Alaska Air Group, Inc. (ALK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Copa Holdings SA

Southwest Airlines Co.

Allegiant Travel Co.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Delta Air Lines, Inc.

Alaska Air Group, Inc.

American Airlines Group, Inc.

JetBlue Airways Corp.

Spirit Airlines, Inc.

Why is Alaska Air Group, Inc. ?

RAW MATERIAL COST(Y) Grown by 29.37% (YoY)
CASH AND EQV(HY) Lowest at USD 4,644 MM
DEBT-EQUITY RATIO (HY) Highest at 107.08 %

With ROE of 14.71%, it has a very expensive valuation with a 1.66 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.01%, its profits have risen by 11.8% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -18.01% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Alaska Air Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Alaska Air Group, Inc.

3.1%

0.52

51.73%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.90%

EBIT Growth (5y)

18.06%

EBIT to Interest (avg)

0.33

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

1.43

Tax Ratio

26.33%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.83%

ROE (avg)

8.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.09

EV to EBIT

16.17

EV to EBITDA

6.21

EV to Capital Employed

1.05

EV to Sales

0.56

PEG Ratio

Dividend Yield

ROCE (Latest)

6.48%

ROE (Latest)

5.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-25What is not working for the Company

ROCE(HY)

Lowest at 1.86%

DEBT-EQUITY RATIO (HY)

Highest at 130.61 %

RAW MATERIAL COST(Y)

Grown by 31.09% (YoY

CASH AND EQV(HY)

Lowest at USD 3,946 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 24.02 times

INTEREST(Q)

Highest at USD 66 MM

OPERATING PROFIT(Q)

Lowest at USD -40 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.21 %

PRE-TAX PROFIT(Q)

Lowest at USD -282 MM

NET PROFIT(Q)

Lowest at USD -158 MM

EPS(Q)

Lowest at USD -1.69

Here's what is working for Alaska Air Group, Inc.

Depreciation

Highest at USD 204 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Alaska Air Group, Inc.

Pre-Tax Profit

At USD -282 MM has Fallen at -43.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Highest at 130.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 66 MM

in the last five periods and Increased by 6.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD -40 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -1.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -282 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -158 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -1.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 3,946 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 24.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 31.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales