(ALK) Alaska Air - Overview
Sector: Industrials | Industry: Airlines | Exchange: NYSE (USA) | Market Cap: 4.116m USD | Total Return: -32.4% in 12m
Industry Rotation: -16.1
Avg Turnover: 129M
EPS Trend: -38.5%
Qual. Beats: 0
Rev. Trend: 75.2%
Qual. Beats: 0
Warnings
P/E ratio 75.4
High Debt/EBITDA (5.6) with thin interest coverage (1.2)
High Debt while negative Cash Flow
Altman Z'' -0.13 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Alaska Air Group, Inc. (ALK) is a Seattle-based airline holding company operating through three primary segments: Alaska Airlines, Hawaiian Airlines, and Regional. The company provides scheduled passenger and cargo transportation across an extensive network covering the United States, Canada, Mexico, Central America, and the Caribbean.
The business model relies on a hub-and-spoke system, utilizing a fleet primarily composed of Boeing jet aircraft for mainline operations. As a member of the Passenger Airlines sub-industry, the company’s performance is heavily influenced by cyclical factors such as jet fuel price volatility and seasonal travel demand.
Investors can further examine these industry trends and valuation metrics on ValueRay. Since its founding in 1932, the company has expanded its regional footprint through strategic acquisitions and code-sharing agreements to enhance network connectivity.
- Hawaiian Airlines acquisition integration determines long-term margin and network synergy realization
- Fuel price volatility and labor contract negotiations impact operating expense ratios
- West Coast travel demand and tech sector corporate spending drive revenue
- Boeing aircraft delivery delays and 737 MAX grounding risks constrain capacity
- Expansion of premium seating and loyalty program revenue enhances unit profitability
| Net Income: 73.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -3.20 > 1.0 |
| NWC/Revenue: -28.04% < 20% (prev -23.57%; Δ -4.48% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.21b > Net Income 73.0m |
| Net Debt (6.22b) to EBITDA (1.12b): 5.57 < 3 |
| Current Ratio: 0.43 > 1.5 & < 3 |
| Outstanding Shares: last quarter (114.3m) vs 12m ago -7.18% < -2% |
| Gross Margin: 76.89% > 18% (prev 0.24%; Δ 7.66k% > 0.5%) |
| Asset Turnover: 71.80% > 50% (prev 63.78%; Δ 8.02% > 0%) |
| Interest Coverage Ratio: 1.17 > 6 (EBITDA TTM 1.12b / Interest Expense TTM 265.0m) |
| A: -0.20 (Total Current Assets 3.02b - Total Current Liabilities 7.06b) / Total Assets 20.30b |
| B: 0.24 (Retained Earnings 4.84b / Total Assets 20.30b) |
| C: 0.02 (EBIT TTM 311.0m / Avg Total Assets 20.06b) |
| D: 0.28 (Book Value of Equity 4.66b / Total Liabilities 16.57b) |
| Altman-Z'' Score: -0.13 = B |
| DSRI: 0.97 (Receivables 630.0m/569.0m, Revenue 14.40b/12.64b) |
| GMI: 0.32 (GM 76.89% / 24.25%) |
| AQI: 1.31 (AQ_t 0.26 / AQ_t-1 0.20) |
| SGI: 1.14 (Revenue 14.40b / 12.64b) |
| TATA: -0.06 (NI 73.0m - CFO 1.21b) / TA 20.30b) |
| Beneish M-Score: -3.44 (Cap -4..+1) = AA |
Over the past week, the price has changed by -6.51%, over one month by -16.84%, over three months by -30.54% and over the past year by -32.43%.
- StrongBuy: 9
- Buy: 5
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 57.4 | 58.5% |
P/E Forward = 163.9344
P/S = 0.2858
P/B = 1.2197
P/EG = 1.1978
Revenue TTM = 14.40b USD
EBIT TTM = 311.0m USD
EBITDA TTM = 1.12b USD
Long Term Debt = 4.83b USD (from longTermDebt, last fiscal year)
Short Term Debt = 710.0m USD (from shortTermDebt, last quarter)
Debt = 6.67b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.22b USD (from netDebt column, last quarter)
Enterprise Value = 9.02b USD (4.12b + Debt 6.67b - CCE 1.77b)
Interest Coverage Ratio = 1.17 (Ebit TTM 311.0m / Interest Expense TTM 265.0m)
EV/FCF = -18.90x (Enterprise Value 9.02b / FCF TTM -477.0m)
FCF Yield = -5.29% (FCF TTM -477.0m / Enterprise Value 9.02b)
FCF Margin = -3.31% (FCF TTM -477.0m / Revenue TTM 14.40b)
Net Margin = 0.51% (Net Income TTM 73.0m / Revenue TTM 14.40b)
Gross Margin = 76.89% ((Revenue TTM 14.40b - Cost of Revenue TTM 3.33b) / Revenue TTM)
Gross Margin QoQ = 93.58% (prev 94.27%)
Tobins Q-Ratio = 0.44 (Enterprise Value 9.02b / Total Assets 20.30b)
Interest Expense / Debt = 1.14% (Interest Expense 76.0m / Debt 6.67b)
Taxrate = 31.51% (46.0m / 146.0m)
NOPAT = 213.0m (EBIT 311.0m * (1 - 31.51%))
Current Ratio = 0.43 (Total Current Assets 3.02b / Total Current Liabilities 7.06b)
Debt / Equity = 1.79 (Debt 6.67b / totalStockholderEquity, last quarter 3.73b)
Debt / EBITDA = 5.57 (Net Debt 6.22b / EBITDA 1.12b)
Debt / FCF = -13.03 (negative FCF - burning cash) (Net Debt 6.22b / FCF TTM -477.0m)
Total Stockholder Equity = 3.96b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.36% (Net Income 73.0m / Total Assets 20.30b)
RoE = 1.85% (Net Income TTM 73.0m / Total Stockholder Equity 3.96b)
RoCE = 3.54% (EBIT 311.0m / Capital Employed (Equity 3.96b + L.T.Debt 4.83b))
RoIC = 2.32% (NOPAT 213.0m / Invested Capital 9.20b)
WACC = 4.91% (E(4.12b)/V(10.78b) * Re(11.60%) + D(6.67b)/V(10.78b) * Rd(1.14%) * (1-Tc(0.32)))
Discount Rate = 11.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -55.56 | Cagr: -4.70%
[DCF] Fair Price = unknown (Cash Flow -477.0m)
EPS Correlation: -38.50 | EPS CAGR: -60.43% | SUE: -0.42 | # QB: 0
Revenue Correlation: 75.23 | Revenue CAGR: 5.94% | SUE: 0.21 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.98 | Chg30d=-1266.53% | Revisions=-71% | Analysts=15
EPS next Quarter (2026-09-30): EPS=0.99 | Chg30d=-9.56% | Revisions=-43% | Analysts=15
EPS current Year (2026-12-31): EPS=-0.86 | Chg30d=-243.33% | Revisions=-76% | GrowthEPS=-135.1% | GrowthRev=+10.7%
EPS next Year (2027-12-31): EPS=6.28 | Chg30d=-11.79% | Revisions=-53% | GrowthEPS=+831.9% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -76%