NasdaqGS:ALGT

Stock Analysis Report

Executive Summary

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Allegiant Travel's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

14.0%

ALGT

13.1%

US Airlines

9.4%

US Market


1 Year Return

-41.9%

ALGT

-53.1%

US Airlines

-6.8%

US Market

Return vs Industry: ALGT exceeded the US Airlines industry which returned -57.1% over the past year.

Return vs Market: ALGT underperformed the US Market which returned -10% over the past year.


Shareholder returns

ALGTIndustryMarket
7 Day14.0%13.1%9.4%
30 Day-37.6%-36.6%-3.9%
90 Day-54.6%-54.7%-16.5%
1 Year-40.8%-41.9%-52.3%-53.1%-4.8%-6.8%
3 Year-44.7%-47.9%-47.3%-49.5%23.4%15.2%
5 Year-48.4%-53.0%-39.6%-43.2%41.3%25.7%

Price Volatility Vs. Market

How volatile is Allegiant Travel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Allegiant Travel undervalued compared to its fair value and its price relative to the market?

5.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALGT ($81.63) is trading above our estimate of fair value ($30.72)

Significantly Below Fair Value: ALGT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALGT is poor value based on its PE Ratio (5.7x) compared to the Airlines industry average (3.2x).

PE vs Market: ALGT is good value based on its PE Ratio (5.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: ALGT is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ALGT is overvalued based on its PB Ratio (1.5x) compared to the US Airlines industry average (0.6x).


Next Steps

Future Growth

How is Allegiant Travel forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALGT's forecast earnings growth (9.5% per year) is above the savings rate (1.7%).

Earnings vs Market: ALGT's earnings (9.5% per year) are forecast to grow slower than the US market (13.3% per year).

High Growth Earnings: ALGT's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALGT's revenue (7.4% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: ALGT's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALGT's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Allegiant Travel performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALGT has high quality earnings.

Growing Profit Margin: ALGT's current net profit margins (12.4%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: ALGT's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: ALGT's earnings growth over the past year (43.2%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: ALGT earnings growth over the past year (43.2%) exceeded the Airlines industry 41.8%.


Return on Equity

High ROE: Whilst ALGT's Return on Equity (26.27%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Allegiant Travel's financial position?


Financial Position Analysis

Short Term Liabilities: ALGT's short term assets ($562.2M) do not cover its short term liabilities ($612.6M).

Long Term Liabilities: ALGT's short term assets ($562.2M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ALGT's debt to equity ratio (147.8%) is considered high.

Reducing Debt: ALGT's debt to equity ratio has reduced from 200.3% to 147.8% over the past 5 years.

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

Interest Coverage: ALGT's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Allegiant Travel's current dividend yield, its reliability and sustainability?

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALGT's dividend (3.43%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: ALGT's dividend (3.43%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

Stable Dividend: ALGT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ALGT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.6%), ALGT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALGT's dividends in 3 years are forecast to be well covered by earnings (16.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Maurice Gallagher (69yo)

16.67s

Tenure

US$2,850,307

Compensation

Mr. Maurice J. Gallagher, Jr., has been the Chief Executive Officer of Allegiant Travel Company since August 2003. Mr. Gallagher serves as the Principal at Gallagher Corporation, Gallagher Equity Managemen ...


Leadership Team

NamePositionTenureCompensationOwnership
Maurice Gallagher
Chairman of the Board & CEO16.67yrsUS$2.85m17.32% $227.3m
John Redmond
President & Director13.25yrsUS$1.87m1.48% $19.4m
Gregory Anderson
Executive VP1yrUS$1.27m0.15% $1.9m
Scott Sheldon
Executive VP & COO2.83yrsUS$2.14m0.18% $2.3m
Robert Wilson
Executive VP & Chief Information Officer2.33yrsUS$1.10m0.090% $1.2m
Robert Goldberg
Senior Counselno datano datano data
Scott DeAngelo
Executive VP & Chief Marketing Officerno datano data0.032% $424.0k
Trent Porter
Senior Vice President of Financial Planningno datano datano data
Tracy Tulle
Senior VP of Flight Crew Operations0.92yrno datano data
Christopher Allen
Director of Investor Relations8yrsno datano data

2.8yrs

Average Tenure

49yo

Average Age

Experienced Management: ALGT's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Maurice Gallagher
Chairman of the Board & CEO16.67yrsUS$2.85m17.32% $227.3m
John Redmond
President & Director13.25yrsUS$1.87m1.48% $19.4m
M. Harrison
Director0.42yrUS$917.63k0.13% $1.6m
Charles Pollard
Lead Independent Director1yrUS$178.85k0.050% $653.0k
Montie Brewer
Independent Director10.5yrsUS$178.85k0.087% $1.1m
Linda Marvin
Independent Director7.25yrsUS$178.85k0.050% $653.0k
Gary Ellmer
Independent Director11.92yrsUS$178.85k0.0093% $121.6k

10.5yrs

Average Tenure

61yo

Average Age

Experienced Board: ALGT's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALGT 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

Allegiant Travel Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allegiant Travel Company
  • Ticker: ALGT
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$1.312b
  • Shares outstanding: 16.08m
  • Website: https://www.allegiantair.com

Number of Employees


Location

  • Allegiant Travel Company
  • 1201 North Town Center Drive
  • Las Vegas
  • Nevada
  • 89144
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALGTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2006
AGHDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2006

Biography

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 14, 2020, it operated a fleet of 94 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including convenience fees, advance seat assignments, travel protection products, change fees, priority boarding, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company leases spare engines to a third party; offers management solutions to golf courses; and operates a golf course and family entertainment centers. Allegiant Travel Company was founded in 1997 and is headquartered in Las Vegas, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 00:06
End of Day Share Price2020/04/08 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.