Alaska Air Group, Inc. (ALK) 10-Year Financial Performance & Capital Metrics

ALK • • Industrial / General

IndustrialsAirlines & AirportsFull-Service Network AirlinesMajor US Network Carriers

AboutAlaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates through three segments: Mainline, Regional, and Horizon. It flies to approximately 120 destinations throughout North America. Alaska Air Group, Inc. was founded in 1932 and is based in Seattle, Washington.Show more

Revenue $11.73B +12.6%
EBITDA $1.11B +34.9%
Net Income $395M +68.1%
EPS (Diluted) 3.08 +68.3%
Gross Margin 24.38% +3.2%
EBITDA Margin 9.42% +19.8%
Operating Margin 4.86% +28.5%
Net Margin 3.37% +49.3%
ROE 9.31% +57.1%
ROIC 4.97% +25.3%
Debt/Equity 1.46 +57.5%
Interest Coverage 4.01 +23.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Trading at only 1.5x book value

✗Weaknesses

✗Profits declining 12.5% over 5 years
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y8.14%

5Y5.97%

3Y23.86%

TTM31.5%

Profit (Net Income) CAGR

10Y-4.17%

5Y-12.47%

3Y-6.16%

TTM-53.42%

EPS CAGR

10Y-3.55%

5Y-13.03%

3Y-6.52%

TTM-50.09%

ROCE

10Y Avg8.26%

5Y Avg-0.38%

3Y Avg2.92%

Latest4.56%

Peer Comparison

Major US Network Carriers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ALKAlaska Air Group, Inc.	5.76B	49.66	16.12	12.56%	1.06%	3.72%	3.18%	1.46
AALAmerican Airlines Group Inc.	10.37B	15.71	12.67	2.7%	1.11%		12.54%
UALUnited Airlines Holdings, Inc.	37.56B	116.02	12.28	6.23%	5.64%	23.01%	10.2%	2.65
DALDelta Air Lines, Inc.	46.58B	71.34	9.31	2.79%	7.9%	24.12%	8.25%	1.02

