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SkyWest (SKYW)
NASDAQ:SKYW
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SkyWest
(NASDAQ:SKYW)
Select Model
Select Model
Rating:68Neutral
Price Target:
$118.00
▲(13.87% Upside)
SkyWest's overall score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. Technical analysis suggests potential short-term challenges, while valuation indicates reasonable pricing. The absence of a dividend yield and cash flow concerns slightly temper the outlook.
Positive Factors
Revenue Growth
SkyWest's significant revenue growth indicates strong market demand and effective execution of its business model, enhancing long-term financial stability.
Fleet Expansion
The fleet expansion with new E175s underlines SkyWest's commitment to growth and capacity enhancement, supporting long-term operational scalability and market presence.
Partnerships
Strategic partnerships with major airlines provide a stable revenue stream and enhance SkyWest's market reach, leveraging brand loyalty and operational efficiency.
Negative Factors
Cash Flow Challenges
Declining free cash flow growth could limit SkyWest's ability to invest in future growth opportunities and manage financial obligations, impacting long-term financial health.
Tariff and Delivery Uncertainties
Tariff uncertainties on aircraft deliveries pose risks to fleet expansion plans, potentially delaying growth and increasing costs, affecting long-term strategic goals.
Supply Chain Challenges
Supply chain issues in maintenance and repair operations could disrupt service reliability and increase operational costs, impacting SkyWest's efficiency and profitability.
SkyWest (SKYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.18B
Dividend YieldN/A
Average Volume (3M)345.09K
Price to Earnings (P/E)10.6
Beta (1Y)0.97
Revenue Growth20.45%
EPS Growth131.25%
CountryUS
Employees12,876
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)2.91
Shares Outstanding40,378,254
10 Day Avg. Volume431,061
30 Day Avg. Volume345,087
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 Cap1.46
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit6.06
Enterprise Value/Ebitda7.17
Forecast
1Y Price Target
$132.75Price Target Upside28.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 contractual agreements with major airlines, where it operates flights under their brands in a capacity purchase model. In this model, SkyWest is compensated by the mainline airlines for operating flights, which includes a fixed fee per flight and a variable fee based on the number of passengers carried. Additionally, the company earns revenue from ancillary services, such as baggage fees and cargo transport. Key partnerships with major airlines not only provide a steady stream of income but also contribute to operational efficiency and market reach, allowing SkyWest to benefit from the established brand loyalty of its partners.
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:
Main Street Data
Main Street DataSkyWest Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
SkyWest demonstrated strong financial performance with impressive revenue growth and profitability. Their strategic fleet expansion and recognition as a top workplace further highlight their positive trajectory. However, challenges remain with potential delivery delays due to tariffs, ongoing supply chain and maintenance issues, and a decrease in cash reserves.Q2-2025 Updates
Positive Updates
Strong Financial Performance
SkyWest reported net income of $120 million or $2.91 per diluted share for Q2 2025. Total Q2 revenue of $1 billion is up 9% from Q1 2025 and up 19% from Q2 2024.
Fleet Expansion Plans
Announced agreement to purchase and operate 16 new E175s under a multiyear contract with Delta, with deliveries expected to begin in 2027. Secured firm delivery positions with Embraer for 44 more E175s from 2028 to 2032.
Recognition as a Top Workplace
SkyWest was named one of America's greatest workplaces by Newsweek for the second year running.
Continued Strong Demand
Demand in small and midsized communities is strong, with SkyWest nearing and even exceeding 2019 departure levels.
Negative Updates
Tariff and Delivery Uncertainties
Potential 50% tariff on new aircraft deliveries from Brazil could impact delivery schedules, with some deliveries possibly delayed into 2026.
Supply Chain and MRO Challenges
Ongoing challenges in the third-party MRO network, including labor and parts availability, impacting maintenance schedules.
Cash and Debt Position
Cash decreased to $727 million from $834 million in Q2 2024, with debt at $2.5 billion, down from $2.7 billion as of 12/31/2024.
