SkyWest, Inc.
SkyWest, Inc. Fundamental Analysis
SkyWest, Inc. (SKYW) shows strong financial fundamentals with a PE ratio of 9.63, profit margin of 10.55%, and ROE of 16.35%. The company generates $4.1B in annual revenue with strong year-over-year growth of 20.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SKYW's fundamental strength across five key dimensions:
Efficiency Score
WeakSKYW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSKYW trades at attractive valuation levels.
Growth Score
ModerateSKYW shows steady but slowing expansion.
Financial Health Score
ModerateSKYW shows balanced financial health with some risks.
Profitability Score
ModerateSKYW maintains healthy but balanced margins.
Key Financial Metrics
Is SKYW Expensive or Cheap?
P/E Ratio
SKYW trades at 9.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SKYW's PEG of -7.40 indicates potential undervaluation.
Price to Book
The market values SkyWest, Inc. at 1.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.80 times EBITDA. This is generally considered low.
How Well Does SKYW Make Money?
Net Profit Margin
For every $100 in sales, SkyWest, Inc. keeps $10.55 as profit after all expenses.
Operating Margin
Core operations generate 15.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.35 in profit for every $100 of shareholder equity.
ROA
SkyWest, Inc. generates $5.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SkyWest, Inc. produces operating cash flow of $715.08M, showing steady but balanced cash generation.
Free Cash Flow
SkyWest, Inc. produces free cash flow of $316.44M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.84 in free cash annually.
FCF Yield
SKYW converts 7.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SKYW Stacks Against Its Sector Peers
| Metric | SKYW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.63 | 26.76 | Better (Cheaper) |
| ROE | 16.35% | 1300.00% | Weak |
| Net Margin | 10.55% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.87 | 0.79 | Neutral |
| Current Ratio | 0.65 | 10.68 | Weak Liquidity |
| ROA | 5.80% | -1545134.00% (disorted) | Weak |
SKYW outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SkyWest, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.17%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
20.13%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
21.49%
Industry Style: Cyclical, Value, Infrastructure
High Growth