ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
NYSE:ALK • US0116591092
55.27 USD
-0.42 (-0.75%)
At close: Feb 13, 2026
55.35 USD
+0.08 (+0.14%)
After Hours: 2/13/2026, 8:04:00 PM
ALK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Passenger Airlines industry. ALK has a medium profitability rating, but doesn't score so well on its financial health evaluation. ALK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ALK was profitable.
- ALK had a positive operating cash flow in the past year.
- Each year in the past 5 years ALK has been profitable.
- In the past 5 years ALK always reported a positive cash flow from operatings.
1.2 Ratios
- ALK's Return On Assets of 0.49% is in line compared to the rest of the industry. ALK outperforms 59.09% of its industry peers.
- ALK's Return On Equity of 2.43% is fine compared to the rest of the industry. ALK outperforms 63.64% of its industry peers.
- ALK has a Return On Invested Capital (2.83%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALK is significantly below the industry average of 20.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 2.43% | ||
| ROIC | 2.83% |
ROA(3y)1.37%
ROA(5y)1.59%
ROE(3y)5.73%
ROE(5y)6.25%
ROIC(3y)4.46%
ROIC(5y)N/A
1.3 Margins
- ALK has a Profit Margin (0.70%) which is comparable to the rest of the industry.
- ALK's Profit Margin has improved in the last couple of years.
- The Operating Margin of ALK (3.88%) is comparable to the rest of the industry.
- ALK's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 55.09%, ALK is in line with its industry, outperforming 54.55% of the companies in the same industry.
- ALK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | 0.7% | ||
| GM | 55.09% |
OM growth 3Y-16.78%
OM growth 5YN/A
PM growth 3Y5.31%
PM growth 5YN/A
GM growth 3Y2%
GM growth 5Y6.62%
2. Health
2.1 Basic Checks
- ALK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ALK has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ALK has been reduced compared to 5 years ago.
- Compared to 1 year ago, ALK has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.18, we must say that ALK is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.18, ALK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- ALK has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
- With a decent Debt to Equity ratio value of 1.17, ALK is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.33
WACC8.68%
2.3 Liquidity
- A Current Ratio of 0.50 indicates that ALK may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.50, ALK is doing worse than 63.64% of the companies in the same industry.
- A Quick Ratio of 0.46 indicates that ALK may have some problems paying its short term obligations.
- The Quick ratio of ALK (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- The earnings per share for ALK have decreased strongly by -48.66% in the last year.
- The earnings per share for ALK have been decreasing by -16.71% on average. This is quite bad
- ALK shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.34%.
- ALK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.90% yearly.
EPS 1Y (TTM)-48.66%
EPS 3Y-16.71%
EPS 5YN/A
EPS Q2Q%-55.67%
Revenue 1Y (TTM)21.34%
Revenue growth 3Y13.86%
Revenue growth 5Y31.9%
Sales Q2Q%2.77%
3.2 Future
- ALK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.19% yearly.
- Based on estimates for the next years, ALK will show a small growth in Revenue. The Revenue will grow by 6.15% on average per year.
EPS Next Y119.21%
EPS Next 2Y83.69%
EPS Next 3Y59.19%
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y6.77%
Revenue Next 3Y6.15%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.20, ALK is valued on the expensive side.
- ALK's Price/Earnings ratio is a bit cheaper when compared to the industry. ALK is cheaper than 72.73% of the companies in the same industry.
- ALK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.97.
