FRONTIER GROUP HOLDINGS INC (ULCC) Stock Fundamental Analysis
NASDAQ:ULCC - Nasdaq - US35909R1086 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to ULCC. ULCC was compared to 23 industry peers in the Passenger Airlines industry. ULCC has a bad profitability rating. Also its financial health evaluation is rather negative. ULCC is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
ULCC had positive earnings in the past year.
ULCC had a negative operating cash flow in the past year.
ULCC had negative earnings in 4 of the past 5 years.
ULCC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ULCC has a Return On Assets (-0.10%) which is in line with its industry peers.
ULCC has a Return On Equity (-1.09%) which is in line with its industry peers.
With a Return On Invested Capital value of 0.21%, ULCC perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.1% | ||
| ROE | -1.09% | ||
| ROIC | 0.21% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of ULCC has declined.
ULCC has a Operating Margin of 0.30%. This is comparable to the rest of the industry: ULCC outperforms 43.48% of its industry peers.
ULCC's Operating Margin has declined in the last couple of years.
ULCC has a Gross Margin (52.97%) which is comparable to the rest of the industry.
ULCC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.3% | ||
| PM (TTM) | N/A | ||
| GM | 52.97% |
OM growth 3YN/A
OM growth 5Y-34.06%
PM growth 3YN/A
PM growth 5Y-25.8%
GM growth 3Y5.57%
GM growth 5Y-1.83%
2. Health
2.1 Basic Checks
ULCC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for ULCC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that ULCC is in the distress zone and has some risk of bankruptcy.
ULCC has a Altman-Z score (0.73) which is in line with its industry peers.
A Debt/Equity ratio of 0.51 indicates that ULCC is somewhat dependend on debt financing.
The Debt to Equity ratio of ULCC (0.51) is better than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.02
WACC9.47%
2.3 Liquidity
A Current Ratio of 0.53 indicates that ULCC may have some problems paying its short term obligations.
With a Current ratio value of 0.53, ULCC is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
ULCC has a Quick Ratio of 0.53. This is a bad value and indicates that ULCC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, ULCC is doing worse than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 109.09% over the past year.
ULCC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.34% yearly.
Looking at the last year, ULCC shows a small growth in Revenue. The Revenue has grown by 5.18% in the last year.
The Revenue has been growing by 8.52% on average over the past years. This is quite good.
EPS 1Y (TTM)109.09%
EPS 3YN/A
EPS 5Y-20.34%
EPS Q2Q%242.47%
Revenue 1Y (TTM)5.18%
Revenue growth 3Y22.37%
Revenue growth 5Y8.52%
Sales Q2Q%12.46%
3.2 Future
ULCC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 85.96% yearly.
Based on estimates for the next years, ULCC will show a quite strong growth in Revenue. The Revenue will grow by 14.00% on average per year.
EPS Next Y214.47%
EPS Next 2Y111.08%
EPS Next 3Y85.96%
EPS Next 5YN/A
Revenue Next Year15.55%
Revenue Next 2Y14%
Revenue Next 3YN/A
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.
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 34.52, the valuation of ULCC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ULCC.
Compared to an average S&P500 Price/Earnings ratio of 29.63, ULCC is valued at the same level.
A Price/Forward Earnings ratio of 10.98 indicates a reasonable valuation of ULCC.
ULCC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ULCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ULCC is valued a bit cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.82 |
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.
ULCC's earnings are expected to grow with 85.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y111.08%
EPS Next 3Y85.96%
5. Dividend
5.1 Amount
No dividends for ULCC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.94
-0.78 (-8.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners23.42%
Inst Owner Change2.15%
Ins Owners46.12%
Ins Owner Change0.65%
Market Cap1.79B
Analysts69.41
Price Target8.02 (1.01%)
Short Float %21.77%
Short Ratio4.67
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)1
Avg EPS beat(2)-32.79%
Min EPS beat(2)-76.2%
Max EPS beat(2)10.62%
EPS beat(4)3
Avg EPS beat(4)21.52%
Min EPS beat(4)-76.2%
Max EPS beat(4)100%
EPS beat(8)7
Avg EPS beat(8)17.55%
EPS beat(12)10
Avg EPS beat(12)17.11%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.89%
Min Revenue beat(2)-7.07%
Max Revenue beat(2)-2.7%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-7.07%
Max Revenue beat(4)-1.57%
Revenue beat(8)0
Avg Revenue beat(8)-3.42%
Revenue beat(12)1
Avg Revenue beat(12)-3.4%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)14.57%
PT rev (3m)54.59%
EPS NQ rev (1m)195.07%
EPS NQ rev (3m)219.97%
EPS NY rev (1m)34.76%
EPS NY rev (3m)26.52%
Revenue NQ rev (1m)2.25%
Revenue NQ rev (3m)2.5%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.26 | ||
| P/tB | 3.43 | ||
| EV/EBITDA | 23.82 |
EPS(TTM)0.23
EY2.9%
EPS(NY)0.72
Fwd EY9.11%
FCF(TTM)-1.33
FCFYN/A
OCF(TTM)-0.99
OCFYN/A
SpS16.26
BVpS2.44
TBVpS2.32
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.1% | ||
| ROE | -1.09% | ||
| ROCE | 0.27% | ||
| ROIC | 0.21% | ||
| ROICexc | 0.25% | ||
| ROICexgc | 0.25% | ||
| OM | 0.3% | ||
| PM (TTM) | N/A | ||
| GM | 52.97% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y-34.06%
PM growth 3YN/A
PM growth 5Y-25.8%
GM growth 3Y5.57%
GM growth 5Y-1.83%
F-Score2
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 113.43% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.73 |
F-Score2
WACC9.47%
ROIC/WACC0.02
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)109.09%
EPS 3YN/A
EPS 5Y-20.34%
EPS Q2Q%242.47%
EPS Next Y214.47%
EPS Next 2Y111.08%
EPS Next 3Y85.96%
EPS Next 5YN/A
Revenue 1Y (TTM)5.18%
Revenue growth 3Y22.37%
Revenue growth 5Y8.52%
Sales Q2Q%12.46%
Revenue Next Year15.55%
Revenue Next 2Y14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-77.08%
EBIT growth 3YN/A
EBIT growth 5Y-28.44%
EBIT Next Year4659.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-86.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-97.35%
OCF growth 3YN/A
OCF growth 5YN/A