NasdaqGS:SKYW

Stock Analysis Report

Executive Summary

SkyWest, Inc., through its subsidiaries, operates a regional airline in the United States.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has SkyWest's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SKYW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.2%

SKYW

-11.7%

US Airlines

2.4%

US Market


1 Year Return

-58.1%

SKYW

-57.1%

US Airlines

-10.0%

US Market

Return vs Industry: SKYW underperformed the US Airlines industry which returned -57.1% over the past year.

Return vs Market: SKYW underperformed the US Market which returned -10% over the past year.


Shareholder returns

SKYWIndustryMarket
7 Day13.2%-11.7%2.4%
30 Day-30.1%-43.1%-11.0%
90 Day-62.1%-59.4%-19.4%
1 Year-57.7%-58.1%-56.4%-57.1%-8.1%-10.0%
3 Year-17.2%-19.4%-53.6%-55.5%17.3%9.6%
5 Year88.4%80.4%-45.4%-48.6%36.1%21.1%

Price Volatility Vs. Market

How volatile is SkyWest's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SkyWest 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: SKYW ($24.5) is trading below our estimate of fair value ($249.51)

Significantly Below Fair Value: SKYW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKYW is poor value based on its PE Ratio (3.7x) compared to the Airlines industry average (3.2x).

PE vs Market: SKYW is good value based on its PE Ratio (3.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SKYW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SKYW is good value based on its PB Ratio (0.6x) compared to the US Airlines industry average (0.6x).


Next Steps

Future Growth

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

-12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKYW's earnings are forecast to decline over the next 3 years (-12.3% per year).

Earnings vs Market: SKYW's earnings are forecast to decline over the next 3 years (-12.3% per year).

High Growth Earnings: SKYW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SKYW's revenue (4.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: SKYW's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKYW's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has SkyWest performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKYW has high quality earnings.

Growing Profit Margin: SKYW's current net profit margins (11.4%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: SKYW has become profitable over the past 5 years, growing earnings by 38.9% per year.

Accelerating Growth: SKYW's earnings growth over the past year (21.3%) is below its 5-year average (38.9% per year).

Earnings vs Industry: SKYW earnings growth over the past year (21.3%) underperformed the Airlines industry 41.8%.


Return on Equity

High ROE: SKYW's Return on Equity (15.6%) is considered low.


Next Steps

Financial Health

How is SkyWest's financial position?


Financial Position Analysis

Short Term Liabilities: SKYW's short term assets ($760.3M) do not cover its short term liabilities ($924.7M).

Long Term Liabilities: SKYW's short term assets ($760.3M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: SKYW's debt to equity ratio (137.6%) is considered high.

Reducing Debt: SKYW's debt to equity ratio has increased from 124.8% to 137.6% over the past 5 years.

Debt Coverage: SKYW's debt is well covered by operating cash flow (24.1%).

Interest Coverage: SKYW's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is SkyWest's current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKYW's dividend (2.29%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: SKYW's dividend (2.29%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

Stable Dividend: SKYW's dividends per share have been stable in the past 10 years.

Growing Dividend: SKYW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.2%), SKYW's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKYW's dividends in 3 years are forecast to be thoroughly covered by earnings (7.3% payout ratio).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Chip Childs (51yo)

4.25s

Tenure

US$3,611,011

Compensation

Mr. Russell A. Childs, also known as Chip, has been the President of SkyWest Inc. since May 12, 2014 and has been its the Chief Executive Officer since January 1, 2016. Mr. Childs served as the President a ...


CEO Compensation Analysis

Compensation vs Market: Chip's total compensation ($USD3.61M) is about average for companies of similar size in the US market ($USD4.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Russell Childs
CEO, President & Director4.25yrsUS$3.61m0.28% $3.5m
Robert Simmons
Chief Financial Officer5.08yrsUS$1.61mno data
Eric Woodward
Chief Accounting Officer8.92yrsUS$695.24k0.050% $611.2k
Wade Steel
Chief Commercial Officer5.92yrsUS$1.58m0.072% $887.4k
Michael Thompson
Chief Operating Officer of Sky West Airlines13.25yrsUS$1.19m0.052% $638.1k
Lori Hunt
Vice President of People12.42yrsno datano data

7.4yrs

Average Tenure

47yo

Average Age

Experienced Management: SKYW's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell Childs
CEO, President & Director4.25yrsUS$3.61m0.28% $3.5m
Jerry Atkin
Chairman of the Board29.25yrsUS$400.00k1.59% $19.5m
Keith Smith
Independent Director6.5yrsUS$219.00k0.046% $563.7k
Ronald Mittelstaedt
Independent Director6.5yrsUS$200.00k0.046% $563.7k
Steven Udvar-Házy
Lead Independent Directorno dataUS$230.00k0.10% $1.3m
Henry Eyring
Independent Director13.92yrsUS$204.00k0.083% $1.0m
W. Albrecht
Independent Director8.25yrsUS$220.00k0.12% $1.5m
James Welch
Independent Director12.92yrsUS$204.00k0.087% $1.1m
Andrew Roberts
Independent Director4.92yrsUS$214.00k0.031% $381.1k
Meredith R. Madden
Independent Director4.92yrsUS$200.00k0.031% $381.1k

6.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SKYW's board of directors are considered experienced (6.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SKYW 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

SkyWest, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SkyWest, Inc.
  • Ticker: SKYW
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$1.231b
  • Shares outstanding: 50.26m
  • Website: https://inc.skywest.com

Number of Employees


Location

  • SkyWest, Inc.
  • 444 South River Road
  • Saint George
  • Utah
  • 84790
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKYWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1986
SY2DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1986

Biography

SkyWest, Inc., through its subsidiaries, operates a regional airline in the United States. The company operates through two segment, SkyWest Airlines and SkyWest Leasing. It also engages into leasing aircraft and spare engines to third parties. As of December 31, 2019, the company provided scheduled passenger and air freight services with approximately 2,300 total daily departures to various destinations in the United States, Canada, Mexico, and provides airport customer and ground handling services for other airlines throughout its system. SkyWest, Inc. was founded in 1972 and is headquartered in St. George, Utah. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 03:28
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.