NasdaqGS:ATSG

Stock Analysis Report

Air Transport Services Group

Executive Summary

Air Transport Services Group, Inc., through its subsidiaries, operates in the airfreight and logistics industry.

Snowflake

Fundamentals

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

How has Air Transport Services Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

ATSG

1.5%

US Logistics

0.4%

US Market


1 Year Return

0.9%

ATSG

-7.1%

US Logistics

6.9%

US Market

Return vs Industry: ATSG exceeded the US Logistics industry which returned -7.1% over the past year.

Return vs Market: ATSG underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ATSGIndustryMarket
7 Day4.3%1.5%0.4%
30 Day-5.9%-1.4%-1.1%
90 Day-13.0%5.4%-0.5%
1 Year0.9%0.9%-4.9%-7.1%9.3%6.9%
3 Year42.2%42.2%16.9%9.1%45.8%36.4%
5 Year163.3%163.3%28.5%15.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is Air Transport Services Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Air Transport Services Group undervalued compared to its fair value and its price relative to the market?

50.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ATSG ($20.46) is trading above our estimate of fair value ($8.47)

Significantly Undervalued: ATSG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATSG is poor value based on its PE Ratio (50.7x) compared to the Logistics industry average (23.1x).

PE vs Market: ATSG is poor value based on its PE Ratio (50.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ATSG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ATSG is overvalued based on its PB Ratio (3.3x) compared to the US Logistics industry average (3.1x).


Next Steps

Future Growth

How is Air Transport Services Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

106.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATSG's forecast earnings growth (106.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ATSG's earnings (106.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ATSG's revenue (11.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ATSG's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ATSG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Air Transport Services Group performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ATSG has become profitable over the past 5 years, growing earnings by 25.7% per year.

Accelerating Growth: ATSG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATSG had negative earnings growth (-77.6%) over the past year, making it difficult to compare to the Logistics industry average (-9.9%).


Return on Equity

High ROE: ATSG's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: ATSG's Return on Assets is below or equal to the Logistics industry average last year.


Return on Capital Employed

ROCE Improving: ATSG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Air Transport Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: ATSG's short term assets ($238.9M) do not cover its short term liabilities ($259.0M)

Long Term Liabilities: ATSG's short term assets (238.9M) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: ATSG's debt to equity ratio (388.9%) is considered high

Reducing Debt: ATSG's debt to equity ratio has increased from 91.4% to 388.9% over the past 5 years.

Debt Coverage: ATSG's debt is well covered by operating cash flow (25.3%).

Interest Coverage: ATSG's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATSG's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Air Transport Services Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ATSG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ATSG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ATSG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATSG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATSG'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 Air Transport Services Group's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Joe Hete (64yo)

11.8yrs

Tenure

US$2,286,223

Compensation

Mr. Joseph C. Hete, also known as Joe, has been the Chief Executive Officer at Air Transport Services Group, Inc. an affiliate of Air Transport International LLC (ATSG) since December 2007. Mr. Hete served ...


CEO Compensation Analysis

Compensation vs. Market: Joe's total compensation ($USD2.29M) is below average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ATSG's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

63yo

Average Age

Experienced Board: ATSG's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$19,74015 Aug 19
Michael Berger
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer & President of Airborne Global Solutions
Shares1,000
Max PriceUS$19.74
BuyUS$200,00014 Aug 19
Robert Coretz
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$20.00
BuyUS$49,77608 Aug 19
Raymond Johns
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,400
Max PriceUS$20.74
SellUS$28,28211 Jun 19
Sarah Williams
EntityIndividual
Shares1,209
Max PriceUS$23.40
BuyUS$543,75014 May 19
Robert Coretz
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$21.75
BuyUS$21,69013 May 19
Jeffrey Crippen
EntityIndividual
Shares1,000
Max PriceUS$21.69
BuyUS$26,66810 May 19
Michael Berger
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer & President of Airborne Global Solutions
Shares1,200
Max PriceUS$22.24
BuyUS$84,62327 Mar 19
Michael Berger
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer & President of Airborne Global Solutions
Shares3,850
Max PriceUS$21.98
BuyUS$25,19827 Mar 19
Raymond Johns
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,225
Max PriceUS$20.57
BuyUS$117,28022 Mar 19
Jeffrey Crippen
EntityIndividual
Shares5,700
Max PriceUS$20.60
BuyUS$50,10019 Mar 19
Joseph Hete
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,500
Max PriceUS$20.04
BuyUS$501,25019 Mar 19
Robert Coretz
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$20.05

Ownership Breakdown


Management Team

  • Rich Corrado (59yo)

    President

    • Tenure: 0.08yrs
    • Compensation: US$1.36m
  • Joe Hete (64yo)

    CEO & Director

    • Tenure: 11.8yrs
    • Compensation: US$2.29m
  • Quint Turner (56yo)

    Chief Financial Officer

    • Tenure: 11.7yrs
    • Compensation: US$1.17m
  • Joe Payne (55yo)

    Chief Legal Officer & Secretary

    • Tenure: 3.4yrs
    • Compensation: US$1.05m
  • Brady Templeton

    President and GM of Airborne Maintenance & Engg Svcs Inc

    • Tenure: 10.4yrs
  • Gary Stover

    President of LGSTX Services Inc

    • Tenure: 9.3yrs
  • Matt Fedders

    VP & Corporate Controller

    • Tenure: 11.3yrs
  • Russ Smethwick

    Vice President of Corporate Development

    • Tenure: 2.6yrs
  • Mike Berger (57yo)

    Chief Commercial Officer & President of Airborne Global Solutions

    • Tenure: 1.7yrs
    • Compensation: US$796.47k
  • Ed Koharik (49yo)

    Chief Operating Officer

    • Tenure: 0.08yrs

Board Members

  • Jeffrey Vorholt (66yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$176.48k
  • Randy Rademacher (62yo)

    Independent Chairman

    • Tenure: 4.4yrs
    • Compensation: US$259.48k
  • Joe Hete (64yo)

    CEO & Director

    • Tenure: 11.8yrs
    • Compensation: US$2.29m
  • Richard Baudouin (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$170.98k
  • Chris Teets (46yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$164.98k
  • Rob Coretz (55yo)

    Director

    • Tenure: 0.7yrs
  • Laura Peterson (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$32.50k
  • Ray Johns (64yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$160.98k

Company Information

Air Transport Services Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Air Transport Services Group, Inc.
  • Ticker: ATSG
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$1.205b
  • Shares outstanding: 58.91m
  • Website: https://www.atsginc.com

Number of Employees


Location

  • Air Transport Services Group, Inc.
  • 145 Hunter Drive
  • Wilmington
  • Ohio
  • 45177
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATSGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2003
AW8DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2003
ATSG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2003

Biography

Air Transport Services Group, Inc., through its subsidiaries, operates in the airfreight and logistics industry. The company owns and leases cargo aircraft to airlines and other customers. It also provides ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:06
End of Day Share Price2019/10/18 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.