SNCY Stock Fair Value – U.S. Global Investors Increases Investment in Sun Country Airlines Holdings,
December 30, 2023
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Sun Country Airlines ($NASDAQ:SNCY) Holdings, Inc. has enjoyed success over the past few years, and as a result, U.S. Global Investors Inc. has decided to increase its ownership stake in the company. This investment is part of an effort to continue the growth of the airline and provide excellent service to its customers. Sun Country Airlines Holdings, Inc. is also currently undergoing a major expansion, adding new routes and services to meet the growing demand for low-cost air travel. The airline is currently dedicated to providing safe, reliable air travel and excellent customer service, and U.S. Global Investors Inc. is confident that the increased investment will help the airline reach even higher levels of customer satisfaction and operational excellence.
Price History
On Wednesday, Sun Country Airlines Holdings, Inc. saw a decrease in their stock value when the stock opened at $16.1 and closed at $16.0, down by 0.4% from the prior closing price of 16.1. This slight decrease came despite the recently announced investment by U.S. Global Investors, Inc. into the company. This represents a significant capital injection for the carrier, and shows confidence in their business model and potential for growth. 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 |
| 1.03k | 73.82 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SNCY. More…
| Operations | Investing | Financing |
| 158.42 | -230 | -36.58 |
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 |
| 1.6k | 1.08k | 9.59 |
Key Ratios Snapshot
Some of the financial key ratios for SNCY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.1% | 54.3% | 13.1% |
| FCF Margin | ROE | ROA |
| -6.1% | 15.9% | 5.3% |
Analysis – SNCY Stock Fair Value
At GoodWhale, we recently conducted a financial analysis on SUN COUNTRY AIRLINES. Through our proprietary Valuation Line, we calculated the airline’s intrinsic value to be around $37.4. However, the current market price of SUN COUNTRY AIRLINES stock is much lower at $16.0, which translates to a 57.3% undervaluation. This presents investors with an attractive opportunity to buy the stock at a discounted price. More…
Peers
The competition among Sun Country Airlines Holdings Inc, VietJet Aviation JSC, Enter Air SA, and El AL Israel Airlines Ltd is fierce. All four companies are constantly trying to one-up each other in terms of prices, routes, and amenities. This competition is good for consumers, as it keeps prices low and quality high. It also forces each company to innovate and come up with new ways to attract and retain customers.
– VietJet Aviation JSC ($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
U.S. Global Investors Inc. recently increased their stake in Sun Country Airlines Holdings Inc. This is in line with their strategy of investing in sector stocks and should be viewed as an optimistic sign. Analysts suggest the stock could benefit from an increase in demand for air travel as economies reopen and people start travelling again. Sun Country Airlines, which is based in Minnesota, has a strong customer base in the Midwest, which could fuel its growth going forward. The company has also been diversifying its operations by entering into new markets such as Mexico and the Caribbean.
Additionally, Sun Country Airlines has been actively making cost-cutting initiatives to remain profitable during the pandemic. With these positive signs, U.S. Global Investors Inc.’s increased stake in Sun Country Airlines Holdings Inc. appears to be an optimistic move.
