NasdaqGS:ALSK

Stock Analysis Report

Alaska Communications Systems Group

Executive Summary

Alaska Communications Systems Group, Inc., through its subsidiaries, provides broadband telecommunication and managed information technology services to business, wholesale, and consumer customers in the United States.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Alaska Communications Systems Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALSK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.8%

ALSK

7.5%

US Telecom

5.3%

US Market


1 Year Return

-11.2%

ALSK

-7.0%

US Telecom

-10.7%

US Market

Return vs Industry: ALSK underperformed the US Telecom industry which returned -7% over the past year.

Return vs Market: ALSK matched the US Market which returned -10.7% over the past year.


Shareholder returns

ALSKIndustryMarket
7 Day8.8%7.5%5.3%
30 Day-20.5%-10.7%-13.6%
90 Day-3.3%-17.3%-19.8%
1 Year-11.2%-11.2%-2.5%-7.0%-8.9%-10.7%
3 Year-5.9%-5.9%0.1%-14.5%15.5%8.0%
5 Year0.6%0.6%19.2%-7.1%35.2%20.4%

Price Volatility Vs. Market

How volatile is Alaska Communications Systems Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alaska Communications Systems Group 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: ALSK ($1.74) is trading below our estimate of fair value ($7.62)

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


Price To Earnings Ratio

PE vs Industry: ALSK is poor value based on its PE Ratio (18.8x) compared to the Telecom industry average (15.9x).

PE vs Market: ALSK is poor value based on its PE Ratio (18.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALSK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALSK is good value based on its PB Ratio (0.5x) compared to the US Telecom industry average (1x).


Next Steps

Future Growth

How is Alaska Communications Systems Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Alaska Communications Systems Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Alaska Communications Systems Group performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALSK has a large one-off loss of $4.7M impacting its December 31 2019 financial results.

Growing Profit Margin: ALSK's current net profit margins (2.1%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: ALSK has become profitable over the past 5 years, growing earnings by -6.3% per year.

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

Earnings vs Industry: ALSK had negative earnings growth (-45.7%) over the past year, making it difficult to compare to the Telecom industry average (4.8%).


Return on Equity

High ROE: ALSK's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Alaska Communications Systems Group's financial position?


Financial Position Analysis

Short Term Liabilities: ALSK's short term assets ($81.3M) exceed its short term liabilities ($54.6M).

Long Term Liabilities: ALSK's short term assets ($81.3M) do not cover its long term liabilities ($329.2M).


Debt to Equity History and Analysis

Debt Level: ALSK's debt to equity ratio (100.1%) is considered high.

Reducing Debt: ALSK's debt to equity ratio has reduced from 315.4% to 100.1% over the past 5 years.

Debt Coverage: ALSK's debt is well covered by operating cash flow (33.9%).

Interest Coverage: ALSK's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: ALSK has a high level of physical assets or inventory.

Debt Coverage by Assets: ALSK's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Upcoming Dividend Payment


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: ALSK is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Bill Bishop (53yo)

0.75

Tenure

US$539,103

Compensation

Mr. William H. Bishop, also known as Bill, has been President, Chief Executive Officer and Director of Alaska Communications Systems Group, Inc. since October 12, 2019. Mr. Bishop served as Chief Operation ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD539.10K) is about average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Bishop
President0.75yrUS$539.10k0.38% $347.9k
Laurie Butcher
Chief Financial Officer4.5yrsUS$522.47k0.44% $404.4k
Leonard Steinberg
Chief Ethics Officer19.25yrsUS$600.66k1.22% $1.1m
Tiffany Hoogerhyde
Principal Accounting Officer0.33yrno data0.025% $23.5k
Tiffany Smith
Manager of Board & Investor Relations6.25yrsno datano data
Heather Cavanaugh
Director of External Affairs & Corporate Communications10.92yrsno datano data
Diedre Williams
Senior Vice President of Operations & People Matters4.5yrsno data0.14% $133.5k
Lars Danner
Assistant Corporate Secretaryno datano datano data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: ALSK's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Bishop
President0.75yrUS$539.10k0.38% $347.9k
Peter Ley
Independent Director11.67yrsUS$110.00k0.059% $54.5k
Peter Aquino
Independent Director1.08yrsno data0.028% $26.1k
Wayne Barr
Independent Director1.92yrsUS$69.38kno data
David Karp
Independent Board Chairman0.92yrUS$97.50k0.0019% $1.7k
Brian Ross
Independent Director8.5yrsUS$110.00k0.25% $232.0k

1.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ALSK's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: ALSK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Alaska Communications Systems Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alaska Communications Systems Group, Inc.
  • Ticker: ALSK
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$92.367m
  • Shares outstanding: 53.08m
  • Website: https://www.alaskacommunications.com

Number of Employees


Location

  • Alaska Communications Systems Group, Inc.
  • 600 Telephone Avenue
  • Anchorage
  • Alaska
  • 99503
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALSKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1999

Biography

Alaska Communications Systems Group, Inc., through its subsidiaries, provides broadband telecommunication and managed information technology services to business, wholesale, and consumer customers in the United States. Its services include voice and broadband services; and managed IT services comprising remote network monitoring and support service, managed IT security and IT professional services, and long distance services primarily over its own terrestrial network to business and wholesale customers. The company’s business customers comprise enterprises; federal, state, and local governments; and small and medium business. It also provides voice and broadband services to residential customers in residential homes and multi-dwelling units; voice and broadband origination and termination services to inter and intrastate carriers; and access and support services. The company markets and sells its products through direct sales channels. Alaska Communications Systems Group, Inc. was incorporated in 1998 and is based in Anchorage, Alaska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:11
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.