SKYWEST INC (SKYW) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SKYW • US8308791024

99.84 USD

+3.32 (+3.44%)

Last: Feb 2, 2026, 12:40 PM

Fundamental Rating

Overall SKYW gets a fundamental rating of 5 out of 10. We evaluated SKYW against 22 industry peers in the Passenger Airlines industry. SKYW scores excellent on profitability, but there are concerns on its financial health. SKYW has a decent growth rate and is not valued too expensively.

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1. Profitability

1.1 Basic Checks

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

1.2 Ratios

SKYW's Return On Assets of 5.80% is amongst the best of the industry. SKYW outperforms 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 15.60%, SKYW is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
SKYW's Return On Invested Capital of 8.13% is fine compared to the rest of the industry. SKYW outperforms 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKYW is significantly below the industry average of 20.52%.
The last Return On Invested Capital (8.13%) for SKYW is above the 3 year average (5.36%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	5.8%
ROE	15.6%
ROIC	8.13%

ROA(3y)3.6%

ROA(5y)2.67%

ROE(3y)10.21%

ROE(5y)7.73%

ROIC(3y)5.36%

ROIC(5y)N/A

1.3 Margins

The Profit Margin of SKYW (10.55%) is better than 90.91% of its industry peers.
In the last couple of years the Profit Margin of SKYW has grown nicely.
The Operating Margin of SKYW (15.22%) is better than 90.91% of its industry peers.
SKYW's Operating Margin has improved in the last couple of years.
SKYW's Gross Margin of 70.78% is amongst the best of the industry. SKYW outperforms 95.45% of its industry peers.
In the last couple of years the Gross Margin of SKYW has grown nicely.

		Industry Rank	Sector Rank
OM	15.22%
PM (TTM)	10.55%
GM	70.78%

OM growth 3Y36.17%

OM growth 5YN/A

PM growth 3Y63.17%

PM growth 5YN/A

GM growth 3Y0.34%

GM growth 5Y3.18%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 reduced compared to 1 year ago.
SKYW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SKYW has an improved debt to assets ratio.

2.2 Solvency

SKYW has a Debt/Equity ratio of 0.67. This is a neutral value indicating SKYW is somewhat dependend on debt financing.
SKYW has a Debt to Equity ratio of 0.67. This is amongst the best in the industry. SKYW outperforms 81.82% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.67
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC0.92

WACC8.82%

2.3 Liquidity

A Current Ratio of 0.65 indicates that SKYW may have some problems paying its short term obligations.
With a decent Current ratio value of 0.65, SKYW is doing good in the industry, outperforming 63.64% of the companies in the same industry.
SKYW has a Quick Ratio of 0.65. 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 Quick ratio (0.65) than 63.64% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.65
Quick Ratio	0.65

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

SKYW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.20%, which is quite impressive.
Measured over the past years, SKYW shows a very strong growth in Earnings Per Share. The EPS has been growing by 92.54% on average per year.
The Revenue has grown by 15.03% in the past year. This is quite good.
The Revenue has been growing by 13.79% on average over the past years. This is quite good.

EPS 1Y (TTM)33.2%

EPS 3Y92.54%

EPS 5YN/A

EPS Q2Q%-5.56%

Revenue 1Y (TTM)15.03%

Revenue growth 3Y10.54%

Revenue growth 5Y13.79%

Sales Q2Q%8.48%

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 9.03% yearly.
SKYW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.

EPS Next Y9.55%

EPS Next 2Y9.03%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year4.29%

Revenue Next 2Y3.98%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.65, which indicates a very decent valuation of SKYW.
Based on the Price/Earnings ratio, SKYW is valued cheaper than 95.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKYW to the average of the S&P500 Index (28.32), we can say SKYW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.81, the valuation of SKYW can be described as reasonable.
Based on the Price/Forward Earnings ratio, SKYW is valued cheaper than 86.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. SKYW is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.65
Fwd PE	8.81

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SKYW has an outstanding profitability rating, which may justify a higher PE ratio.