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	5.6B	5.93B	7.89B	8.26B	8.78B	3.57B	6.18B	9.65B	10.43B	11.73B
Revenue Growth %	0.04%	0.06%	0.33%	0.05%	0.06%	-0.59%	0.73%	0.56%	0.08%	0.13%
Cost of Goods Sold+	3.31B	3.46B	5.27B	6.17B	6.42B	4.35B	5.36B	7.51B	7.96B	8.87B
COGS % of Revenue	0.59%	0.58%	0.67%	0.75%	0.73%	1.22%	0.87%	0.78%	0.76%	0.76%
Gross Profit+	2.29B	2.46B	2.63B	2.09B	2.37B	-783M	817M	2.13B	2.46B	2.86B
Gross Margin %	0.41%	0.42%	0.33%	0.25%	0.27%	-0.22%	0.13%	0.22%	0.24%	0.24%
Gross Profit Growth %	0.29%	0.08%	0.07%	-0.2%	0.13%	-1.33%	2.04%	1.61%	0.15%	0.16%
Operating Expenses+	987M	1.16B	1.42B	1.45B	1.3B	992M	132M	2.06B	2.07B	2.29B
OpEx % of Revenue	0.18%	0.2%	0.18%	0.17%	0.15%	0.28%	0.02%	0.21%	0.2%	0.2%
Selling, General & Admin	211M	225M	368M	326M	313M	101M	173M	295M	303M	349M
SG&A % of Revenue	0.04%	0.04%	0.05%	0.04%	0.04%	0.03%	0.03%	0.03%	0.03%	0.03%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	776M	910M	1.05B	1.12B	990M	891M	-41M	1.77B	1.77B	1.94B
Operating Income+	1.3B	1.31B	1.21B	643M	1.06B	-1.77B	685M	70M	394M	570M
Operating Margin %	0.23%	0.22%	0.15%	0.08%	0.12%	-0.5%	0.11%	0.01%	0.04%	0.05%
Operating Income Growth %	0.35%	0.01%	-0.08%	-0.47%	0.65%	-2.67%	1.39%	-0.9%	4.63%	0.45%
EBITDA+	1.62B	1.67B	1.58B	1.04B	1.49B	-1.35B	1.08B	468M	820M	1.11B
EBITDA Margin %	0.29%	0.28%	0.2%	0.13%	0.17%	-0.38%	0.17%	0.05%	0.08%	0.09%
EBITDA Growth %	0.29%	0.03%	-0.05%	-0.34%	0.43%	-1.91%	1.8%	-0.57%	0.75%	0.35%
D&A (Non-Cash Add-back)	320M	363M	372M	398M	423M	420M	394M	398M	426M	536M
EBIT	1.33B	1.41B	1.32B	793M	1.07B	-2.34B	-257M	706M	818M	889M
Net Interest Income+	13M	-3M	-52M	-35M	-21M	-56M	-92M	-41M	-41M	-41M
Interest Income	21M	27M	34M	38M	42M	31M	25M	53M	80M	101M
Interest Expense	8M	30M	86M	73M	63M	87M	117M	94M	121M	142M
Other Income/Expense	14M	39M	-49M	-58M	-47M	-65M	-56M	9M	-71M	-25M
Pretax Income+	1.31B	1.32B	1.16B	585M	1.02B	-1.84B	629M	79M	323M	545M
Pretax Margin %	0.23%	0.22%	0.15%	0.07%	0.12%	-0.52%	0.1%	0.01%	0.03%	0.05%
Income Tax+	464M	519M	199M	148M	247M	-516M	151M	21M	88M	150M
Effective Tax Rate %	0.65%	0.61%	0.83%	0.75%	0.76%	0.72%	0.76%	0.73%	0.73%	0.72%
Net Income+	848M	797M	960M	437M	769M	-1.32B	478M	58M	235M	395M
Net Margin %	0.15%	0.13%	0.12%	0.05%	0.09%	-0.37%	0.08%	0.01%	0.02%	0.03%
Net Income Growth %	0.4%	-0.06%	0.2%	-0.54%	0.76%	-2.72%	1.36%	-0.88%	3.05%	0.68%
Net Income (Continuing)	848M	814M	960M	437M	769M	-1.32B	478M	58M	235M	395M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	6.56	6.41	7.75	3.52	6.19	-10.59	3.77	0.45	1.83	3.08
EPS Growth %	0.48%	-0.02%	0.21%	-0.55%	0.76%	-2.71%	1.36%	-0.88%	3.07%	0.68%
EPS (Basic)	6.61	6.45	7.79	3.55	6.24	-10.59	3.82	0.46	1.84	3.13
Diluted Shares Outstanding	129.37M	124.39M	123.85M	123.97M	124.29M	123.45M	126.78M	127.9M	128.71M	128.37M
