Allegiant Travel Company (ALGT) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: N/A
• Average Volume (3M): 335.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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: 289,792
• 30 Day Avg. Volume: 335,417
• 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: 1.48
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 956.17
• 1Y Price Target: $76.09
• Price Target Upside: -11.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.91
• Revenue Forecast (FY): $2.59B

• Rating: 58 Neutral
• Price Target: $86.00 ▲(0.16% Upside)

Allegiant Travel Company receives a moderate overall stock score of 58. The most significant factor is the company's financial performance, which is currently weak due to negative profitability and high leverage. However, strong technical indicators and positive corporate events, such as debt reduction, provide some optimism. The earnings call guidance and strategic initiatives suggest potential improvements, but the current valuation remains challenging.

Positive Factors

Debt Reduction

The strategic debt reduction enhances Allegiant's financial stability, reducing leverage and interest expenses, which supports long-term financial health.

Operational Efficiency

Reducing costs while maintaining service levels improves margins and competitiveness, enhancing long-term profitability and market position.

Fleet Modernization

Modernizing the fleet with more efficient aircraft reduces fuel costs and emissions, supporting sustainability and operational efficiency.

Negative Factors

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Profitability Issues

Ongoing profitability challenges indicate operational inefficiencies, which could hinder the company's ability to generate sustainable earnings.

Pilot Union Dispute

Labor disputes can disrupt operations and increase costs, impacting service reliability and financial performance over the long term.

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: 85.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 85.86 is above the 20-day moving average (MA) of 74.45, above the 50-day MA of 68.60, and above the 200-day MA of 58.42, indicating a bullish trend. The MACD of 5.00 indicates Negative momentum. The RSI at 73.46 is Negative, neither overbought nor oversold. The STOCH value of 77.32 is Neutral, 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
SNCY	74 Outperform	$784.39M	14.16	9.99%	―	4.27%	28.47%
SKYW	70 Outperform	$4.31B	10.11	17.42%	―	19.27%	78.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALGT	58 Neutral	$1.51B	―	-25.37%	―	3.29%	-983.31%
VLRS	56 Neutral	$879.60M	―	-21.74%	―	-6.55%	-133.03%
JBLU	51 Neutral	$1.78B	―	-19.09%	―	-2.49%	47.88%
ULCC	50 Neutral	$1.33B	―	-27.87%	―	1.77%	-1964.48%

Allegiant Travel Company Corporate Events

Allegiant Travel Amends Credit Agreement with Barclays

On December 5, 2025, Allegiant Travel Company amended its Revolving Credit and Guaranty Agreement with Barclays Bank PLC, allowing for borrowings up to $150 million and extending the maturity date to December 2030. This amendment also introduced Deutsche Bank AG New York Branch as a lender, with Barclays committing $100 million and Deutsche Bank $50 million, while maintaining the same guarantees, collateral, and covenants as the company’s Senior Secured Notes due 2027.

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.

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.