Mesa Air Group, Inc. operates as the holding company for Mesa Airlines, Inc. More Details
+ 1 more risk
Very undervalued with reasonable growth potential.
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.
7 Day Return
1 Year Return
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.
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
5 days ago | Simply Wall StIs Mesa Air Group (NASDAQ:MESA) Using Debt In A Risky Way?
1 month ago | Simply Wall StWhat Percentage Of Mesa Air Group, Inc. (NASDAQ:MESA) Shares Do Insiders Own?
1 month ago | Simply Wall StIf You Had Bought Mesa Air Group (NASDAQ:MESA) Stock A Year Ago, You Could Pocket A 223% Gain Today
Is Mesa Air Group undervalued compared to its fair value and its price relative to the market?
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).
How is Mesa Air Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has Mesa Air Group performed over the past 5 years?
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.
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 ($782.6M).
Debt to Equity History and Analysis
Debt Level: MESA's debt to equity ratio (148.2%) is considered high.
Reducing Debt: Insufficient data to determine if MESA's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: MESA's debt is well covered by operating cash flow (30.1%).
Interest Coverage: Insufficient data to determine if MESA's interest payments on its debt are well covered by EBIT.
What is Mesa Air Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MESA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MESA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MESA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MESA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MESA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jonathan Ornstein (62 yo)
Mr. Jonathan G. Ornstein serves as Chief Executive Officer of go! airlines. Mr. Ornstein has been Chief Executive Officer at Mesa Air Group, Inc. and Mesa Airlines Inc. since May 1, 1998. Mr. Ornstein serv...
CEO Compensation Analysis
Compensation vs Market: Jonathan's total compensation ($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.
Experienced Management: MESA's management team is considered experienced (2.2 years average tenure).
Experienced Board: MESA's board of directors are seasoned and experienced ( 10.2 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.
Mesa Air Group, Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Mesa Air Group, Inc.
- 410 North 44th Street
- Suite 700
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/08 23:25|
|End of Day Share Price||2021/05/07 00:00|
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.