NasdaqGS:MESA

Stock Analysis Report

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.

Snowflake

Fundamentals

Very undervalued 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


Market Performance


7 Day Return

8.1%

MESA

1.4%

US Airlines

1.3%

US Market


1 Year Return

-50.1%

MESA

1.2%

US Airlines

5.9%

US Market

Return vs Industry: MESA underperformed the US Airlines industry which returned 1.2% over the past year.

Return vs Market: MESA underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

MESAIndustryMarket
7 Day8.1%1.4%1.3%
30 Day-9.8%-6.0%-1.9%
90 Day-30.7%-8.3%-1.8%
1 Year-50.1%-50.1%2.7%1.2%8.3%5.9%
3 Yearn/a31.7%26.6%45.6%36.2%
5 Yearn/a61.9%52.8%66.1%47.9%

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

Undervalued: MESA ($7.03) is trading below our estimate of fair value ($44.17)

Significantly Undervalued: 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 (2.8x) compared to the Airlines industry average (8.8x).

PE vs Market: MESA is good value based on its PE Ratio (2.8x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low 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 (0.5x) compared to the US Airlines industry average (1.7x).


Next Steps

Future Growth

How is Mesa Air Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MESA's forecast earnings growth (22.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MESA's earnings (22.4% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: MESA's revenue (5.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MESA's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MESA's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

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

183.0%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MESA's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare MESA's past year earnings growth to its 5-year average.

Earnings vs Industry: MESA earnings growth over the past year (183%) exceeded the Airlines industry -30.9%.


Return on Equity

High ROE: MESA's Return on Equity (13.3%) is considered low.


Return on Assets

ROA vs Industry: MESA has a higher Return on Assets than the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MESA's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Mesa Air Group's financial position?


Financial Position Analysis

Short Term Liabilities: MESA's short term assets ($158.2M) do not cover its short term liabilities ($245.9M)

Long Term Liabilities: MESA's short term assets (158.2M) do not cover its long term liabilities (807.4M)


Debt to Equity History and Analysis

Debt Level: MESA's debt to equity ratio (211.4%) 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 (19.5%).

Interest Coverage: MESA's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate MESA'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 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

What is the CEO of Mesa Air Group's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Jonathan Ornstein (61yo)

21.4yrs

Tenure

US$2,261,882

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: Insufficient data to establish whether Jonathan's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

Experienced Management: MESA's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

63yo

Average Age

Experienced Board: MESA's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jonathan Ornstein (61yo)

    Chairman & CEO

    • Tenure: 21.4yrs
    • Compensation: US$2.26m
  • Mike Lotz (59yo)

    President & CFO

    • Tenure: 19.3yrs
    • Compensation: US$1.86m
  • Brad Rich (57yo)

    Executive VP & COO

    • Tenure: 0.6yrs
  • Brian Gillman (49yo)

    Executive VP

    • Tenure: 6.1yrs
    • Compensation: US$618.75k
  • Bob Hornberg (67yo)

    VP & Chief Information Officer

    • Tenure: 19.1yrs
  • Mike Ferverda (75yo)

    Senior Vice President of Regulatory & Special Projects

    • Tenure: 0.6yrs
    • Compensation: US$140.01k
  • Dean Sinerius

    Director of Quality Assurance & Chief Inspector

    • Tenure: 1.8yrs
  • Charlie Marshall

    Senior Director of Safety & Chief Pilot

    • Tenure: 0.4yrs
  • Sonia Mason

    Director of Human Resources

    • Tenure: 4yrs
  • Michael Whitman

    Chief Pilot

    • Tenure: 0.4yrs

Board Members

  • Jonathan Ornstein (61yo)

    Chairman & CEO

    • Tenure: 21.4yrs
    • Compensation: US$2.26m
  • Mitchell Gordon (62yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$204.70k
  • Ellen Artist (63yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$218.95k
  • Harvey Schiller (79yo)

    Presiding Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$213.95k
  • G. Lyon (56yo)

    Independent Director

    • Tenure: 8.6yrs
  • Dana Lockhart (72yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$204.70k
  • Don Skiados (73yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$213.95k

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$220.678m
  • Shares outstanding: 31.41m
  • 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 Analysis2019/10/15 00:28
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.