ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
NYSE:ALK • US0116591092
54.07 USD
+1.56 (+2.97%)
Last: Feb 25, 2026, 02:25 PM
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 decent growth rate and is not valued too expensively.
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 each of the past 5 years.
- Each year in the past 5 years ALK had a positive operating cash flow.
1.2 Ratios
- ALK has a Return On Assets (0.49%) which is comparable to the rest of the industry.
- ALK has a better Return On Equity (2.43%) than 63.64% of its industry peers.
- ALK has a Return On Invested Capital (2.83%) which is in line with its industry peers.
- ALK had an Average Return On Invested Capital over the past 3 years of 4.46%. This is significantly below the industry average of 20.69%.
| 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's Profit Margin of 0.70% is in line compared to the rest of the industry. ALK outperforms 59.09% of its industry peers.
- In the last couple of years the Profit Margin of ALK has grown nicely.
- ALK has a Operating Margin of 3.88%. This is comparable to the rest of the industry: ALK outperforms 54.55% of its industry peers.
- In the last couple of years the Operating Margin of ALK has declined.
- The Gross Margin of ALK (55.09%) is comparable to the rest of the 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 3Y3.2%
GM growth 5Y7.36%
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.
- The number of shares outstanding for ALK has been reduced compared to 1 year ago.
- ALK has less shares outstanding than it did 5 years ago.
- ALK has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.16, we must say that ALK is in the distress zone and has some risk of bankruptcy.
- ALK has a Altman-Z score of 1.16. This is in the better half of the industry: ALK outperforms 63.64% of its industry peers.
- A Debt/Equity ratio of 1.17 is on the high side and indicates that ALK has dependencies on debt financing.
- ALK's Debt to Equity ratio of 1.17 is fine compared to the rest of the industry. ALK outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.16 |
ROIC/WACC0.34
WACC8.39%
2.3 Liquidity
- A Current Ratio of 0.50 indicates that ALK may have some problems paying its short term obligations.
- ALK has a Current ratio of 0.50. This is in the lower half of the industry: ALK underperforms 63.64% of its industry peers.
- A Quick Ratio of 0.46 indicates that ALK may have some problems paying its short term obligations.
- ALK has a Quick ratio (0.46) which 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.
- ALK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.71% yearly.
- Looking at the last year, ALK shows a very strong growth in Revenue. The Revenue has grown by 21.34%.
- Measured over the past years, ALK shows a very strong growth in Revenue. The Revenue has been growing by 31.90% on average per year.
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
- The Earnings Per Share is expected to grow by 59.19% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 6.15% on average over the next years.
EPS Next Y119.21%
EPS Next 2Y83.69%
EPS Next 3Y59.19%
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y6.84%
Revenue Next 3Y6.15%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.71, the valuation of ALK can be described as rather expensive.
- 72.73% of the companies in the same industry are more expensive than ALK, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.98, ALK is valued at the same level.
- A Price/Forward Earnings ratio of 9.91 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 77.27% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. ALK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALK is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.94 |
4.3 Compensation for Growth
- The 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)0.18
PEG (5Y)N/A
EPS Next 2Y83.69%
EPS Next 3Y59.19%
5. Dividend
5.1 Amount
- ALK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ALK (2/25/2026, 2:25:03 PM)
54.07
+1.56 (+2.97%)
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 Change-0.62%
Ins Owners0.57%
Ins Owner Change15.55%
Market Cap6.25B
Revenue(TTM)14.24B
Net Income(TTM)100.00M
Analysts82.86
Price Target71.57 (32.37%)
Short Float %7.86%
Short Ratio2.55
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)1.94%
PT rev (3m)5.57%
EPS NQ rev (1m)-22.63%
EPS NQ rev (3m)-63.64%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.71 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.44 | ||
| P/FCF | N/A | ||
| P/OCF | 5 | ||
| P/B | 1.52 | ||
| P/tB | 10.77 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)2.49
EY4.61%
EPS(NY)5.46
Fwd EY10.09%
FCF(TTM)-2.93
FCFYN/A
OCF(TTM)10.81
OCFY19.99%
SpS123.25
BVpS35.64
TBVpS5.02
PEG (NY)0.18
PEG (5Y)N/A
Graham Number44.69
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 3Y3.2%
GM growth 5Y7.36%
F-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 199.75% | ||
| Cap/Sales | 11.15% | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | 92.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.16 |
F-Score5
WACC8.39%
ROIC/WACC0.34
Cap/Depr(3y)250.25%
Cap/Depr(5y)245.5%
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 2Y6.84%
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 6 / 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 21.71 and the Price/Book (PB) ratio is 1.52.
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%.