company background image
MESA

Mesa Air Group NasdaqGS:MESA Stock Report

Last Price

US$3.03

Market Cap

US$110.0m

7D

20.2%

1Y

-62.3%

Updated

13 Aug, 2022

Data

Company Financials +
MESA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance0/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Mesa Air Group
Historical stock prices
Current Share PriceUS$3.03
52 Week HighUS$9.18
52 Week LowUS$2.00
Beta2.64
1 Month Change49.26%
3 Month Change11.81%
1 Year Change-62.31%
3 Year Change-50.65%
5 Year Changen/a
Change since IPO-74.21%

Recent News & Updates

Jun 24
Is Mesa Air Group, Inc. (NASDAQ:MESA) Worth US$2.4 Based On Its Intrinsic Value?

Is Mesa Air Group, Inc. (NASDAQ:MESA) Worth US$2.4 Based On Its Intrinsic Value?

Does the June share price for Mesa Air Group, Inc. ( NASDAQ:MESA ) reflect what it's really worth? Today, we will...

Jun 23

Mesa Air Group: Not A Regional Airlines Gem

Mesa Air Group is experiencing the bitter reality of being a regional airline. Airline has 200 pilots in training, but between each pilot leaving and coming in there is a 74-day gap. Absent of pilot shortages, regional airlines with fuel cost pass through would provide superior investment opportunities.

Shareholder Returns

MESAUS AirlinesUS Market
7D20.2%2.7%3.2%
1Y-62.3%-20.6%-10.2%

Return vs Industry: MESA underperformed the US Airlines industry which returned -20.6% over the past year.

Return vs Market: MESA underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is MESA's price volatile compared to industry and market?
MESA volatility
MESA Average Weekly Movement10.6%
Airlines Industry Average Movement8.0%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: MESA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: MESA's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19822,600Jonathan 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. It also engages in leasing aircrafts to third parties. As of September 30, 2021, the company operated a fleet of 167 aircraft, which include 153 owned aircrafts and 14 leased aircrafts with approximately 507 daily departures to 129 cities in the United States and Mexico.

Mesa Air Group Fundamentals Summary

How do Mesa Air Group's earnings and revenue compare to its market cap?
MESA fundamental statistics
Market CapUS$109.97m
Earnings (TTM)-US$74.54m
Revenue (TTM)US$536.15m

0.2x

P/S Ratio

-1.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MESA income statement (TTM)
RevenueUS$536.15m
Cost of RevenueUS$439.39m
Gross ProfitUS$96.77m
Other ExpensesUS$171.30m
Earnings-US$74.54m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.05
Gross Margin18.05%
Net Profit Margin-13.90%
Debt/Equity Ratio146.0%

How did MESA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MESA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MESA?

Other financial metrics that can be useful for relative valuation.

MESA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA14x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MESA's PS Ratio compare to its peers?

MESA PS Ratio vs Peers
The above table shows the PS ratio for MESA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
HRBR Harbor Diversified
0.3xn/aUS$100.8m
UP Wheels Up Experience
0.5x11.4%US$687.0m
HA Hawaiian Holdings
0.4x15.5%US$867.9m
SKYW SkyWest
0.4x8.1%US$1.2b
MESA Mesa Air Group
0.2x8.4%US$110.0m

Price-To-Sales vs Peers: MESA is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does MESA's PE Ratio compare vs other companies in the US Airlines Industry?

Price-To-Sales vs Industry: MESA is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Airlines industry average (0.6x)


Price to Sales Ratio vs Fair Ratio

What is MESA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MESA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: MESA is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of MESA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate MESA's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MESA's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


98.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MESA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MESA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MESA is expected to become profitable in the next 3 years.

Revenue vs Market: MESA's revenue (8.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: MESA's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MESA's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-40.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MESA is currently unprofitable.

Growing Profit Margin: MESA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MESA is unprofitable, and losses have increased over the past 5 years at a rate of 40.7% per year.

Accelerating Growth: Unable to compare MESA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MESA is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (0.7%).


Return on Equity

High ROE: MESA has a negative Return on Equity (-17.62%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Mesa Air Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MESA's short term assets ($95.4M) do not cover its short term liabilities ($240.3M).

Long Term Liabilities: MESA's short term assets ($95.4M) do not cover its long term liabilities ($656.9M).


Debt to Equity History and Analysis

Debt Level: MESA's net debt to equity ratio (133.1%) is considered high.

Reducing Debt: MESA's debt to equity ratio has reduced from 437.7% to 146% over the past 5 years.

Debt Coverage: MESA's debt is not well covered by operating cash flow (2.5%).

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


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MESA has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure


CEO

Jonathan Ornstein (64 yo)

24.25yrs

Tenure

US$1,861,055

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 ($USD1.86M) is above average for companies of similar size in the US market ($USD760.00K).

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


Leadership Team

Experienced Management: MESA's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: MESA's board of directors are seasoned and experienced ( 11.4 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.


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
  • Implied Market Cap: US$109.974m
  • Shares outstanding: 36.30m
  • 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 Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.