Over the last year, Alaska Air logged a negative performance of -23.2%, with a high of $61.55 and a low of $37.2. During this time, the stock trailed the S&P 500 index by -16.0%. As of April 2023, the company's 50-day average price was $45.88. Alaska Air Group, Inc., through its subsidiaries, operated airlines. Based in Seattle, WA, the mid-cap Consumer Discretionary company has 22,922 full time employees. Alaska Air has not offered a regular dividend within the last year.
Shareholders Are Confronted With a Declining EPS Growth Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $8,781,000 | $3,566,000 | $6,176,000 | $9,646,000 |
| Gross Margins | 22.5% | -11.6% | 21.9% | 17.2% |
| Operating Margins | 12.6% | -25.9% | 10.9% | 6.7% |
| Net Income | $769,000 | -$1,324,000 | $478,000 | $58,000 |
| Net Margins | 8.76% | -37.13% | 7.74% | 0.6% |
| Earnings Per Share | $6.19 | -$10.59 | $3.77 | $0.45 |
| Diluted Shares | 124,289 | 123,450 | 126,775 | 127,465 |
| Free Cash Flow | $1,026,000 | -$440,000 | $738,000 | -$253,000 |
| Capital Expenditures | -$696,000 | -$206,000 | -$292,000 | -$1,671,000 |
| Net Current Assets | -$6,625,000 | -$7,052,000 | -$6,230,000 | -$7,330,000 |
| Current Ratio | 0.64 | 0.93 | 0.98 | 0.68 |
| Long Term Debt | $1,264,000 | $2,357,000 | $2,173,000 | $1,883,000 |
| Net Debt / EBITDA | 0.83 | -4.43 | 1.83 | 1.56 |
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Alaska Air has a trailing twelve month P/E ratio of 102.0, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $6.89, the company has a forward P/E ratio of 6.7. The compound average growth rate of the company's historical and projected earnings per share is 2.2%. On this basis, the company's PEG ratio is 47.07, which suggests that it is overpriced. On the other hand, the market is potentially undervaluing Alaska Air in terms of its book value because its P/B ratio is 1.4. In comparison, the sector average P/B ratio is 3.12. The company's shares are currently 148.1% above their Graham number.
Alaska Air Has an Average Rating of Buy:
There are 11 analysts covering Alaska Air, with target prices ranging from $54.0 to $71.0 per share, for an average of $62.05. As of April 2023, the company is trading -26.1% away from its average target price, implying there is an analyst consensus of strong upside potential. On average, analysts recommend to buy Alaska Air.
With a 3.4% short interest, Alaska Air has an average amount of shares sold short. Institutions own 83.3% of the company's shares, and it has a small amount of insider investors because 0.3% are owned by corporate insiders. Overall, the company's top shareholder is the Vanguard Group, Inc., whose 11% stake in the company is worth $629,214,732.
