NasdaqGS:MESA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Good value with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.0%

MESA

-9.5%

US Airlines

-4.6%

US Market


1 Year Return

-58.8%

MESA

-47.0%

US Airlines

11.5%

US Market

Return vs Industry: MESA underperformed the US Airlines industry which returned -47% over the past year.

Return vs Market: MESA underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

MESAIndustryMarket
7 Day-7.0%-9.5%-4.6%
30 Day4.2%-2.6%-0.9%
90 Day0.6%12.6%2.2%
1 Year-58.8%-58.8%-46.7%-47.0%14.0%11.5%
3 Yearn/a-37.3%-38.9%34.5%25.6%
5 Yearn/a-32.8%-35.3%73.0%53.6%

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?

3.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MESA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MESA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MESA is good value based on its PE Ratio (4x) compared to the XN Airlines industry average (6.5x).

PE vs Market: MESA is good value based on its PE Ratio (4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MESA is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: MESA is good value based on its PB Ratio (0.3x) compared to the US Airlines industry average (0.7x).


Next Steps

Future Growth

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

52.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MESA's forecast earnings growth (52.5% per year) is above the savings rate (2.2%).

Earnings vs Market: MESA's earnings (52.5% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: MESA's revenue (8.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: MESA's revenue (8.7% 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 (9.4%).


Next Steps

Past Performance

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

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MESA has high quality earnings.

Growing Profit Margin: MESA's current net profit margins (4.5%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: MESA's earnings have grown by 7.9% 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 (-48.2%) over the past year, making it difficult to compare to the Airlines industry average (-38.5%).


Return on Equity

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


Next Steps

Financial Health

How is Mesa Air Group's financial position?


Financial Position Analysis

Short Term Liabilities: MESA's short term assets ($112.6M) do not cover its short term liabilities ($308.0M).

Long Term Liabilities: MESA's short term assets ($112.6M) do not cover its long term liabilities ($741.8M).


Debt to Equity History and Analysis

Debt Level: MESA's debt to equity ratio (169.8%) 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 not well covered by operating cash flow (18.7%).

Interest Coverage: MESA's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

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?

2.8yrs

Average management tenure


CEO

Jonathan Ornstein (62 yo)

22.42yrs

Tenure

US$1,400,956

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 ($USD1.40M) is above average for companies of similar size in the US market ($USD593.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Ornstein
Chairman & CEO22.42yrsUS$1.40m2.24%
$ 2.5m
Michael Lotz
President & CFO20.33yrsUS$1.20m1.06%
$ 1.2m
Bradford Rich
Executive VP & COO1.58yrsUS$690.56k0.012%
$ 13.1k
Brian Gillman
Executive VP7.08yrsUS$513.32k0.39%
$ 438.9k
Robert Hornberg
VP & Chief Information Officer20.08yrsno datano data
Sonia Mason
Director of Human Resources5.75yrsno datano data
Michael Ferverda
Senior Vice President of Regulatory & Special Projects1.58yrsUS$140.01kno data
Charles Marshall
Senior Director of Safety & Chief Pilot1.42yrsno datano data
Dean Sinerius
Director of Quality Assurance & Chief Inspector2.75yrsno datano data
Michael Whitman
Chief Pilot1.42yrsno datano data
Bradford Holt
Senior Vice President of Flight Operations1yrno datano data
James Swigart
VP & Treasurerno datano datano data

2.8yrs

Average Tenure

61yo

Average Age

Experienced Management: MESA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Ornstein
Chairman & CEO22.42yrsUS$1.40m2.24%
$ 2.5m
Mitchell Gordon
Independent Director9.58yrsUS$172.70k0.16%
$ 183.8k
Ellen Artist
Independent Director9.58yrsUS$187.70k0.16%
$ 183.8k
Harvey Schiller
Presiding Independent Director1.5yrsUS$202.70k0.16%
$ 183.8k
Daniel McHugh
Independent Director0.42yrno datano data
Dana Lockhart
Independent Director9.58yrsUS$172.70k0.16%
$ 183.8k
Spyridon Skiados
Independent Director9.58yrsUS$182.70k0.16%
$ 183.8k

9.6yrs

Average Tenure

63yo

Average Age

Experienced Board: MESA's board of directors are considered experienced (9.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 12.7%.


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$113.326m
  • Shares outstanding: 35.41m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MESANasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDAug 2018
M2ADB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2018

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:54
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.