Frontier Group Holdings, Inc. () 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.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Allegiant Travel Co.

Alaska Air Group, Inc.

JetBlue Airways Corp.

Frontier Group Holdings, Inc.

American Airlines Group, Inc.

Spirit Airlines, Inc.

Why is Frontier Group Holdings, Inc. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -27.03
NET PROFIT(HY) At USD -24 MM has Grown at -130.38%
INTEREST(HY) At USD 8 MM has Grown at 166.67%
OPERATING CASH FLOW(Y) Lowest at USD -525 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -38.62%, its profits have fallen by -263.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -38.62% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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 Frontier Group Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Frontier Group Holdings, Inc.

-34.74%

-0.42

85.28%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.40%

EBIT Growth (5y)

0.99%

EBIT to Interest (avg)

-27.03

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

2.20

Tax Ratio

2.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

63.03%

ROCE (avg)

1.47%

ROE (avg)

5.43%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.52

EV to EBIT

-3.25

EV to EBITDA

-4.07

EV to Capital Employed

1.21

EV to Sales

0.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-37.18%

ROE (Latest)

-27.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Bearish

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

10What is working for the Company

NET PROFIT(Q)

At USD 53 MM has Grown at 254.74%

DEBTORS TURNOVER RATIO(HY)

Highest at 44.87 times

PRE-TAX PROFIT(Q)

Highest at USD 52 MM

-23What is not working for the Company

NET PROFIT(HY)

At USD -24 MM has Grown at -130.38%

INTEREST(HY)

At USD 8 MM has Grown at 166.67%

OPERATING CASH FLOW(Y)

Lowest at USD -525 MM

ROCE(HY)

Lowest at -25.02%

RAW MATERIAL COST(Y)

Grown by 79.26% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 975.97 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 43.91 times

Here's what is working for Frontier Group Holdings, Inc.

Pre-Tax Profit

At USD 52 MM has Grown at 254.07%

over average net sales of the previous four periods of USD -33.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 53 MM has Grown at 254.74%

over average net sales of the previous four periods of USD -34.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Highest at 44.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 26 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 Frontier Group Holdings, Inc.

Interest

At USD 8 MM has Grown at 166.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -525 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 975.97 %

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

Inventory Turnover Ratio

Lowest at 43.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 79.26% (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

Non Operating Income

Highest at USD 2.9 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income