ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALK - US0116591092 - Common Stock
46.92 USD
-0.93 (-1.94%)
Taking everything into account, ALK scores 4 out of 10 in our fundamental rating. ALK was compared to 22 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ALK was profitable.
- In the past year ALK had a positive cash flow from operations.
- 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 0.75%, ALK is in line with its industry, outperforming 59.09% of the companies in the same industry.
- ALK's Return On Equity of 3.72% is fine compared to the rest of the industry. ALK outperforms 63.64% of its industry peers.
- ALK's Return On Invested Capital of 3.28% is in line compared to the rest of the industry. ALK outperforms 59.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ALK is below the industry average of 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.72% | ||
| ROIC | 3.28% |
ROA(3y)1.34%
ROA(5y)-0.4%
ROE(3y)5.42%
ROE(5y)-3.09%
ROIC(3y)5.24%
ROIC(5y)N/A
1.3 Margins
- ALK has a Profit Margin (1.06%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ALK has declined.
- With a Operating Margin value of 4.26%, ALK perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALK has declined.
- With a Gross Margin value of 55.33%, ALK perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- In the last couple of years the Gross Margin of ALK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 1.06% | ||
| GM | 55.33% |
OM growth 3YN/A
OM growth 5Y-9.13%
PM growth 3Y-24.24%
PM growth 5Y-17.41%
GM growth 3Y3.86%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALK is destroying value.
- ALK has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ALK has about the same amount of shares outstanding.
- Compared to 1 year ago, ALK has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.17, we must say that ALK is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.17, ALK perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
- ALK has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
- ALK's Debt to Equity ratio of 1.12 is fine compared to the rest of the industry. ALK outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACC0.39
WACC8.43%
2.3 Liquidity
- A Current Ratio of 0.52 indicates that ALK may have some problems paying its short term obligations.
- ALK's Current ratio of 0.52 is in line compared to the rest of the industry. ALK outperforms 45.45% of its industry peers.
- ALK has a Quick Ratio of 0.52. 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 (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- The earnings per share for ALK have decreased strongly by -27.51% in the last year.
- The Earnings Per Share has been decreasing by -5.48% on average over the past years.
- The Revenue has grown by 31.50% in the past year. This is a very strong growth!
- Measured over the past years, ALK shows a small growth in Revenue. The Revenue has been growing by 5.97% on average per year.
EPS 1Y (TTM)-27.51%
EPS 3Y-6.46%
EPS 5Y-5.48%
EPS Q2Q%-53.33%
Revenue 1Y (TTM)31.5%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%22.59%
3.2 Future
- The Earnings Per Share is expected to grow by 19.82% on average over the next years. This is quite good.
- Based on estimates for the next years, ALK will show a quite strong growth in Revenue. The Revenue will grow by 11.67% on average per year.
EPS Next Y-55.08%
EPS Next 2Y7.66%
EPS Next 3Y19.82%
EPS Next 5YN/A
Revenue Next Year21.83%
Revenue Next 2Y14.43%
Revenue Next 3Y11.67%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.49, the valuation of ALK can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of ALK indicates a somewhat cheap valuation: ALK is cheaper than 68.18% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. ALK is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of ALK.
- Based on the Price/Forward Earnings ratio, ALK is valued cheaper than 90.91% of the companies in the same industry.
- ALK is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
- 95.45% of the companies in the same industry are more expensive than ALK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
- ALK's earnings are expected to grow with 19.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.66%
EPS Next 3Y19.82%
5. Dividend
5.1 Amount
- No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ALK (1/14/2026, 1:30:08 PM)
46.92
-0.93 (-1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)10-23 2025-10-23/amc
Earnings (Next)01-22 2026-01-22/amc
Inst Owners91.48%
Inst Owner Change0.02%
Ins Owners0.57%
Ins Owner Change-1.19%
Market Cap5.44B
Revenue(TTM)14.14B
Net Income(TTM)150.00M
Analysts82.86
Price Target66.81 (42.39%)
Short Float %7.01%
Short Ratio2.27
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)3.23%
Min EPS beat(2)-7.79%
Max EPS beat(2)14.26%
EPS beat(4)2
Avg EPS beat(4)30.21%
Min EPS beat(4)-7.79%
Max EPS beat(4)116.17%
EPS beat(8)6
Avg EPS beat(8)25.85%
EPS beat(12)7
Avg EPS beat(12)15.26%
EPS beat(16)11
Avg EPS beat(16)13.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)0.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-2%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)8
Avg Revenue beat(16)-0.23%
PT rev (1m)0.1%
PT rev (3m)-3.4%
EPS NQ rev (1m)-34.86%
EPS NQ rev (3m)-86.5%
EPS NY rev (1m)-7.08%
EPS NY rev (3m)-33.24%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.38 | ||
| P/FCF | N/A | ||
| P/OCF | 4.07 | ||
| P/B | 1.35 | ||
| P/tB | 11.41 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)3.03
EY6.46%
EPS(NY)5.62
Fwd EY11.98%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)11.54
OCFY24.59%
SpS121.92
BVpS34.74
TBVpS4.11
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.72% | ||
| ROCE | 4.52% | ||
| ROIC | 3.28% | ||
| ROICexc | 3.95% | ||
| ROICexgc | 5.82% | ||
| OM | 4.26% | ||
| PM (TTM) | 1.06% | ||
| GM | 55.33% | ||
| FCFM | N/A |
ROA(3y)1.34%
ROA(5y)-0.4%
ROE(3y)5.42%
ROE(5y)-3.09%
ROIC(3y)5.24%
ROIC(5y)N/A
ROICexc(3y)6.57%
ROICexc(5y)N/A
ROICexgc(3y)9.14%
ROICexgc(5y)N/A
ROCE(3y)7.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-7.41%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.28%
OM growth 3YN/A
OM growth 5Y-9.13%
PM growth 3Y-24.24%
PM growth 5Y-17.41%
GM growth 3Y3.86%
GM growth 5Y0.81%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 177.1% | ||
| Cap/Sales | 9.84% | ||
| Interest Coverage | 2.77 | ||
| Cash Conversion | 96.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.17 |
F-Score6
WACC8.43%
ROIC/WACC0.39
Cap/Depr(3y)317.88%
Cap/Depr(5y)215.36%
Cap/Sales(3y)14.19%
Cap/Sales(5y)10.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.51%
EPS 3Y-6.46%
EPS 5Y-5.48%
EPS Q2Q%-53.33%
EPS Next Y-55.08%
EPS Next 2Y7.66%
EPS Next 3Y19.82%
EPS Next 5YN/A
Revenue 1Y (TTM)31.5%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%22.59%
Revenue Next Year21.83%
Revenue Next 2Y14.43%
Revenue Next 3Y11.67%
Revenue Next 5YN/A
EBIT growth 1Y-26.46%
EBIT growth 3YN/A
EBIT growth 5Y-3.7%
EBIT Next Year70.92%
EBIT Next 3Y41.57%
EBIT Next 5YN/A
FCF growth 1Y91.04%
FCF growth 3Y-37.18%
FCF growth 5Y-29.16%
OCF growth 1Y20.32%
OCF growth 3Y12.43%
OCF growth 5Y-3.19%
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 4 / 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 15.49 and the Price/Book (PB) ratio is 1.35.
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%.