AIR TRANSPORT SERVICES GROUP (ATSG) Stock Fundamental Analysis
NASDAQ:ATSG - Nasdaq - US00922R1059 - Common Stock - Currency: USD
Taking everything into account, ATSG scores 3 out of 10 in our fundamental rating. ATSG was compared to 23 industry peers in the Air Freight & Logistics industry. While ATSG is still in line with the averages on profitability rating, there are concerns on its financial health. ATSG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ATSG was profitable.
ATSG had a positive operating cash flow in the past year.
Each year in the past 5 years ATSG has been profitable.
In the past 5 years ATSG always reported a positive cash flow from operatings.
1.2 Ratios
ATSG has a Return On Assets (-0.06%) which is in line with its industry peers.
ATSG has a Return On Equity (-0.16%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.56%, ATSG perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATSG is significantly below the industry average of 11.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.16% | ||
| ROIC | 2.56% |
ROA(3y)4.72%
ROA(5y)3.48%
ROE(3y)11.99%
ROE(5y)10.6%
ROIC(3y)5.25%
ROIC(5y)5.24%
1.3 Margins
In the last couple of years the Profit Margin of ATSG has declined.
With a decent Operating Margin value of 6.25%, ATSG is doing good in the industry, outperforming 73.68% of the companies in the same industry.
ATSG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.95%, ATSG belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
ATSG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.25% | ||
| PM (TTM) | N/A | ||
| GM | 51.95% |
OM growth 3Y-8.55%
OM growth 5Y-4.95%
PM growth 3Y12.54%
PM growth 5Y-17.81%
GM growth 3Y-2.5%
GM growth 5Y-3.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATSG is destroying value.
The number of shares outstanding for ATSG has been reduced compared to 1 year ago.
The number of shares outstanding for ATSG has been increased compared to 5 years ago.
The debt/assets ratio for ATSG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that ATSG is in the distress zone and has some risk of bankruptcy.
ATSG's Altman-Z score of 1.17 is on the low side compared to the rest of the industry. ATSG is outperformed by 68.42% of its industry peers.
The Debt to FCF ratio of ATSG is 16.63, which is on the high side as it means it would take ATSG, 16.63 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.63, ATSG perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
ATSG has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ATSG (1.06) is worse than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.63 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.34
WACC7.53%
2.3 Liquidity
ATSG has a Current Ratio of 0.81. This is a bad value and indicates that ATSG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, ATSG is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that ATSG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, ATSG is doing worse than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for ATSG have decreased strongly by -62.92% in the last year.
ATSG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.92% yearly.
ATSG shows a decrease in Revenue. In the last year, the revenue decreased by -5.96%.
ATSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.34% yearly.
EPS 1Y (TTM)-62.92%
EPS 3Y-5.97%
EPS 5Y1.92%
EPS Q2Q%-59.37%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y9.65%
Revenue growth 5Y18.34%
Sales Q2Q%-9.92%
3.2 Future
ATSG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.51% yearly.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y-44.79%
EPS Next 2Y-13.71%
EPS Next 3Y2.51%
EPS Next 5YN/A
Revenue Next Year-5.19%
Revenue Next 2Y-0.43%
Revenue Next 3Y1.17%
Revenue Next 5Y4.02%
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. Valuation
4.1 Price/Earnings Ratio
ATSG is valuated quite expensively with a Price/Earnings ratio of 33.73.
ATSG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ATSG to the average of the S&P500 Index (28.47), we can say ATSG is valued inline with the index average.
ATSG is valuated rather expensively with a Price/Forward Earnings ratio of 20.90.
ATSG's Price/Forward Earnings is on the same level as the industry average.
