Loading...

Allegiant Travel

Nasdaq:ALGT
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALGT
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Transportation
Company description

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The last earnings update was 15 days ago. More info.


Add to Portfolio Compare Print
ALGT Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:ALGT
0.9%
US Airlines
0.2%
US Market
1 Year Returns
-5.8%
NasdaqGS:ALGT
5.4%
US Airlines
2.9%
US Market
ALGT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Allegiant Travel (ALGT) -0.9% 8.2% 1.6% -5.8% 4.8% 23.1%
US Airlines 0.9% -1.4% -0.2% 5.4% 29.6% 52.6%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • ALGT underperformed the Airlines industry which returned 5.4% over the past year.
  • ALGT underperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
ALGT
Industry
5yr Volatility vs Market

Value

 Is Allegiant Travel 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 Allegiant Travel 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 Allegiant Travel.

NasdaqGS:ALGT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGS:ALGT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.882 (1 + (1- 21%) (60.06%))
1.201
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.201 * 5.96%)
9.89%

Discounted Cash Flow Calculation for NasdaqGS:ALGT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Allegiant Travel 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.

NasdaqGS:ALGT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.89%)
2019 -132.90 Est @ 4.58% -120.94
2020 44.00 Analyst x1 36.44
2021 45.77 Est @ 4.02% 34.49
2022 47.43 Est @ 3.64% 32.53
2023 49.03 Est @ 3.36% 30.60
2024 50.59 Est @ 3.17% 28.73
2025 52.12 Est @ 3.04% 26.94
2026 53.66 Est @ 2.95% 25.24
2027 55.21 Est @ 2.88% 23.63
2028 56.77 Est @ 2.84% 22.11
Present value of next 10 years cash flows $139.77
NasdaqGS:ALGT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $56.77 × (1 + 2.73%) ÷ (9.89% – 2.73%)
$814.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $814.75 ÷ (1 + 9.89%)10
$317.33
NasdaqGS:ALGT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $139.77 + $317.33
$457.09
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $457.09 / 16.09
$28.41
NasdaqGS:ALGT Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.41
Current discount Discount to share price of $143.00
= -1 x ($143.00 - $28.41) / $28.41
-403.4%

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

  • The current share price of Allegiant Travel is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Allegiant Travel's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Allegiant Travel's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ALGT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $10.12
NasdaqGS:ALGT Share Price ** NasdaqGS (2019-05-22) in USD $143
United States of America Airlines Industry PE Ratio Median Figure of 12 Publicly-Listed Airlines Companies 11.28x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

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

** Primary Listing of Allegiant Travel.

NasdaqGS:ALGT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ALGT Share Price ÷ EPS (both in USD)

= 143 ÷ 10.12

14.13x

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

  • 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
Does Allegiant Travel's expected growth come at a high price?
Raw Data
NasdaqGS:ALGT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
12%per year
United States of America Airlines Industry PEG Ratio Median Figure of 11 Publicly-Listed Airlines Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:ALGT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.13x ÷ 12%

1.18x

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

  • Allegiant Travel is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Allegiant Travel's assets?
Raw Data
NasdaqGS:ALGT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $45.90
NasdaqGS:ALGT Share Price * NasdaqGS (2019-05-22) in USD $143
United States of America Airlines Industry PB Ratio Median Figure of 12 Publicly-Listed Airlines Companies 1.88x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NasdaqGS:ALGT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ALGT Share Price ÷ Book Value per Share (both in USD)

= 143 ÷ 45.90

3.12x

* Primary Listing of Allegiant Travel.

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

  • Allegiant Travel is overvalued based on assets compared to the US Airlines industry average.
X
Value checks
We assess Allegiant Travel'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. Allegiant Travel has a total score of 1/6, 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.

