ALASKA AIR GROUP INC (ALK) Fundamental Analysis & Valuation
NYSE:ALK • US0116591092
39.425 USD
-1.9 (-4.59%)
Last: Mar 12, 2026, 11:37 AM
This ALK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ALK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. ALK Profitability Analysis
1.1 Basic Checks
- ALK had positive earnings in the past year.
- 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 of 0.49%. This is comparable to the rest of the industry: ALK outperforms 59.09% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ALK 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
- The Profit Margin of ALK (0.70%) 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.
- ALK has a Gross Margin (55.09%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of ALK has grown nicely.
| 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. ALK Health Analysis
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
- Compared to 5 years ago, ALK has less shares outstanding
- The debt/assets ratio for ALK is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.11, we must say that ALK is in the distress zone and has some risk of bankruptcy.
- ALK has a Altman-Z score (1.11) which is in line with its industry peers.
- 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 | 1.11 |
ROIC/WACC0.34
WACC8.3%
2.3 Liquidity
- ALK has a Current Ratio of 0.50. This is a bad value and indicates that ALK is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.50, ALK is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- ALK has a Quick Ratio of 0.50. This is a bad value and indicates that ALK is not financially healthy enough and could expect problems in meeting 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. ALK Growth Analysis
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.
- ALK shows a strong growth in Revenue. In the last year, 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
- Based on estimates for the next years, ALK will show a very strong growth in Earnings Per Share. The EPS will grow by 58.17% on average per year.
- 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 Y119.42%
EPS Next 2Y84.99%
EPS Next 3Y58.17%
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y6.84%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ALK Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.83 indicates a correct valuation of ALK.
- Based on the Price/Earnings ratio, ALK is valued a bit cheaper than 72.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.15, ALK is valued a bit cheaper.
- A Price/Forward Earnings ratio of 7.22 indicates a rather cheap valuation of ALK.
- Based on the Price/Forward Earnings ratio, ALK is valued cheaper than 86.36% of the companies in the same industry.
- ALK is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
- ALK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALK is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.95 |
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 58.17% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y84.99%
EPS Next 3Y58.17%
5. ALK Dividend Analysis
5.1 Amount
- ALK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ALK Fundamentals: All Metrics, Ratios and Statistics
NYSE:ALK (3/12/2026, 11:37:09 AM)
39.425
-1.9 (-4.59%)
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 Owners92.11%
Inst Owner Change-0.57%
Ins Owners0.71%
Ins Owner Change15.55%
Market Cap4.52B
Revenue(TTM)14.24B
Net Income(TTM)100.00M
Analysts82.86
Price Target71.57 (81.53%)
Short Float %8.32%
Short Ratio2.95
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)0%
PT rev (3m)7.23%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)-30.04%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-2.24%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 7.22 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 3.62 | ||
| P/B | 1.1 | ||
| P/tB | 7.79 | ||
| EV/EBITDA | 4.95 |
EPS(TTM)2.49
EY6.32%
EPS(NY)5.46
Fwd EY13.86%
FCF(TTM)-2.96
FCFYN/A
OCF(TTM)10.9
OCFY27.63%
SpS124.21
BVpS35.92
TBVpS5.06
PEG (NY)0.13
PEG (5Y)N/A
Graham Number44.86
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 | 1.11 |
F-Score5
WACC8.3%
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 Y119.42%
EPS Next 2Y84.99%
EPS Next 3Y58.17%
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 Year260.58%
EBIT Next 3Y69.46%
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 15.83 and the Price/Book (PB) ratio is 1.1.
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%.