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Market Cap

US$396.6m

Last Updated

2021/05/08 23:25 UTC

Data Sources

Company Financials +

Executive Summary

Mesa Air Group, Inc. operates as the holding company for Mesa Airlines, Inc. More Details


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MESA is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: MESA's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-1.0%

MESA

-1.3%

US Airlines

0.2%

US Market


1 Year Return

178.1%

MESA

125.1%

US Airlines

49.9%

US Market

Return vs Industry: MESA exceeded the US Airlines industry which returned 127.2% over the past year.

Return vs Market: MESA exceeded the US Market which returned 50.2% over the past year.


Shareholder returns

MESAIndustryMarket
7 Day-1.0%-1.3%0.2%
30 Day-14.9%-4.6%2.2%
90 Day56.4%22.6%4.2%
1 Year178.1%178.1%125.1%125.1%52.4%49.9%
3 Yearn/a3.7%1.7%63.7%53.4%
5 Yearn/a33.3%28.8%130.5%104.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mesa Air Group 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: MESA ($11.15) is trading below our estimate of fair value ($136.8)

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


Price To Earnings Ratio

PE vs Industry: MESA is good value based on its PE Ratio (12.8x) compared to the XX Airlines industry average (25.7x).

PE vs Market: MESA is good value based on its PE Ratio (12.8x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MESA is good value based on its PB Ratio (0.8x) compared to the US Airlines industry average (3x).


Future Growth

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

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MESA's forecast earnings growth (27.9% per year) is above the savings rate (2%).

Earnings vs Market: MESA's earnings (27.9% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: MESA's revenue (10.7% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: MESA's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MESA's Return on Equity is forecast to be low in 3 years time (6%).


Past Performance

How has Mesa Air Group performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MESA has a large one-off gain of $96.1M impacting its December 31 2020 financial results.

Growing Profit Margin: MESA's current net profit margins (6%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: MESA's earnings have grown by 2.6% per year over the past 5 years.

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

Earnings vs Industry: MESA had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Airlines industry average (-26.2%).


Return on Equity

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


Financial Health

How is Mesa Air Group's financial position?


Financial Position Analysis

Short Term Liabilities: MESA's short term assets ($236.0M) do not cover its short term liabilities ($287.9M).

Long Term Liabilities: MESA's short term assets ($236.0M) do not cover its long term liabilities ($782.6M).


Debt to Equity History and Analysis

Debt Level: MESA's debt to equity ratio (148.2%) is considered high.

Reducing Debt: Insufficient data to determine if MESA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MESA's debt is well covered by operating cash flow (30.1%).

Interest Coverage: Insufficient data to determine if MESA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MESA'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 MESA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MESA'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 MESA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Jonathan Ornstein (62 yo)

23yrs

Tenure

US$2,311,720

Compensation

Mr. Jonathan G. Ornstein serves as Chief Executive Officer of go! airlines. Mr. Ornstein has been Chief Executive Officer at Mesa Air Group, Inc. and Mesa Airlines Inc. since May 1, 1998. Mr. Ornstein serv...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD2.31M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Jonathan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MESA's management team is considered experienced (2.2 years average tenure).


Board Members

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


Ownership

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


Insider Trading Volume

Insider Buying: MESA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Mesa Air Group, Inc.
  • Ticker: MESA
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$396.586m
  • Shares outstanding: 35.57m
  • Website: https://www.mesa-air.com

Number of Employees


Location

  • Mesa Air Group, Inc.
  • 410 North 44th Street
  • Suite 700
  • Phoenix
  • Arizona
  • 85008
  • United States

Listings


Biography

Mesa Air Group, Inc. operates as the holding company for Mesa Airlines, Inc. that provides regional air carrier services under capacity purchase agreements with the American Airlines and the United Airline...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 23:25
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/09/30


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.