Future Performance

 How is Allegiant Travel expected to perform in the next 1 to 3 years based on estimates from 12 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
12%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Allegiant Travel expected to grow at an attractive rate?
  • Allegiant Travel's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Allegiant Travel's earnings growth is positive but not above the United States of America market average.
  • Allegiant Travel's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ALGT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ALGT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 12%
NasdaqGS:ALGT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 10.2%
United States of America Airlines Industry Earnings Growth Rate Market Cap Weighted Average 9.7%
United States of America Airlines Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NasdaqGS:ALGT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ALGT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,246 242 4
2020-12-31 2,043 518 238 11
2019-12-31 1,846 479 213 12
NasdaqGS:ALGT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,694 344 162
2018-12-31 1,667 357 160
2018-09-30 1,634 379 201
2018-06-30 1,592 411 209
2018-03-31 1,557 417 208
2017-12-31 1,511 391 195
2017-09-30 1,468 341 154
2017-06-30 1,451 354 176
2017-03-31 1,393 333 188
2016-12-31 1,379 348 219
2016-09-30 1,337 406 234
2016-06-30 1,303 391 233

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Allegiant Travel's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).
  • Allegiant Travel's revenue is expected to grow by 10.2% 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
NasdaqGS:ALGT 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 12 Analyst Estimates (S&P Global) See Below

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

NasdaqGS:ALGT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 14.41 16.76 10.67 9.00
2019-12-31 13.16 14.22 11.41 10.00
NasdaqGS:ALGT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 10.12
2018-12-31 10.02
2018-09-30 12.63
2018-06-30 13.16
2018-03-31 13.04
2017-12-31 12.14
2017-09-30 9.48
2017-06-30 10.75
2017-03-31 11.46
2016-12-31 13.31
2016-09-30 14.14
2016-06-30 13.98

*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.
  • Allegiant Travel is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Allegiant Travel'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Allegiant Travel 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.

Past Performance

  How has Allegiant Travel 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 Allegiant Travel'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.
  • 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.
Earnings and Revenue History
Allegiant Travel'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 Allegiant Travel Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ALGT 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 1,693.63 161.60 75.36
2018-12-31 1,667.45 159.70 73.51
2018-09-30 1,634.49 200.93 70.19
2018-06-30 1,591.57 209.06 67.28
2018-03-31 1,556.93 207.95 62.42
2017-12-31 1,511.20 195.18 56.68
2017-09-30 1,467.64 153.63 44.46
2017-06-30 1,450.67 175.68 36.22
2017-03-31 1,393.16 187.89 28.05
2016-12-31 1,378.94 219.11 34.63
2016-09-30 1,336.79 233.76 21.22
2016-06-30 1,303.22 232.89 19.62
2016-03-31 1,280.00 226.50 20.06
2015-12-31 1,260.90 219.41 21.35
2015-09-30 1,229.25 167.95 23.13
2015-06-30 1,194.62 137.76 26.89
2015-03-31 1,163.76 116.95 27.78
2014-12-31 1,137.05 86.40 28.49
2014-09-30 1,096.57 98.96 28.22
2014-06-30 1,060.41 101.85 24.93
2014-03-31 1,025.72 94.14 23.69
2013-12-31 996.15 91.89 21.68
2013-09-30 980.52 89.19 19.81
2013-06-30 968.51 89.04 19.48
2013-03-31 943.83 88.48 19.57
2012-12-31 908.72 78.30 19.22
2012-09-30 879.82 74.11 19.47
2012-06-30 854.45 66.71 20.20

*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.
  • 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.
  • Allegiant Travel used its assets more efficiently than the US Airlines industry average last year based on Return on Assets.
  • Allegiant Travel's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Allegiant Travel'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.
Allegiant Travel has a total score of 2/6, 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.

Health

 How is Allegiant Travel'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 Allegiant Travel's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Allegiant Travel'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 Allegiant Travel Company Filings, last reported 1 month ago.