Basic Shares Outstanding	128.37M	123.56M	123.21M	123.23M	123.28M	123.45M	125.06M	126.66M	127.38M	126.14M
Dividend Payout Ratio	0.12%	0.17%	0.15%	0.36%	0.22%	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.66B	2.05B	2.15B	1.79B	2.04B	4.01B	3.92B	3.04B	2.71B	3.76B
Cash & Short-Term Investments	1.33B	1.58B	1.62B	1.24B	1.52B	3.35B	3.12B	2.42B	1.79B	2.48B
Cash Only	73M	328M	194M	105M	221M	1.37B	470M	338M	281M	1.2B
Short-Term Investments	1.25B	1.25B	1.43B	1.13B	1.3B	1.98B	2.65B	2.08B	1.51B	1.27B
Accounts Receivable	212M	302M	341M	366M	323M	480M	546M	296M	383M	558M
Days Sales Outstanding	13.82	18.59	15.77	16.17	13.43	49.13	32.27	11.2	13.41	17.36
Inventory	51M	47M	57M	60M	72M	57M	62M	104M	116M	199M
Days Inventory Outstanding	5.62	4.96	3.95	3.55	4.1	4.78	4.22	5.05	5.32	8.19
Other Current Assets	0	0	0	0	121M	0	196M	60M	239M	221M
Total Non-Current Assets+	4.87B	7.93B	8.59B	9.13B	11.96B	10.04B	11.04B	12.31B	13.13B	16.01B
Property, Plant & Equipment	4.8B	5.69B	6.28B	6.78B	8.61B	7.61B	7.59B	8.73B	9.58B	12.08B
Fixed Asset Turnover	1.17x	1.04x	1.26x	1.22x	1.02x	0.47x	0.81x	1.11x	1.09x	0.97x
Goodwill	0	1.92B	1.94B	1.94B	1.94B	1.94B	2.04B	2.04B	2.03B	2.72B
Intangible Assets	0	155M	133M	127M	122M	107M	0	0	0	873M
Long-Term Investments	0	304M	-1.78B	-512M	16M	0	34M	49M	30M	0
Other Non-Current Assets	-614M	169M	2.31B	274M	262M	379M	362M	331M	262M	247M
Total Assets+	6.53B	9.98B	10.75B	10.91B	14B	14.05B	14.96B	15.35B	15.83B	19.77B
Asset Turnover	0.86x	0.59x	0.73x	0.76x	0.63x	0.25x	0.41x	0.63x	0.66x	0.59x
Asset Growth %	0.06%	0.53%	0.08%	0.02%	0.28%	0%	0.07%	0.03%	0.03%	0.25%
Total Current Liabilities+	1.81B	2.54B	2.69B	2.94B	3.2B	4.29B	3.99B	4.49B	4.46B	6.14B
Accounts Payable	63M	92M	120M	132M	146M	108M	200M	221M	207M	186M
Days Payables Outstanding	6.94	9.7	8.31	7.8	8.31	9.06	13.62	10.74	9.49	7.65
Short-Term Debt	114M	319M	307M	486M	504M	1.15B	634M	504M	511M	442M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	0	0	0	1.49B	431M	0	625M	846M	800M	0
Current Ratio	0.92x	0.81x	0.80x	0.61x	0.64x	0.93x	0.98x	0.68x	0.61x	0.61x
Quick Ratio	0.89x	0.79x	0.78x	0.59x	0.61x	0.92x	0.97x	0.65x	0.58x	0.58x
Cash Conversion Cycle	12.5	13.84	11.4	11.91	9.22	44.85	22.87	5.52	9.24	17.89
Total Non-Current Liabilities+	2.32B	4.51B	4.6B	4.22B	6.47B	6.77B	7.17B	7.04B	7.26B	9.25B
Long-Term Debt	571M	2.65B	2.26B	1.62B	1.26B	2.36B	2.17B	1.88B	2.18B	4.49B
Capital Lease Obligations	-2M	0	0	0	1.44B	1.27B	1.28B	1.39B	1.13B	1.25B
Deferred Tax Liabilities	682M	463M	370M	512M	1.72B	407M	1.59B	1.73B	1.92B	934M
Other Non-Current Liabilities	630M	748M	878M	921M	803M	1.19B	683M	653M	657M	917M
Total Liabilities	4.12B	7.05B	7.29B	7.16B	9.67B	11.06B	11.16B	11.53B	11.72B	15.4B
Total Debt+	686M	2.96B	2.26B	2.1B	3.21B	5.05B	4.09B	3.78B	3.82B	6.39B
Net Debt	613M	2.63B	2.07B	2B	2.99B	3.68B	3.62B	3.44B	3.54B	5.19B
