Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services.
Good value with proven track record.
Share Price & News
How has Alaska Air Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALK's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ALK exceeded the US Airlines industry which returned -53.1% over the past year.
Return vs Market: ALK underperformed the US Market which returned -6.8% over the past year.
Price Volatility Vs. Market
How volatile is Alaska Air Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StWhat Is Alaska Air Group's (NYSE:ALK) P/E Ratio After Its Share Price Tanked?
3 weeks ago | Simply Wall StDoes Alaska Air Group, Inc. (NYSE:ALK) Have A Volatile Share Price?
1 month ago | Simply Wall StWhat Is Alaska Air Group's (NYSE:ALK) P/E Ratio After Its Share Price Tanked?
Is Alaska Air Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALK ($31.61) is trading below our estimate of fair value ($102.93)
Significantly Below Fair Value: ALK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ALK is poor value based on its PE Ratio (5.1x) compared to the Airlines industry average (3.5x).
PE vs Market: ALK is good value based on its PE Ratio (5.1x) compared to the US market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: ALK is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: ALK is overvalued based on its PB Ratio (0.9x) compared to the US Airlines industry average (0.6x).
How is Alaska Air Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALK's forecast earnings growth (5.6% per year) is above the savings rate (1.7%).
Earnings vs Market: ALK's earnings (5.6% per year) are forecast to grow slower than the US market (11.4% per year).
High Growth Earnings: ALK's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALK's revenue (0.4% per year) is forecast to grow slower than the US market (6.9% per year).
High Growth Revenue: ALK's revenue (0.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALK's Return on Equity is forecast to be low in 3 years time (12.2%).
How has Alaska Air Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALK has high quality earnings.
Growing Profit Margin: ALK's current net profit margins (8.8%) are higher than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: ALK's earnings have declined by -4.7% per year over the past 5 years.
Accelerating Growth: ALK's earnings growth over the past year (76%) exceeds its 5-year average (-4.7% per year).
Earnings vs Industry: ALK earnings growth over the past year (76%) exceeded the Airlines industry 41.8%.
Return on Equity
High ROE: ALK's Return on Equity (17.8%) is considered low.
How is Alaska Air Group's financial position?
Financial Position Analysis
Short Term Liabilities: ALK's short term assets ($2.0B) do not cover its short term liabilities ($3.2B).
Long Term Liabilities: ALK's short term assets ($2.0B) do not cover its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: ALK's debt to equity ratio (34.8%) is considered satisfactory.
Reducing Debt: ALK's debt to equity ratio has reduced from 38.6% to 34.8% over the past 5 years.
Debt Coverage: ALK's debt is well covered by operating cash flow (114.1%).
Interest Coverage: ALK's interest payments on its debt are well covered by EBIT (51x coverage).
What is Alaska Air Group's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALK's dividend (4.75%) is higher than the bottom 25% of dividend payers in the US market (1.87%).
High Dividend: ALK's dividend (4.75%) is low compared to the top 25% of dividend payers in the US market (5.12%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ALK has been paying a dividend for less than 10 years.
Growing Dividend: ALK's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.4%), ALK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALK's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brad Tilden (58yo)
Mr. Bradley D. Tilden, also known as Brad, has been the Chief Executive Officer and President at Alaska Air Group, Inc. since May 15, 2012. Mr. Tilden has been the Chief Executive Officer of Alaska Airline ...
CEO Compensation Analysis
Compensation vs Market: Brad's total compensation ($USD5.53M) is about average for companies of similar size in the US market ($USD5.53M).
Compensation vs Earnings: Brad's compensation has increased by more than 20% in the past year.
|CFO & EVP of finance||0.083yr||US$2.12m||0.011% $423.1k|
|Former President of Alaska Airlines Inc. & Director||no data||US$3.51m||0.086% $3.3m|
|Independent Director||6.42yrs||US$192.92k||0.0031% $121.7k|
|Executive VP & COO||0.42yr||no data||0.0015% $57.0k|
|Managing Director of Accounting Operations||6.17yrs||no data||no data|
|Managing Director of Investor Relations||5.75yrs||no data||no data|
|Chief Ethics & Compliance Officer||4.25yrs||no data||0.0069% $265.8k|
|Manager of Corporate Communication||no data||no data||no data|
|Managing Director of Sales & Community Marketing||no data||no data||no data|
Experienced Management: ALK's management team is seasoned and experienced (5 years average tenure).
|Independent Director||6.42yrs||US$192.92k||0.0031% $121.7k|
|Independent Director||18.25yrs||US$207.24k||0.019% $721.9k|
|Independent Director||21.25yrs||US$185.80k||0.0099% $384.8k|
|Independent Director||7.42yrs||US$218.67k||0.0068% $264.3k|
|Independent Director||2.67yrs||US$178.88k||0.00065% $25.2k|
|Lead Independent Director||3.92yrs||US$203.99k||0.017% $654.1k|
|Independent Director||9.5yrs||US$198.17k||0.0046% $178.2k|
|Independent Director||2.25yrs||US$180.55k||0.0030% $115.9k|
|Independent Director||5.5yrs||US$193.43k||0.0055% $214.7k|
Experienced Board: ALK's board of directors are considered experienced (6.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALK insiders have bought and sold the same number of shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Alaska Air Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Alaska Air Group, Inc.
- Ticker: ALK
- Exchange: NYSE
- Founded: 1932
- Industry: Airlines
- Sector: Transportation
- Market Cap: US$3.875b
- Shares outstanding: 122.58m
- Website: https://www.alaskaair.com
Number of Employees
- Alaska Air Group, Inc.
- 19300 International Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ALK||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|ALK||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0HC3||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|A1LK34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 COM||BR||BRL||Jan 2020|
Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates through three segments: Mainline, Regional, and Horizon. It has a network of approximately 1,300 daily flights to 115 destinations across the United States, Mexico, Canada, and Costa Rica. The company was founded in 1932 and is based in Seattle, Washington.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/10 08:42|
|End of Day Share Price||2020/04/09 00:00|
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.