Allegiant Travel Company (ALGT) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 313.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: 3.29%
• EPS Growth: -983.31%
• Country: US
• Employees: 6,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -2.09
• Shares Outstanding: 18,313,574
• 10 Day Avg. Volume: 289,690
• 30 Day Avg. Volume: 313,917
• PEG Ratio: 0.02
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 43.87
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 956.17
• 1Y Price Target: $71.56
• Price Target Upside: 9.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.08
• Revenue Forecast (FY): $2.60B

• Rating: 52 Neutral
• Price Target: $64.00 ▼(-2.22% Downside)

Allegiant Travel Company's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and high leverage. The earnings call provides some optimism with improved guidance and strategic initiatives. Technical analysis shows mixed signals, while valuation remains a concern due to negative earnings. The absence of corporate events does not affect the score.

Positive Factors

Operational Efficiency

A reduction in CASM-ex indicates improved cost efficiency, which can enhance profitability and competitiveness in the long term.

Fleet Modernization

Modernizing the fleet with MAX aircraft can improve fuel efficiency and operational performance, supporting long-term growth and cost management.

Liquidity and Debt Management

Strong liquidity and proactive debt repayment enhance financial stability, providing flexibility for strategic investments and growth.

Negative Factors

High Leverage

Significant leverage increases financial risk and can limit the company's ability to invest in growth opportunities, impacting long-term stability.

Profitability Issues

Ongoing profitability challenges with negative margins indicate operational inefficiencies, which could hinder sustainable growth and shareholder returns.

Declining Free Cash Flow

A significant decline in free cash flow generation limits the company's ability to fund operations and capital expenditures, affecting long-term viability.

Allegiant Travel Company Business Overview & Revenue Model

Company Description

Allegiant Travel Company (ALGT) is a leisure travel company based in the United States, primarily known for its low-cost airline, Allegiant Air. Founded in 1997, the company operates scheduled and charter flights to various destinations across the U.S., focusing on underserved markets. Allegiant also offers ancillary services such as hotel accommodations, car rentals, and vacation packages, catering to travelers seeking affordable travel options.

How the Company Makes Money

Allegiant Travel Company generates revenue primarily through ticket sales from its low-cost airline, Allegiant Air. The company employs a low-fare, no-frills model, where base fares are kept low, and additional fees are charged for services such as checked baggage, seat selection, and in-flight purchases. Besides ticket sales, Allegiant earns significant revenue from ancillary services, including hotel bookings, car rentals, and vacation packages, which are marketed to customers as part of their travel experience. The company also benefits from partnerships with various travel-related businesses, enhancing its service offerings and creating additional revenue streams. Additionally, Allegiant's focus on secondary airports allows it to maintain lower operating costs, further contributing to its profitability.

Allegiant Travel Company Financial Statement Overview

Summary

Allegiant Travel Company faces significant financial challenges. The income statement reflects ongoing profitability issues with negative margins and stagnant revenue growth. The balance sheet shows high leverage, posing financial risk, especially with negative returns on equity. Cash flow analysis indicates declining free cash flow, highlighting liquidity concerns. Overall, the company needs to address operational inefficiencies and manage its debt to improve financial health.

Income Statement

The income statement shows a challenging period for Allegiant Travel Company. The TTM data indicates a negative net profit margin of -11.36%, reflecting ongoing profitability issues. Revenue growth is slightly negative at -1% TTM, indicating stagnation. Historical data shows fluctuating profitability, with a significant drop in gross profit margin from 62.38% in 2024 to 50.94% TTM. The EBIT margin is negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.03 TTM, indicating significant leverage. This poses a risk, especially with negative return on equity of -35.95% TTM, suggesting the company is not generating returns on shareholders' investments. The equity ratio is not provided, but the high leverage and negative ROE are concerning.