ATSG is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.73 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATSG is valued cheaper than 89.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATSG is valued cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)17.53
EPS Next 2Y-13.71%
EPS Next 3Y2.51%
5. Dividend
5.1 Amount
No dividends for ATSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AIR TRANSPORT SERVICES GROUP
NASDAQ:ATSG (2/5/2025, 4:03:42 PM)
After market: 22.26 0 (0%)22.26
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners81.4%
Inst Owner Change-1.02%
Ins Owners2.82%
Ins Owner Change6.3%
Market Cap1.46B
Analysts78.18
Price Target22.95 (3.1%)
Short Float %4.12%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.74%
Min EPS beat(2)-25.9%
Max EPS beat(2)16.42%
EPS beat(4)2
Avg EPS beat(4)0.53%
Min EPS beat(4)-37.33%
Max EPS beat(4)48.93%
EPS beat(8)3
Avg EPS beat(8)-1.42%
EPS beat(12)6
Avg EPS beat(12)3.32%
EPS beat(16)9
Avg EPS beat(16)4.75%
Revenue beat(2)0
Avg Revenue beat(2)-7.87%
Min Revenue beat(2)-8.96%
Max Revenue beat(2)-6.78%
Revenue beat(4)0
Avg Revenue beat(4)-5.79%
Min Revenue beat(4)-8.96%
Max Revenue beat(4)-3.09%
Revenue beat(8)1
Avg Revenue beat(8)-4.16%
Revenue beat(12)3
Avg Revenue beat(12)-2.88%
Revenue beat(16)4
Avg Revenue beat(16)-2.66%
PT rev (1m)0%
PT rev (3m)16.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.25%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-6.75%
Revenue NQ rev (1m)-11.03%
Revenue NQ rev (3m)-11.59%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.73 | ||
| Fwd PE | 20.9 | ||
| P/S | 0.75 | ||
| P/FCF | 15.58 | ||
| P/OCF | 2.78 | ||
| P/B | 1 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)0.66
EY2.96%
EPS(NY)1.06
Fwd EY4.78%
FCF(TTM)1.43
FCFY6.42%
OCF(TTM)8.01
OCFY36.01%
SpS29.84
BVpS22.33
TBVpS15.13
PEG (NY)N/A
PEG (5Y)17.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.16% | ||
| ROCE | 3.5% | ||
| ROIC | 2.56% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 3.01% | ||
| OM | 6.25% | ||
| PM (TTM) | N/A | ||
| GM | 51.95% | ||
| FCFM | 4.79% |
ROA(3y)4.72%
ROA(5y)3.48%
ROE(3y)11.99%
ROE(5y)10.6%
ROIC(3y)5.25%
ROIC(5y)5.24%
ROICexc(3y)5.33%
ROICexc(5y)5.32%
ROICexgc(3y)6.32%
ROICexgc(5y)6.45%
ROCE(3y)7.18%
ROCE(5y)7.16%
ROICexcg growth 3Y-9.81%
ROICexcg growth 5Y0.13%
ROICexc growth 3Y-7.86%
ROICexc growth 5Y2.76%
OM growth 3Y-8.55%
OM growth 5Y-4.95%
PM growth 3Y12.54%
PM growth 5Y-17.81%
GM growth 3Y-2.5%
GM growth 5Y-3.01%
F-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.63 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 109.1% | ||
| Cap/Sales | 22.07% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 101.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.17 |
F-Score3
WACC7.53%
ROIC/WACC0.34
Cap/Depr(3y)178.12%
Cap/Depr(5y)171.55%
Cap/Sales(3y)32.24%
Cap/Sales(5y)32.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-62.92%
EPS 3Y-5.97%
EPS 5Y1.92%
EPS Q2Q%-59.37%
EPS Next Y-44.79%
EPS Next 2Y-13.71%
EPS Next 3Y2.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y9.65%
Revenue growth 5Y18.34%
Sales Q2Q%-9.92%
Revenue Next Year-5.19%
Revenue Next 2Y-0.43%
Revenue Next 3Y1.17%
Revenue Next 5Y4.02%
EBIT growth 1Y-47.97%
EBIT growth 3Y0.27%
EBIT growth 5Y12.48%
EBIT Next Year141.39%
EBIT Next 3Y42.38%
EBIT Next 5YN/A
FCF growth 1Y242.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.58%
OCF growth 3Y8.48%
OCF growth 5Y17.03%