Education
About Us
Working with TipRanks
Follow Us
SkyWest (SKYW)
NASDAQ:SKYW
Top Page
SkyWest
(NASDAQ:SKYW)
Select Model
Select Model
Rating:74Outperform
Price Target:
$116.00
▲(17.53% Upside)
SkyWest's strong financial performance and undervaluation are the most significant factors driving its stock score. The company's strategic initiatives and effective debt management further enhance its outlook. However, technical indicators suggest moderate momentum, and external challenges such as government shutdowns and delivery delays present potential risks.
Positive Factors
Revenue Growth
SkyWest's consistent revenue growth indicates strong market demand and effective execution of its business model, supporting long-term sustainability.
Debt Reduction
Effective debt reduction enhances financial stability and flexibility, allowing SkyWest to invest in growth opportunities and withstand economic fluctuations.
Fleet Expansion
Strategic fleet expansion with new aircraft underlines SkyWest's commitment to growth and strengthens its competitive position in the regional airline market.
Negative Factors
Government Shutdown Concerns
Prolonged government shutdowns can disrupt operations and funding, potentially impacting SkyWest's service commitments and financial performance.
E175 Delivery Delays
Delays in aircraft deliveries can hinder fleet expansion plans, affecting SkyWest's ability to meet growing demand and optimize operational efficiency.
Cash Balance Decrease
A decrease in cash reserves may limit SkyWest's ability to invest in strategic initiatives and manage unforeseen financial challenges effectively.
SkyWest (SKYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.96B
Dividend YieldN/A
Average Volume (3M)253.92K
Price to Earnings (P/E)9.4
Beta (1Y)1.05
Revenue Growth19.27%
EPS Growth78.26%
CountryUS
Employees12,876
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)2.81
Shares Outstanding40,103,900
10 Day Avg. Volume205,896
30 Day Avg. Volume253,919
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.67
Price to Sales (P/S)1.14
P/FCF Ratio11.07
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit4.90
Enterprise Value/Ebitda4.70
Forecast
1Y Price Target
$131.00Price Target Upside32.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SkyWest Business Overview & Revenue Model
Company DescriptionSkyWest, Inc., through its subsidiaries, operates a regional airline in the United States. The company operates through two segment, SkyWest Airlines and SkyWest Leasing. It also leases regional jet aircraft and spare engines to third parties. As of December 31, 2021, the company's fleet consisted of 629 aircraft; and provided scheduled passenger and air freight services with approximately 2,080 total daily departures to various destinations in the United States, Canada, Mexico, and the Caribbean. In addition, it offers airport customer and ground handling services for other airlines. SkyWest, Inc. was incorporated in 1972 and is headquartered in St. George, Utah.
How the Company Makes MoneySkyWest generates revenue primarily through its capacity purchase agreements with major airlines, where it operates regional flights on behalf of these partners. Under these agreements, SkyWest is reimbursed for operating expenses and receives a fee per flight, which provides a stable and predictable revenue stream. Additionally, the company earns revenue from ticket sales for flights operated under its own brand, as well as ancillary services such as baggage fees and in-flight sales. The company benefits from its strategic partnerships with major airlines, which enhance its market reach and allow it to leverage the existing networks of these airlines to fill seats, thus driving profitability.
SkyWest Key Performance Indicators (KPIs)
Any
Total Aircraft in Service or Under Contract
Indicates fleet size and capacity, reflecting the company's operational scale and ability to meet demand.
Indicates fleet size and capacity, reflecting the company's operational scale and ability to meet demand.
Data provided by:
The Fly
The FlySkyWest Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
SkyWest reported a strong financial performance in Q3 2025, with significant revenue growth, effective debt reduction, and strategic fleet expansion plans. However, challenges such as the federal government shutdown, delivery delays, and cash balance decrease present notable concerns.Q3-2025 Updates
Positive Updates
Strong Third Quarter Financial Performance
SkyWest reported a net income of $116 million or $2.81 per diluted share for Q3 2025, benefiting from strong demand and a seasonally strong third quarter.
Revenue Growth
Total Q3 revenue reached $1.1 billion, up from $1 billion in Q2 2025 and up 15% from $913 million in Q3 2024.
Fleet Expansion and Flexibility
SkyWest announced an agreement to purchase and operate 16 new E175s under a multiyear contract with Delta and secured delivery positions for 44 more E175s from 2028 to 2032.
Debt Reduction
The company ended Q3 with $2.4 billion in debt, down from $2.7 billion as of December 31, 2024, and generated nearly $400 million in free cash flow in the first three quarters of 2025.
CRJ200 Fleet Extension
SkyWest extended up to 40 CRJ200s with United into the 2030s, indicating strong demand and partnership confidence.
Negative Updates
Government Shutdown Concerns
The ongoing federal government shutdown poses challenges, particularly in regard to the Essential Air Service (EAS) funding, which is expected to last only until November 18.
E175 Delivery Delays
SkyWest is experiencing delivery delays with Embraer for E175 aircraft, with some planned deliveries being pushed into 2026.
Cash Balance Decrease
Ending cash balance for Q3 was $753 million, down from $836 million in Q3 2024, impacted by debt repayment, share buybacks, and capital expenditures.