Cash Flow

Cash flow analysis shows a drastic decline in free cash flow growth at -91.42% TTM, indicating cash generation issues. The operating cash flow to net income ratio is not calculable due to negative net income, but the free cash flow to net income ratio is 26.40% TTM, showing some cash flow generation despite losses. Historical data shows volatility in free cash flow, with significant negative values in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.51B	2.51B	2.30B	1.71B	990.07M
Gross Profit	758.98M	1.57B	664.37M	340.47M	231.54M	-4.34M
EBITDA	2.34M	60.86M	490.24M	305.57M	446.13M	-127.15M
Net Income	-292.87M	-240.24M	117.60M	2.49M	151.85M	-184.09M
Balance Sheet
Total Assets	4.39B	4.55B	4.92B	4.51B	4.01B	3.26B
Cash, Cash Equivalents and Short-Term Investments	956.72M	797.55M	831.00M	955.05M	1.22B	685.24M
Total Debt	2.13B	2.15B	2.36B	2.21B	1.88B	1.78B
Total Liabilities	3.38B	3.46B	3.59B	3.29B	2.79B	2.56B
Stockholders Equity	1.02B	1.09B	1.33B	1.22B	1.22B	699.36M
Cash Flow
Free Cash Flow	130.47M	38.30M	-447.39M	-131.64M	294.58M	-45.70M
Operating Cash Flow	368.03M	338.46M	423.09M	303.05M	538.19M	234.50M
Investing Cash Flow	-195.42M	5.58M	-721.88M	-491.42M	-593.28M	-365.69M
Financing Cash Flow	-235.59M	-201.30M	212.92M	33.12M	285.47M	164.60M

Allegiant Travel Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGT, the sentiment is Positive. The current price of 65.45 is above the 20-day moving average (MA) of 64.96, above the 50-day MA of 63.61, and above the 200-day MA of 58.70, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALGT.

Allegiant Travel Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKYW	70 Outperform	$3.83B	9.11	17.42%	―	19.27%	78.26%
SNCY	68 Neutral	$599.37M	10.79	9.99%	―	4.27%	28.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALGT	52 Neutral	$1.20B	―	-25.37%	―	3.29%	-983.31%
VLRS	49 Neutral	$727.14M	―	-21.54%	―	-6.02%	-132.85%
JBLU	45 Neutral	$1.52B	―	-19.09%	―	-2.49%	47.88%
ULCC	44 Neutral	$858.57M	―	-27.87%	―	1.77%	-1964.48%

Allegiant Travel Company Corporate Events

Allegiant Travel’s Mixed Earnings Call: Optimism Amid Challenges

The recent earnings call from Allegiant Travel Company painted a mixed picture for investors and stakeholders. While the company highlighted strong customer loyalty, operational efficiency, and financial prudence, it also faced challenges such as a third-quarter operating loss and issues with TRASM decline and maintenance costs. Despite these hurdles, the outlook for 2026 remains optimistic.

Allegiant Travel Reports Third-Quarter 2025 Financial Results

Allegiant Travel Company, a Las Vegas-based integrated travel company, primarily operates in the airline industry, focusing on connecting travelers from underserved cities to vacation destinations with nonstop flights and low fares. In its third-quarter 2025 financial results, Allegiant reported a GAAP diluted loss per share of $(2.41) and an adjusted airline-only loss per share of $(1.64), reflecting a challenging period marked by a moderate operating loss due to seasonal factors, despite maintaining high operational standards and customer satisfaction. Key financial metrics showed total operating revenue remained flat at $561.9 million compared to the previous year, while operating expenses slightly increased, leading to an operating loss of $27.2 million. The company also highlighted its industry-leading controllable completion factor of 99.9% and the expansion of its network with new routes and cities. Looking ahead, Allegiant anticipates a strong fourth quarter with continued leisure booking momentum and expects a double-digit operating margin, raising its full-year airline-only EPS guidance to over $4.35 per share, driven by strategic initiatives and disciplined cost control.

Allegiant Travel Appoints New President Amid Financial Update

Allegiant Travel Company announced that Robert J. Neal will become President while continuing as CFO, effective November 1, 2025. The company reported a third-quarter 2025 GAAP diluted loss per share of $(2.41) and highlighted its strong operational performance with a 99.9% controllable completion factor. Despite a moderate operating loss, Allegiant expects a double-digit fourth-quarter operating margin and raised its full-year EPS guidance, indicating positive momentum in leisure bookings and cost discipline.

The most recent analyst rating on (ALGT) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Reduces Debt with $120M Prepayment

On October 15, 2025, Allegiant Travel Company repaid $120 million of its senior secured notes due in August 2027, following a call feature exercised in September 2025. This prepayment, along with other debt repayments, reduced the company’s outstanding debt significantly, reflecting a strategic move to strengthen its financial position by lowering its debt obligations.

The most recent analyst rating on (ALGT) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Completes $200M Sale to Blackstone

On September 4, 2025, Allegiant Travel Company completed the sale of its Sunseeker Resort at Charlotte Harbor, Aileron Golf Course, and related properties in Southwest Florida to affiliates of Blackstone Real Estate Group for $200 million, after closing adjustments. The proceeds from this transaction are intended to be used by Allegiant to reduce corporate debt and for other general corporate purposes, potentially impacting its financial stability and operational focus.

The most recent analyst rating on (ALGT) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.