SKYWEST INC (SKYW) Stock Fundamental Analysis
USA - NASDAQ:SKYW - US8308791024 - Common Stock
100.48 USD
+5.36 (+5.63%)
100.45 USD
-0.03 (-0.03%)
We assign a fundamental rating of 5 out of 10 to SKYW. SKYW was compared to 21 industry peers in the Passenger Airlines industry. SKYW has an excellent profitability rating, but there are some minor concerns on its financial health. SKYW may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SKYW had positive earnings in the past year.
SKYW had a positive operating cash flow in the past year.
SKYW had positive earnings in 4 of the past 5 years.
In the past 5 years SKYW always reported a positive cash flow from operatings.
1.2 Ratios
SKYW has a Return On Assets of 5.69%. This is amongst the best in the industry. SKYW outperforms 80.95% of its industry peers.
Looking at the Return On Equity, with a value of 15.80%, SKYW is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.18%, SKYW is doing good in the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SKYW is significantly below the industry average of 14.30%.
The last Return On Invested Capital (8.18%) for SKYW is above the 3 year average (3.59%), which is a sign of increasing profitability.
| 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's Profit Margin of 10.62% is amongst the best of the industry. SKYW outperforms 90.48% of its industry peers.
In the last couple of years the Profit Margin of SKYW has declined.
SKYW's Operating Margin of 15.23% is amongst the best of the industry. SKYW outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of SKYW has declined.
Looking at the Gross Margin, with a value of 73.08%, SKYW belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
SKYW's Gross Margin has been stable in the last couple of years.
| 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%
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 1.79. This is a bad value and indicates that SKYW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SKYW (1.79) is better than 80.95% of its industry peers.
The Debt to FCF ratio of SKYW is 9.85, which is on the high side as it means it would take SKYW, 9.85 years of fcf income to pay off all of its debts.
SKYW's Debt to FCF ratio of 9.85 is fine compared to the rest of the industry. SKYW outperforms 66.67% 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.
With a decent Debt to Equity ratio value of 0.78, SKYW is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.85 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.99
WACC8.26%
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.
SKYW has a Current ratio of 0.73. This is in the better half of the industry: SKYW outperforms 76.19% of its industry peers.
A Quick Ratio of 0.63 indicates that SKYW may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.63, SKYW is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 79.15% over the past year.
Measured over the past 5 years, SKYW shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
Looking at the last year, SKYW shows a very strong growth in Revenue. The Revenue has grown by 20.18%.
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)20.18%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%15.04%
3.2 Future
The Earnings Per Share is expected to grow by 14.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.28% on average over the next years.
EPS Next Y31.6%
EPS Next 2Y18.18%
EPS Next 3Y14.97%
EPS Next 5YN/A
Revenue Next Year14.88%
Revenue Next 2Y9.06%
Revenue Next 3Y7.28%
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
Based on the Price/Earnings ratio of 9.59, the valuation of SKYW can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SKYW indicates a rather cheap valuation: SKYW is cheaper than 90.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SKYW to the average of the S&P500 Index (26.10), we can say SKYW is valued rather cheaply.
SKYW is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
Based on the Price/Forward Earnings ratio, SKYW is valued a bit cheaper than 66.67% of the companies in the same industry.
SKYW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKYW is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as SKYW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as SKYW's earnings are expected to grow with 14.97% in the coming years.
PEG (NY)0.3
PEG (5Y)2.17
EPS Next 2Y18.18%
EPS Next 3Y14.97%
5. Dividend
5.1 Amount
SKYW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.48
+5.36 (+5.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners92.54%
Inst Owner Change0.01%
Ins Owners0.85%
Ins Owner Change-9.21%
Market Cap4.06B
Revenue(TTM)3.53B
Net Income(TTM)407.91M
Analysts81.82
Price Target131.99 (31.36%)
Short Float %2.84%
Short Ratio3.43
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)2
Avg EPS beat(2)17.97%
Min EPS beat(2)16.19%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)18.53%
Min EPS beat(4)10.29%
Max EPS beat(4)27.88%
EPS beat(8)8
Avg EPS beat(8)36.93%
EPS beat(12)11
Avg EPS beat(12)-57.69%
EPS beat(16)15
Avg EPS beat(16)226.14%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)3.42%
Revenue beat(4)3
Avg Revenue beat(4)0.93%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)3.42%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.68%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)0%
PT rev (3m)9.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)0%
EPS NY rev (3m)6.68%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.65%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.26 | ||
| P/S | 1.06 | ||
| P/FCF | 16.01 | ||
| P/OCF | 5.09 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 5.09 |
EPS(TTM)10.48
EY10.43%
EPS(NY)10.85
Fwd EY10.8%
FCF(TTM)6.28
FCFY6.25%
OCF(TTM)19.75
OCFY19.66%
SpS95.12
BVpS63.95
TBVpS63.95
PEG (NY)0.3
PEG (5Y)2.17
Graham Number122.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 15.8% | ||
| ROCE | 10.23% | ||
| ROIC | 8.18% | ||
| ROICexc | 9.38% | ||
| ROICexgc | 9.38% | ||
| OM | 15.23% | ||
| PM (TTM) | 10.62% | ||
| GM | 73.08% | ||
| FCFM | 6.6% |
ROA(3y)2%
ROA(5y)1.49%
ROE(3y)6.05%
ROE(5y)4.54%
ROIC(3y)3.59%
ROIC(5y)N/A
ROICexc(3y)4.66%
ROICexc(5y)N/A
ROICexgc(3y)4.66%
ROICexgc(5y)N/A
ROCE(3y)4.49%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y2.35%
ROICexc growth 3YN/A
ROICexc growth 5Y2.35%
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%
F-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.85 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 141.75% | ||
| Cap/Sales | 14.17% | ||
| Interest Coverage | 5.41 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 62.13% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.79 |
F-Score8
WACC8.26%
ROIC/WACC0.99
Cap/Depr(3y)113.69%
Cap/Depr(5y)118.03%
Cap/Sales(3y)14.27%
Cap/Sales(5y)17.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)79.15%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%30.09%
EPS Next Y31.6%
EPS Next 2Y18.18%
EPS Next 3Y14.97%
EPS Next 5YN/A
Revenue 1Y (TTM)20.18%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%15.04%
Revenue Next Year14.88%
Revenue Next 2Y9.06%
Revenue Next 3Y7.28%
Revenue Next 5YN/A
EBIT growth 1Y97.6%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year110.3%
EBIT Next 3Y33.14%
EBIT Next 5YN/A
FCF growth 1Y96%
FCF growth 3Y34.28%
FCF growth 5Y125.11%
OCF growth 1Y33.35%
OCF growth 3Y-5.93%
OCF growth 5Y-0.8%
SKYWEST INC / SKYW FAQ
What is the fundamental rating for SKYW stock?
ChartMill assigns a fundamental rating of 5 / 10 to SKYW.
Can you provide the valuation status for SKYWEST INC?
ChartMill assigns a valuation rating of 7 / 10 to SKYWEST INC (SKYW). This can be considered as Undervalued.
Can you provide the profitability details for SKYWEST INC?
SKYWEST INC (SKYW) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SKYWEST INC (SKYW) stock?
The Price/Earnings (PE) ratio for SKYWEST INC (SKYW) is 9.59 and the Price/Book (PB) ratio is 1.57.
What is the earnings growth outlook for SKYWEST INC?
The Earnings per Share (EPS) of SKYWEST INC (SKYW) is expected to grow by 31.6% in the next year.