ALASKA AIR GROUP INC (ALK)
US0116591092 - Common Stock
Overall ALK gets a fundamental rating of 3 out of 10. We evaluated ALK against 23 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 1.65%. This is in the better half of the industry: ALK outperforms 65.22% of its industry peers.
With a decent Return On Equity value of 7.19%, ALK is doing good in the industry, outperforming 65.22% of the companies in the same industry.
ALK has a Return On Invested Capital of 4.50%. This is comparable to the rest of the industry: ALK outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 7.19% | ||
| ROIC | 4.5% |
ROA(3y)1.81%
ROA(5y)0.39%
ROE(3y)6.6%
ROE(5y)-1.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ALK (2.99%) is better than 65.22% of its industry peers.
ALK's Profit Margin has declined in the last couple of years.
ALK's Operating Margin of 7.63% is fine compared to the rest of the industry. ALK outperforms 60.87% of its industry peers.
In the last couple of years the Operating Margin of ALK has declined.
ALK's Gross Margin of 55.11% is in line compared to the rest of the industry. ALK outperforms 56.52% of its industry peers.
ALK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.63% | ||
| PM (TTM) | 2.99% | ||
| GM | 55.11% |
OM growth 3YN/A
OM growth 5Y-3.21%
PM growth 3YN/A
PM growth 5Y-15.68%
GM growth 3Y10.28%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALK is destroying value.
The number of shares outstanding for ALK has been reduced compared to 1 year ago.
Compared to 5 years ago, ALK has more shares outstanding
Compared to 1 year ago, ALK has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that ALK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALK (1.22) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.93 indicates that ALK is somewhat dependend on debt financing.
The Debt to Equity ratio of ALK (0.93) is better than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC0.57
WACC7.89%
2.3 Liquidity
ALK has a Current Ratio of 0.60. 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 0.60 is in line compared to the rest of the industry. ALK outperforms 47.83% of its industry peers.
ALK has a Quick Ratio of 0.60. 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 (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for ALK have decreased strongly by -18.52% in the last year.
Measured over the past 5 years, ALK shows a small growth in Earnings Per Share. The EPS has been growing by 0.22% on average per year.
The Revenue has been growing slightly by 3.88% in the past year.
ALK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.76% yearly.
EPS 1Y (TTM)-18.52%
EPS 3YN/A
EPS 5Y0.22%
EPS Q2Q%22.95%
Revenue 1Y (TTM)3.88%
Revenue growth 3Y42.99%
Revenue growth 5Y4.76%
Sales Q2Q%8.21%
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 18.18% yearly.
The Revenue is expected to grow by 11.74% on average over the next years. This is quite good.
EPS Next Y-3.7%
EPS Next 2Y13.07%
EPS Next 3Y18.18%
EPS Next 5YN/A
Revenue Next Year12.14%
Revenue Next 2Y17.02%
Revenue Next 3Y13.67%
Revenue Next 5Y11.74%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALK is valuated correctly with a Price/Earnings ratio of 16.17.
Based on the Price/Earnings ratio, ALK is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.54, ALK is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent valuation of ALK.
Based on the Price/Forward Earnings ratio, ALK is valued a bit cheaper than 60.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALK to the average of the S&P500 Index (23.99), we can say ALK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALK is cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
ALK's earnings are expected to grow with 18.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)72.45
EPS Next 2Y13.07%
EPS Next 3Y18.18%
5. Dividend
5.1 Amount
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALASKA AIR GROUP INC
NYSE:ALK (12/24/2024, 7:55:01 PM)
After market: 67.05 -0.55 (-0.81%)67.6
+0.13 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners90.43%
Inst Owner Change-2.02%
Ins Owners0.45%
Ins Owner Change-5.78%
Market Cap8.58B
Analysts80
Price Target61.89 (-8.45%)
Short Float %7.25%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.51%
Min EPS beat(2)2.73%
Max EPS beat(2)6.28%
EPS beat(4)4
Avg EPS beat(4)21.49%
Min EPS beat(4)2.73%
Max EPS beat(4)63.97%
EPS beat(8)5
Avg EPS beat(8)7.78%
EPS beat(12)9
Avg EPS beat(12)8.02%
EPS beat(16)13
Avg EPS beat(16)9.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)1.89%
Revenue beat(8)3
Avg Revenue beat(8)-0.78%
Revenue beat(12)6
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)-0.34%
PT rev (1m)11.2%
PT rev (3m)13.94%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-58.75%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)8.79%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)23.77%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)9.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.8 | ||
| P/FCF | N/A | ||
| P/OCF | 7.55 | ||
| P/B | 1.92 | ||
| P/tB | 9.66 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)4.18
EY6.18%
EPS(NY)5.77
Fwd EY8.53%
FCF(TTM)-1.72
FCFYN/A
OCF(TTM)8.96
OCFY13.25%
SpS84.72
BVpS35.28
TBVpS7
PEG (NY)N/A
PEG (5Y)72.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 7.19% | ||
| ROCE | 6.16% | ||
| ROIC | 4.5% | ||
| ROICexc | 5.55% | ||
| ROICexgc | 8.31% | ||
| OM | 7.63% | ||
| PM (TTM) | 2.99% | ||
| GM | 55.11% | ||
| FCFM | N/A |
ROA(3y)1.81%
ROA(5y)0.39%
ROE(3y)6.6%
ROE(5y)-1.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-4.61%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.9%
OM growth 3YN/A
OM growth 5Y-3.21%
PM growth 3YN/A
PM growth 5Y-15.68%
GM growth 3Y10.28%
GM growth 5Y0.08%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 263.62% | ||
| Cap/Sales | 12.6% | ||
| Interest Coverage | 6.46 | ||
| Cash Conversion | 85.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.22 |
F-Score5
WACC7.89%
ROIC/WACC0.57
Cap/Depr(3y)269.34%
Cap/Depr(5y)204.32%
Cap/Sales(3y)12.13%
Cap/Sales(5y)10.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.52%
EPS 3YN/A
EPS 5Y0.22%
EPS Q2Q%22.95%
EPS Next Y-3.7%
EPS Next 2Y13.07%
EPS Next 3Y18.18%
EPS Next 5YN/A
Revenue 1Y (TTM)3.88%
Revenue growth 3Y42.99%
Revenue growth 5Y4.76%
Sales Q2Q%8.21%
Revenue Next Year12.14%
Revenue Next 2Y17.02%
Revenue Next 3Y13.67%
Revenue Next 5Y11.74%
EBIT growth 1Y-9.39%
EBIT growth 3YN/A
EBIT growth 5Y1.39%
EBIT Next Year76.13%
EBIT Next 3Y37.75%
EBIT Next 5YN/A
FCF growth 1Y-144.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.07%
OCF growth 3YN/A
OCF growth 5Y-2.55%