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Sky Harbour Group Corporation (SKYH)
NYSE:SKYH
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Sky Harbour Group
(NYSE:SKYH)
Rating:48Neutral
Price Target:
$11.00
▲( 1.10% Upside)
Positive Factors
Expansion Plans
The company's focus on expanding its network of airports is showing progress, with guidance reaffirmed for a total of 23 airports by year-end 2025.
Market Demand
The demand for private jet aviation hangar space continues to exceed supply, allowing the company to charge higher rental rates than initially forecasted.
Valuation
The stock is considered undervalued, trading at a lower multiple compared to its peers, with a significant upside potential to the price target.
Negative Factors
Market Competition
Despite high demand, the market's competitive nature could challenge the company's ability to maintain its pricing power over time.
Sky Harbour Group (SKYH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$825.59M
Dividend YieldN/A
Average Volume (3M)113.90K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth102.32%
EPS Growth13.67%
CountryUS
Employees84
SectorIndustrials
Sector Strength93
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.19
Shares Outstanding33,835,373
10 Day Avg. Volume131,002
30 Day Avg. Volume113,901
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)2.84
Price to Sales (P/S)0.00
P/FCF Ratio-27.39
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue24.90
Enterprise Value/Gross Profit154.68
Enterprise Value/Ebitda-7.25
Forecast
1Y Price Target
$20.83Price Target Upside91.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Sky Harbour Group Business Overview & Revenue Model
Company DescriptionSky Harbour Group (SKYH) is a company that specializes in the development and management of private aviation infrastructure, specifically focusing on the creation of private hangar campuses for business aircraft. The company aims to provide innovative solutions for private aviation needs, enhancing the efficiency and accessibility of airport hangar facilities for private aircraft owners and operators. Sky Harbour Group is committed to delivering premium infrastructure services that cater to the unique requirements of the private aviation sector.
How the Company Makes MoneySky 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 shows promising revenue growth but struggles with profitability and cash flow management. The balance sheet reflects a strong equity position and lack of debt, which enhances financial stability. However, operational inefficiencies and negative profit margins pose significant challenges for future growth and sustainability.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.32
Negative
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.48
Neutral
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.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.76M | 7.58M | 1.84M | -2.55B | 685.60K | Gross Profit |
| -10.95M | -1.87M | -3.20M | -2.55B | -1.26M | EBIT |
| -20.41M | -16.99M | -18.51M | -9.28M | -2.14M | EBITDA |
| -1.93M | -22.62M | -11.02M | -9.25M | -2.05M | Net Income Common Stockholders |
| -45.23M | -16.18M | 1.65M | 9.04M | -2.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 61.43M | 72.12M | 2.17M | 114.63K | -34.81M | Total Assets |
| 556.56M | 402.20M | 331.20M | 139.11M | 52.02M | Total Debt |
| 322.95M | 241.17M | 215.74M | 1.00M | 57.49M | Net Debt |
| 280.51M | 180.91M | 213.57M | 885.37K | 92.30M | Total Liabilities |
| 396.74M | 269.95M | 232.83M | 18.84M | 58.53M | Stockholders Equity |
| 104.10M | 69.16M | 26.28M | 120.27M | -6.51M |
| Cash Flow | Free Cash Flow | |||
| -87.64M | -63.88M | -73.46M | -17.96M | -12.94M | Operating Cash Flow |
| -9.10M | -7.74M | -27.49M | -1.97M | -1.04M | Investing Cash Flow |
| -43.91M | -16.27M | -187.84M | -42.28K | -11.90M | Financing Cash Flow |
| 75.09M | 54.87M | 52.79M | 1.00M | 11.99M |
Sky Harbour Group Technical Analysis
Negative
10.88
Price Trends
11.54
Negative
11.28
Negative
11.43
Negative
Market Momentum
-0.02
Positive
41.63
Neutral
6.24
Positive
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 10.88 is below the 20-day moving average (MA) of 11.36, below the 50-day MA of 11.54, and below the 200-day MA of 11.43, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 6.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYH.
