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MESA

Mesa Air GroupNasdaqGS:MESA Stock Report

Market Cap

US$258.4m

7D

-7.8%

1Y

7.8%

Updated

26 Nov, 2021

Data

Company Financials +
MESA fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance3/6
Financial Health1/6
Dividends0/6

MESA Stock Overview

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

Mesa Air Group Competitors

SkyWest

NasdaqGS:SKYW

US$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mesa Air Group
Historical stock prices
Current Share PriceUS$7.20
52 Week HighUS$17.40
52 Week LowUS$6.02
Beta2.89
1 Month Change-4.89%
3 Month Change-10.67%
1 Year Change7.78%
3 Year Change-40.40%
5 Year Changen/a
Change since IPO-38.72%

Recent News & Updates

Sep 05

Mesa Air Group: Risky Despite Recent 53% Drop In Price

Since the stock is down 53% from its March highs, it is interesting taking a deeper look at the fundamentals. The company has been affected by the COVID-19 pandemic, but managed to stay profitable and showed resilience. There are interesting growth opportunities embedded in the business.

May 07

Mesa Air FQ2 2021 Earnings Preview

Mesa Air (NASDAQ:MESA) is scheduled to announce FQ2 earnings results on Monday, May 10th, after market close.The consensus EPS Estimate is $0.14 (+180.0% Y/Y) and the consensus Revenue Estimate is $121.01M (-32.7% Y/Y).Over the last 1 year, MESA has beaten EPS estimates 50% of the time and has beaten revenue

Shareholder Returns

MESAUS AirlinesUS Market
7D-7.8%-5.7%-2.7%
1Y7.8%-9.8%21.3%

Return vs Industry: MESA exceeded the US Airlines industry which returned -9.8% over the past year.

Return vs Market: MESA underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is MESA's price volatile compared to industry and market?
MESA volatility
MESA Average Weekly Movement6.0%
Airlines Industry Average Movement5.8%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: MESA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MESA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19823,191Jonathan Ornsteinhttps://www.mesa-air.com

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 Airlines. As of September 30, 2020, it operated a fleet of 146 aircraft with approximately 373 daily departures to 102 cities in the United States and Mexico. The company was founded in 1982 and is headquartered in Phoenix, Arizona.

Mesa Air Group Fundamentals Summary

How do Mesa Air Group's earnings and revenue compare to its market cap?
MESA fundamental statistics
Market CapUS$258.42m
Earnings (TTM)US$35.46m
Revenue (TTM)US$480.85m

7.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MESA income statement (TTM)
RevenueUS$480.85m
Cost of RevenueUS$396.48m
Gross ProfitUS$84.37m
ExpensesUS$48.91m
EarningsUS$35.46m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Dec 09, 2021

Earnings per share (EPS)0.99
Gross Margin17.55%
Net Profit Margin7.37%
Debt/Equity Ratio139.2%

How did MESA perform over the long term?

See historical performance and comparison

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 ($7.2) is trading below our estimate of fair value ($76.81)

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 (7.3x) compared to the US Airlines industry average (28.2x).

PE vs Market: MESA is good value based on its PE Ratio (7.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: MESA is good value based on its PEG Ratio (0.3x)


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 (1.9x).


Future Growth

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

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MESA's forecast earnings growth (22.2% per year) is above the savings rate (2%).

Earnings vs Market: MESA's earnings (22.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: MESA's revenue (15.4% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: MESA's revenue (15.4% 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 (7.1%).


Past Performance

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

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MESA has a large one-off gain of $130.6M impacting its June 30 2021 financial results.

Growing Profit Margin: MESA's current net profit margins (7.4%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: MESA's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: MESA's earnings growth over the past year (25.2%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: MESA earnings growth over the past year (25.2%) underperformed the Airlines industry 48%.


Return on Equity

High ROE: MESA's Return on Equity (7.2%) is considered low.


Financial Health

How is Mesa Air Group's financial position?


Financial Position Analysis

Short Term Liabilities: MESA's short term assets ($222.4M) do not cover its short term liabilities ($276.0M).

Long Term Liabilities: MESA's short term assets ($222.4M) do not cover its long term liabilities ($754.4M).


Debt to Equity History and Analysis

Debt Level: MESA's net debt to equity ratio (102.7%) 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 (29.4%).

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?

2.7yrs

Average management tenure


CEO

Jonathan Ornstein (63 yo)

23.5yrs

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 ($USD2.31M) is above average for companies of similar size in the US market ($USD1.10M).

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


Leadership Team

Experienced Management: MESA's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: MESA's board of directors are seasoned and experienced ( 10.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mesa Air Group, Inc.'s 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$258.415m
  • Shares outstanding: 35.89m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:14
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
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.