Allegiant Travel Company Fundamental Analysis (NASDAQ: ALGT)
Allegiant Travel Company Fundamental Analysis (NASDAQ: ALGT)
Allegiant Travel Company (NASDAQ: ALGT) shows weak financial fundamentals with a PE ratio of 66.54, profit margin of 0.90%, and ROE of 3.28%. The company generates $3.1B in annual revenue with moderate year-over-year growth of 3.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALGT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentALGT demonstrates superior asset utilization.
Valuation Score
ModerateALGT shows balanced valuation metrics.
Growth Score
ModerateALGT shows steady but slowing expansion.
Financial Health Score
WeakALGT carries high financial risk with limited liquidity.
Profitability Score
WeakALGT struggles to sustain strong margins.
Key Financial Metrics
Is ALGT Expensive or Cheap?
P/E Ratio
ALGT trades at 66.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALGT's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Allegiant Travel Company at 926.94 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.20 times EBITDA. This is generally considered low.
How Well Does ALGT Make Money?
Net Profit Margin
For every $100 in sales, Allegiant Travel Company keeps $0.90 as profit after all expenses.
Operating Margin
Core operations generate 5.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.28 in profit for every $100 of shareholder equity.
ROA
Allegiant Travel Company generates $24.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Allegiant Travel Company produces operating cash flow of $495.10M, showing steady but balanced cash generation.
Free Cash Flow
Allegiant Travel Company produces free cash flow of $191.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.93 in free cash annually.
FCF Yield
ALGT converts 10.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
66.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
926.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
24.67
vs 25 benchmark
ROCE
Return on capital employed
151.62
vs 25 benchmark
How ALGT Stacks Against Its Sector Peers
| Metric | ALGT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 66.54 | 31.06 | Worse (Expensive) |
| ROE | 3.28% | 1157.00% | Weak |
| Net Margin | 0.90% | -21043.00% (disorted) | Weak |
| Debt/Equity | 1.56 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.00 | 21.82 | Weak Liquidity |
| ROA | 2466.54% | -1332629.00% (disorted) | Strong |
ALGT outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Allegiant Travel Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
133.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
78.49%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
47.26%
Industry Style: Cyclical, Value, Infrastructure
High Growth