Debt / Equity	0.28x	1.01x	0.65x	0.56x	0.74x	1.69x	1.07x	0.99x	0.93x	1.46x
Debt / EBITDA	0.42x	1.77x	1.43x	2.02x	2.16x	-	3.79x	8.08x	4.66x	5.78x
Net Debt / EBITDA	0.38x	1.57x	1.31x	1.92x	2.01x	-	3.35x	7.35x	4.31x	4.69x
Interest Coverage	162.25x	43.53x	14.05x	8.81x	16.87x	-20.40x	5.85x	0.74x	3.26x	4.01x
Total Equity+	2.41B	2.93B	3.46B	3.75B	4.33B	2.99B	3.8B	3.82B	4.11B	4.37B
Equity Growth %	0.13%	0.22%	0.18%	0.08%	0.15%	-0.31%	0.27%	0%	0.08%	0.06%
Book Value per Share	18.64	23.56	27.94	30.26	34.85	24.20	29.98	29.84	31.96	34.06
Total Shareholders' Equity	2.41B	2.93B	3.46B	3.75B	4.33B	2.99B	3.8B	3.82B	4.11B	4.37B
Common Stock	1M	1M	1M	1M	1M	1M	1M	1M	1M	1M
Retained Earnings	2.89B	3.57B	4.19B	4.53B	5.13B	3.76B	4.24B	4.3B	4.54B	4.93B
Treasury Stock	-250M	-443M	-518M	-568M	-643M	-674M	-674M	-674M	-819M	-1.13B
Accumulated OCI	-303M	-305M	-380M	-448M	-465M	-494M	-262M	-388M	-299M	-239M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.58B	1.39B	1.59B	1.2B	1.72B	-234M	1.03B	1.42B	1.05B	1.46B
Operating CF Margin %	0.28%	0.23%	0.2%	0.14%	0.2%	-0.07%	0.17%	0.15%	0.1%	0.12%
Operating CF Growth %	0.54%	-0.13%	0.15%	-0.25%	0.44%	-1.14%	5.4%	0.38%	-0.26%	0.39%
Net Income	848M	814M	1.03B	437M	769M	-1.32B	478M	58M	235M	395M
Depreciation & Amortization	320M	363M	372M	398M	423M	420M	394M	415M	451M	583M
Stock-Based Compensation	25M	26M	55M	47M	29M	24M	51M	35M	59M	63M
Deferred Taxes	0	94M	45M	146M	209M	0	-445M	22M	0	0
Other Non-Cash Items	0	17M	0	0	-209M	847M	434M	481M	591M	-69M
Working Capital Changes	391M	183M	129M	313M	501M	-201M	118M	407M	-286M	492M
Change in Receivables	47M	-46M	-39M	-25M	43M	-160M	-66M	250M	0	-128M
Change in Inventory	0	0	0	0	0	0	0	0	0	0
Change in Payables	0	0	0	0	0	0	0	0	0	0
Cash from Investing+	-930M	-2.62B	-1.13B	-631M	-791M	-593M	-1.01B	-1.22B	-964M	-634M
Capital Expenditures	-831M	-678M	-1.03B	-960M	-696M	-206M	-292M	-1.67B	-1.49B	-1.28B
CapEx % of Revenue	0.15%	0.11%	0.13%	0.12%	0.08%	0.06%	0.05%	0.17%	0.14%	0.11%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	53M	5M	75M	47M	41M	-22M	-10M	-6M	530M	377M
Cash from Financing+	-688M	1.49B	-592M	-647M	-813M	1.98B	-914M	-325M	-147M	119M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-102M	-136M	-148M	-158M	-173M	-45M	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	35M	25M	28M	29M	43M	58M	57M	60M	-139M	36M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	753M	708M	564M	235M	1.03B	-440M	738M	-253M	-444M	183M
FCF Margin %	0.13%	0.12%	0.07%	0.03%	0.12%	-0.12%	0.12%	-0.03%	-0.04%	0.02%
FCF Growth %	1.24%	-0.06%	-0.2%	-0.58%	3.37%	-1.43%	2.68%	-1.34%	-0.75%	1.41%
FCF per Share	5.82	5.69	4.55	1.90	8.25	-3.56	5.82	-1.98	-3.45	1.43
FCF Conversion (FCF/Net Income)	1.87x	1.74x	1.66x	2.73x	2.24x	0.18x	2.15x	24.45x	4.47x	3.71x
Interest Paid	8M	24M	84M	0	60M	0	109M	0	0	148M
