NYSE:SAVE

Stock Analysis Report

Executive Summary

Spirit Airlines, Inc. provides low-fare airline services.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SAVE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.0%

SAVE

-6.8%

US Airlines

-4.2%

US Market


1 Year Return

-38.6%

SAVE

-1.9%

US Airlines

14.0%

US Market

Return vs Industry: SAVE underperformed the US Airlines industry which returned 2.9% over the past year.

Return vs Market: SAVE underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

SAVEIndustryMarket
7 Day-12.0%-6.8%-4.2%
30 Day-11.0%-6.9%-1.8%
90 Day-4.4%-8.7%2.6%
1 Year-38.6%-38.6%-0.3%-1.9%16.3%14.0%
3 Year-28.3%-28.3%-0.4%-4.4%43.2%34.0%
5 Year-50.9%-50.9%18.6%11.8%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Spirit Airlines 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: SAVE ($41.1) is trading below our estimate of fair value ($141.53)

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


Price To Earnings Ratio

PE vs Industry: SAVE is poor value based on its PE Ratio (8.4x) compared to the Airlines industry average (8.3x).

PE vs Market: SAVE is good value based on its PE Ratio (8.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAVE is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SAVE is good value based on its PB Ratio (1.2x) compared to the US Airlines industry average (1.5x).


Next Steps

Future Growth

How is Spirit Airlines forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAVE's forecast earnings growth (13.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SAVE's earnings (13.3% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: SAVE's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAVE's revenue (13.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SAVE's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAVE's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Spirit Airlines performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAVE has high quality earnings.

Growing Profit Margin: SAVE's current net profit margins (8.8%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: SAVE's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: SAVE's earnings growth over the past year (115.3%) exceeds its 5-year average (3% per year).

Earnings vs Industry: SAVE earnings growth over the past year (115.3%) exceeded the Airlines industry 41.3%.


Return on Equity

High ROE: SAVE's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spirit Airlines's financial position?


Financial Position Analysis

Short Term Liabilities: SAVE's short term assets ($1.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: SAVE's short term assets ($1.4B) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: SAVE's debt to equity ratio (96.1%) is considered high.

Reducing Debt: SAVE's debt to equity ratio has increased from 14.5% to 96.1% over the past 5 years.

Debt Coverage: SAVE's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: SAVE's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet

Inventory Level: SAVE has a high level of physical assets or inventory.

Debt Coverage by Assets: SAVE's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

3.4yrs

Average management tenure


CEO

Ted Christie (48yo)

1.1yrs

Tenure

US$5,667,678

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 ($USD5.67M) is about average for companies of similar size in the US market ($USD4.86M).

Compensation vs Earnings: Ted's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Christie
President1.1yrsUS$5.67m0.18% $4.6m
Scott Haralson
Senior VP & CFO1.3yrsUS$1.05m0.048% $1.2m
John Bendoraitis
Executive VP & COO6.3yrsUS$1.81m0.032% $817.0k
Rocky Wiggins
Senior VP & Chief Information Officer3.4yrsUS$1.46m0.039% $993.9k
Thomas Canfield
Senior VP12.3yrsUS$1.58m0.081% $2.1m
DeAnne Gabel
Senior Director of Investor Relations0yrsno datano data
Robert Schroeter
Senior VP & Chief Marketing Officer0.2yrsUS$802.56kno data
Martha Villa
Senior VP & Chief Human Resources Officer5.3yrsno data0.0078% $200.0k
Matthew Klein
Executive VP & Chief Commercial Officer3.5yrsno data0.011% $269.8k
Brian McMenamy
VP & Controller2.3yrsno data0.00069% $17.7k

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: SAVE's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Christie
President1.1yrsUS$5.67m0.18% $4.6m
Barclay Jones
Independent Director14.1yrsUS$205.52k0.023% $592.4k
Carlton Donaway
Independent Director7.1yrsUS$194.02k0.018% $457.2k
Mark Dunkerley
Director0.4yrsno datano data
H. Gardner
Non-Executive Chairman6.5yrsUS$281.31k0.039% $996.5k
Dawn Zier
Independent Director4.7yrsUS$185.52k0.013% $332.8k
Christine Richards
Director0.4yrsno data0.014% $349.0k
Myrna Soto
Independent Director3.9yrsUS$185.52k0.011% $282.8k
Robert Johnson
Director9.6yrsUS$194.02k0.010% $265.9k

4.7yrs

Average Tenure

58yo

Average Age

Experienced Board: SAVE's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAVE insiders have sold more shares than they have bought 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

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


Key Information

  • Name: Spirit Airlines, Inc.
  • Ticker: SAVE
  • Exchange: NYSE
  • Founded: 1964
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$2.564b
  • Shares outstanding: 68.46m
  • Website: https://www.spirit.com

Number of Employees


Location

  • Spirit Airlines, Inc.
  • 2800 Executive Way
  • Miramar
  • Florida
  • 33025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAVENYSE (New York Stock Exchange)YesVoting Common StockUSUSDMay 2011
0L8ULSE (London Stock Exchange)YesVoting Common StockGBUSDMay 2011

Biography

Spirit Airlines, Inc. provides low-fare airline services. The company operates approximately 600 daily flights to 77 destinations in the United States, the Caribbean, and Latin America. As of December 31, 2019, the company had a fleet of 145 Airbus single-aisle aircraft comprising 31 A319ceos, 64 A320ceos, 20 A320neos and 30 A321ceos. It offers tickets through its call centers and airport ticket counters, as well as online through spirit.com; and through various third parties, including online, traditional travel agents, and electronic global distribution systems. The company was formerly known as Clippert Trucking Company and changed its name to Spirit Airlines, Inc. in 1992. Spirit Airlines, Inc. was founded in 1964 and is headquartered in Miramar, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:34
End of Day Share Price2020/02/24 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.