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

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

0.7%

NasdaqGS:ALGT

1.0%

US Airlines

-0.02%

US Market


1 Year Return

19.1%

NasdaqGS:ALGT

-3.6%

US Airlines

1.6%

US Market

ALGT outperformed the Airlines industry which returned -4% over the past year.

ALGT outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

ALGTIndustryMarket
7 Day0.7%1.0%-0.02%
30 Day7.2%4.9%2.7%
90 Day9.1%4.3%1.4%
1 Year21.0%19.1%-2.1%-3.6%3.8%1.6%
3 Year23.1%16.6%48.8%43.1%45.2%35.8%
5 Year34.1%21.4%64.9%55.5%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Allegiant Travel's share price is below the future cash flow value, and at a moderate discount (> 20%).

Allegiant Travel's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Allegiant Travel is overvalued based on earnings compared to the US Airlines industry average.

Allegiant Travel is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Allegiant Travel is poor value based on expected growth next year.


Price Based on Value of Assets

Allegiant Travel is overvalued based on assets compared to the US Airlines industry average.


Next Steps

Future Growth

How is Allegiant Travel expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Allegiant Travel's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

Allegiant Travel's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Allegiant Travel's revenue growth is expected to exceed the United States of America market average.

Allegiant Travel's earnings growth is positive but not above the United States of America market average.

Allegiant Travel's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Allegiant Travel is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Allegiant Travel performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Allegiant Travel's year on year earnings growth rate has been positive over the past 5 years.

Allegiant Travel's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Allegiant Travel's 1-year earnings growth is negative, it can't be compared to the US Airlines industry average.


Return on Equity

Whilst Allegiant Travel has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Allegiant Travel used its assets more efficiently than the US Airlines industry average last year based on Return on Assets.


Return on Capital Employed

Allegiant Travel's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Allegiant Travel's financial position?


Financial Position Analysis

Allegiant Travel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Allegiant Travel's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Allegiant Travel's level of debt (171.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (164% vs 171.5% today).

Debt is well covered by operating cash flow (25.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

1.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Allegiant Travel's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Allegiant Travel's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

Allegiant Travel has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Allegiant Travel only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).


Next Steps

Management

What is the CEO of Allegiant Travel's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Maurice Gallagher (69yo)

16.1yrs

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 ...


Management Age and Tenure

2.3yrs

Average Tenure

49yo

Average Age

The tenure for the Allegiant Travel management team is about average.


Board Age and Tenure

10.6yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Allegiant Travel board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Allegiant Travel individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$145,10009 Aug 19
Gary Ellmer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$145.10
SellUS$144,83109 Aug 19
Robert Wilson
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares1,000
Max PriceUS$144.83
SellUS$257,54509 May 19
Robert Wilson
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares1,823
Max PriceUS$141.28
SellUS$7,600,57707 May 19
Maurice Gallagher
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares51,441
Max PriceUS$148.62
SellUS$124,50028 Mar 19
Gary Ellmer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$124.50
SellUS$54,42421 Dec 18
Robert Wilson
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares486
Max PriceUS$111.98
BuyUS$1,384,98601 Nov 18
John Redmond
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares12,000
Max PriceUS$115.80

Ownership Breakdown


Management Team

  • Maurice Gallagher (69yo)

    Chairman of the Board & CEO

    • Tenure: 16.1yrs
    • Compensation: US$2.85m
  • John Redmond (60yo)

    President & Director

    • Tenure: 12.7yrs
    • Compensation: US$1.87m
  • Scott DeAngelo

    Chief Marketing Officer

    • Tenure: 0yrs
  • Scott Sheldon (41yo)

    Executive VP & COO

    • Tenure: 2.3yrs
    • Compensation: US$2.14m
  • Robert Goldberg

    Senior Counsel

    • Tenure: 0yrs
  • Tracy Tulle

    Senior VP of Flight Crew Operations

    • Tenure: 0.3yrs
  • Robert Wilson (49yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.10m
  • Trent Porter

    Senior Vice President of Financial Planning

    • Tenure: 0yrs
  • Chris Allen

    Director of Investor Relations

    • Tenure: 7.4yrs
  • Greg Anderson (37yo)

    Executive VP

    • Tenure: 0.4yrs
    • Compensation: US$1.27m

Board Members

  • Maurice Gallagher (69yo)

    Chairman of the Board & CEO

    • Tenure: 16.1yrs
    • Compensation: US$2.85m
  • John Redmond (60yo)

    President & Director

    • Tenure: 12.7yrs
    • Compensation: US$1.87m
  • Chuck Pollard (61yo)

    Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: US$178.85k
  • Montie Brewer (62yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$178.85k
  • Linda Marvin (57yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$178.85k
  • Gary Ellmer (65yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$178.85k

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$2.452b
  • Shares outstanding: 16.11m
  • 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 limite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:56
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
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.