SkyWest, Inc.
$81.19
+0.018%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 7.7).
Valuation inputs: P/E 7.7, earnings yield +13.1%, momentum +0.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +15.6%, ROIC +7.5%).
Profitability stack: net margin +10.5%, ROE +15.6%, ROIC +7.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +62.8%, momentum +0.0%, net margin +10.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
SkyWest, Inc. Market vs Earnings Trajectory
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SkyWest, Inc. Fair Value Envelope
SkyWest, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
SkyWest, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Capital-intensive growth: Heavy reinvestment limits current cash available but may drive future returns. Assess whether CapEx supports compelling growth opportunities with adequate ROI.
SkyWest, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
SkyWest, Inc. Street Expectations Map
Wall Street analysts project that SKYW stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 122.00, with estimates ranging from a low of 122.00 to a high of 122.00.
The consensus 1-year price target stands at 122.00, with estimates ranging from a low of 122.00 to a high of 122.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
SkyWest, Inc. Insider Positioning
During the last 12 months, insiders have sold $10.51M worth of SKYW shares, with no buying activity reported.
3 Months
0
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0
0.00
+0
+$0
3-6 Months
0
0.00
29.6K
3.16M
-3.2M
-$3.16M
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
62.9K
7.35M
-7.4M
-$7.35M
Top Buyers
No buying activity
Top Sellers
Steel Wade J
Officer: Chief Commercial Officer
$3.18M
Childs Russell A
Director, Officer: President & Ceo
$3.02M
Welch James L
Director
$2.34M
Simmons Robert J
Officer: Chief Financial Officer
$1.04M
Madden Meredith Siegfried
Director
$503K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $10.51M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
skyw Dividend History
Learning Layer
Related Guides
Build conviction on SKYW by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.