Spirit Airlines (NYSE:SAVE) - Share price, News & Analysis

SAVE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

SAVE Stock Overview

Spirit Airlines, Inc. provides airline services.

Rewards

Trading at 69.1% below our estimate of its fair value

Earnings are forecast to grow 100.78% per year

Risk Analysis

Debt is not well covered by operating cash flow

Spirit Airlines Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Spirit Airlines
Historical stock prices
Current Share Price	US$24.52
52 Week High	US$32.01
52 Week Low	US$15.92
Beta	1.23
1 Month Change	23.46%
3 Month Change	12.48%
1 Year Change	-23.40%
3 Year Change	-48.63%
5 Year Change	-52.53%
Change since IPO	112.29%

Recent News & Updates

Jun 26

Frontier Takes Top Spot To Acquire Spirit Airlines

Frontier Airlines has a lower overall bid compared to JetBlue. Pre-payment offered by Frontier Airlines is superior to JetBlue's pre-payment offer. $50 per share valuation as Frontier and Spirit Airlines envision requires more work than what is currently baked in 2024 estimates.

Jun 10

Spirit Airlines: JetBlue Buy Offer Is More Compelling

Frontier Airlines takeover vote has been delayed to June 30th. Hopes on combination with JetBlue are rising. Antitrust concerns exist for both combinations. Frontier Airlines' offer barely values the prospects of Spirit Airlines.

Shareholder Returns

	SAVE	US Airlines	US Market
7D	15.2%	5.2%	6.6%
1Y	-23.4%	-34.1%	-18.4%

Return vs Industry: SAVE exceeded the US Airlines industry which returned -34.2% over the past year.

Return vs Market: SAVE underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is SAVE's price volatile compared to industry and market?
SAVE volatility
SAVE Average Weekly Movement	11.3%
Airlines Industry Average Movement	8.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

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

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

About the Company

Founded	Employees	CEO	Website
1964	9,823	Ted Christie	https://www.spirit.com

Spirit Airlines, Inc. provides airline services. It serves 85 destinations in 16 countries in the United States, Latin America, and the Caribbean. As of December 31, 2021, the company had a fleet of 173 Airbus single-aisle aircraft.

Spirit Airlines Fundamentals Summary

How do Spirit Airlines's earnings and revenue compare to its market cap?
SAVE fundamental statistics
Market Cap	US$2.67b
Earnings (TTM)	-US$554.95m
Revenue (TTM)	US$3.74b

0.7x

P/S Ratio

-4.8x

P/E Ratio

Is SAVE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAVE income statement (TTM)
Revenue	US$3.74b
Cost of Revenue	US$3.12b
Gross Profit	US$620.22m
Other Expenses	US$1.18b
Earnings	-US$554.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-5.10
Gross Margin	16.60%
Net Profit Margin	-14.85%
Debt/Equity Ratio	161.0%

How did SAVE perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SAVE 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
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SAVE. This is calculated by dividing SAVE's market cap by their current preferred multiple.
What is SAVE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.67b

SAVE 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/Revenue	1.7x
Enterprise Value/EBITDA	-45x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

SAVE PS Ratio vs Peers

The above table shows the PS ratio for SAVE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1x

Forward PS

Price-To-Sales vs Peers: SAVE is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (1x).

Price to Earnings Ratio vs Industry

How does SAVE's PE Ratio compare vs other companies in the U.S. Airlines Industry?

Price-To-Sales vs Industry: SAVE is expensive based on its Price-To-Sales Ratio (0.7x) compared to the US Airlines industry average (0.6x)

Price to Sales Ratio vs Fair Ratio

What is SAVE'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.

SAVE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	1x

Price-To-Sales vs Fair Ratio: SAVE is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1x).

Share Price vs Fair Value

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

Below Fair Value: SAVE ($24.52) is trading below our estimate of fair value ($79.48)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Spirit Airlines forecast to perform in the next 1 to 3 years based on estimates from 8 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

100.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SAVE's revenue (15.7% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: SAVE's revenue (15.7% 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 SAVE's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Spirit Airlines 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

-60.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SAVE is currently unprofitable.

Growing Profit Margin: SAVE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SAVE is unprofitable, and losses have increased over the past 5 years at a rate of 60% per year.

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

Earnings vs Industry: SAVE is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (44%).

Return on Equity

High ROE: SAVE has a negative Return on Equity (-28.88%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Spirit Airlines'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: SAVE's short term assets ($1.8B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: SAVE's short term assets ($1.8B) do not cover its long term liabilities ($5.1B).

Debt to Equity History and Analysis

Debt Level: SAVE's net debt to equity ratio (90.6%) is considered high.

Reducing Debt: SAVE's debt to equity ratio has increased from 69.4% to 161% over the past 5 years.

Debt Coverage: SAVE's debt is not well covered by operating cash flow (1.3%).

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

Balance Sheet

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Dividend

What is Spirit Airlines's 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
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SAVE'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 SAVE has not reported any payouts.

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Management

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

4.6yrs

Average management tenure

CEO

Ted Christie (50 yo)

4.42yrs

Tenure

US$3,871,281

Compensation

Mr. Edward M. Christie, III, also known as Ted, has been President at Spirit Airlines, Inc. since January 2018. He has been a Director at Spirit Airlines, Inc. since January 1, 2018. He serves as the Chief...

CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD3.87M) is below average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Ted's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: SAVE's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: SAVE's board of directors are considered experienced (6.6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SAVE insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31