NasdaqGS:ALGT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 738.45 1,381.89 530.24
2018-12-31 690.32 1,271.73 395.98
2018-09-30 653.00 1,313.05 425.37
2018-06-30 644.67 1,136.71 372.16
2018-03-31 599.80 1,139.78 392.04
2017-12-31 553.31 1,164.89 412.13
2017-09-30 473.83 1,011.56 425.54
2017-06-30 459.49 877.47 343.16
2017-03-31 503.10 803.58 353.46
2016-12-31 473.62 808.27 333.98
2016-09-30 442.29 698.95 318.06
2016-06-30 406.74 630.72 361.11
2016-03-31 362.46 651.05 342.79
2015-12-31 350.01 641.68 332.70
2015-09-30 334.08 635.75 325.53
2015-06-30 326.18 627.62 380.37
2015-03-31 303.59 617.26 402.51
2014-12-31 294.07 588.79 359.43
2014-09-30 341.23 606.32 358.75
2014-06-30 378.02 619.42 548.25
2014-03-31 342.87 229.34 344.89
2013-12-31 377.32 234.30 351.09
2013-09-30 404.16 179.71 283.06
2013-06-30 432.30 145.11 358.44
2013-03-31 412.21 148.00 401.30
2012-12-31 401.72 150.85 328.70
2012-09-30 424.34 153.67 357.11
2012-06-30 402.99 156.18 372.21
  • Allegiant Travel's level of debt (187.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (68.1% vs 187.1% today).
  • Debt is well covered by operating cash flow (24.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).
X
Financial health checks
We assess Allegiant Travel'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. Allegiant Travel has a total score of 3/6, 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.

Dividends

 What is Allegiant Travel'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
1.96%
Current annual income from Allegiant Travel dividends. Estimated to be 1.98% next year.
If you bought $2,000 of Allegiant Travel shares you are expected to receive $39 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?
  • Allegiant Travel's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Allegiant Travel's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
Upcoming dividend payment

Purchase Allegiant Travel before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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
NasdaqGS:ALGT 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 12 Analyst Estimates (S&P Global) See Below
United States of America Airlines Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:ALGT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.80 4.00
2020-12-31 2.86 7.00
2019-12-31 2.82 7.00
NasdaqGS:ALGT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 2.800 1.955
2019-04-24 2.800 1.953
2019-02-28 2.800 2.153
2019-01-30 2.800 2.053
2018-10-31 2.800 2.367
2018-10-24 2.800 2.466
2018-08-03 2.800 2.194
2018-07-25 2.800 2.247
2018-05-08 2.800 1.890
2018-04-25 2.800 1.770
2017-10-25 2.800 1.810
2017-07-31 2.800 2.205
2017-07-26 2.800 2.100
2017-05-02 2.800 1.971
2017-04-25 2.800 1.879
2017-02-24 2.800 1.738
2017-01-31 2.800 1.645
2016-11-01 4.450 2.711
2016-10-26 4.450 3.198
2016-08-01 4.450 3.252
2016-07-29 4.450 3.449
2016-05-02 2.800 1.940
2016-04-27 2.800 1.713
2015-12-04 2.850 1.707
2015-10-29 1.200 0.633
2015-10-21 1.200 0.590
2015-07-31 3.700 1.713
2015-07-29 3.700 1.761
2015-05-06 3.500 2.004
2015-04-22 3.500 2.168
2015-02-26 3.500 1.925
2015-01-28 3.500 1.945
2014-12-03 2.500 1.662
2013-11-14 2.250 1.969

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

  • 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
What portion of Allegiant Travel's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
X
Income/ dividend checks
We assess Allegiant Travel'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 Allegiant Travel afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Allegiant Travel 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.

