ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALK - US0116591092 - Common Stock
51.09 USD
+1.55 (+3.13%)
Taking everything into account, ALK scores 3 out of 10 in our fundamental rating. ALK was compared to 21 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.
ALK had a positive operating cash flow in the past year.
ALK had positive earnings in 4 of the past 5 years.
Of the past 5 years ALK 4 years had a positive operating cash flow.
1.2 Ratios
ALK has a Return On Assets of 0.75%. This is comparable to the rest of the industry: ALK outperforms 57.14% of its industry peers.
ALK's Return On Equity of 3.72% is fine compared to the rest of the industry. ALK outperforms 61.90% of its industry peers.
ALK has a Return On Invested Capital of 3.28%. This is comparable to the rest of the industry: ALK outperforms 57.14% of its industry peers.
ALK had an Average Return On Invested Capital over the past 3 years of 5.24%. This 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 in line with its industry peers.
In the last couple of years the Profit Margin of ALK has declined.
ALK has a Operating Margin (4.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ALK has declined.
ALK has a Gross Margin (55.33%) which is in line with its industry peers.
ALK's Gross Margin has been stable in the last couple of years.
| 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
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 about the same amount of 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 1.18, we must say that ALK is in the distress zone and has some risk of bankruptcy.
ALK has a Altman-Z score (1.18) which is in line with its industry peers.
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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.4
WACC8.26%
2.3 Liquidity
A Current Ratio of 0.52 indicates that ALK may have some problems paying its short term obligations.
The Current ratio of ALK (0.52) is comparable to the rest of the industry.
A Quick Ratio of 0.49 indicates that ALK may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, ALK perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
ALK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.51%.
Measured over the past years, ALK shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.48% on average per year.
The Revenue has grown by 31.50% in the past year. This is a very strong growth!
ALK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
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
ALK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.92% yearly.
Based on estimates for the next years, ALK will show a quite strong growth in Revenue. The Revenue will grow by 11.66% on average per year.
EPS Next Y-51.66%
EPS Next 2Y7.34%
EPS Next 3Y19.92%
EPS Next 5YN/A
Revenue Next Year22.08%
Revenue Next 2Y14.44%
Revenue Next 3Y11.66%
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
The Price/Earnings ratio is 16.86, which indicates a correct valuation of ALK.
Based on the Price/Earnings ratio, ALK is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.29, ALK is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of ALK.
Based on the Price/Forward Earnings ratio, ALK is valued cheaper than 80.95% of the companies in the same industry.
ALK is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALK is cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALK's earnings are expected to grow with 19.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.34%
EPS Next 3Y19.92%
5. Dividend
5.1 Amount
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ALK (12/10/2025, 2:37:08 PM)
51.09
+1.55 (+3.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners91.84%
Inst Owner Change-1.16%
Ins Owners0.57%
Ins Owner Change-1.19%
Market Cap5.93B
Revenue(TTM)14.14B
Net Income(TTM)150.00M
Analysts82
Price Target66.74 (30.63%)
Short Float %6.93%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1.57%
PT rev (3m)0.97%
EPS NQ rev (1m)-44.33%
EPS NQ rev (3m)-79.11%
EPS NY rev (1m)-4.36%
EPS NY rev (3m)-30.64%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 4.43 | ||
| P/B | 1.47 | ||
| P/tB | 12.42 | ||
| EV/EBITDA | 5.07 |
EPS(TTM)3.03
EY5.93%
EPS(NY)5.59
Fwd EY10.94%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)11.54
OCFY22.58%
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 | 1.18 |
F-Score6
WACC8.26%
ROIC/WACC0.4
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-51.66%
EPS Next 2Y7.34%
EPS Next 3Y19.92%
EPS Next 5YN/A
Revenue 1Y (TTM)31.5%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%22.59%
Revenue Next Year22.08%
Revenue Next 2Y14.44%
Revenue Next 3Y11.66%
Revenue Next 5YN/A
EBIT growth 1Y-26.46%
EBIT growth 3YN/A
EBIT growth 5Y-3.7%
EBIT Next Year65.29%
EBIT Next 3Y40.85%
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 3 / 10 to ALK.
What is the valuation status of ALASKA AIR GROUP INC (ALK) stock?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the PE and PB ratios for ALK stock?
The Price/Earnings (PE) ratio for ALASKA AIR GROUP INC (ALK) is 16.86 and the Price/Book (PB) ratio is 1.47.
Can you provide the dividend sustainability for ALK stock?
The dividend rating of ALASKA AIR GROUP INC (ALK) is 0 / 10 and the dividend payout ratio is 0%.