ALASKA AIR GROUP INC (ALK)
US0116591092 - Common Stock
ALK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 24 industry peers in the Passenger Airlines industry. While ALK is still in line with the averages on profitability rating, there are concerns on its financial health. ALK is not valued too expensively and it also shows a decent 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.
ALK had positive earnings in 4 of the past 5 years.
ALK 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 1.47%, ALK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ALK's Return On Equity of 5.32% is fine compared to the rest of the industry. ALK outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.44%, ALK is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.32% | ||
| ROIC | 5.44% |
ROA(3y)1.81%
ROA(5y)0.39%
ROE(3y)6.6%
ROE(5y)-1.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.14%, ALK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of ALK has declined.
ALK has a Operating Margin of 7.34%. This is in the better half of the industry: ALK outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of ALK has declined.
Looking at the Gross Margin, with a value of 53.96%, ALK is in line with its industry, outperforming 58.33% of the companies in the same industry.
ALK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.34% | ||
| PM (TTM) | 2.14% | ||
| GM | 53.96% |
OM growth 3YN/A
OM growth 5Y-3.21%
PM growth 3YN/A
PM growth 5Y-15.68%
GM growth 3Y10.28%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALK is destroying value.
Compared to 1 year ago, ALK has less shares outstanding
The number of shares outstanding for ALK has been increased compared to 5 years ago.
The debt/assets ratio for ALK is higher compared to a year ago.
2.2 Solvency
ALK has an Altman-Z score of 1.51. This is a bad value and indicates that ALK is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.51, ALK is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that ALK is somewhat dependend on debt financing.
The Debt to Equity ratio of ALK (0.55) is better than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.7
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.68 indicates that ALK may have some problems paying its short term obligations.
The Current ratio of ALK (0.68) is comparable to the rest of the industry.
ALK has a Quick Ratio of 0.68. This is a bad value and indicates that ALK is not financially healthy enough and could expect problems in meeting its short term obligations.
ALK has a Quick ratio of 0.66. This is comparable to the rest of the industry: ALK outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ALK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.52%.
ALK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.22% yearly.
Looking at the last year, ALK shows a quite strong growth in Revenue. The Revenue has grown by 8.09% in the last year.
Measured over the past years, ALK shows a small growth in Revenue. The Revenue has been growing by 4.76% on average per year.
EPS 1Y (TTM)-18.52%
EPS 3YN/A
EPS 5Y0.22%
EPS Q2Q%22.95%
Revenue 1Y (TTM)8.09%
Revenue growth 3Y42.99%
Revenue growth 5Y4.76%
Sales Q2Q%8.21%
3.2 Future
ALK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.13% yearly.
ALK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.23% yearly.
EPS Next Y-2.27%
EPS Next 2Y9.98%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue Next Year12.93%
Revenue Next 2Y17.01%
Revenue Next 3Y14.23%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.51, the valuation of ALK can be described as correct.
Based on the Price/Earnings ratio, ALK is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, ALK is valued rather cheaply.
A Price/Forward Earnings ratio of 9.59 indicates a reasonable valuation of ALK.
ALK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALK is cheaper than 70.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALK to the average of the S&P500 Index (23.82), we can say ALK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALK is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.26 |
4.3 Compensation for Growth
ALK's earnings are expected to grow with 15.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)56.05
EPS Next 2Y9.98%
EPS Next 3Y15.13%
5. Dividend
5.1 Amount
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALASKA AIR GROUP INC
NYSE:ALK (11/21/2024, 8:11:50 PM)
After market: 53 +0.7 (+1.34%)52.3
-0.84 (-1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 9.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)56.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.34% | ||
| PM (TTM) | 2.14% | ||
| GM | 53.96% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-18.52%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-2.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.09%
Revenue growth 3Y42.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y