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AIRA

Air Arabia PJSCDFM:AIRARABIA Stock Report

Market Cap

د.إ6.4b

7D

2.2%

1Y

24.5%

Updated

24 Oct, 2021

Data

Company Financials +
AIRARABIA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

AIRARABIA Overview

Air Arabia PJSC, together with its subsidiaries, provides air travel services.

Air Arabia PJSC Competitors

Singapore Airlines

SGX:C6L

S$15.7b

Hainan Airlines Holding

SHSE:900945

US$5.8b

Allegiant Travel

NasdaqGS:ALGT

US$3.3b

Türk Hava Yollari Anonim Ortakligi

IBSE:THYAO

₺19.5b

Price History & Performance

Summary of all time highs, changes and price drops for Air Arabia PJSC
Historical stock prices
Current Share Priceد.إ1.37
52 Week Highد.إ1.07
52 Week Lowد.إ1.45
Beta0.86
1 Month Change-1.44%
3 Month Change1.48%
1 Year Change24.55%
3 Year Change37.00%
5 Year Change5.39%
Change since IPO24.55%

Recent News & Updates

Sep 13
Be Wary Of Air Arabia PJSC (DFM:AIRARABIA) And Its Returns On Capital

Be Wary Of Air Arabia PJSC (DFM:AIRARABIA) And Its Returns On Capital

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...

Aug 16
Analysts Just Slashed Their Air Arabia PJSC (DFM:AIRARABIA) EPS Numbers

Analysts Just Slashed Their Air Arabia PJSC (DFM:AIRARABIA) EPS Numbers

Market forces rained on the parade of Air Arabia PJSC ( DFM:AIRARABIA ) shareholders today, when the analysts...

May 29
These Analysts Think Air Arabia PJSC's (DFM:AIRARABIA) Sales Are Under Threat

These Analysts Think Air Arabia PJSC's (DFM:AIRARABIA) Sales Are Under Threat

The latest analyst coverage could presage a bad day for Air Arabia PJSC ( DFM:AIRARABIA ), with the analysts making...

May 04
Is Air Arabia PJSC (DFM:AIRARABIA) At Risk Of Cutting Its Dividend?

Is Air Arabia PJSC (DFM:AIRARABIA) At Risk Of Cutting Its Dividend?

Could Air Arabia PJSC ( DFM:AIRARABIA ) be an attractive dividend share to own for the long haul? Investors are often...

Shareholder Returns

AIRARABIAAE AirlinesAE Market
7D2.2%-2.9%1.1%
1Y24.5%19.2%51.9%

Return vs Industry: AIRARABIA exceeded the AE Airlines industry which returned 19.2% over the past year.

Return vs Market: AIRARABIA underperformed the AE Market which returned 51.1% over the past year.

Price Volatility

Is AIRARABIA's price volatile compared to industry and market?
AIRARABIA volatility
AIRARABIA Beta0.86
Industry Beta1.05
Market Beta1

Stable Share Price: AIRARABIA is less volatile than 75% of AE stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: AIRARABIA's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007n/aAdel Abdullah Al Alihttps://www.airarabia.com

Air Arabia PJSC, together with its subsidiaries, provides air travel services. The company operates through two segments, Airline and Other. It offers international commercial air transportation, aircraft rental, passengers transport, and cargo services, as well as aviation training, and aircraft repairs and maintenance services.

Air Arabia PJSC Fundamentals Summary

How do Air Arabia PJSC's earnings and revenue compare to its market cap?
AIRARABIA fundamental statistics
Market Capد.إ6.39b
Earnings (TTM)د.إ20.57m
Revenue (TTM)د.إ1.90b

311.4x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIRARABIA income statement (TTM)
Revenueد.إ1.90b
Cost of Revenueد.إ1.65b
Gross Profitد.إ249.23m
Expensesد.إ228.65m
Earningsد.إ20.57m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0044
Gross Margin13.13%
Net Profit Margin1.08%
Debt/Equity Ratio5.7%

How did AIRARABIA perform over the long term?

See historical performance and comparison

Valuation

Is Air Arabia PJSC undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIRARABIA (AED1.37) is trading below our estimate of fair value (AED2.75)

Significantly Below Fair Value: AIRARABIA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIRARABIA is poor value based on its PE Ratio (311.4x) compared to the Asian Airlines industry average (212.6x).

PE vs Market: AIRARABIA is poor value based on its PE Ratio (311.4x) compared to the AE market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: AIRARABIA is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: AIRARABIA is good value based on its PB Ratio (1.2x) compared to the XA Airlines industry average (1.6x).


Future Growth

How is Air Arabia PJSC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

52.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIRARABIA's forecast earnings growth (52.8% per year) is above the savings rate (9.1%).

Earnings vs Market: AIRARABIA's earnings (52.8% per year) are forecast to grow faster than the AE market (9.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIRARABIA's revenue (23.4% per year) is forecast to grow faster than the AE market (5% per year).

High Growth Revenue: AIRARABIA's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIRARABIA's Return on Equity is forecast to be low in 3 years time (15.5%).


Past Performance

How has Air Arabia PJSC performed over the past 5 years?

-25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIRARABIA has a large one-off loss of AED19.0M impacting its June 30 2021 financial results.

Growing Profit Margin: AIRARABIA's current net profit margins (1.1%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: AIRARABIA's earnings have declined by 25.2% per year over the past 5 years.

Accelerating Growth: AIRARABIA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AIRARABIA had negative earnings growth (-95.9%) over the past year, making it difficult to compare to the Airlines industry average (-92.2%).


Return on Equity

High ROE: AIRARABIA's Return on Equity (0.4%) is considered low.


Financial Health

How is Air Arabia PJSC's financial position?


Financial Position Analysis

Short Term Liabilities: AIRARABIA's short term assets (AED3.7B) exceed its short term liabilities (AED2.9B).

Long Term Liabilities: AIRARABIA's short term assets (AED3.7B) do not cover its long term liabilities (AED4.4B).


Debt to Equity History and Analysis

Debt Level: AIRARABIA's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: AIRARABIA's debt to equity ratio has increased from 2.3% to 5.7% over the past 5 years.

Debt Coverage: AIRARABIA's debt is well covered by operating cash flow (239.3%).

Interest Coverage: AIRARABIA's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

What is Air Arabia PJSC current dividend yield, its reliability and sustainability?

6.01%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AIRARABIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AIRARABIA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AIRARABIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AIRARABIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AIRARABIA is not paying a notable dividend for the AE market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AIRARABIA's dividend in 3 years as they are not forecast to pay a notable one for the AE market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average board tenure


CEO

Adel Abdullah Al Ali

18.75yrs

Tenure

Mr. Adel Abdullah Mohamed Al Ali serves as the Member of the Board of Directors at Foundation Holdings. He is the Founder of Air Arabia. Previously, Mr. Al Ali served as Vice President commercial and custo...


Board Members

Experienced Board: AIRARABIA's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Air Arabia PJSC's employee growth, exchange listings and data sources


Key Information

  • Name: Air Arabia PJSC
  • Ticker: AIRARABIA
  • Exchange: DFM
  • Founded: 2007
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: د.إ6.393b
  • Shares outstanding: 4.67b
  • Website: https://www.airarabia.com

Location

  • Air Arabia PJSC
  • Building A1
  • Next to Cargo Entrance
  • Sharjah
  • United Arab Emirates

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:28
End of Day Share Price2021/10/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.