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.

Rewards

Trading at 55.1% below its fair value

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap ($90M)



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.8%

ALSK

1.1%

US Telecom

-1.2%

US Market


1 Year Return

12.7%

ALSK

13.8%

US Telecom

15.5%

US Market

Return vs Industry: ALSK matched the US Telecom industry which returned 13.8% over the past year.

Return vs Market: ALSK underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

ALSKIndustryMarket
7 Day-4.8%1.1%-1.2%
30 Day-2.3%-0.4%1.4%
90 Day-1.2%4.0%4.7%
1 Year12.7%12.7%19.6%13.8%18.0%15.5%
3 Year7.0%7.0%19.6%2.3%44.8%35.4%
5 Year-10.1%-10.1%48.8%14.9%67.3%48.9%

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 ($1.69) is trading below our estimate of fair value ($3.76)

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 (22.5x) compared to the Telecom industry average (16.5x).

PE vs Market: ALSK is poor value based on its PE Ratio (22.5x) compared to the US market (18.3x).


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 (1.4x).


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?

9.6%

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?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALSK has a large one-off loss of $4.6M impacting its September 30 2019 financial results.

Growing Profit Margin: ALSK's current net profit margins (1.7%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: ALSK has become profitable over the past 5 years, growing earnings by -2.8% 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 (-9.3%) over the past year, making it difficult to compare to the Telecom industry average (-43.1%).


Return on Equity

High ROE: ALSK's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alaska Communications Systems Group's financial position?


Financial Position Analysis

Short Term Liabilities: ALSK's short term assets ($74.6M) exceed its short term liabilities ($52.4M).

Long Term Liabilities: ALSK's short term assets ($74.6M) do not cover its long term liabilities ($324.0M).


Debt to Equity History and Analysis

Debt Level: ALSK's debt to equity ratio (102.7%) is considered high.

Reducing Debt: ALSK's debt to equity ratio has reduced from 309.6% to 102.7% over the past 5 years.

Debt Coverage: ALSK's debt is well covered by operating cash flow (29.8%).

Interest Coverage: ALSK's interest payments on its debt are not well covered by EBIT (1.8x 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 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

5.0yrs

Average management tenure


CEO

Bill Bishop (53yo)

0.4yrs

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 ($USD539.10K) is about average for companies of similar size in the US market ($USD508.62K).

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


Management Age and Tenure

5.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ALSK's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ALSK's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$202,85212 Sep 19
Karen Singer
EntityIndividual
Shares121,468
Max PriceUS$1.67
BuyUS$911,44104 Sep 19
Karen Singer
EntityIndividual
Shares545,773
Max PriceUS$1.67
BuyUS$188,10030 Apr 19
Karen Singer
EntityIndividual
Shares110,000
Max PriceUS$1.71
BuyUS$5,20005 Feb 19
William Bishop
EntityIndividual
Role
Chief Executive Officer
President
Shares3,852
Max PriceUS$1.50

Ownership Breakdown

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


Management Team

  • Leonard Steinberg (65yo)

    Chief Ethics Officer

    • Tenure: 18.9yrs
    • Compensation: US$600.66k
  • Laurie Butcher (56yo)

    Chief Financial Officer

    • Tenure: 4.2yrs
    • Compensation: US$522.47k
  • Heather Cavanaugh

    Director of External Affairs & Corporate Communications

    • Tenure: 10.6yrs
  • Bill Bishop (53yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$539.10k
  • Lars Danner

    Assistant Corporate Secretary

    • Tenure: 0yrs
  • Diedre Williams (46yo)

    Senior Vice President of Operations & People Matters

    • Tenure: 4.2yrs
  • Tiffany Smith

    Manager of Board & Investor Relations

    • Tenure: 5.9yrs

Board Members

  • Peter Ley (59yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$110.00k
  • Pete Aquino (58yo)

    Independent Director

    • Tenure: 0.8yrs
  • Wayne Barr (55yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$69.38k
  • Dave Karp (52yo)

    Independent Board Chairman

    • Tenure: 0.6yrs
    • Compensation: US$97.50k
  • Brian Ross (61yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$110.00k
  • Bill Bishop (53yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$539.10k

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$90.120m
  • Shares outstanding: 53.01m
  • 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 U ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:32
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.