Fact based stock research
Allegiant Travel (NasdaqGS:ALGT)

US01748X1028

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Allegiant Travel stock research in summary

allegiantair.com

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Allegiant Travel (Airlines, USA) shares have much better financial characteristics than comparable stocks. Shares of Allegiant Travel are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), show above-average growth (Growth Rank of 69) but are riskily financed (Safety Rank of 23), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Allegiant Travel's financial characteristics. As the company Allegiant Travel's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 97) and above-average growth (Obermatt Growth Rank of 69), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 23) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	97
Growth Rank	69
Safety Rank	23
Combined Rank	82

Country	USA
Industry	Airlines
Index	Sound Pay USA, NASDAQ
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Allegiant Travel

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	13	90	97
GROWTH
GROWTH	85	72	91	69
SAFETY
SAFETY	33	40	44	23
SENTIMENT
SENTIMENT	n/a	1	30	^new
360° VIEW
360° VIEW	n/a	12	87	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Allegiant Travel is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	13	90	97
GROWTH
GROWTH	85	72	91	69
SAFETY
SAFETY	33	40	44	23
COMBINED
COMBINED	38	28	96	82

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Allegiant Travel the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 97 (better than 97% compared with alternatives) for 2024, Allegiant Travel shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Allegiant Travel. Price-to-Sales is 76 which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value for Allegiant Travel's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 57% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 81. Compared with other companies in the same industry, dividend yields of Allegiant Travel are expected to be higher than for 90% of all competitors (a Dividend Yield rank of 90). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 97, is a buy recommendation based on Allegiant Travel's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Allegiant Travel based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	36	31	59	76
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	55	34	61	57
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	35	39	74	81
DIVIDEND YIELD
DIVIDEND YIELD	1	1	90	90
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	17	13	90	97

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Allegiant Travel; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 69 (better than 69% compared with alternatives), Allegiant Travel shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Allegiant Travel. Sales Growth has a rank of 90 which means that currently, professionals expect the company to grow more than 90% of its competitors. Capital Growth is also above 16% of competitors with a rank of 68, and Stock Returns with the rank of 53 is also an outperformance. Only Profit Growth is low with a rank of 16 which means that currently, professionals expect the company to grow its profits less than 84% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 69, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Allegiant Travel is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	76	72	72	90
PROFIT GROWTH
PROFIT GROWTH	8	75	94	16
CAPITAL GROWTH
CAPITAL GROWTH	n/a	60	39	68
STOCK RETURNS
STOCK RETURNS	80	37	81	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	85	72	91	69

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Allegiant Travel.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 23 (better than 23% compared with alternatives), the company Allegiant Travel has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Allegiant Travel is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Allegiant Travel. Liquidity is at 30, meaning that the company generates less profit to service its debt than 70% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 28, meaning the company has an above-average debt-to-equity ratio. It has more debt than 72% of its competitors. Finally, Refinancing is at a rank of 20 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 80% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 23 (worse than 77% compared with alternatives), Allegiant Travel has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Allegiant Travel because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	57	20	28	28
REFINANCING
REFINANCING	29	74	68	20
LIQUIDITY
LIQUIDITY	34	28	24	30
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	33	40	44	23

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Allegiant Travel and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	43	38	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	4	39	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	1	53	^new
MARKET PULSE
MARKET PULSE	n/a	10	25	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	1	30	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Allegiant Travel.
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