SkyWest (SKYW) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: N/A
• Average Volume (3M): 271.27K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.04
• Revenue Growth: 19.27%
• EPS Growth: 78.26%
• Country: US
• Employees: 12,876
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.81
• Shares Outstanding: 40,103,900
• 10 Day Avg. Volume: 259,976
• 30 Day Avg. Volume: 271,270
• PEG Ratio: 0.01
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 11.07
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 6.18
• Enterprise Value/Ebitda: 5.92
• 1Y Price Target: $134.00
• Price Target Upside: 34.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 10.32
• Revenue Forecast (FY): $4.04B

• Rating: 70 Outperform
• Price Target: $106.00 ▲(6.70% Upside)

SkyWest's strong earnings performance and undervaluation are major positives, but technical indicators suggest caution due to bearish momentum. Cash flow challenges and external risks like government shutdowns also weigh on the score.

Positive Factors

Revenue Growth

SkyWest's consistent revenue growth indicates strong demand and effective market positioning, enhancing its long-term financial stability.

Debt Reduction

Effective debt reduction strengthens SkyWest's balance sheet, improving financial flexibility and reducing interest burden over the long term.

Fleet Expansion

Expanding the fleet with new aircraft under major contracts enhances SkyWest's operational capacity and competitive edge in regional markets.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth may limit SkyWest's ability to invest in future opportunities and maintain liquidity, impacting long-term growth.

Government Shutdown Concerns

The government shutdown could disrupt essential services funding, affecting SkyWest's operations in underserved areas and potentially impacting revenue.

E175 Delivery Delays

Delays in aircraft deliveries can hinder fleet expansion plans, affecting SkyWest's ability to meet demand and optimize operational efficiency.

SkyWest Business Overview & Revenue Model

Company Description

SkyWest, 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 Money

SkyWest 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 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	166.37M	364.18M	420.01M	-202.22M	150.42M	185.64M
Operating Cash Flow	613.98M	692.46M	736.33M	480.38M	831.82M	633.56M
Investing Cash Flow	-482.28M	-228.63M	-23.23M	-904.89M	-698.52M	-683.47M
Financing Cash Flow	-260.98M	-384.75M	-667.81M	269.08M	-90.60M	178.43M

SkyWest Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 99.34
• 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 SKYW, the sentiment is Neutral. The current price of 99.34 is above the 20-day moving average (MA) of 96.82, below the 50-day MA of 99.39, and below the 200-day MA of 101.01, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKYW.

SkyWest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKYW	70 Outperform	$3.86B	9.19	17.42%	―	19.27%	78.26%
SNCY	68 Neutral	$667.89M	12.07	9.99%	―	4.27%	28.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALK	56 Neutral	$4.67B	32.31	3.53%	―	31.50%	-49.15%
ALGT	55 Neutral	$1.25B	―	-25.37%	―	3.29%	-983.31%
JBLU	45 Neutral	$1.59B	―	-19.09%	―	-2.49%	47.88%
ULCC	44 Neutral	$886.04M	―	-27.87%	―	1.77%	-1964.48%

SkyWest Corporate Events

SkyWest Reports Strong Q3 2025 Financial Performance

SkyWest, Inc. is a holding company for SkyWest Airlines, SkyWest Charter, and SkyWest Leasing, operating in the regional airline industry with partnerships with major airlines like United, Delta, American, and Alaska Airlines, connecting passengers to over 240 destinations across North America.