SKYWEST INC (SKYW) Stock Fundamental Analysis
NASDAQ:SKYW - Nasdaq - US8308791024 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SKYW. SKYW was compared to 23 industry peers in the Passenger Airlines industry. SKYW has an excellent profitability rating, but there are some minor concerns on its financial health. SKYW is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years SKYW always reported a positive cash flow from operatings.
1.2 Ratios
SKYW has a Return On Assets of 4.52%. This is in the better half of the industry: SKYW outperforms 78.26% of its industry peers.
With a decent Return On Equity value of 13.41%, SKYW is doing good in the industry, outperforming 69.57% of the companies in the same industry.
The Return On Invested Capital of SKYW (6.93%) is better than 69.57% of its industry peers.
SKYW had an Average Return On Invested Capital over the past 3 years of 3.59%. This is significantly below the industry average of 11.12%.
The last Return On Invested Capital (6.93%) for SKYW is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 13.41% | ||
| ROIC | 6.93% |
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 9.15% is amongst the best of the industry. SKYW outperforms 91.30% of its industry peers.
SKYW's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.02%, SKYW belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
SKYW's Operating Margin has declined in the last couple of years.
SKYW has a better Gross Margin (74.74%) than 100.00% 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 | 14.02% | ||
| PM (TTM) | 9.15% | ||
| GM | 74.74% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SKYW is destroying value.
The number of shares outstanding for SKYW has been increased compared to 1 year ago.
The number of shares outstanding for SKYW has been reduced compared to 5 years ago.
Compared to 1 year ago, SKYW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that SKYW is in the distress zone and has some risk of bankruptcy.
SKYW has a better Altman-Z score (1.64) than 78.26% of its industry peers.
The Debt to FCF ratio of SKYW is 7.34, which is on the high side as it means it would take SKYW, 7.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.34, SKYW is doing good in the industry, outperforming 78.26% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that SKYW is somewhat dependend on debt financing.
The Debt to Equity ratio of SKYW (0.89) is better than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.88
WACC7.87%
2.3 Liquidity
SKYW has a Current Ratio of 0.78. 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's Current ratio of 0.78 is fine compared to the rest of the industry. SKYW outperforms 73.91% of its industry peers.
SKYW has a Quick Ratio of 0.78. 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 Quick ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
SKYW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 215.52%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
SKYW shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.18%.
SKYW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.49% yearly.
EPS 1Y (TTM)215.52%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%66.9%
Revenue 1Y (TTM)20.18%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%18.02%
3.2 Future
The Earnings Per Share is expected to grow by 16.60% 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 7.92% yearly.
EPS Next Y18.46%
EPS Next 2Y15.16%
EPS Next 3Y16.6%
EPS Next 5YN/A
Revenue Next Year9.61%
Revenue Next 2Y6.84%
Revenue Next 3Y7.92%
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
The Price/Earnings ratio is 10.06, which indicates a very decent valuation of SKYW.
SKYW's Price/Earnings ratio is a bit cheaper when compared to the industry. SKYW is cheaper than 69.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. SKYW is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.53, the valuation of SKYW can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKYW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SKYW to the average of the S&P500 Index (21.38), we can say SKYW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKYW is valued a bit cheaper than 65.22% of the companies in the same industry.
69.57% of the companies in the same industry are more expensive than SKYW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 4.94 |
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 16.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)2.28
EPS Next 2Y15.16%
EPS Next 3Y16.6%
5. Dividend
5.1 Amount
SKYW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.92
-1.18 (-1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners93.01%
Inst Owner Change0.4%
Ins Owners1.45%
Ins Owner Change6.62%
Market Cap3.57B
Analysts78.18
Price Target116.48 (32.48%)
Short Float %4.64%
Short Ratio3.55
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)19.09%
Min EPS beat(2)10.29%
Max EPS beat(2)27.88%
EPS beat(4)4
Avg EPS beat(4)14.23%
Min EPS beat(4)2.94%
Max EPS beat(4)27.88%
EPS beat(8)8
Avg EPS beat(8)57.21%
EPS beat(12)11
Avg EPS beat(12)228.17%
EPS beat(16)14
Avg EPS beat(16)277.01%
Revenue beat(2)2
Avg Revenue beat(2)0.89%
Min Revenue beat(2)0.66%
Max Revenue beat(2)1.12%
Revenue beat(4)3
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)2.84%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)6
Avg Revenue beat(12)0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.7%
PT rev (1m)0%
PT rev (3m)13.38%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)14.93%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)5.08%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)2.98%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 8.53 | ||
| P/S | 1.01 | ||
| P/FCF | 9.81 | ||
| P/OCF | 5.16 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 4.94 |
EPS(TTM)8.74
EY9.94%
EPS(NY)10.3
Fwd EY11.72%
FCF(TTM)8.97
FCFY10.2%
OCF(TTM)17.05
OCFY19.39%
SpS86.85
BVpS59.3
TBVpS59.3
PEG (NY)0.54
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.52% | ||
| ROE | 13.41% | ||
| ROCE | 8.66% | ||
| ROIC | 6.93% | ||
| ROICexc | 9.13% | ||
| ROICexgc | 9.13% | ||
| OM | 14.02% | ||
| PM (TTM) | 9.15% | ||
| GM | 74.74% | ||
| FCFM | 10.32% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.34 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 85.52% | ||
| Cap/Sales | 9.31% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 78.82% | ||
| Profit Quality | 112.76% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.64 |
F-Score8
WACC7.87%
ROIC/WACC0.88
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)215.52%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%66.9%
EPS Next Y18.46%
EPS Next 2Y15.16%
EPS Next 3Y16.6%
EPS Next 5YN/A
Revenue 1Y (TTM)20.18%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%18.02%
Revenue Next Year9.61%
Revenue Next 2Y6.84%
Revenue Next 3Y7.92%
Revenue Next 5YN/A
EBIT growth 1Y375.07%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year108.73%
EBIT Next 3Y33.14%
EBIT Next 5YN/A
FCF growth 1Y-13.29%
FCF growth 3Y34.28%
FCF growth 5Y125.11%
OCF growth 1Y-5.96%
OCF growth 3Y-5.93%
OCF growth 5Y-0.8%