Management

 What is the CEO of Allegiant Travel'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
Maurice Gallagher
COMPENSATION $2,850,307
AGE 68
TENURE AS CEO 15.8 years
CEO Bio

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 Management LLC and Co-Partner of the investment firm at Flynn/Gallagher. He provides senior management direction to companies that include Telecommunications and Internet applications service provider companies. In early 1996, he co-founded Mpower Communications Corp. He served as President of Allegiant Travel Company until September 12, 2016. He also served as the President of Allegiant Travel Company until October 2009. He founded ValuJet Airlines. He founded and served as the President of WestAir Holding. He has been the Chairman of Allegiant Travel Company since September 2006. He has been the Chairman of Allegiant Airlines since September 2001. He served as the Chairman of Intelispan, Inc. since February 2000, Mpower Holding Corporation and Mpower Communications. He also helped launch PurchasePro.com and BankServ. He serves as a Director of Yekra LLC. He has been a Director at Allegiant Travel Company since June 2001. He serves a Member of Advisory Board at Blue Beacon Capital LLC. Mr. Gallagher is a Graduate from the University of California at Davis with a Bachelor of Arts in History and holds an M.B.A. from the University of California at Berkeley.

CEO Compensation
  • Maurice's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Maurice's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Allegiant Travel management team in years:

2.3
Average Tenure
48
Average Age
  • The tenure for the Allegiant Travel management team is about average.
Management Team

Maurice Gallagher

TITLE
Chairman of the Board & CEO
COMPENSATION
$3M
AGE
68
TENURE
15.8 yrs

John Redmond

TITLE
President & Director
COMPENSATION
$2M
AGE
59
TENURE
2.7 yrs

Greg Anderson

TITLE
Executive VP
COMPENSATION
$1M
AGE
36
TENURE
0.1 yrs

Scott Sheldon

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
40
TENURE
1.9 yrs

Robert Wilson

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$1M
AGE
48
TENURE
1.4 yrs

Chris Allen

TITLE
Director of Investor Relations
TENURE
7.1 yrs

Robert Goldberg

TITLE
Senior Counsel

Scott DeAngelo

TITLE
Chief Marketing Officer

Trent Porter

TITLE
Senior Vice President of Financial Planning

Tracy Tulle

TITLE
Senior VP of Flight Crew Operations
Board of Directors Tenure

Average tenure and age of the Allegiant Travel board of directors in years:

10.3
Average Tenure
60.5
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.
Board of Directors

Maurice Gallagher

TITLE
Chairman of the Board & CEO
COMPENSATION
$3M
AGE
68
TENURE
12.7 yrs

John Redmond

TITLE
President & Director
COMPENSATION
$2M
AGE
59
TENURE
12.3 yrs

Linda Marvin

TITLE
Independent Director
COMPENSATION
$179K
AGE
56
TENURE
6.3 yrs

Chuck Pollard

TITLE
Lead Independent Director
COMPENSATION
$179K
AGE
60
TENURE
0.1 yrs

Gary Ellmer

TITLE
Independent Director
COMPENSATION
$179K
AGE
64
TENURE
11 yrs

Montie Brewer

TITLE
Independent Director
COMPENSATION
$179K
AGE
61
TENURE
9.6 yrs
Who owns this company?
Recent Insider Trading
  • Allegiant Travel insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Sell Robert Wilson Individual 09. May 19 09. May 19 -1,823 $141.28 $-257,545
07. May 19 Sell Maurice Gallagher Individual 03. May 19 06. May 19 -51,441 $148.62 $-7,600,577
28. Mar 19 Sell Gary Ellmer Individual 26. Mar 19 26. Mar 19 -1,000 $124.50 $-124,500
21. Dec 18 Sell Robert Wilson Individual 20. Dec 18 20. Dec 18 -486 $111.98 $-54,424
01. Nov 18 Buy John Redmond Individual 31. Oct 18 31. Oct 18 12,000 $115.80 $1,384,986
24. Aug 18 Sell Robert Wilson Individual 22. Aug 18 22. Aug 18 -380 $135.01 $-51,302
X
Management checks
We assess Allegiant Travel'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. Allegiant Travel 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.

