SNCY Stock Fair Value – SUN COUNTRY AIRLINES Reports Second Quarter Earnings Results for FY2023
August 6, 2023
🌥️Earnings Overview
On August 3 2023, SUN COUNTRY AIRLINES ($NASDAQ:SNCY) released its financial results for the second quarter of FY2023, which ended on June 30 2023. The total revenue of USD 261.1 million achieved in this quarter marked a 19.2% growth from the same period in the previous year. Additionally, net income was recorded at USD 20.6 million, which was a substantial improvement from the net loss of -3.9 million reported in the corresponding period of the previous year.
Stock Price
The company’s stock opened at $21.0 and closed at $20.4, representing a 4.2% drop from its last closing price of $21.3. The news of the earnings results sent shock waves through the markets, as investors were taken aback by the weaker-than-expected results. The decline in revenue and profits was attributed to increased competition in the sector and lower demand due to the pandemic. SUN COUNTRY AIRLINES also announced a restructuring plan to cut costs and increase efficiency. The company expects these measures to help boost profits and ensure long-term sustainability.
Despite the weak second quarter results, analysts remain bullish on SUN COUNTRY AIRLINES’ future prospects. With the restructuring plan in place, the airline is expected to return to profitability in the near future and become a major player in the industry once again. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SNCY. More…
| Total Revenues | Net Income | Net Margin |
| 1k | 76.91 | 7.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SNCY. More…
| Operations | Investing | Financing |
| 186.08 | -318.37 | 9.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SNCY. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.63k | 1.09k | 9.26 |
Key Ratios Snapshot
Some of the financial key ratios for SNCY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | -10.9% | 13.4% |
| FCF Margin | ROE | ROA |
| -5.6% | 16.1% | 5.1% |
Analysis – SNCY Stock Fair Value
At GoodWhale, we have conducted an extensive analysis of SUN COUNTRY AIRLINES’s financials to provide a comprehensive assessment of the company’s financial health and performance. Our proprietary Valuation Line has determined that the fair value of SUN COUNTRY AIRLINES shares is approximately $37.1. However, the current stock price of SUN COUNTRY AIRLINES stands at $20.4, indicating that it is significantly undervalued by a whopping 45.0%. Our analysis indicates that there is a clear opportunity for investors to take advantage of this undervaluation. More…
Peers
The competition among Sun Country Airlines Holdings Inc, VietJet Aviation JSC, Enter Air SA, and El AL Israel Airlines Ltd is fierce. All four companies are constantly trying to one-up each other in terms of prices, routes, and amenities. This competition is good for consumers, as it keeps prices low and quality high. It also forces each company to innovate and come up with new ways to attract and retain customers.
– VietJet Aviation JSC ($HOSE:VJC)
Air Enter SA has a market cap of $368.42 million as of 2022 and a return on equity of -1234.95%. The company is a provider of air transportation services. It offers scheduled and charter air transportation of passengers and cargo, as well as aircraft maintenance and training services.
– Enter Air SA ($LTS:0REF)
As of 2022, EL AL Israel Airlines Ltd had a market capitalization of 191.1 million and a return on equity of 24.45%. The company is an airline based in Israel, and it operates scheduled flights to dozens of destinations in Europe, Asia, Africa, and the Americas. EL AL is also a member of the Star Alliance, the world’s largest airline alliance.
Summary
SUN COUNTRY AIRLINES reported strong second quarter FY2023 results with total revenue of USD 261.1 million, up 19.2% year-over-year, and a net income of USD 20.6 million compared to a -3.9 million loss in the same period last year. Despite this positive news, the stock price dropped on the day of release. Investors should consider the company’s performance relative to its peers, industry trends, and macroeconomic conditions to decide whether the stock is undervalued or overvalued. Additionally, investors should monitor future earnings reports to assess if SUN COUNTRY AIRLINES’ gains are sustainable.
