ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALK - US0116591092 - Common Stock
50.51 USD
+0.22 (+0.44%)
We assign a fundamental rating of 3 out of 10 to ALK. 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
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.
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.
The Return On Equity of ALK (3.72%) is better than 63.64% of its industry peers.
The Return On Invested Capital of ALK (3.28%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 1.06% is in line compared to the rest of the industry. ALK outperforms 59.09% of its industry peers.
ALK's Profit Margin has declined in the last couple of years.
ALK's Operating Margin of 4.26% is in line compared to the rest of the industry. ALK outperforms 59.09% of its industry peers.
ALK's Operating Margin has declined in the last couple of years.
ALK has a Gross Margin (55.33%) which is comparable to the rest of the industry.
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
ALK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALK has less shares outstanding than it did 1 year ago.
ALK has about the same amout of 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 1.18, we must say that ALK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.18, ALK is in line with its industry, 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 | 1.18 |
ROIC/WACC0.4
WACC8.24%
2.3 Liquidity
ALK has a Current 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's Current ratio of 0.52 is in line compared to the rest of the industry. ALK outperforms 45.45% of its industry peers.
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 50.00% of the companies in the same 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.
ALK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.48% yearly.
Looking at the last year, ALK shows a very strong growth in Revenue. The Revenue has grown by 31.50%.
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
Based on estimates for the next years, ALK will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.82% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 16.67 indicates a correct valuation of ALK.
ALK's Price/Earnings ratio is a bit cheaper when compared to the industry. ALK is cheaper than 68.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, ALK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 8.99, the valuation of ALK can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALK indicates a somewhat cheap valuation: ALK is cheaper than 77.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. ALK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALK is cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.13 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALK's earnings are expected to grow with 19.82% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.66%
EPS Next 3Y19.82%
5. Dividend
5.1 Amount
ALK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ALK (12/30/2025, 12:50:43 PM)
50.51
+0.22 (+0.44%)
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 Cap5.86B
Revenue(TTM)14.14B
Net Income(TTM)150.00M
Analysts82
Price Target66.81 (32.27%)
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)-1.45%
PT rev (3m)-3.95%
EPS NQ rev (1m)-62.25%
EPS NQ rev (3m)-86.57%
EPS NY rev (1m)-11.13%
EPS NY rev (3m)-33.24%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 8.99 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 4.38 | ||
| P/B | 1.45 | ||
| P/tB | 12.28 | ||
| EV/EBITDA | 5.13 |
EPS(TTM)3.03
EY6%
EPS(NY)5.62
Fwd EY11.13%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)11.54
OCFY22.84%
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
WACC8.24%
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-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 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 16.67 and the Price/Book (PB) ratio is 1.45.
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%.