News

Simply Wall St News

Would Allegiant Travel Company (NASDAQ:ALGT) Be Valuable To Income Investors?

Is Allegiant Travel Company (NASDAQ:ALGT) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. Investors might not know much about Allegiant Travel's dividend prospects, even though it has been paying dividends for the last six years and offers a 1.9% yield. While the yield may not look too great, the relatively long payment history is interesting. Some simple research can reduce the risk of buying Allegiant Travel for its dividend - read on to learn more. Click the interactive chart for our full dividend analysis NasdaqGS:ALGT Historical Dividend Yield, May 22nd 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Allegiant Travel paid out 28% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Plus, there is room to increase the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Last year, Allegiant Travel paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. It's positive to see that Allegiant Travel's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Allegiant Travel's Balance Sheet Risky? As Allegiant Travel has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … It's good to see that Allegiant Travel has been paying a dividend for a number of years. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? It's good to see Allegiant Travel has been growing its earnings per share at 16% a year over the past 5 years. Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. We generally think this is an attractive combination, as it permits further reinvestment in the business. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

How Many Allegiant Travel Company (NASDAQ:ALGT) Shares Have Insiders Sold, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in Allegiant Travel Company (NASDAQ:ALGT). … All up, insiders sold more shares in Allegiant Travel than they bought, over the last year. … Insiders at Allegiant Travel Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Allegiant Travel.

Simply Wall St -

An Intrinsic Calculation For Allegiant Travel Company (NASDAQ:ALGT) Suggests It's 35% Undervalued

by taking the expected future cash flows and discounting them to their present value. … This is done using the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model?

Simply Wall St -

Does Allegiant Travel Company’s (NASDAQ:ALGT) ROCE Reflect Well On The Business?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Read This Before Selling Allegiant Travel Company (NASDAQ:ALGT) Shares

So before you buy or sell Allegiant Travel Company (NASDAQ:ALGT), you may well want to know whether insiders have been buying or selling. … Allegiant Travel Insider Transactions Over The Last Year. … John Redmond was the only individual insider to buy over the year

Simply Wall St -

What Does Allegiant Travel Company's (NASDAQ:ALGT) Share Price Indicate?

Allegiant Travel Company (NASDAQ:ALGT), which is in the airlines business, and is based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Allegiant Travel’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

How Do Analysts See Allegiant Travel Company (NASDAQ:ALGT) Performing In The Year Ahead?

As Allegiant Travel Company (NASDAQ:ALGT) announced its earnings release on 31 December 2018, … the consensus outlook from analysts appear fairly confident, … the past 5-year average growth rate of 13%.

Simply Wall St -

Is Allegiant Travel Company's (NASDAQ:ALGT) 25% Better Than Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.25. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Despite Its High P/E Ratio, Is Allegiant Travel Company (NASDAQ:ALGT) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Allegiant Travel Company's (NASDAQ:ALGT) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Allegiant Travel Company (NASDAQ:ALGT) An Attractive Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Allegiant Travel Company (NASDAQ:ALGT) has paid a dividend to shareholders. … Let's dig deeper into whether Allegiant Travel should have a place in your portfolio.

Simply Wall St -

Company Info

Description

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 15, 2019, it operated a fleet of 79 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including convenience fees, baggage 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; and offers management solutions to golf courses. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

Details
Name: Allegiant Travel Company
ALGT
Exchange: NasdaqGS
Founded: 1997
$2,300,979,967
16,090,769
Website: http://www.allegiantair.com
Address: Allegiant Travel Company
1201 North Town Center Drive,
Las Vegas,
Nevada, 89144,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ALGT Common Stock Nasdaq Global Select US USD 08. Dec 2006
DB AGH Common Stock Deutsche Boerse AG DE EUR 08. Dec 2006
Number of employees
Current staff
Staff numbers
4,067
Allegiant Travel employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 05:06
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/05/08
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.