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.

Rewards

Trading at 62.8% below its fair value

Earnings are forecast to grow 9.77% per year

Earnings grew by 4.6% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

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

Stable Share Price: ALGT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

ALGT

-1.7%

US Airlines

0.3%

US Market


1 Year Return

35.5%

ALGT

3.5%

US Airlines

18.5%

US Market

Return vs Industry: ALGT exceeded the US Airlines industry which returned 3.5% over the past year.

Return vs Market: ALGT exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

ALGTIndustryMarket
7 Day0.9%-1.7%0.3%
30 Day1.7%-3.1%1.5%
90 Day14.9%2.1%5.7%
1 Year38.1%35.5%5.0%3.5%21.1%18.5%
3 Year5.2%-0.8%11.0%6.7%45.9%36.4%
5 Year40.7%26.3%33.7%26.1%71.4%52.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALGT ($171.19) is trading below our estimate of fair value ($459.82)

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


Price To Earnings Ratio

PE vs Industry: ALGT is poor value based on its PE Ratio (13.1x) compared to the Airlines industry average (9x).

PE vs Market: ALGT is good value based on its PE Ratio (13.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ALGT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ALGT is overvalued based on its PB Ratio (3.3x) compared to the US Airlines industry average (1.7x).


Next Steps

Future Growth

How is Allegiant Travel forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALGT's forecast earnings growth (9.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ALGT's earnings (9.8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: ALGT's revenue (10.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ALGT's revenue (10.8% 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 high in 3 years time (20.3%)


Next Steps

Past Performance

How has Allegiant Travel performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALGT has high quality earnings.

Growing Profit Margin: ALGT's current net profit margins (11.7%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: ALGT's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: ALGT's earnings growth over the past year (4.6%) is below its 5-year average (6.5% per year).

Earnings vs Industry: ALGT earnings growth over the past year (4.6%) exceeded the Airlines industry -14.4%.


Return on Equity

High ROE: Whilst ALGT's Return on Equity (25.77%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Allegiant Travel's financial position?


Financial Position Analysis

Short Term Liabilities: ALGT's short term assets ($525.4M) do not cover its short term liabilities ($549.3M).

Long Term Liabilities: ALGT's short term assets ($525.4M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ALGT's debt to equity ratio (149.3%) is considered high.

Reducing Debt: ALGT's debt to equity ratio has reduced from 177.9% to 149.3% over the past 5 years.

Debt Coverage: ALGT's debt is well covered by operating cash flow (31.4%).

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


Balance Sheet

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

Debt Coverage by Assets: ALGT's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

1.64%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: ALGT's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ALGT's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (21.4%), 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 (16.4% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Maurice Gallagher (69yo)

16.3yrs

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

2.5yrs

Average Tenure

49yo

Average Age

Experienced Management: ALGT's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

10.2yrs

Average Tenure

61yo

Average Age

Experienced Board: ALGT's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Ownership Breakdown

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


Management Team

  • Maurice Gallagher (69yo)

    Chairman of the Board & CEO

    • Tenure: 16.3yrs
    • Compensation: US$2.85m
  • John Redmond (60yo)

    President & Director

    • Tenure: 12.9yrs
    • Compensation: US$1.87m
  • Scott DeAngelo

    Chief Marketing Officer

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

    Executive VP & COO

    • Tenure: 2.5yrs
    • Compensation: US$2.14m
  • Robert Goldberg

    Senior Counsel

    • Tenure: 0yrs
  • Tracy Tulle

    Senior VP of Flight Crew Operations

    • Tenure: 0.6yrs
  • Robert Wilson (49yo)

    Executive VP & Chief Information Officer

    • Tenure: 2yrs
    • Compensation: US$1.10m
  • Trent Porter

    Senior Vice President of Financial Planning

    • Tenure: 0yrs
  • Chris Allen

    Director of Investor Relations

    • Tenure: 7.7yrs
  • Greg Anderson (37yo)

    Executive VP

    • Tenure: 0.7yrs
    • Compensation: US$1.27m

Board Members

  • M. Harrison (57yo)

    Director

    • Tenure: 0.08yrs
    • Compensation: US$917.63k
  • Maurice Gallagher (69yo)

    Chairman of the Board & CEO

    • Tenure: 16.3yrs
    • Compensation: US$2.85m
  • John Redmond (60yo)

    President & Director

    • Tenure: 12.9yrs
    • Compensation: US$1.87m
  • Chuck Pollard (61yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$178.85k
  • Montie Brewer (62yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$178.85k
  • Linda Marvin (57yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$178.85k
  • Gary Ellmer (65yo)

    Independent Director

    • Tenure: 11.6yrs
    • 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$2.717b
  • Shares outstanding: 16.09m
  • 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 Analysis2019/12/08 23:55
End of Day Share Price2019/12/06 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.