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Alaska Air Group

DB:ALK
Snowflake Description

Good value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALK
DB
$7B
Market Cap
  1. Home
  2. DE
  3. Transportation
Company description

Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The last earnings update was 14 days ago. More info.


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ALK Share Price and Events
7 Day Returns
-1%
DB:ALK
-4.3%
Europe Airlines
-0.6%
DE Market
1 Year Returns
8.8%
DB:ALK
-30.8%
Europe Airlines
-10.8%
DE Market
ALK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alaska Air Group (ALK) -1% 0.9% -2.4% 8.8% -8.3% 48.2%
Europe Airlines -4.3% -17.7% -21% -30.8% -8.7% 5%
DE Market -0.6% -3.3% 2.3% -10.8% 8% 8%
1 Year Return vs Industry and Market
  • ALK outperformed the Airlines industry which returned -30.8% over the past year.
  • ALK outperformed the Market in Germany which returned -10.8% over the past year.
Price Volatility
ALK
Industry
5yr Volatility vs Market

ALK Value

 Is Alaska Air Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alaska Air Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alaska Air Group.

DB:ALK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ALK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.852 (1 + (1- 21%) (49.16%))
1.122
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.122 * 5.96%)
6.92%

Discounted Cash Flow Calculation for DB:ALK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alaska Air Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:ALK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.92%)
2019 491.15 Analyst x4 459.38
2020 641.50 Analyst x4 561.19
2021 778.00 Analyst x1 636.57
2022 883.34 Est @ 13.54% 676.00
2023 967.67 Est @ 9.55% 692.63
2024 1,032.99 Est @ 6.75% 691.55
2025 1,082.51 Est @ 4.79% 677.82
2026 1,119.58 Est @ 3.42% 655.68
2027 1,147.18 Est @ 2.47% 628.38
2028 1,167.76 Est @ 1.79% 598.28
Present value of next 10 years cash flows $6,277.47
DB:ALK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,167.76 × (1 + 0.23%) ÷ (6.92% – 0.23%)
$17,498.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $17,498.75 ÷ (1 + 6.92%)10
$8,965.09
DB:ALK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,277.47 + $8,965.09
$15,242.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $15,242.56 / 123.43
$123.49
DB:ALK Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ALK represents 0.87679x of NYSE:ALK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87679x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 123.49 x 0.87679
€108.28
Value per share (EUR) From above. €108.28
Current discount Discount to share price of €53.80
= -1 x (€53.80 - €108.28) / €108.28
50.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alaska Air Group is available for.
Intrinsic value
>50%
Share price is €53.8 vs Future cash flow value of €108.28
Current Discount Checks
For Alaska Air Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alaska Air Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Alaska Air Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alaska Air Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alaska Air Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ALK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.55
NYSE:ALK Share Price ** NYSE (2019-05-23) in USD $61.36
Europe Airlines Industry PE Ratio Median Figure of 14 Publicly-Listed Airlines Companies 8.71x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alaska Air Group.

DB:ALK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ALK Share Price ÷ EPS (both in USD)

= 61.36 ÷ 3.55

17.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alaska Air Group is overvalued based on earnings compared to the Europe Airlines industry average.
  • Alaska Air Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Alaska Air Group's expected growth come at a high price?
Raw Data
DB:ALK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
18.6%per year
Europe Airlines Industry PEG Ratio Median Figure of 12 Publicly-Listed Airlines Companies 0.53x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

DB:ALK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.31x ÷ 18.6%

0.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alaska Air Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Alaska Air Group's assets?
Raw Data
DB:ALK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $30.33
NYSE:ALK Share Price * NYSE (2019-05-23) in USD $61.36
Europe Airlines Industry PB Ratio Median Figure of 17 Publicly-Listed Airlines Companies 1.58x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:ALK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ALK Share Price ÷ Book Value per Share (both in USD)

= 61.36 ÷ 30.33

2.02x

* Primary Listing of Alaska Air Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alaska Air Group is overvalued based on assets compared to the Europe Airlines industry average.
X
Value checks
We assess Alaska Air Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. Alaska Air Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ALK Future Performance

 How is Alaska Air Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alaska Air Group expected to grow at an attractive rate?
  • Alaska Air Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Alaska Air Group's earnings growth is expected to exceed the Germany market average.
  • Alaska Air Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ALK Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ALK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 18.6%
DB:ALK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 5.7%
Europe Airlines Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
Europe Airlines Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ALK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ALK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 9,686 897 5
2020-12-31 9,235 1,373 806 14
2019-12-31 8,690 1,228 695 14
DB:ALK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 8,308 1,357 437
2018-12-31 8,264 1,195 437
2018-09-30 8,142 1,219 729
2018-06-30 8,040 1,232 771
2018-03-31 7,986 1,426 871
2017-12-31 7,894 1,590 960
2017-09-30 7,476 1,537 759
2017-06-30 6,932 1,571 756
2017-03-31 6,324 1,331 723
2016-12-31 5,925 1,386 797
2016-09-30 5,784 1,561 891
2016-06-30 5,733 1,594 909

