Sky Harbour Group (SKYH) AI Stock Analysis

• Market Cap: $738.33M
• Dividend Yield: N/A
• Average Volume (3M): 141.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 102.32%
• EPS Growth: 13.67%
• Country: US
• Employees: 84
• Sector: Industrials
• Sector Strength: 85
• Industry: Aerospace & Defense
• EPS (TTM): -0.19
• Shares Outstanding: 33,835,373
• 10 Day Avg. Volume: 179,094
• 30 Day Avg. Volume: 141,847
• PEG Ratio: -0.28
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.51
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 4.49
• Enterprise Value/Gross Profit: 27.28
• Enterprise Value/Ebitda: -1.61
• 1Y Price Target: $19.13
• Price Target Upside: 96.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 40 Underperform
• Price Target: $9.00 ▼(-7.50%Downside)

Sky Harbour Group's overall stock score is primarily influenced by its strong revenue growth potential, offset by significant challenges in profitability and cash flow management. Technical indicators suggest a bearish sentiment, while the P/E ratio and lack of dividend yield weigh on valuation attractiveness. The earnings call provided some positive guidance, but concerns about expenses and financing persist.

Positive Factors

Demand for private jet storage

Sky Harbour should benefit from accelerating demand for private jet storage in the U.S., driven by a significant expansion in the executive aviation fleet and a structural imbalance between aircraft growth and available infrastructure.

Financial performance

Revenue increased significantly year-over-year due to contributions from more airports.

Market position

Sky Harbour offers scarcity value as the only publicly traded company focused exclusively on home-basing and hangar leasing, in a fragmented, infrastructure-constrained market.

Negative Factors

Operational scale

The company is expected to reach free cash flow and adjusted EBITDA breakeven by the end of 2025, driven by campus-level cash flow exceeding corporate operating expenses, validating the strategy of scaling through disciplined development in high-demand markets.

Supply and demand

The demand for private jet aviation hangar space continues to exceed supply, allowing the company to charge higher rental rates than initially forecasted.

Undervaluation

The stock is considered undervalued, trading at a lower multiple compared to its peers, with a significant upside potential to the price target.

Sky Harbour Group Business Overview & Revenue Model

Company Description

Sky Harbour Group Corporation operates as an aviation infrastructure development company in the United States. It develops, leases, and manages general aviation hangars for business aircraft. The company was founded in 2017 and is based in White Plains, New York.

How the Company Makes Money

Sky Harbour Group makes money primarily through the leasing of private hangar spaces and associated services to aircraft owners and operators. The company develops and manages hangar campuses where clients can lease space for their private aircraft, benefiting from secure, dedicated facilities that provide convenience and privacy. Revenue is generated from long-term lease agreements, service fees for additional amenities, and potentially through strategic partnerships with airports or aviation service providers. The company's ability to attract high-net-worth individuals and corporate clients is a critical factor in driving its earnings.

Sky Harbour Group Financial Statement Overview

Summary

Sky Harbour Group demonstrates strong revenue growth, yet faces profitability and cash flow challenges. The balance sheet is bolstered by a strong equity position and no debt, but operational inefficiencies and negative profit margins are significant concerns.

Income Statement

Sky Harbour Group has shown a positive revenue growth rate of 94.89% from 2023 to 2024, reflecting an upward trajectory in sales. However, the company struggles with profitability, as indicated by a negative gross profit margin of 5.95% and a net profit margin of -306.38%. The negative EBIT and EBITDA margins further highlight challenges in operational efficiency.

Balance Sheet

The company has a strong equity position, with an equity ratio of 18.71% in 2024. The debt-to-equity ratio has improved to 0, indicating no debt, which is a positive sign of financial stability. Despite this, the return on equity is negative at -43.45%, signaling inefficiencies in generating returns on shareholder investments.

