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ATSG

Air Transport Services Group NasdaqGS:ATSG Stock Report

Last Price

US$31.40

Market Cap

US$2.3b

7D

0.2%

1Y

16.9%

Updated

06 Aug, 2022

Data

Company Financials +
ATSG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends0/6

ATSG Stock Overview

Air Transport Services Group, Inc., together with its subsidiaries, provides aircraft leasing and air cargo transportation and related services in the United States and internationally.

Air Transport Services Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Air Transport Services Group
Historical stock prices
Current Share PriceUS$31.40
52 Week HighUS$34.54
52 Week LowUS$23.68
Beta0.56
1 Month Change11.55%
3 Month Change3.43%
1 Year Change16.90%
3 Year Change49.52%
5 Year Change38.33%
Change since IPO2,225.93%

Recent News & Updates

Jul 20
Here's Why Air Transport Services Group (NASDAQ:ATSG) Has A Meaningful Debt Burden

Here's Why Air Transport Services Group (NASDAQ:ATSG) Has A Meaningful Debt Burden

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

ATSGUS LogisticsUS Market
7D0.2%1.0%1.0%
1Y16.9%-3.1%-12.9%

Return vs Industry: ATSG exceeded the US Logistics industry which returned -3.1% over the past year.

Return vs Market: ATSG exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is ATSG's price volatile compared to industry and market?
ATSG volatility
ATSG Average Weekly Movement5.4%
Logistics Industry Average Movement6.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: ATSG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ATSG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19805,280Rich Corradohttps://www.atsginc.com

Air Transport Services Group, Inc., together with its subsidiaries, provides aircraft leasing and air cargo transportation and related services in the United States and internationally. The company offers aircraft, flight crews, aircraft maintenance, aircraft hull and liability insurance, and aviation fuel services; and aircraft maintenance and modification services, including airframe modification and heavy maintenance, component repairs, engineering services, and aircraft line maintenance. It also provides equipment maintenance services; cargo load transfer and package sorting services; crew training services; and airline express operation, line and heavy maintenance, and ground handling services.

Air Transport Services Group Fundamentals Summary

How do Air Transport Services Group's earnings and revenue compare to its market cap?
ATSG fundamental statistics
Market CapUS$2.32b
Earnings (TTM)US$210.83m
Revenue (TTM)US$1.94b

11.0x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATSG income statement (TTM)
RevenueUS$1.94b
Cost of RevenueUS$1.14b
Gross ProfitUS$807.44m
Other ExpensesUS$596.61m
EarningsUS$210.83m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.85
Gross Margin41.54%
Net Profit Margin10.85%
Debt/Equity Ratio96.3%

How did ATSG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ATSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATSG?

Other financial metrics that can be useful for relative valuation.

ATSG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA5.9x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does ATSG's PE Ratio compare to its peers?

ATSG PE Ratio vs Peers
The above table shows the PE ratio for ATSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.6x
FWRD Forward Air
17.1x3.6%US$2.8b
HUBG Hub Group
8.8x-12.6%US$2.8b
AAWW Atlas Air Worldwide Holdings
6.1x-13.3%US$2.8b
GXO GXO Logistics
26.4x22.6%US$5.7b
ATSG Air Transport Services Group
11x4.9%US$2.3b

Price-To-Earnings vs Peers: ATSG is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (14.6x).


Price to Earnings Ratio vs Industry

How does ATSG's PE Ratio compare vs other companies in the Global Logistics Industry?

Price-To-Earnings vs Industry: ATSG is good value based on its Price-To-Earnings Ratio (11x) compared to the US Logistics industry average (11x)


Price to Earnings Ratio vs Fair Ratio

What is ATSG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio11.8x

Price-To-Earnings vs Fair Ratio: ATSG is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).


Share Price vs Fair Value

What is the Fair Price of ATSG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATSG ($31.4) is trading below our estimate of fair value ($80.32)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Air Transport Services Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATSG's forecast earnings growth (4.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ATSG's earnings (4.9% per year) are forecast to grow slower than the US market (12.8% per year).

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

Revenue vs Market: ATSG's revenue (4.8% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: ATSG's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


34.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATSG has high quality earnings.

Growing Profit Margin: ATSG's current net profit margins (10.8%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: ATSG has become profitable over the past 5 years, growing earnings by 34.9% per year.

Accelerating Growth: ATSG's earnings growth over the past year (77.7%) exceeds its 5-year average (34.9% per year).

Earnings vs Industry: ATSG earnings growth over the past year (77.7%) underperformed the Logistics industry 77.7%.


Return on Equity

High ROE: ATSG's Return on Equity (14.9%) is considered low.


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Financial Health

How is Air Transport Services Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATSG's short term assets ($389.6M) exceed its short term liabilities ($328.3M).

Long Term Liabilities: ATSG's short term assets ($389.6M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ATSG's net debt to equity ratio (93%) is considered high.

Reducing Debt: ATSG's debt to equity ratio has reduced from 188.8% to 96.3% over the past 5 years.

Debt Coverage: ATSG's debt is well covered by operating cash flow (38.7%).

Interest Coverage: ATSG's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ATSG has not reported any payouts.


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Management

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

4.9yrs

Average management tenure


CEO

Rich Corrado (62 yo)

2.92yrs

Tenure

US$2,600,154

Compensation

Mr. Richard F. Corrado, also known as Rich, is the President of Air Transport Services Group, Inc., since September 16, 2019 and serves as its Chief Executive Officer and Director since May 7, 2020. Mr. Co...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD2.60M) is below average for companies of similar size in the US market ($USD5.42M).

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


Leadership Team

Experienced Management: ATSG's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: ATSG's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ATSG insiders have sold more shares than they have bought 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

Air Transport Services Group, Inc.'s 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
  • Implied Market Cap: US$2.321b
  • Shares outstanding: 73.93m
  • Website: https://www.atsginc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.