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alaska Air Group's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
  • Alaska Air Group's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ALK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Alaska Air Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ALK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 7.38 7.50 7.25 2.00
2020-12-31 6.58 7.25 5.79 6.00
2019-12-31 5.62 6.40 5.19 6.00
DB:ALK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.55
2018-12-31 3.55
2018-09-30 5.93
2018-06-30 6.27
2018-03-31 7.07
2017-12-31 7.79
2017-09-30 6.15
2017-06-30 6.13
2017-03-31 5.86
2016-12-31 6.45
2016-09-30 7.17
2016-06-30 7.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Alaska Air Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Alaska Air Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alaska Air Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ALK Past Performance

  How has Alaska Air Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alaska Air Group's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alaska Air Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Alaska Air Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Alaska Air Group's 1-year earnings growth is negative, it can't be compared to the Europe Airlines industry average.
Earnings and Revenue History
Alaska Air Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alaska Air Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ALK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 8,308.00 437.00 314.00
2018-12-31 8,264.00 437.00 326.00
2018-09-30 8,142.00 729.00 335.00
2018-06-30 8,040.00 771.00 348.00
2018-03-31 7,986.00 871.00 362.00
2017-12-31 7,894.00 960.00 368.00
2017-09-30 7,476.00 759.00 340.00
2017-06-30 6,932.00 756.00 306.00
2017-03-31 6,324.00 723.00 259.00
2016-12-31 5,925.00 797.00 248.00
2016-09-30 5,784.00 891.00 213.00
2016-06-30 5,733.00 909.00 208.00
2016-03-31 5,676.00 883.00 207.00
2015-12-31 5,598.00 848.00 211.00
2015-09-30 5,527.00 805.00 205.00
2015-06-30 5,477.00 729.00 207.00
2015-03-31 5,415.00 660.00 206.00
2014-12-31 5,368.00 605.00 199.00
2014-09-30 5,272.00 535.00 196.00
2014-06-30 5,171.00 626.00 189.00
2014-03-31 5,053.00 565.00 187.00
2013-12-31 4,964.00 508.00 179.00
2013-09-30 4,886.00 474.00 174.00
2013-06-30 4,794.00 348.00 172.00
2013-03-31 4,751.00 312.00 165.00
2012-12-31 4,657.00 316.00 168.00
2012-09-30 4,569.50 336.50 173.00
2012-06-30 4,495.60 251.00 174.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Alaska Air Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Alaska Air Group used its assets less efficiently than the Europe Airlines industry average last year based on Return on Assets.
  • Alaska Air Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alaska Air Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alaska Air Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ALK Health

 How is Alaska Air Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alaska Air Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alaska Air Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Alaska Air Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Alaska Air Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alaska Air Group Company Filings, last reported 1 month ago.

DB:ALK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,746.00 3,682.00 1,436.00
2018-12-31 3,751.00 2,110.00 1,239.00
2018-09-30 3,791.00 2,029.00 1,397.00
2018-06-30 3,593.00 2,312.00 1,568.00
2018-03-31 3,439.00 2,449.00 1,528.00
2017-12-31 3,460.00 2,577.00 1,622.00
2017-09-30 3,491.00 2,701.00 1,740.00
2017-06-30 3,264.00 2,806.00 1,922.00
2017-03-31 3,014.00 2,863.00 1,710.00
2016-12-31 2,931.00 2,969.00 1,580.00
2016-09-30 2,864.00 2,136.00 3,226.00
2016-06-30 2,627.00 626.00 1,607.00
2016-03-31 2,455.00 647.00 1,564.00
2015-12-31 2,411.00 701.00 1,328.00
2015-09-30 2,365.00 732.00 1,258.00
2015-06-30 2,219.00 764.00 1,192.00
2015-03-31 2,166.00 789.00 1,312.00
2014-12-31 2,127.00 822.00 1,217.00
2014-09-30 2,229.00 842.00 1,343.00
2014-06-30 2,200.00 878.00 1,510.00
2014-03-31 2,095.00 852.00 1,420.00
2013-12-31 2,029.00 888.00 1,330.00
2013-09-30 1,802.00 912.00 1,445.00
2013-06-30 1,543.00 944.00 1,429.00
2013-03-31 1,462.00 975.00 1,265.00
2012-12-31 1,421.00 1,065.00 1,252.00
2012-09-30 1,439.20 1,100.20 1,185.60
2012-06-30 1,283.00 1,172.50 1,185.40
  • Alaska Air Group's level of debt (98.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40.7% vs 98.3% today).
  • Debt is well covered by operating cash flow (36.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 24.3x coverage).
X
Financial health checks
We assess Alaska Air Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alaska Air Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ALK Dividends