Taxes Paid	349M	459M	177M	0	31M	0	48M	0	0	22M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	37.37%	29.84%	30.04%	12.12%	19.03%	-36.18%	14.08%	1.52%	5.93%	9.31%
Return on Invested Capital (ROIC)	33.3%	22.83%	16.34%	8.55%	12.2%	-19.03%	7.29%	0.72%	3.96%	4.97%
Gross Margin	40.82%	41.54%	33.27%	25.28%	26.94%	-21.96%	13.23%	22.11%	23.62%	24.38%
Net Margin	15.15%	13.44%	12.16%	5.29%	8.76%	-37.13%	7.74%	0.6%	2.25%	3.37%
Debt / Equity	0.28x	1.01x	0.65x	0.56x	0.74x	1.69x	1.07x	0.99x	0.93x	1.46x
Interest Coverage	162.25x	43.53x	14.05x	8.81x	16.87x	-20.40x	5.85x	0.74x	3.26x	4.01x
FCF Conversion	1.87x	1.74x	1.66x	2.73x	2.24x	0.18x	2.15x	24.45x	4.47x	3.71x
Revenue Growth	4.28%	5.95%	33.1%	4.69%	6.26%	-59.39%	73.19%	56.19%	8.09%	12.56%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Alaska Airlines	-	-	-	-	-	-	-	-	-	8.15B
Alaska Airlines Growth	-	-	-	-	-	-	-	-	-	-
Regional	-	-	-	-	-	-	-	-	-	1.8B
Regional Growth	-	-	-	-	-	-	-	-	-	-
Hawaiian Airlines	-	-	-	-	-	-	-	-	-	757M
Hawaiian Airlines Growth	-	-	-	-	-	-	-	-	-	-
Passenger	-	-	-	7.63B	8.1B	3.02B	5.5B	8.81B	9.53B	-
Passenger Growth	-	-	-	-	6.07%	-62.71%	82.15%	60.17%	8.15%	-
Mileage Plan Services, Other	-	-	-	434M	465M	374M	461M	590M	648M	-
Mileage Plan Services, Other Growth	-	-	-	-	7.14%	-19.57%	23.26%	27.98%	9.83%	-
Cargo and Freight	-	-	-	198M	221M	173M	216M	248M	252M	-
Cargo and Freight Growth	-	-	-	-	11.62%	-21.72%	24.86%	14.81%	1.61%	-
Air Group Adjusted	4.79B	5.01B	6.82B	-	-	-	-	-	-	-
Air Group Adjusted Growth	-	4.44%	36.20%	-	-	-	-	-	-	-
Alaska Mainline	3.94B	4.1B	5.86B	-	-	-	-	-	-	-
Alaska Mainline Growth	-	4.04%	42.95%	-	-	-	-	-	-	-
Alaska Regional	854M	908M	960M	-	-	-	-	-	-	-
Alaska Regional Growth	-	6.32%	5.73%	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Alaska Mainline	-	-	-	-	-	-	-	-	-	9.05B
Alaska Mainline Growth	-	-	-	-	-	-	-	-	-	-
Alaska Regional	-	-	-	-	-	-	-	-	-	1.8B
Alaska Regional Growth	-	-	-	-	-	-	-	-	-	-
Hawaiian Airlines	-	-	-	-	-	-	-	-	-	869M
Hawaiian Airlines Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Alaska Air Group, Inc. (ALK) has a price-to-earnings (P/E) ratio of 16.1x. This is roughly in line with market averages.

Growth & Financials

Alaska Air Group, Inc. (ALK) reported $14.14B in revenue for fiscal year 2024. This represents a 228% increase from $4.32B in 2011.

Alaska Air Group, Inc. (ALK) grew revenue by 12.6% over the past year. This is steady growth.

Yes, Alaska Air Group, Inc. (ALK) is profitable, generating $150.0M in net income for fiscal year 2024 (3.4% net margin).

Dividend & Returns

Alaska Air Group, Inc. (ALK) has a return on equity (ROE) of 9.3%. This is below average, suggesting room for improvement.

Alaska Air Group, Inc. (ALK) had negative free cash flow of $54.0M in fiscal year 2024, likely due to heavy capital investments.

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