ATSG Intrinsic Stock Value – AIR TRANSPORT SERVICES Reports Profitable Second Quarter Financial Results for 2023
August 8, 2023
☀️Earnings Overview
AIR TRANSPORT SERVICES ($NASDAQ:ATSG) reported a 3.9% increase in total revenue for the second quarter of 2023, with USD 529.3 million. However, net income for the quarter was USD 38.0 million, which marked a 31.0% decrease from the same period in 2022.
Market Price
On Thursday, AIR TRANSPORT SERVICES released their second quarter financial results for the year 2023, reporting a profitable outcome. The stock opened at $20.2 and closed at $20.0, down by 1.1% from previous closing price of 20.2. This came mainly from higher ticket sales and better cost efficiency in operations.
The company also plans to use their savings to reinvest in new aircraft and expand their fleet in order to meet the growing demand for air transportation services. The company is confident that its financial performance will continue to improve in the coming quarters with prudent management and efficient operations. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ATSG. More…
| Total Revenues | Net Income | Net Margin |
| 2.08k | 149.71 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ATSG. More…
| Operations | Investing | Financing |
| 630.49 | -692.74 | 58.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ATSG. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.75k | 2.31k | 20.16 |
Key Ratios Snapshot
Some of the financial key ratios for ATSG are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.6% | 8.6% | 12.5% |
| FCF Margin | ROE | ROA |
| -4.2% | 11.4% | 4.3% |
Analysis – ATSG Intrinsic Stock Value
At GoodWhale, we’ve conducted an in-depth analysis of AIR TRANSPORT SERVICES’s finances and have concluded that the intrinsic value of its share is around $29.7, as estimated by our proprietary Valuation Line. As of now, AIR TRANSPORT SERVICES’s stock is currently trading at $20.0, meaning it is undervalued by 32.8%. This could potentially be a great opportunity for investors to purchase stock at a discounted rate. More…
Peers
In the airline industry, Air Transport Services Group Inc faces intense competition from Turk Hava Yollari AO, El AL Israel Airlines Ltd, and Grupo Aeromexico SAB de CV. All four companies are striving to provide the best possible service to their customers and to stay ahead of the competition. Air Transport Services Group Inc has an edge over its competitors because of its strong financial position and its ability to offer a variety of services.
– Turk Hava Yollari AO ($OTCPK:TKHVY)
As of 2022, Turkish Airlines has a market cap of 7.72B and a ROE of 18.07%. The company is the national flag carrier airline of Turkey and operates scheduled services to 302 destinations in 118 countries.
– El AL Israel Airlines Ltd ($OTCPK:ELALF)
El AL Israel Airlines Ltd is an airline company with a market cap of 191.76M as of 2022 and a Return on Equity of 24.45%. It was founded in 1948 and is headquartered in Tel Aviv, Israel. The company operates scheduled flights to destinations in Africa, Asia, Europe, North America, and Oceania. El Al Israel Airlines is the country’s flag carrier and serves as a major transport hub for passengers and cargo in the Middle East.
– Grupo Aeromexico SAB de CV ($OTCPK:GRPAF)
Grupo Aeromexico SAB de CV is a Mexican airline company that was founded in 1934. It is the second largest airline in Mexico, after Volaris. As of 2022, Grupo Aeromexico’s market cap is 1.22 billion dollars and its ROE is 67.02%. The company has a fleet of 119 aircraft and flies to over 90 destinations.
Summary
Investing in AIR TRANSPORT SERVICES in the second quarter of 2023 seems to be a risky venture. The company’s total revenue increased from the same quarter of the previous year, however, net income decreased significantly by 31%. This suggests that the company may have made investments that didn’t pan out or that operating expenses rose compared to the year before. Investors will need to research further to understand the company’s situation and decide if it is a worthwhile investment.
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