probably not be able to sustain this dividend level.
DP-125.11%
EPS Next 2Y97.95%
EPS Next 3Y67.69%
81.64
-4.33 (-5.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change-1.18%
Ins Owners16%
Ins Owner Change-3.49%
Market Cap1.50B
Analysts68
Price Target99.13 (21.42%)
Short Float %6.19%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend1.22
Dividend Growth(5Y)-15.33%
DP-125.11%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)61.63%
Min EPS beat(2)-2.61%
Max EPS beat(2)125.87%
EPS beat(4)3
Avg EPS beat(4)71.44%
Min EPS beat(4)-2.61%
Max EPS beat(4)150.73%
EPS beat(8)7
Avg EPS beat(8)85.67%
EPS beat(12)8
Avg EPS beat(12)48.26%
EPS beat(16)11
Avg EPS beat(16)39.9%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.73%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)0.73%
Revenue beat(8)4
Avg Revenue beat(8)-0.09%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)6
Avg Revenue beat(16)-0.72%
PT rev (1m)22.73%
PT rev (3m)66.6%
EPS NQ rev (1m)202.23%
EPS NQ rev (3m)306.46%
EPS NY rev (1m)31.99%
EPS NY rev (3m)30.22%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.74 | ||
| Fwd PE | 10.62 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | 4.87 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)2.42
EY2.96%
EPS(NY)7.69
Fwd EY9.42%
FCF(TTM)-2.9
FCFYN/A
OCF(TTM)16.78
OCFY20.55%
SpS136.09
BVpS70.88
TBVpS70.88
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.55% | ||
| ROE | -2.03% | ||
| ROCE | 2.35% | ||
| ROIC | 1.74% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 2.21% | ||
| OM | 3.34% | ||
| PM (TTM) | N/A | ||
| GM | 67.65% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y5.16%
OM growth 5Y-23.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y-0.76%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.27 | ||
| Cap/Depr | 143.31% | ||
| Cap/Sales | 14.46% | ||
| Interest Coverage | 1.01 | ||
| Cash Conversion | 91.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.13 |
F-Score6
WACC7.69%
ROIC/WACC0.23
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68.12%
EPS 3Y12.05%
EPS 5Y-30.09%
EPS Q2Q%1809.09%
EPS Next Y217.78%
EPS Next 2Y97.95%
EPS Next 3Y67.69%
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%2.73%
Revenue Next Year12.45%
Revenue Next 2Y11.9%
Revenue Next 3Y12.54%
Revenue Next 5YN/A
EBIT growth 1Y-73.8%
EBIT growth 3Y19.61%
EBIT growth 5Y-18.84%
EBIT Next Year310.64%
EBIT Next 3Y79.63%
EBIT Next 5YN/A
FCF growth 1Y38.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.75%
OCF growth 3YN/A
OCF growth 5YN/A