Challenges with Brazilian Tariff
SkyWest is dealing with a 10% tariff on Brazilian imports, affecting strategic planning and deployment of capital.
Company Guidance
In the SkyWest, Inc. Third Quarter 2025 Results Call, the company reported a net income of $116 million, translating to $2.81 per diluted share, reflecting a strong seasonal performance and robust demand for their services. SkyWest achieved a 15% increase in total revenue compared to the same quarter in 2024, reaching $1.1 billion, with contract revenue at $844 million and prorate and charter revenue at $167 million. The company ended the quarter with $753 million in cash, after repaying $112 million in debt and repurchasing shares worth $27 million. SkyWest projected a 15% increase in block hours for 2025, with an anticipated GAAP EPS in the mid-$10 range. Looking ahead to 2026, they expect low-single-digit growth in block hours and mid-to-high single-digit EPS growth, driven by service expansion to underserved communities and the introduction of new E175s under agreements with major partners. SkyWest also highlighted a strong balance sheet, with total debt reduced by $1 billion since the end of 2022, and expected capital expenditures of $550 million for 2025. The company plans to continue investing in fleet enhancements and community service commitments amid challenges like the federal government shutdown.SkyWest Financial Statement Overview
Summary
SkyWest shows a strong recovery with improved revenue and profitability metrics. The balance sheet reflects prudent leverage management, but cash flow challenges highlight the need for careful cash management.Income Statement
SkyWest's income statement shows a strong recovery with a TTM revenue growth rate of 4.58% and improving profitability. The gross profit margin increased to 26.23% and the net profit margin to 10.62%, indicating efficient cost management. However, the EBITDA margin has slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.998, showing improved leverage management. Return on equity has increased to 16.69%, indicating better profitability for shareholders. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to asset financing.Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 23.65%, which could impact future investments. The operating cash flow to net income ratio is 0.55, indicating a solid conversion of earnings to cash. However, the free cash flow to net income ratio has decreased, reflecting challenges in maintaining cash reserves.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.98B | 3.53B | 2.94B | 3.00B | 2.71B | 2.13B |
| Gross Profit | 952.28M | 788.96M | 372.19M | 499.31M | 193.72M | -13.89M |
| EBITDA | 994.01M | 930.36M | 554.35M | 614.22M | 713.93M | 590.80M |
| Net Income | 434.56M | 322.96M | 34.34M | 72.95M | 111.91M | -8.52M |
Balance Sheet | ||||||
| Total Assets | 7.21B | 7.14B | 7.03B | 7.86B | 7.13B | 7.21B |
| Cash, Cash Equivalents and Short-Term Investments | 753.36M | 801.63M | 835.22M | 1.05B | 860.41M | 825.91M |
| Total Debt | 2.47B | 2.76B | 3.09B | 3.54B | 3.35B | 3.49B |
| Total Liabilities | 4.54B | 4.73B | 4.91B | 5.51B | 4.86B | 5.07B |
| Stockholders Equity | 2.68B | 2.41B | 2.11B | 2.35B | 2.27B | 2.14B |
Cash Flow | ||||||
| Free Cash Flow | 324.86M | 364.18M | 420.01M | -202.22M | 150.42M | 185.64M |
| Operating Cash Flow | 894.76M | 692.46M | 736.33M | 480.38M | 831.82M | 633.56M |
| Investing Cash Flow | -628.83M | -228.63M | -23.23M | -904.89M | -698.52M | -683.47M |
| Financing Cash Flow | -399.00M | -384.75M | -667.81M | 269.08M | -90.60M | 178.43M |
SkyWest Technical Analysis
Negative
98.70
Price Trends
100.17
Negative
103.63
Negative
102.04
Negative
Market Momentum
-0.39
Positive
42.84
Neutral
18.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYW, the sentiment is Negative. The current price of 98.7 is below the 20-day moving average (MA) of 102.71, below the 50-day MA of 100.17, and below the 200-day MA of 102.04, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYW.
SkyWest Risk Analysis
SkyWest disclosed 41 risk factors in its most recent earnings report. SkyWest 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
SkyWest Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.96B | 9.43 | 17.42% | ― | 19.27% | 78.26% | |
70 Outperform | $809.17M | 14.62 | 9.99% | ― | 4.27% | 28.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $5.63B | 38.98 | 3.53% | ― | 31.50% | -49.15% | |
58 Neutral | $1.69B | -5.67 | -25.37% | ― | 3.29% | -983.31% | |
51 Neutral | $1.83B | -3.84 | -19.09% | ― | -2.49% | 47.88% | |
47 Neutral | $1.10B | -8.02 | -27.87% | ― | 1.77% | -1964.48% |
* Industrials Sector Average
SKYW
SkyWest
98.70
-12.38
-11.15%
ALK
Alaska Air
48.58
-19.60
-28.75%
ALGT
Allegiant Travel Company
92.47
-8.47
-8.39%
JBLU
JetBlue Airways
5.04
-2.66
-34.55%
SNCY
Sun Country Airlines Holdings
15.35
-0.83
-5.13%
ULCC
Frontier Group Holdings
4.82
-3.38
-41.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.