SKYWEST INC (SKYW) Stock Fundamental Analysis
NASDAQ:SKYW - Nasdaq - US8308791024 - Common Stock - Currency: USD
Overall SKYW gets a fundamental rating of 5 out of 10. We evaluated SKYW against 22 industry peers in the Passenger Airlines industry. While SKYW has a great profitability rating, there are some minor concerns on its financial health. SKYW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SKYW was profitable.
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
The Return On Assets of SKYW (4.52%) is better than 77.27% of its industry peers.
With a decent Return On Equity value of 13.41%, 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 (6.93%) than 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKYW is below the industry average of 8.55%.
The 3 year average ROIC (3.59%) for SKYW is below the current ROIC(6.93%), indicating increased profibility in the last year.
| 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 90.91% of its industry peers.
In the last couple of years the Profit Margin of SKYW has declined.
SKYW has a Operating Margin of 14.02%. This is amongst the best in the industry. SKYW outperforms 95.45% of its industry peers.
In the last couple of years the Operating Margin of SKYW has declined.
With an excellent Gross Margin value of 74.74%, SKYW belongs to the best of the industry, outperforming 100.00% 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 | 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.
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 1.73. This is a bad value and indicates that SKYW is not financially healthy and even has some risk of bankruptcy.
SKYW has a better Altman-Z score (1.73) than 77.27% of its industry peers.
SKYW has a debt to FCF ratio of 7.34. This is a slightly negative value and a sign of low solvency as SKYW would need 7.34 years to pay back of all of its debts.
SKYW has a better Debt to FCF ratio (7.34) than 72.73% of its industry peers.
SKYW has a Debt/Equity ratio of 0.89. This is a neutral value indicating SKYW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, SKYW is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.8
WACC8.63%
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 has a better Current ratio (0.78) than 72.73% of its industry peers.
A Quick Ratio of 0.68 indicates that SKYW may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, SKYW perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| 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.
SKYW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
The Revenue has grown by 20.53% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.49% on average over the past years.
EPS 1Y (TTM)215.52%
EPS 3Y30.83%
EPS 5Y4.42%
EPS Q2Q%66.9%
Revenue 1Y (TTM)20.53%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%18.02%
3.2 Future
SKYW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.72% yearly.
The Revenue is expected to grow by 7.23% on average over the next years.
EPS Next Y22.71%
EPS Next 2Y17.17%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue Next Year10.84%
Revenue Next 2Y7.99%
Revenue Next 3Y7.23%
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
Based on the Price/Earnings ratio of 12.33, the valuation of SKYW can be described as correct.
Based on the Price/Earnings ratio, SKYW is valued a bit cheaper than 68.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKYW to the average of the S&P500 Index (27.45), we can say SKYW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.10, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, SKYW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
SKYW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKYW indicates a somewhat cheap valuation: SKYW is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 5.79 |
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 14.72% in the coming years.
PEG (NY)0.54
PEG (5Y)2.79
EPS Next 2Y17.17%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
No dividends for SKYW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
107.78
+2.12 (+2.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners92.77%
Inst Owner Change-0.74%
Ins Owners1.1%
Ins Owner Change9.94%
Market Cap4.36B
Analysts80
Price Target118.93 (10.35%)
Short Float %2.83%
Short Ratio3.64
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)-9.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.1 | ||
| P/S | 1.24 | ||
| P/FCF | 11.98 | ||
| P/OCF | 6.3 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)8.74
EY8.11%
EPS(NY)10.67
Fwd EY9.9%
FCF(TTM)9
FCFY8.35%
OCF(TTM)17.11
OCFY15.88%
SpS87.17
BVpS59.52
TBVpS59.52
PEG (NY)0.54
PEG (5Y)2.79
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 | 1.73 |
F-Score8
WACC8.63%
ROIC/WACC0.8
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 Y22.71%
EPS Next 2Y17.17%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)20.53%
Revenue growth 3Y9.14%
Revenue growth 5Y3.49%
Sales Q2Q%18.02%
Revenue Next Year10.84%
Revenue Next 2Y7.99%
Revenue Next 3Y7.23%
Revenue Next 5YN/A
EBIT growth 1Y375.07%
EBIT growth 3YN/A
EBIT growth 5Y-1.36%
EBIT Next Year103.49%
EBIT Next 3Y32.54%
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%