Company Guidance
During the SkyWest, Inc. Second Quarter 2025 Results Call, the company provided comprehensive guidance on its financial performance and strategic initiatives. SkyWest reported a net income of $120 million, translating to $2.91 per diluted share, with total revenue reaching $1 billion, a 9% increase from Q1 and a 19% increase year-over-year. The company highlighted its strong balance sheet with $727 million in cash and a debt reduction to $2.5 billion by the end of the quarter. SkyWest's capital expenditures for 2025 are projected at $575 million to $625 million, focusing on expanding its fleet, including the purchase of new E175 aircraft. The company anticipates a 14% increase in block hours for 2025 compared to 2024, with a promising outlook for 2026 driven by strong demand and fleet flexibility. Despite macroeconomic uncertainties such as potential tariffs on new aircraft deliveries, SkyWest remains optimistic, projecting a potential EPS of around $10 for 2025, contingent on successful execution of growth opportunities.SkyWest Financial Statement Overview
Summary
SkyWest exhibits strong financial health with solid revenue growth, efficient operations, and stable financial management. The company has effectively reduced leverage, enhancing its balance sheet stability. While cash flow management is robust, high capital expenditures could pose a challenge.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.78
Positive
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.70
Positive
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 3.53B | 2.94B | 3.00B | 2.71B | 2.13B |
| Gross Profit | 1.01B | 788.96M | 372.19M | 499.31M | 193.72M | -13.89M |
| EBITDA | 852.32M | 930.36M | 554.35M | 627.10M | 377.99M | 238.27M |
| Net Income | 407.91M | 322.96M | 34.34M | 72.95M | 111.91M | -8.52M |
Balance Sheet | ||||||
| Total Assets | 7.17B | 7.14B | 7.03B | 7.41B | 7.13B | 6.89B |
| Cash, Cash Equivalents and Short-Term Investments | 727.02M | 801.63M | 835.22M | 1.05B | 860.41M | 825.91M |
| Total Debt | 2.58B | 2.76B | 3.09B | 3.54B | 3.35B | 3.49B |
| Total Liabilities | 4.59B | 4.73B | 4.91B | 5.07B | 4.86B | 4.75B |
| Stockholders Equity | 2.58B | 2.41B | 2.11B | 2.35B | 2.27B | 2.14B |
Cash Flow | ||||||
| Free Cash Flow | 253.42M | 364.18M | 420.01M | -202.22M | 150.42M | 185.64M |
| Operating Cash Flow | 797.58M | 692.46M | 736.33M | 480.38M | 831.82M | 633.56M |
| Investing Cash Flow | -525.29M | -228.63M | -23.23M | -904.89M | -698.52M | -683.47M |
| Financing Cash Flow | -365.72M | -384.75M | -667.81M | 269.08M | -90.60M | 178.43M |
SkyWest Technical Analysis
Negative
103.63
Price Trends
113.89
Negative
106.68
Negative
103.54
Positive
Market Momentum
-2.70
Positive
32.03
Neutral
3.00
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 103.63 is below the 20-day moving average (MA) of 114.78, below the 50-day MA of 113.89, and above the 200-day MA of 103.54, indicating a neutral trend. The MACD of -2.70 indicates Positive momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 3.00 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 673.39M | 11.87 | 9606.85% | ― | 3.76% | 17.44% | |
68 Neutral | $4.18B | 10.55 | 16.95% | ― | 20.45% | 131.25% | |
68 Neutral | 6.74B | 23.77 | 7.94% | ― | 27.81% | 43.03% | |
58 Neutral | 1.14B | -3.89 | -27.09% | ― | 3.17% | -1689.03% | |
54 Neutral | 1.24B | -36.57 | -6.52% | ― | 4.60% | 49.81% | |
50 Neutral | 1.84B | -4.65 | -16.03% | ― | -1.90% | 61.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
SKYW
SkyWest
103.63
22.61
27.91%
ALK
Alaska Air
58.49
18.93
47.85%
ALGT
Allegiant Travel Company
62.06
19.00
44.12%
JBLU
JetBlue Airways
5.07
-0.62
-10.90%
SNCY
Sun Country Airlines Holdings
12.63
0.98
8.41%
ULCC
Frontier Group Holdings
5.42
1.12
26.05%
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.