Alaska Air Intrinsic Value Calculator – Alaska Air Group, Predicts Earnings of $4.53 Per Share in FY2023
December 9, 2023
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Alaska Air ($NYSE:ALK) Group, Inc. is a major American airline holding company based in Seattle, Washington. It operates Alaska Airlines, Virgin America, Horizon Air, and SkyWest Airlines. Alaska Air Group, Inc. has been incredibly successful in the past few years, increasing its revenues, profits, and passenger numbers.
In addition, the company has made significant investments in improving customer experience and enhancing its operational efficiency. As a result, the company is now well positioned to achieve its goal of achieving earnings of $4.53 per share in FY2023. The company has been able to expand its network and create more connections between cities in the U.S. and Canada, as well as other international destinations, thus providing greater convenience for travelers. It has also undertaken a number of initiatives to improve customer service, including increasing the number of complimentary services offered on board its airplanes and expanding its loyalty program. All of these strategies are predicted to contribute to the growth of the company and its anticipated FY2023 earnings per share of $4.53. This is great news for shareholders and travelers alike, and will likely result in increased value for both parties.
Earnings
According to the latest earning report of FY2023 Q3 as of September 30 2021, ALASKA AIR Group, Inc. earned a total revenue of 1953.0M USD and a net income of 194.0M USD. This represents a significant 30.9% decrease in total revenue and a 385.0% increase in net income compared to the previous year. Over the last three years, ALASKA AIR Group, Inc. has seen total revenue grow steadily from 1953.0M USD to 2839.0M USD. This increase in revenue combined with the increase in net income bodes well for ALASKA AIR Group, Inc.’s financial future, as they predict earnings of 4.53 USD per share for FY 2023.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alaska Air. More…
| Total Revenues | Net Income | Net Margin |
| 10.35k | 259 | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alaska Air. More…
| Operations | Investing | Financing |
| 1.11k | -1.14k | -17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alaska Air. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.16k | 11.07k | 32.17 |
Key Ratios Snapshot
Some of the financial key ratios for Alaska Air are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.6% | -16.3% | 4.3% |
| FCF Margin | ROE | ROA |
| -5.8% | 6.9% | 1.8% |
Share Price
On Friday, the stock opened at $36.0 and closed at $35.6, a decrease of 1.0% from the previous closing price of $36.0. This news has been met with mixed reactions from investors, as it signifies a slight decline in expected growth for the company. Nonetheless, the outlook remains positive and investors are encouraged to monitor the stock closely for any potential upside. Live Quote…
Analysis – Alaska Air Intrinsic Value Calculator
After examining ALASKA AIR‘s financials, GoodWhale has determined that the fair value of ALASKA AIR’s share is approximately $82.4. This value was calculated using GoodWhale’s proprietary Valuation Line. Currently, ALASKA AIR’s stock is trading at only $35.6, which is undervalued by 56.8%. As such, investors looking for potential upside may consider purchasing ALASKA AIR shares at this price. More…
Peers
The airline industry is a fiercely competitive market. The top four airlines in the United States are Alaska Air Group Inc, United Airlines Holdings Inc, American Airlines Group Inc, and Spirit Airlines Inc. All four of these airlines are constantly vying for market share and trying to outdo each other.
Alaska Air Group Inc is the seventh largest airline in the United States. The company was founded in 1932 and is headquartered in Seattle, Washington. Alaska Air Group Inc operates a fleet of Boeing and Airbus aircraft and serves more than 100 destinations across the United States, Canada, and Mexico.
United Airlines Holdings Inc is the world’s largest airline. The company was founded in 1926 and is headquartered in Chicago, Illinois. United Airlines Holdings Inc operates a fleet of Boeing and Airbus aircraft and serves more than 370 destinations across six continents.
American Airlines Group Inc is the world’s largest airline. The company was founded in 1930 and is headquartered in Fort Worth, Texas. American Airlines Group Inc operates a fleet of Boeing and Airbus aircraft and serves more than 550 destinations across more than 40 countries.
Spirit Airlines Inc is an ultra-low-cost carrier. The company was founded in 1980 and is headquartered in Miramar, Florida. Spirit Airlines Inc operates a fleet of Airbus aircraft and serves more than 60 destinations across the United States, Caribbean, and Latin America.
– United Airlines Holdings Inc ($NASDAQ:UAL)
United Airlines Holdings Inc is an American airline headquartered in Chicago, Illinois. It is the world’s third-largest airline when measured by revenue, after American Airlines and Delta Air Lines. United operates a large domestic and international route network, with an extensive presence in the Asia-Pacific region. The airline has a significant presence in the United hub of Los Angeles.
– American Airlines Group Inc ($NASDAQ:AAL)
American Airlines Group Inc has a market cap of 8.58B as of 2022, a Return on Equity of 5.3%. The company has been in operation since 1930 and is one of the largest airlines in the world. American Airlines Group Inc provides passenger and cargo transportation services across the globe. The company has a wide network of destinations and offers a variety of services to its passengers. American Airlines Group Inc is a publicly traded company listed on the New York Stock Exchange.
– Spirit Airlines Inc ($NYSE:SAVE)
Spirit Airlines Inc is an airline company that has a market cap of 2.13B as of 2022. The company has a return on equity of -10.47%. Spirit Airlines operates in the ultra-low-cost carrier segment of the US airline industry. The company provides air transportation for passengers and cargo. Its routes span the US, Latin America, and the Caribbean.
Summary
Alaska Air Group, Inc. is forecasted to post earnings of $4.53 per share for FY2023. This is an impressive figure, and investors should take note of the potential upside for the company. Analysts have suggested that the airline can benefit from factors such as a strong domestic economy, an improving airline industry, and strong demand for air travel.
Additionally, Alaska Air has a good track record of operational efficiency and solid cost management. All of these factors could be beneficial for investors considering opening a position in the company. Furthermore, the company’s financial condition is strong overall, with ample liquidity and a manageable debt load. All of these factors make Alaska Air Group, Inc. an attractive investment opportunity, and investors should monitor the company’s performance ahead of FY2023 to see if the forecast earnings come to fruition.
