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Fundamental analysis: Allegiant Travel Company (ALGT)

Awarener score: 7.3

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

• Business has been growing at a very good pace. It's been below average when measured against peer companies.
• Allegiant Travel Company business varies frequently, ups and downs are normal. It's risky. It looks slightly worse than rivals.

Margins score: 5.2

• ALGT profit margins -on goods and services sold- are usually extremely poor. They stand somewhat better than rival companies.
• Business profit on sales tends to be sufficient. It's almost average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually good. They remain rather normal in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still slightly worse than similar companies.
• Profits -before income taxes- are usually hardly sufficient considering total sales, and remain similar to rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 2.3

• Allegiant Travel Company couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
• In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares almost average when measured against peer enterprises.
• In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 10.0

• ALGT managed to get a credit on income taxes in the past years, even though it earned money. It's been well ranked against peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.2

• Allegiant Travel Company usually gets good returns on the resources it controls. It proves encouraging in relation to peer firms.
• The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
• There's usually some profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
• In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 4.7

• ALGT usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands almost average when measured against rival firms.
• The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is similar to industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• In recent years, has greatly cut back dividend payments. It could be enduring difficult times. The company has behaved in a weak position compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
• The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks weak when measured against competitors.

Balance Sheet score: 7.3

• Allegiant Travel Company has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
• Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
• The relation between debt and assets is unknown to us. It remains undisclosed against rival firms.
• We have not enough inputs to assess how quickly assets can be turned into cash and equivalents. It looks we are not able to reach a conclusion in relation to rivals.
• Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
• A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
• Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes less than one month from the purchase to charging customers. It happens to be somewhat better than peers.
• Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
• The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's in a weak position compared to similar companies.
• Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands somewhat worse than rival firms.
• There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
• Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
• We did not reach a conclusion regarding total assets turnover, as not enough data is currently available. It's still unable to match with peer companies.

Valuation score: 7.6

• Allegiant Travel Company looks cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
• The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still top tier when measured against industry firms.
• In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up in a very weak position compared to peer ventures.
• This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks weak when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
• The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
• In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 6.0

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Awarener score: 7.3

Conclusion

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