 What is Alaska Air Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.28%
Current annual income from Alaska Air Group dividends. Estimated to be 2.35% next year.
If you bought €2,000 of Alaska Air Group shares you are expected to receive €46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Alaska Air Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.42%).
  • Alaska Air Group's dividend is below the markets top 25% of dividend payers in Germany (3.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ALK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Europe Airlines Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 5.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ALK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.55 4.00
2020-12-31 1.47 7.00
2019-12-31 1.37 9.00
DB:ALK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-10 1.400 2.272
2019-05-09 1.400 2.303
2019-04-25 1.400 2.288
2019-02-15 1.400 2.396
2019-01-24 1.400 2.148
2018-11-01 1.280 1.984
2018-08-08 1.280 1.960
2018-05-04 1.280 2.084
2018-04-23 1.280 1.964
2018-02-15 1.280 2.009
2018-01-25 1.280 1.979
2017-11-03 1.200 1.745
2017-08-04 1.200 1.575
2017-05-05 1.200 1.362
2017-04-26 1.200 1.399
2017-02-28 1.200 1.297
2017-02-08 1.200 1.235
2016-11-02 1.100 1.278
2016-08-03 1.100 1.610
2016-05-13 1.100 1.738
2016-01-21 1.100 1.479
2015-11-05 0.800 1.023
2015-08-06 0.800 1.026
2015-05-11 0.800 1.183
2015-05-07 0.800 1.215
2015-04-23 0.800 1.225
2015-02-11 0.800 1.237
2015-01-22 0.800 1.190
2014-11-06 0.500 0.866
2014-08-07 0.500 1.080
2014-05-12 0.500 1.049
2014-02-13 0.500 1.107
2013-11-07 0.400 1.058
2013-07-11 0.400 1.283

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Alaska Air Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Alaska Air Group only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Alaska Air Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).
X
Income/ dividend checks
We assess Alaska Air Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alaska Air Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alaska Air Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ALK Management

 What is the CEO of Alaska Air Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Tilden
COMPENSATION $4,374,845
AGE 57
TENURE AS CEO 7 years
CEO Bio

Mr. Bradley D. Tilden, also known as Brad, has been the Chief Executive Officer and President at Alaska Air Group, Inc. since May 15, 2012. Mr. Tilden has been the Chief Executive Officer of Alaska Airlines, Inc. since May 15, 2012. He was Chief Executive Officer and President at Horizon Air Industries, Inc. since January 5, 2018 until January 10, 2018. Mr. Tilden served as the Chief Executive Officer of Horizon Air Industries, Inc. from May 15, 2012 to May 17, 2016. He served as President of Alaska Airlines, Inc. since December 2008. He is a 21-year veteran at Air Group. He served as the Chief Financial Officer of Alaska Air Group and Alaska Airlines Inc. from February 2000 to December 2008 and served as Alaska Air Group's Executive Vice President of Finance and Planning from January 2002 to December 2008. He served as Executive Vice President of planning at Alaska Airlines Inc. from April 27, 2007 to December 2008 and served as its Executive Vice President of Finance until December 2008. He joined Alaska Airlines from Price Waterhouse in 1991 and served as Controller of Alaska Airlines Inc. and Alaska Air Group Inc. since 1994. Prior to 2000, he was vice president of finance at Alaska Airlines and Alaska Air Group. Mr. Tilden has been the Chairman of Alaska Air Group, Inc., since January 2014 and Alaska Airlines, Inc. and Horizon Air Industries, Inc. since December 31, 2013. Before joining Alaska Airlines, Mr. Tilden worked for the accounting firm PriceWaterhouseCoopers. He was Chairman at Virgin America Inc. since December 2016 until August 2018. He has been an Independent Director of Flow International Corporation since May 2010. He has been a Director of Alaska Air Group, Inc., Horizon Air Industries, Inc. and Alaska Airlines Inc. since December 2, 2010. He has been an Independent Director of Nordstrom, Inc. since February 2016. He serves as a Director of Airlines for America, Washington Roundtable, Pacific Lutheran University and the Chief Seattle Council of the Boy Scouts of America. He is a Private Pilot. Mr. Tilden holds Bachelor's Degree in Business Administration from Pacific Lutheran University and an Executive Master's Degree in Business Administration from the University of Washington.

