Overall SKYW gets a fundamental rating of 6 out of 10. We evaluated SKYW against 22 industry peers in the Passenger Airlines industry. SKYW has an excellent profitability rating, but there are some minor concerns on its financial health. SKYW scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SKYW was profitable.
SKYW had a positive operating cash flow in the past year.
SKYW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SKYW had a positive operating cash flow.

1.2 Ratios

SKYW's Return On Assets of 5.69% is amongst the best of the industry. SKYW outperforms 81.82% of its industry peers.
With a decent Return On Equity value of 15.80%, SKYW is doing good in the industry, outperforming 77.27% of the companies in the same industry.
SKYW has a better Return On Invested Capital (8.18%) than 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKYW is significantly below the industry average of 20.56%.
The 3 year average ROIC (3.59%) for SKYW is below the current ROIC(8.18%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	5.69%
ROE	15.8%
ROIC	8.18%

ROA(3y)2%

ROA(5y)1.49%

ROE(3y)6.05%

ROE(5y)4.54%

ROIC(3y)3.59%

ROIC(5y)N/A

1.3 Margins

SKYW has a Profit Margin of 10.62%. This is amongst the best in the industry. SKYW outperforms 90.91% of its industry peers.
SKYW's Profit Margin has declined in the last couple of years.
The Operating Margin of SKYW (15.23%) is better than 95.45% of its industry peers.
SKYW's Operating Margin has declined in the last couple of years.
The Gross Margin of SKYW (73.08%) is better than 95.45% of its industry peers.
In the last couple of years the Gross Margin of SKYW has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	15.23%
PM (TTM)	10.62%
GM	73.08%

OM growth 3YN/A

OM growth 5Y-4.69%

PM growth 3Y30.45%

PM growth 5Y-4.37%

GM growth 3Y7.76%

GM growth 5Y0.68%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

SKYW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SKYW has more shares outstanding
SKYW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SKYW has been reduced compared to a year ago.

2.2 Solvency

SKYW has an Altman-Z score of 1.83. This is not the best score and indicates that SKYW is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, SKYW is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
SKYW has a debt to FCF ratio of 9.85. This is a negative value and a sign of low solvency as SKYW would need 9.85 years to pay back of all of its debts.
SKYW's Debt to FCF ratio of 9.85 is fine compared to the rest of the industry. SKYW outperforms 68.18% of its industry peers.
SKYW has a Debt/Equity ratio of 0.78. This is a neutral value indicating SKYW is somewhat dependend on debt financing.
The Debt to Equity ratio of SKYW (0.78) is better than 68.18% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.78
Debt/FCF	9.85
Altman-Z	1.83

ROIC/WACC0.92

WACC8.88%

2.3 Liquidity

SKYW has a Current Ratio of 0.73. This is a bad value and indicates that SKYW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SKYW (0.73) is better than 72.73% of its industry peers.
A Quick Ratio of 0.63 indicates that SKYW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, SKYW is in the better half of the industry, outperforming 63.64% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.73
Quick Ratio	0.63

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

SKYW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.15%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
Looking at the last year, SKYW shows a quite strong growth in Revenue. The Revenue has grown by 19.27% in the last year.
The Revenue has been growing slightly by 3.49% on average over the past years.

EPS 1Y (TTM)79.15%

EPS 3Y30.83%

EPS 5Y4.42%

EPS Q2Q%30.09%

Revenue 1Y (TTM)19.27%

Revenue growth 3Y9.14%

Revenue growth 5Y3.49%

Sales Q2Q%15.04%

3.2 Future

The Earnings Per Share is expected to grow by 16.29% on average over the next years. This is quite good.
SKYW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.54% yearly.

EPS Next Y34.56%

EPS Next 2Y20.75%

EPS Next 3Y16.29%

EPS Next 5YN/A

Revenue Next Year15.05%

Revenue Next 2Y9.53%

Revenue Next 3Y7.54%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.70 indicates a reasonable valuation of SKYW.
SKYW's Price/Earnings ratio is rather cheap when compared to the industry. SKYW is cheaper than 95.45% of the companies in the same industry.
SKYW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 8.97 indicates a reasonable valuation of SKYW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKYW indicates a rather cheap valuation: SKYW is cheaper than 81.82% of the companies listed in the same industry.
SKYW is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	9.7
Fwd PE	8.97

4.2 Price Multiples

SKYW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKYW is cheaper than 72.73% of the companies in the same industry.
SKYW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SKYW is cheaper than 63.64% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	16.09
EV/EBITDA	5.43

4.3 Compensation for Growth

SKYW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SKYW may justify a higher PE ratio.
SKYW's earnings are expected to grow with 16.29% in the coming years. This may justify a more expensive valuation.