SKYWEST INC (SKYW) Stock Fundamental Analysis
USA - NASDAQ:SKYW - US8308791024 - Common Stock
104.52 USD
+0.89 (+0.86%)
104.52 USD
0 (0%)
Taking everything into account, SKYW scores 6 out of 10 in our fundamental rating. SKYW was compared to 21 industry peers in the Passenger Airlines industry. While SKYW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SKYW. With these ratings, SKYW could be worth investigating further for value investing!.
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.
Of the past 5 years SKYW 4 years were profitable.
Each year in the past 5 years SKYW had a positive operating cash flow.
1.2 Ratios
SKYW has a better Return On Assets (5.69%) than 80.95% of its industry peers.
With a decent Return On Equity value of 15.80%, SKYW is doing good in the industry, outperforming 76.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.18%, SKYW is in the better half of the industry, outperforming 71.43% 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 14.49%.
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
With an excellent Profit Margin value of 10.62%, SKYW belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
SKYW's Profit Margin has declined in the last couple of years.
SKYW has a better Operating Margin (15.23%) than 95.24% of its industry peers.
SKYW's Operating Margin has declined in the last couple of years.
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.
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%
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.
The number of shares outstanding for SKYW has been increased compared to 1 year ago.
SKYW has less shares outstanding than it did 5 years ago.
SKYW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.83 indicates that SKYW is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.83, SKYW belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
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 has a Debt to FCF ratio of 9.85. This is in the better half of the industry: SKYW outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that SKYW is somewhat dependend on debt financing.
SKYW's Debt to Equity ratio of 0.78 is fine compared to the rest of the industry. SKYW outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 9.85 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.95
WACC8.65%
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.
Looking at the Current ratio, with a value of 0.73, SKYW is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that SKYW may have some problems paying its short term obligations.
The Quick ratio of SKYW (0.63) is better than 61.90% of its industry peers.
| 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 131.84% 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.
The Revenue has grown by 20.45% in the past year. This is a very strong growth!
SKYW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.49% yearly.
EPS 1Y (TTM)131.84%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%59.89%
Revenue 1Y (TTM)20.45%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%19.39%
3.2 Future
Based on estimates for the next years, SKYW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.19% on average per year.
The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y31.6%
EPS Next 2Y20.18%
EPS Next 3Y16.19%
EPS Next 5YN/A
Revenue Next Year14.91%
Revenue Next 2Y9.96%
Revenue Next 3Y7.81%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.63 indicates a reasonable valuation of SKYW.
Based on the Price/Earnings ratio, SKYW is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SKYW to the average of the S&P500 Index (27.41), we can say SKYW is valued rather cheaply.
The Price/Forward Earnings ratio is 9.31, which indicates a very decent valuation of SKYW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKYW indicates a somewhat cheap valuation: SKYW is cheaper than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, SKYW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKYW is valued a bit cheaper than 61.90% of the companies in the same industry.
SKYW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.65 | ||
| EV/EBITDA | 5.44 |
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.
A more expensive valuation may be justified as SKYW's earnings are expected to grow with 16.19% in the coming years.
PEG (NY)0.34
PEG (5Y)2.41
EPS Next 2Y20.18%
EPS Next 3Y16.19%
5. Dividend
5.1 Amount
SKYW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.52
+0.89 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-1.2%
Ins Owners1.06%
Ins Owner Change-9.21%
Market Cap4.22B
Analysts81.82
Price Target134.44 (28.63%)
Short Float %2.69%
Short Ratio2.84
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)0.15%
PT rev (3m)13.04%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)4.54%
EPS NY rev (1m)6.68%
EPS NY rev (3m)7.25%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)4.78%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)3.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.31 | ||
| P/S | 1.1 | ||
| P/FCF | 16.65 | ||
| P/OCF | 5.29 | ||
| P/B | 1.63 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)9.83
EY9.4%
EPS(NY)11.22
Fwd EY10.74%
FCF(TTM)6.28
FCFY6%
OCF(TTM)19.75
OCFY18.9%
SpS95.12
BVpS63.95
TBVpS63.95
PEG (NY)0.34
PEG (5Y)2.41
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
ROICexcg growth 3YN/A
ROICexcg 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 | 1.83 |
F-Score8
WACC8.65%
ROIC/WACC0.95
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)131.84%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%59.89%
EPS Next Y31.6%
EPS Next 2Y20.18%
EPS Next 3Y16.19%
EPS Next 5YN/A
Revenue 1Y (TTM)20.45%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%19.39%
Revenue Next Year14.91%
Revenue Next 2Y9.96%
Revenue Next 3Y7.81%
Revenue Next 5YN/A
EBIT growth 1Y97.6%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year107.87%
EBIT Next 3Y32.58%
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%