Sky Harbour Group Risk Analysis
Sky Harbour Group disclosed 50 risk factors in its most recent earnings report. Sky Harbour Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sky Harbour Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.01B | 29.04 | 5.25% | ― | 3.02% | 95.76% | |
66 Neutral | $1.07B | ― | -1.35% | ― | 13.73% | 86.81% | |
65 Neutral | $4.41B | 12.06 | 5.22% | 249.80% | 4.09% | -12.16% | |
52 Neutral | $889.92M | ― | -43.29% | ― | 167.99% | 22.75% | |
51 Neutral | $1.00B | ― | -451.56% | ― | 1.36% | -213.86% | |
48 Neutral | $825.59M | ― | -42.87% | ― | 102.32% | 13.67% | |
43 Neutral | $1.30B | ― | -148.98% | ― | ― | -2.94% |
* Industrials Sector Average
Performance Comparison
SKYH
Sky Harbour Group
10.88
-1.72
-13.65%
ATRO
Astronics
30.19
8.91
41.87%
DCO
Ducommun
67.74
10.10
17.52%
EH
Ehang Holdings
16.96
1.12
7.07%
EVEX
Eve Holding
4.38
-0.92
-17.36%
RDW
Redwire
13.00
7.83
151.45%
Sky Harbour Group Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -8.88%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The call presented a largely positive outlook with significant revenue growth and asset expansion, alongside strong liquidity and premium leasing. However, concerns exist around increased operating expenses, delayed project timelines, and potential additional financing needs.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenues experienced an increase of 133% over a year ago and 20% sequentially, driven by the acquisition of the Camarillo campus.
Asset Expansion
Assets under construction and completed construction reached over $275 million, with new campuses in Phoenix, Dallas, and Denver.
Strong Liquidity Position
The company holds approximately $97.5 million in cash and U.S. treasuries, ensuring strong liquidity.
Increase in Leasing Premiums
Leases in Miami, Nashville, and Houston are at a 38% premium over initial estimates, reflecting strong market demand.
Successful Integration and Vertical Expansion
Sky Harbour has successfully integrated construction services in-house, improving efficiency and reducing costs.
Negative Updates
Increased Operating Expenses
Operating expenses increased due to several factors, including the acquisition of the Camarillo campus and increased headcount.
Delayed Project Timelines
Some construction projects have been delayed, with several campuses expected to complete later than initially planned.
Potential Need for Additional Financing
The company may need to make another contribution to Sky Harbour Capital due to remaining spend exceeding current cash.
Company Guidance
During the 2025 first quarter conference call for Sky Harbour Group Corporation, CFO Francisco Gonzalez provided comprehensive guidance on several key metrics. The company reported that assets under construction and completed construction reached over $275 million by the end of the quarter, driven by ongoing projects in Phoenix, Dallas, and Denver. Revenue increased by 133% year-over-year and 20% sequentially, largely due to the integration of operations from the Camarillo campus acquired in December. Operating expenses rose moderately, with a $1.5 million increase attributed to factors including startup costs and headcount expansion. The company reaffirmed its guidance to achieve cash flow breakeven by year-end as leasing activities ramp up across new campuses. Additionally, Sky Harbour is gearing up for a debt issuance ranging from $150 to $175 million to fund ongoing developments, while maintaining a liquidity position with approximately $97.5 million in cash and U.S. treasuries.Sky Harbour Group Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Sky Harbour Group’s Successful Equity Raise and Expansion
Positive
Dec 23, 2024
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.
Business Operations and Strategy
Sky Harbour Group Expands with Trenton-Mercer Lease
Positive
Dec 19, 2024
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.
Delistings and Listing Changes
Sky Harbour Group Uplists to New York Stock Exchange
Positive
Dec 17, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.