ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
NYSE:ALK • US0116591092
52.58 USD
+0.45 (+0.86%)
At close: Feb 20, 2026
52.58 USD
0 (0%)
After Hours: 2/20/2026, 8:16:40 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ALK had positive earnings in the past year.
- In the past year ALK had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 0.49%, ALK is in line with its industry, outperforming 59.09% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 2.43%, ALK is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- ALK's Return On Invested Capital of 2.83% is in line compared to the rest of the industry. ALK outperforms 50.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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.
- In the last couple of years the Profit Margin of ALK has grown nicely.
- ALK has a Operating Margin (3.88%) which is comparable to the rest of the industry.
- 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.
- 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALK is destroying value.
- ALK has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ALK has less shares outstanding
- 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 has a Debt to Equity ratio of 1.17. This is in the better half 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
WACC8.42%
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.
- 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.
- ALK has a Quick ratio of 0.46. This is comparable to the rest of the industry: ALK outperforms 45.45% of its industry peers.
| 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.
- Measured over the past years, ALK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.71% on average per year.
- The Revenue has grown by 21.34% in the past year. This is a very strong growth!
- The Revenue has been growing by 31.90% on average over the past years. This is a very strong growth!
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.
- 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
- The Price/Earnings ratio is 21.12, which indicates a rather expensive current valuation of ALK.
- 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 26.99.
- Based on the Price/Forward Earnings ratio of 9.63, the valuation of ALK can be described as 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.
- ALK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALK is valued cheaper than 86.36% of the companies in the same industry.
| 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% |
52.58
+0.45 (+0.86%)
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 Cap6.07B
Revenue(TTM)14.24B
Net Income(TTM)100.00M
Analysts82.86
Price Target71.57 (36.12%)
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 | 21.12 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.43 | ||
| P/FCF | N/A | ||
| P/OCF | 4.86 | ||
| P/B | 1.48 | ||
| P/tB | 10.47 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)2.49
EY4.74%
EPS(NY)5.46
Fwd EY10.38%
FCF(TTM)-2.93
FCFYN/A
OCF(TTM)10.81
OCFY20.56%
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
WACC8.42%
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 21.12 and the Price/Book (PB) ratio is 1.48.
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%.