SkyWest (SKYW) AI Stock Analysis

• Market Cap: $3.92B
• Dividend Yield: N/A
• Average Volume (3M): 259.77K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.03
• Revenue Growth: 20.53%
• EPS Growth: 217.24%
• Country: US
• Employees: 12,876
• Sector: Industrials
• Sector Strength: 84
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.42
• Shares Outstanding: 40,467,240
• 10 Day Avg. Volume: 224,988
• 30 Day Avg. Volume: 259,768
• PEG Ratio: -0.33
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.13
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 5.58
• Enterprise Value/Ebitda: 1.72
• 1Y Price Target: $118.67
• Price Target Upside: 24.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $107.00 ▲(12.37%Upside)

SkyWest's strong financial performance and earnings call insights are significant contributors to its overall score. The company benefits from robust revenue growth, effective financial management, and strategic expansion plans. Technical indicators show potential for price movement, while valuation suggests an attractive entry point despite no dividend yield. The positive impact of the share repurchase plan further supports the stock's potential.

Positive Factors

Earnings Performance

SkyWest reported its 9th EPS beat in a row with adjusted EPS of $2.18, indicating strong financial performance.

Revenue Growth

Revenue momentum and demand remains strong across contract and prorate while margins continue to benefit from the operating leverage embedded in the business.

Strategic Growth

SkyWest's focus areas for accretive growth include returning to underserved markets, driving higher utilization, and placing new E175s on order.

Negative Factors

Mainline Carrier Challenges

Demand for its capacity remains strong despite the macro softening that mainline carriers are facing.

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 makes money primarily through capacity purchase agreements (CPAs) with major airlines, including Delta Air Lines, United Airlines, American Airlines, and Alaska Airlines. Under these agreements, SkyWest operates flights on behalf of these partner airlines, who pay SkyWest a fixed fee for operating the flights, covering both fixed and variable costs. This model allows SkyWest to earn revenue without being directly exposed to fluctuations in passenger revenues or fuel prices. Additionally, SkyWest generates income through its leasing segment, which involves leasing aircraft to its operating partners. The company's earnings are significantly influenced by the efficiency of its operations, fleet management, and the strength of its partnerships with major airlines.

SkyWest Financial Statement Overview

Summary

SkyWest exhibits strong financial health with solid revenue growth and efficient operations. The company has effectively managed its debt levels, enhancing its balance sheet stability. Cash flow management is robust, although high capital expenditures could pose a future challenge. Overall, SkyWest is well-positioned in the competitive airline industry.

Income Statement

SkyWest has demonstrated strong revenue growth, evident in the TTM total revenue of $3.67 billion, a significant increase from previous years. The gross profit margin is robust at 35.10%, and the net profit margin is healthy at 9.89%, reflecting efficient operations. EBIT and EBITDA margins are solid, indicating good operational management. However, fluctuating net income in previous years suggests some historical volatility.

Balance Sheet

The company's debt-to-equity ratio of 0.03 in TTM shows low leverage, indicating conservative financial management. Return on equity is respectable at 14.68%, showcasing effective use of equity. The equity ratio stands at 34.77%, suggesting a stable capital structure. Nevertheless, past high debt levels highlight potential financial risk if not carefully managed.

Cash Flow

SkyWest's free cash flow is strong, with a TTM figure of $410 million. The free cash flow to net income ratio of 1.13 suggests good cash generation relative to earnings. Operating cash flow is consistently positive, indicating strong cash management. However, capital expenditures remain significant, which could affect future cash dynamics.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.67B	3.53B	2.94B	3.00B	2.71B	2.13B
	Gross Profit
937.91M	788.96M	372.19M	499.31M	193.72M	-13.89M
	EBIT
534.53M	494.66M	104.07M	-174.89M	-81.87M	-359.11M
	EBITDA
788.94M	930.36M	554.35M	627.10M	377.99M	238.27M
	Net Income Common Stockholders
363.21M	322.96M	34.34M	72.95M	111.91M	-8.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
856.45M	801.63M	835.22M	1.05B	860.41M	825.91M
	Total Assets
7.15B	7.50B	7.03B	7.41B	7.13B	6.89B
	Total Debt
3.43B	2.76B	3.09B	3.54B	3.35B	3.49B
	Net Debt
3.18B	2.53B	2.94B	3.44B	3.09B	3.28B
	Total Liabilities
4.86B	4.73B	4.91B	5.07B	4.86B	4.75B
	Stockholders Equity
2.29B	2.41B	2.11B	2.35B	2.27B	2.14B
Cash Flow		Free Cash Flow
331.92M	364.18M	420.01M	-202.22M	150.42M	185.64M
	Operating Cash Flow
705.84M	692.46M	736.33M	480.38M	831.82M	633.56M
	Investing Cash Flow
-294.18M	-228.63M	-23.23M	-904.89M	-698.52M	-683.47M
	Financing Cash Flow
-412.66M	-384.75M	-667.81M	269.08M	-90.60M	178.43M

SkyWest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 95.22 is below the 20-day moving average (MA) of 100.10, below the 50-day MA of 95.72, and below the 200-day MA of 97.71, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.25 is Neutral, neither overbought nor oversold. The STOCH value of 10.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYW.

SkyWest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKYW	74 Outperform	$3.92B	11.09	15.66%	―	20.53%	217.24%
ATSG	69 Neutral	$1.48B	55.88	1.92%	―	-5.25%	-49.90%
ALK	68 Neutral	$5.69B	17.03	8.90%	―	20.82%	47.79%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
ALGT	54 Neutral	$933.00M	―	-17.12%	1.17%	1.54%	-466.46%
ULCC	53 Neutral	$767.57M	11.40	12.71%	―	5.99%	―
JBLU	43 Neutral	$1.45B	―	-11.30%	―	-3.02%	66.90%

SkyWest Corporate Events

SkyWest Holds Annual Shareholders Meeting, Key Decisions Made

On May 6, 2025, SkyWest, Inc. held its annual meeting of shareholders where several key decisions were made. The shareholders elected directors to serve until the next annual meeting, approved the compensation of the company’s executive officers, and ratified the appointment of Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025. However, a shareholder proposal was not approved during the meeting.

SkyWest Expands Share Repurchase Plan by $250 Million

On May 6, 2025, SkyWest, Inc.’s Board of Directors approved a $250 million increase to its existing share repurchase plan, allowing the company to buy back shares of common stock at prevailing market prices. This decision supplements a previous plan from May 2023, which had authorized up to $250 million in repurchases, with $22 million remaining after $12 million was repurchased in April 2025. The new authorization brings the total potential repurchase amount to approximately $272 million. The move reflects SkyWest’s strategic financial management and could impact its stock value and shareholder returns.