NYSE:ALK

Stock Analysis Report

Executive Summary

Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

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


Market Performance


7 Day Return

-5.6%

NYSE:ALK

-3.1%

US Airlines

-1.0%

US Market


1 Year Return

-7.1%

NYSE:ALK

-4.3%

US Airlines

-0.4%

US Market

ALK underperformed the Airlines industry which returned -4.3% over the past year.

ALK underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

ALKIndustryMarket
7 Day-5.6%-3.1%-1.0%
30 Day-6.2%-6.7%-3.3%
90 Day-3.3%0.8%0.8%
1 Year-5.2%-7.1%-2.9%-4.3%1.9%-0.4%
3 Year-5.4%-10.0%45.0%39.6%39.4%30.4%
5 Year40.0%29.8%51.2%42.5%54.2%37.1%

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

Valuation

Is Alaska Air Group undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Alaska Air Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Alaska Air Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Alaska Air Group is overvalued based on earnings compared to the US Airlines industry average.

Alaska Air Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Alaska Air Group is good value based on expected growth next year.


Price Based on Value of Assets

Alaska Air Group is overvalued based on assets compared to the US Airlines industry average.


Next Steps

Future Growth

How is Alaska Air Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Alaska Air Group's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Alaska Air Group's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).

Alaska Air Group's revenue growth is positive but not above the United States of America market average.

Alaska Air Group's earnings growth is expected to exceed the United States of America market average.

Alaska Air Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Alaska Air Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

-2.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Alaska Air Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Alaska Air Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Alaska Air Group's 1-year earnings growth is negative, it can't be compared to the US Airlines industry average.


Return on Equity

Alaska Air Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Alaska Air Group used its assets less efficiently than the US Airlines industry average last year based on Return on Assets.


Return on Capital Employed

Alaska Air Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Alaska Air Group's financial position?


Financial Position Analysis

Alaska Air Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Alaska Air Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Alaska Air Group's level of debt (46%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39.9% vs 46% today).

Debt is well covered by operating cash flow (82.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 31.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Alaska Air Group's current dividend yield, its reliability and sustainability?

2.41%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Alaska Air Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Alaska Air Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Alaska Air Group's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Alaska Air Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Alaska Air Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5x coverage).


Next Steps

Management

What is the CEO of Alaska Air Group's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Brad Tilden (58yo)

7.3yrs

Tenure

US$4,374,845

Compensation

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

Brad's remuneration is lower than average for companies of similar size in United States of America.

Brad's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.3yrs

Average Tenure

52yo

Average Age

The average tenure for the Alaska Air Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.7yrs

Average Tenure

62.5yo

Average Age

The tenure for the Alaska Air Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$294,34820 May 19
Andrew Harrison
EntityIndividual
Role
Executive VP & Chief Commercial Officer of Alaska Airlines Inc.
Shares4,700
Max PriceUS$62.63
SellUS$98,44214 May 19
Andrew Harrison
EntityIndividual
Role
Executive VP & Chief Commercial Officer of Alaska Airlines Inc.
Shares1,600
Max PriceUS$61.53
SellUS$251,73622 Feb 19
Andrew Harrison
EntityIndividual
Role
Executive VP & Chief Commercial Officer of Alaska Airlines Inc.
Shares4,000
Max PriceUS$62.93
SellUS$50,35715 Feb 19
Christopher Berry
EntityIndividual
Shares750
Max PriceUS$67.14
SellUS$182,80104 Dec 18
James Thompson
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceUS$73.12
SellUS$58,17130 Oct 18
Andrew Harrison
EntityIndividual
Role
Executive VP & Chief Commercial Officer of Alaska Airlines Inc.
Shares930
Max PriceUS$62.55
SellUS$200,44111 Sep 18
Shane Tackett
EntityIndividual
Shares3,000
Max PriceUS$66.81

Ownership Breakdown


Management Team

  • Ben Minicucci (52yo)

    President & COO of Alaska Airlines Inc and CEO of Virgin America Inc

    • Compensation: $3.07m
  • Brad Tilden (58yo)

    Chairman

    • Tenure: 7.3yrs
    • Compensation: $4.37m
  • Geni Venable

    Manager of Corporate Communication

  • Kyle Levine (47yo)

    Chief Ethics & Compliance Officer

    • Tenure: 3.6yrs
  • Andrew Harrison (48yo)

    Executive VP & Chief Commercial Officer of Alaska Airlines Inc.

    • Tenure: 4.5yrs
    • Compensation: $2.33m
  • Shane Tackett (40yo)

    Executive VP of Planning & Strategy of Alaska Airlines

    • Compensation: $1.50m
  • Lavanya Sareen

    Managing Director of Investor Relations

    • Tenure: 5.1yrs
  • Kevin Thiel

    Managing Director of Accounting Operations

    • Tenure: 5.5yrs
  • Brandon Pedersen (52yo)

    CFO, Executive VP of Finance & Treasurer

    • Tenure: 9.2yrs
    • Compensation: $2.32m
  • Helvi Sandvik (61yo)

    Independent Director

    • Compensation: $193.91k

Board Members

  • Patty Bedient (65yo)

    Lead Independent Director

    • Tenure: 3.3yrs
    • Compensation: $204.97k
  • Brad Tilden (58yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: $4.37m
  • Marion Blakey (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: $204.13k
  • Ray Conner (64yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: $227.09k
  • Ken Thompson (67yo)

    Independent Director

    • Tenure: 20.6yrs
    • Compensation: $190.47k
  • Phyllis Campbell (67yo)

    Independent Director

    • Tenure: 17.6yrs
    • Compensation: $205.71k
  • James Beer (58yo)

    Independent Director

    • Tenure: 2.0yrs
    • Compensation: $187.34k
  • Eric Yeaman (51yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: $214.27k
  • Helvi Sandvik (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: $193.91k
  • Dhiren Fonseca (54yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: $197.70k

Company Information

Alaska Air Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alaska Air Group, Inc.
  • Ticker: ALK
  • Exchange: NYSE
  • Founded: 1932
  • Industry: airlines
  • Sector: transportation
  • Market Cap: US$7.441b
  • Shares outstanding: 123.27m
  • Website: Click here

Number of Employees


Location

  • Alaska Air Group, Inc.
  • 19300 International Boulevard
  • Seattle
  • Washington
  • 98188
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
ALKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HC3LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:31
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.