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

Southwest Airlines Co.

Copa Holdings SA

Allegiant Travel Co.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Alaska Air Group, Inc.

American Airlines Group, Inc.

JetBlue Airways Corp.

Frontier Group Holdings, 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

With a fall in Net Sales of -0.5%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at USD -399 MM
ROCE(HY) Lowest at -92.42%
DEBT-EQUITY RATIO (HY) Highest at 2,016.22 %

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 39.42%, its profits have fallen by -263.1%

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.

39.42%

0.08

83.50%

S&P 500

27.0%

2.13

12.69%

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

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

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

-37What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -399 MM

ROCE(HY)

Lowest at -92.42%

DEBT-EQUITY RATIO (HY)

Highest at 2,016.22 %

INTEREST(Q)

At USD 4 MM has Grown at 33.33%

RAW MATERIAL COST(Y)

Grown by 5,209.3% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 42.9 times

OPERATING PROFIT(Q)

Lowest at USD -268 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -27.02 %

PRE-TAX PROFIT(Q)

Lowest at USD -281 MM

NET PROFIT(Q)

Lowest at USD -272 MM

EPS(Q)

Lowest at USD -1.19

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

Depreciation

Highest at USD 62 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)

Depreciation

At USD 62 MM has Grown at 138.46%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Frontier Group Holdings, Inc.

Pre-Tax Profit

At USD -281 MM has Fallen at -738.81%

over average net sales of the previous four periods of USD -33.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -272 MM has Fallen at -694.16%

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

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 4 MM has Grown at 33.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 2,016.22 % 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

Operating Cash Flow

Lowest at USD -399 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD -268 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -27.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -281 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 -272 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -1.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 42.9 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 5,209.3% (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