ALGT

Allegiant Travel

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Airlines

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Allegiant Travel operates a low-cost airline model focused on underserved leisure routes, generating revenue primarily from passenger ticket sales and ancillary services. The model emphasizes cost discipline and route optimization to drive load factors and maximize aircraft utilization. Cash flow generation depends heavily on maintaining pricing power while tightly managing fuel, labor, and fleet costs. Its moat is not brand prestige but network specialization and operational efficiency within targeted leisure corridors, where scale and route focus can create localized competitive advantages.

VALUATION

P/E

-

Market Cap ($M USD)

$1,578

Forward P/E

8.4

PEG

0.1

PRICE TO SALES

0.6

PRICE TO BOOK

1.5

EV / EBITDA

8.1

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$2.48

Next Year EPS Growth Estimate

$10.14

Next Year Revenue Growth Estimate

6.10%

Return on Equity (ROE)

-4.20%

Operating Margin

6.70%

Debt-to-Equity

1.8

Piotroski F-Score

5

Altman Z-Score

1.4

Return on Invested Capital (ROIC)

1.00%%

Current Ratio

1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Allegiant screens statistically cheap but financially fragile. A Forward P/E of 8.4 against a negative current P/E and an expected EPS of -$2.48 next year signals that earnings visibility is deteriorating, not improving. The 0.1 PEG Forward superficially screams “deep value,” yet that collapses under scrutiny when paired with a -4.20% operating margin and an Altman Z-Score of 1.4, which places the company in distress territory. This is not a clean mispricing story; it is a leveraged cyclical trading at a discount because the balance sheet and forward earnings trajectory justify skepticism.

AI Exposure / Tech Reliance

As an airline in the Industrials sector, Allegiant operates in a capital-intensive industry where AI primarily enhances pricing optimization, route planning, and operational efficiency rather than creating transformational disruption. Margins at -4.20% suggest limited buffer to absorb tech investment missteps. Adaptation is possible, but technology here is incremental leverage, not a structural game changer.

The Bull Case

A value-oriented investor could argue the stock is pricing in a worst-case scenario. A Price/Sales ratio of 0.6 and Price/Book of 1.5 imply the market is assigning modest value to revenue and tangible equity, while a Forward P/E of 8.4 and PEG of 0.1 suggest substantial earnings recovery potential if estimates stabilize. The Piotroski F-Score of 5 signals financial metrics that are not broken across the board, and a positive ROIC of 1.00% alongside 6.10% ROE indicates the company is still generating returns above zero despite cyclical pressure. With a 1.8 TTM yield and 100.80% institutional ownership, there is evidence that professional capital remains engaged, potentially positioning the stock for multiple expansion if operating margins revert from -4.20% toward profitability.

The Bear Case

The bear case is blunt: leverage and deteriorating profitability are front and center. A Debt/Equity ratio of 6.70% combined with a Current Ratio of 1 leaves minimal liquidity margin in a business with negative operating margins. EPS is projected to swing to -$2.48 next year, undermining the already unstable earnings base and explaining the absence of a traditional P/E. The Altman Z-Score of 1.4 flags real balance sheet stress, and a 1.00% ROIC in a capital-intensive airline model barely compensates for risk, making this a potential value trap rather than a deep value opportunity.

Market Sentiment & Smart Money

Short Interest %

17.60%

Analyst Consensus

2.18

Average Analyst Price Target

$100.80

Institutional Ownership %

95.50%

1-Year Beta

2.34

Insider Buying % (6 Mo)

14.30%%

Distance to 52-Week High

72.50%%

Distance to 52-Week Low

215.00%%