ULCC

Frontier Group HoldingsNasdaqGS:ULCC Stock Report

Market Cap

US$3.2b

7D

4.4%

1Y

n/a

Updated

23 Sep, 2021

Data

Company Financials +
ULCC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance0/6
Financial Health0/6
Dividends0/6

ULCC Overview

Frontier Group Holdings, Inc., a low-fare airline company, provides air transportation for passengers.

Frontier Group Holdings Competitors

Southwest Airlines

NYSE:LUV

US$30.0b

Delta Air Lines

NYSE:DAL

US$26.5b

United Airlines Holdings

NasdaqGS:UAL

US$14.8b

American Airlines Group

NasdaqGS:AAL

US$13.3b

Price History & Performance

Summary of all time highs, changes and price drops for Frontier Group Holdings
Historical stock prices
Current Share PriceUS$15.50
52 Week HighUS$13.71
52 Week LowUS$22.70
Beta0
1 Month Change-2.33%
3 Month Change-12.92%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-17.77%

Recent News & Updates

Jun 14

Frontier Airlines: The Perfect Post-COVID-19 Airline

Ultra low-cost carriers are growing rapidly in the US, and with the lowest costs and fares of any airline in the US, Frontier is perfectly positioned to lead the way. Unlike every other airline, Frontier managed to exit COVID-19 without much new debt or any share dilution. Its healthy balance sheet will lead it to significant profitability before its competition. Oil prices are high, and expected to rise even further, with estimates as high as $100/bbl. Frontier Airlines is by far the most fuel efficient US airline. Frontier is growing rapidly. With plans to double its fleet in the next decade and grow revenues 85% by 2024, it's a strong growth play in the travel industry. Frontier is 96% focused on domestic and 89% on leisure. With domestic leisure travel already exceeding 2019 levels, and a cheap valuation, this stock is an easy buy.

Apr 26

Frontier Airlines lands mostly bull ratings as analyst coverage begins

Analyst coverage begins on Frontier Group (ULCC). Bullish ratings have landed on ULCC from Barclays (Overweight, $26 price target), Evercore ISI (Outperform), UBS (Buy, $24 PT), Citigroup (Buy, $25 PT) and Morgan Stanley (Overweight, $25 PT). There are more cautious rating in on ULCC from JPMorgan (Neutral, $20 PT) and

Shareholder Returns

ULCCUS AirlinesUS Market
7D4.4%4.7%-1.7%
1Yn/a41.3%36.2%

Return vs Industry: Insufficient data to determine how ULCC performed against the US Airlines industry.

Return vs Market: Insufficient data to determine how ULCC performed against the US Market.

Price Volatility

Is ULCC's price volatile compared to industry and market?
ULCC volatility
ULCC Beta0
Industry Beta1.51
Market Beta1

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

Volatility Over Time: Insufficient data to determine ULCC's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
20135,154Barry Bifflehttps://www.flyfrontier.com

Frontier Group Holdings, Inc., a low-fare airline company, provides air transportation for passengers. The company operates an airline that serves approximately 110 airports throughout the United States and international destinations in the Americas. As of December 31, 2020, it had a fleet of 104 Airbus single-aisle aircraft comprising 4 A319ceos, 19 A320ceos, 60 A320neos, and 21 A321ceos.

Frontier Group Holdings Fundamentals Summary

How do Frontier Group Holdings's earnings and revenue compare to its market cap?
ULCC fundamental statistics
Market CapUS$3.15b
Earnings (TTM)-US$250.00m
Revenue (TTM)US$1.33b

2.5x

P/S Ratio

-13.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ULCC income statement (TTM)
RevenueUS$1.33b
Cost of RevenueUS$1.82b
Gross Profit-US$482.00m
Expenses-US$232.00m
Earnings-US$250.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.23
Gross Margin-36.16%
Net Profit Margin-18.75%
Debt/Equity Ratio66.0%

How did ULCC perform over the long term?

See historical performance and comparison

Valuation

Is Frontier Group Holdings undervalued compared to its fair value and its price relative to the market?

6.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ULCC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ULCC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ULCC is unprofitable, so we can't compare its PE Ratio to the US Airlines industry average.

PE vs Market: ULCC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ULCC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ULCC is overvalued based on its PB Ratio (6.1x) compared to the US Airlines industry average (2.6x).


Future Growth

How is Frontier Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

107.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULCC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

High Growth Earnings: ULCC's is expected to become profitable in the next 3 years.

Revenue vs Market: ULCC's revenue (27.5% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ULCC's revenue (27.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ULCC's Return on Equity is forecast to be high in 3 years time (29.3%)


Past Performance

How has Frontier Group Holdings performed over the past 5 years?

-51.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULCC is currently unprofitable.

Growing Profit Margin: ULCC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ULCC is unprofitable, and losses have increased over the past 5 years at a rate of 51.7% per year.

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

Earnings vs Industry: ULCC is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (5.3%).


Return on Equity

High ROE: ULCC has a negative Return on Equity (-45.45%), as it is currently unprofitable.


Financial Health

How is Frontier Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ULCC's short term assets ($1.2B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: ULCC's short term assets ($1.2B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: ULCC's debt to equity ratio (66%) is considered high.

Reducing Debt: ULCC's debt to equity ratio has increased from 58.1% to 66% over the past 5 years.

Debt Coverage: ULCC's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Dividend

What is Frontier Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ULCC'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 ULCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ULCC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ULCC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ULCC'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?

5.8yrs

Average management tenure


CEO

Barry Biffle (49 yo)

5.5yrs

Tenure

US$4,303,520

Compensation

Mr. Barry L. Biffle has been Chief Executive Officer of Frontier Airlines, Inc. since March 2016 and serves as its President. Mr. Biffle has been Chief Executive Officer of Frontier Group Holdings, Inc. si...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD4.30M) is about average for companies of similar size in the US market ($USD5.28M).

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


Leadership Team

Experienced Management: ULCC's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: ULCC's board of directors are considered experienced (4.5 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: ULCC only recently listed within the past 12 months.


Top Shareholders

Company Information

Frontier Group Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Frontier Group Holdings, Inc.
  • Ticker: ULCC
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$3.154b
  • Shares outstanding: 215.45m
  • Website: https://www.flyfrontier.com

Number of Employees


Location

  • Frontier Group Holdings, Inc.
  • 4545 Airport Way
  • Denver
  • Colorado
  • 80239
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:57
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.