CEO Compensation
  • Brad's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brad's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Alaska Air Group management team in years:

5
Average Tenure
51
Average Age
  • The average tenure for the Alaska Air Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brad Tilden

TITLE
Chairman
COMPENSATION
$4M
AGE
57
TENURE
7 yrs

Brandon Pedersen

TITLE
CFO, Executive VP of Finance & Treasurer
COMPENSATION
$2M
AGE
51
TENURE
8.9 yrs

Shane Tackett

TITLE
Executive VP of Planning & Strategy of Alaska Airlines
COMPENSATION
$2M
AGE
39

Ben Minicucci

TITLE
President & COO of Alaska Airlines Inc and CEO of Virgin America Inc
COMPENSATION
$3M
AGE
51

Andrew Harrison

TITLE
Executive VP & Chief Commercial Officer of Alaska Airlines Inc.
COMPENSATION
$2M
AGE
47
TENURE
4.3 yrs

Helvi Sandvik

TITLE
Independent Director
COMPENSATION
$194K
AGE
60

Kevin Thiel

TITLE
Managing Director of Accounting Operations
TENURE
5.3 yrs

Lavanya Sareen

TITLE
Managing Director of Investor Relations
TENURE
4.8 yrs

Kyle Levine

TITLE
Chief Ethics & Compliance Officer
AGE
46
TENURE
3.3 yrs

Geni Venable

TITLE
Manager of Corporate Communication
Board of Directors Tenure

Average tenure and age of the Alaska Air Group board of directors in years:

5.4
Average Tenure
61.5
Average Age
  • The tenure for the Alaska Air Group board of directors is about average.
Board of Directors

Phyllis Campbell

TITLE
Independent Director
COMPENSATION
$206K
AGE
66
TENURE
17.3 yrs

Brad Tilden

TITLE
Chairman
COMPENSATION
$4M
AGE
57
TENURE
5.3 yrs

Marion Blakey

TITLE
Independent Director
COMPENSATION
$204K
AGE
69
TENURE
8.6 yrs

Eric Yeaman

TITLE
Independent Director
COMPENSATION
$214K
AGE
50
TENURE
6.5 yrs

Helvi Sandvik

TITLE
Independent Director
COMPENSATION
$194K
AGE
60
TENURE
5.5 yrs

Patty Bedient

TITLE
Lead Independent Director
COMPENSATION
$205K
AGE
64
TENURE
3 yrs

Ken Thompson

TITLE
Independent Director
COMPENSATION
$190K
AGE
66
TENURE
20.3 yrs

Dhiren Fonseca

TITLE
Independent Director
COMPENSATION
$198K
AGE
53
TENURE
4.6 yrs

James Beer

TITLE
Independent Director
COMPENSATION
$187K
AGE
57
TENURE
1.8 yrs

Ray Conner

TITLE
Independent Director
COMPENSATION
$227K
AGE
63
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Alaska Air Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
20. May 19 Sell Andrew Harrison Individual 16. May 19 16. May 19 -4,700 €56.04 €-263,382
14. May 19 Sell Andrew Harrison Individual 14. May 19 14. May 19 -1,600 €54.89 €-87,830
22. Feb 19 Sell Andrew Harrison Individual 21. Feb 19 21. Feb 19 -4,000 €55.53 €-222,107
15. Feb 19 Sell Christopher Berry Individual 13. Feb 19 13. Feb 19 -750 €59.47 €-44,606
04. Dec 18 Sell James Thompson Individual 03. Dec 18 03. Dec 18 -2,500 €64.40 €-160,992
30. Oct 18 Sell Andrew Harrison Individual 29. Oct 18 29. Oct 18 -930 €54.95 €-51,103
11. Sep 18 Sell Shane Tackett Individual 07. Sep 18 07. Sep 18 -3,000 €57.70 €-173,101
25. May 18 Sell Andrew Harrison Individual 25. May 18 25. May 18 -1,600 €53.08 €-84,924
X
Management checks
We assess Alaska Air Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alaska Air Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ALK News

Simply Wall St News

ALK Company Info

Description

Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates through three segments: Mainline, Regional, and Horizon. It has a network of approximately 1,200 daily flights to 115 destinations across the United States, Mexico, Canada, and Costa Rica. The company was founded in 1932 and is based in Seattle, Washington.

Details
Name: Alaska Air Group, Inc.
ALK
Exchange: DB
Founded: 1932
$6,706,945,599
123,427,980
Website: http://www.alaskaair.com
Address: Alaska Air Group, Inc.
19300 International Boulevard,
Seattle,
Washington, 98188,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ALK Common Stock New York Stock Exchange US USD 02. Jan 1968
DB ALK Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HC3 Common Stock London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
21,832
Alaska Air Group employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 21:36
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.