- With a Price/Forward Earnings ratio of 10.13, the valuation of ALK can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ALK is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ALK to the average of the S&P500 Index (27.96), we can say ALK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- ALK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as ALK's earnings are expected to grow with 59.19% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y83.69%
EPS Next 3Y59.19%
5. Dividend
5.1 Amount
- No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
55.27
-0.42 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)01-22 2026-01-22/amc
Earnings (Next)04-21 2026-04-21
Inst Owners91.48%
Inst Owner Change1.41%
Ins Owners0.57%
Ins Owner Change-0.39%
Market Cap6.41B
Revenue(TTM)14.24B
Net Income(TTM)100.00M
Analysts82.86
Price Target71.57 (29.49%)
Short Float %6.45%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)120.98%
Min EPS beat(2)-7.79%
Max EPS beat(2)249.74%
EPS beat(4)2
Avg EPS beat(4)63.61%
Min EPS beat(4)-7.79%
Max EPS beat(4)249.74%
EPS beat(8)6
Avg EPS beat(8)49.07%
EPS beat(12)8
Avg EPS beat(12)36.3%
EPS beat(16)11
Avg EPS beat(16)28.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2%
Max Revenue beat(4)0.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.17%
Revenue beat(12)5
Avg Revenue beat(12)-0.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)7.12%
PT rev (3m)8.92%
EPS NQ rev (1m)-33.03%
EPS NQ rev (3m)-65.12%
EPS NY rev (1m)-2.9%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.45 | ||
| P/FCF | N/A | ||
| P/OCF | 5.13 | ||
| P/B | 1.56 | ||
| P/tB | 11.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.49
EY4.51%
EPS(NY)5.46
Fwd EY9.88%
FCF(TTM)-2.92
FCFYN/A
OCF(TTM)10.77
OCFY19.48%
SpS122.76
BVpS35.5
TBVpS5
PEG (NY)0.19
PEG (5Y)N/A
Graham Number44.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 2.43% | ||
| ROCE | 4.02% | ||
| ROIC | 2.83% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 4.81% | ||
| OM | 3.88% | ||
| PM (TTM) | 0.7% | ||
| GM | 55.09% | ||
| FCFM | N/A |
ROA(3y)1.37%
ROA(5y)1.59%
ROE(3y)5.73%
ROE(5y)6.25%
ROIC(3y)4.46%
ROIC(5y)N/A
ROICexc(3y)5.4%
ROICexc(5y)N/A
ROICexgc(3y)7.56%
ROICexgc(5y)N/A
ROCE(3y)6.33%
ROCE(5y)N/A
ROICexgc growth 3Y-18.1%
ROICexgc growth 5YN/A
ROICexc growth 3Y-19%
ROICexc growth 5YN/A
OM growth 3Y-16.78%
OM growth 5YN/A
PM growth 3Y5.31%
PM growth 5YN/A
GM growth 3Y2%
GM growth 5Y6.62%
F-Score4
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 11.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.18 |
F-Score4
WACC8.68%
ROIC/WACC0.33
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)12.13%
Cap/Sales(5y)11.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.66%
EPS 3Y-16.71%
EPS 5YN/A
EPS Q2Q%-55.67%
EPS Next Y119.21%
EPS Next 2Y83.69%
EPS Next 3Y59.19%
EPS Next 5YN/A
Revenue 1Y (TTM)21.34%
Revenue growth 3Y13.86%
Revenue growth 5Y31.9%
Sales Q2Q%2.77%
Revenue Next Year7.55%
Revenue Next 2Y6.77%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
EBIT growth 1Y-39.56%
EBIT growth 3Y-5.24%
EBIT growth 5YN/A
EBIT Next Year268.76%
EBIT Next 3Y61.4%
EBIT Next 5YN/A
FCF growth 1Y-285.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.69%
OCF growth 3Y-4.14%
OCF growth 5YN/A
ALASKA AIR GROUP INC / ALK FAQ
What is the ChartMill fundamental rating of ALASKA AIR GROUP INC (ALK) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ALK.
Can you provide the valuation status for ALASKA AIR GROUP INC?
ChartMill assigns a valuation rating of 5 / 10 to ALASKA AIR GROUP INC (ALK). This can be considered as Fairly Valued.
How profitable is ALASKA AIR GROUP INC (ALK) stock?
ALASKA AIR GROUP INC (ALK) has a profitability rating of 5 / 10.
What are the PE and PB ratios of ALASKA AIR GROUP INC (ALK) stock?
The Price/Earnings (PE) ratio for ALASKA AIR GROUP INC (ALK) is 22.2 and the Price/Book (PB) ratio is 1.56.
Is the dividend of ALASKA AIR GROUP INC sustainable?
The dividend rating of ALASKA AIR GROUP INC (ALK) is 0 / 10 and the dividend payout ratio is 0%.