Allegiant Travel Company (ALGT) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: 1.03%
• Average Volume (3M): 441.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 1.54%
• EPS Growth: -466.46%
• Country: US
• Employees: 6,057
• Sector: Industrials
• Sector Strength: 90
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.81
• Shares Outstanding: 18,254,744
• 10 Day Avg. Volume: 336,557
• 30 Day Avg. Volume: 441,857
• PEG Ratio: -4.98
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.28
• Enterprise Value/Market Cap: 3.48
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 5.47
• Enterprise Value/Ebitda: 4.24
• 1Y Price Target: $61.44
• Price Target Upside: 5.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 59 Neutral
• Price Target: $61.00 ▲(5.08%Upside)

Allegiant Travel Company's overall stock score is driven by a mix of strong operational performance and strategic adaptability against a backdrop of financial challenges. The company's earnings call and corporate events support a positive outlook, but financial and valuation concerns weigh on the score. Technical analysis suggests short-term bullish momentum, but the negative P/E ratio and high leverage remain risks.

Positive Factors

Fleet Expansion

Management is positive on benefits from increasing the number of MAX aircraft in the fleet and growing premium seat mix to drive better ancillary performance.

Market Recovery

The stock has rebounded significantly from its August lows, reflecting strong recovery momentum.

Revenue Growth

Revenue should benefit from growth in the Allegiant Extra product and regained functionality from the Navitaire cutover.

Negative Factors

Capacity Growth Challenges

ALGT stock dropped 15% largely driven by their surprising announcement to grow capacity significantly by year end, which flew in the face of the industry trend to prioritize RASM over growth-driven margin expansion.

Revenue and EPS Outlook

The 2Q unit revenue and EPS outlooks were below expectations.

Utilization Risks

There is risk that their plans to increase utilization do not pan out as intended and that RASM dilution may be worse than management expects.

Allegiant Travel Company Business Overview & Revenue Model

Company Description

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 14, 2022, it operated a fleet of 110 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

How the Company Makes Money

Allegiant Travel Company makes money primarily through passenger ticket sales for its air transportation services, which constitute the bulk of its revenue. Additionally, Allegiant generates significant income from ancillary services, including baggage fees, seat selection fees, and onboard purchases. The company also earns revenue through commissions on hotel bookings, rental car reservations, and the sale of travel packages that combine flights with other travel services. Allegiant's strategy of serving underserved markets with limited competition allows it to maintain a solid pricing power, contributing to its profit margins. Partnerships with hotels, car rental agencies, and other travel-related businesses further bolster its revenue through commission-based arrangements.

Allegiant Travel Company Financial Statement Overview

Summary

Allegiant Travel Company faces operational and profitability challenges, with mixed outcomes across its financial statements. The income statement shows losses, the balance sheet reveals high leverage, and cash flow improvements suggest some resilience. Continued focus on improving profitability and managing leverage will be crucial.

Income Statement

Allegiant Travel Company shows mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is 26.5%, reflecting a reasonable level of profitability. However, the net profit margin is negative, indicating losses, which is a concern. Revenue growth is modest, at approximately 1.7% from 2024 to 2025. EBIT and EBITDA margins are weak due to negative EBIT, pointing to operational challenges.

Balance Sheet

The balance sheet of Allegiant Travel Company presents a moderately stable financial position. The debt-to-equity ratio is relatively high at 1.88, suggesting significant leverage. Return on Equity (ROE) is negative due to net losses, which is a downside. However, the equity ratio is 24.7%, showing some level of asset backing by equity.

Cash Flow

The cash flow statement indicates some positive aspects. Free cash flow has grown significantly, showing financial improvement in cash generation. The operating cash flow to net income ratio is positive at 1.75, demonstrating a strong ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is low, reflecting the challenges in maintaining cash flows.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.56B	2.51B	2.51B	2.30B	1.71B	990.07M
	Gross Profit
677.12M	1.57B	664.37M	340.47M	231.54M	-4.34M
	EBIT
-172.31M	-239.98M	220.98M	-54.91M	98.06M	-146.75M
	EBITDA
122.46M	60.86M	490.24M	305.57M	446.06M	-128.37M
	Net Income Common Stockholders
-207.22M	-240.24M	117.60M	2.49M	151.85M	-184.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
955.10M	781.13M	814.67M	955.10M	1.18B	685.30M
	Total Assets
4.51B	4.43B	4.87B	4.51B	3.99B	685.30M
	Total Debt
2.21B	2.15B	2.36B	2.21B	1.88B	1.78B
	Net Debt
1.98B	1.86B	2.22B	1.98B	1.51B	1.62B
	Total Liabilities
2.10B	3.34B	3.54B	2.10B	2.77B	-14.10M
	Stockholders Equity
1.22B	1.09B	1.33B	1.22B	1.22B	699.40M
Cash Flow		Free Cash Flow
119.29M	38.30M	-447.39M	-131.64M	232.66M	-45.70M
	Operating Cash Flow
362.06M	338.46M	423.09M	303.05M	488.20M	234.50M
	Investing Cash Flow
-22.74M	5.58M	-721.88M	-491.42M	-593.28M	-365.69M
	Financing Cash Flow
-246.80M	-201.30M	212.92M	33.12M	285.47M	164.60M

Allegiant Travel Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 58.05 is above the 20-day moving average (MA) of 55.79, above the 50-day MA of 51.01, and below the 200-day MA of 65.78, indicating a neutral trend. The MACD of 1.32 indicates Negative momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 68.95 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	$624.66M	12.16	9.46%	―	2.24%	-20.24%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
VLRS	65 Neutral	$564.82M	13.67	14.19%	―	-7.43%	-62.49%
ULCC	62 Neutral	$913.34M	13.49	12.71%	―	5.99%	―
ALGT	59 Neutral	$1.06B	―	-17.12%	1.03%	1.54%	-466.46%
JBLU	48 Neutral	$1.78B	―	-11.30%	―	-3.02%	66.90%
UP	48 Neutral	$1.06B	―	-2416.94%	―	-29.68%	95.14%

Allegiant Travel Company Corporate Events

Allegiant Travel Appoints Tyler Hollingsworth as COO

Allegiant Travel Company announced the appointment of Tyler Hollingsworth as the chief operating officer, effective May 1, 2025, following his interim role since March 2025. Hollingsworth has been with the company since 2010, holding various leadership roles in flight operations and safety. The company also reported strong financial results for the first quarter of 2025, with a notable increase in operating margin and earnings per share despite economic uncertainties impacting the airline industry. Allegiant has adjusted its capacity growth plans to maintain profitability amid volatile demand, demonstrating resilience in challenging market conditions.