Cash Flow

Sky Harbour Group faces challenges with cash flow, as evidenced by a negative free cash flow. While operating cash flow to net income ratio is positive, indicating some alignment between reported income and cash generation, the company needs to improve its free cash flow management to ensure sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.95M	14.76M	7.58M	1.84M	-2.55B	685.60K
	Gross Profit
9.19M	-10.95M	407.00K	-3.20M	-2.55B	-1.26M
	EBIT
-15.72M	-20.41M	-16.99M	-18.51M	-9.28M	-2.14M
	EBITDA
-29.32M	-1.93M	-22.62M	-11.02M	-9.25M	-2.05M
	Net Income Common Stockholders
-32.67M	-45.23M	-16.18M	1.65M	9.04M	-2.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.13M	61.43M	72.12M	2.17M	114.63K	-34.81M
	Total Assets
553.67M	556.56M	402.20M	331.20M	139.11M	52.02M
	Total Debt
0.00	322.95M	241.17M	215.74M	1.00M	57.49M
	Net Debt
-51.13M	280.51M	180.91M	213.57M	885.37K	92.30M
	Total Liabilities
402.52M	396.74M	269.95M	232.83M	18.84M	58.53M
	Stockholders Equity
98.22M	104.10M	69.16M	26.28M	120.27M	-6.51M
Cash Flow		Free Cash Flow
-23.49M	-87.64M	-63.88M	-73.46M	-17.96M	-12.94M
	Operating Cash Flow
-9.71M	-9.10M	-7.74M	-27.49M	-1.97M	-1.04M
	Investing Cash Flow
-82.28M	-43.91M	-16.27M	-187.84M	-42.28K	-11.90M
	Financing Cash Flow
73.63M	75.09M	54.87M	52.79M	1.00M	11.99M

Sky Harbour Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYH, the sentiment is Negative. The current price of 9.73 is below the 20-day moving average (MA) of 10.46, below the 50-day MA of 10.97, and below the 200-day MA of 11.43, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 28.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYH.

Sky Harbour Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCO	71 Outperform	$1.14B	32.81	5.25%	―	3.02%	95.76%
ATRO	68 Neutral	$1.23B	―	-1.35%	―	13.73%	86.81%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
RDW	56 Neutral	$1.47B	―	-451.56%	―	1.36%	-213.86%
EH	50 Neutral	$1.20B	―	-43.18%	―	167.99%	22.75%
EVEX	43 Neutral	$1.51B	―	-148.98%	―	―	-2.94%
SKYH	40 Underperform	$738.33M	―	-42.87%	―	102.32%	13.67%

Sky Harbour Group Corporate Events

Sky Harbour Group’s Successful Equity Raise and Expansion

Sky Harbour Group Corporation has successfully completed the second closing of its equity raise, issuing 3,955,790 additional shares for net proceeds of approximately $37.6 million, bringing the total from both closings to about $75.2 million. The combined funds, along with expected private debt financing and existing cash, will support the development of new airport campuses, expanding Sky Harbour’s portfolio to 23 airports by the end of 2025, demonstrating strong investor interest and strategic growth in the business aviation sector.

Sky Harbour Group Expands with Trenton-Mercer Lease

Sky Harbour Group Corporation has signed a 30-year ground lease agreement with Mercer County for the development of a Home Base campus at Trenton-Mercer Airport, spanning approximately 10 acres. This initiative is expected to boost the local economy by creating or sustaining hundreds of jobs and offering state-of-the-art facilities for business jets, further strengthening Trenton-Mercer Airport’s role as a key business aviation hub in the region.

Sky Harbour Group Uplists to New York Stock Exchange

Sky Harbour Group Corporation announced its approval for uplisting from the NYSE American to the New York Stock Exchange, with trading under the same ticker symbols to commence on January 27, 2025. This strategic move is expected to enhance the company’s visibility, expand its investor base, and increase stockholder liquidity, reflecting the company’s growth and stability in the aviation infrastructure sector.