Recent News
Jan. 11–12, 2026 — Allegiant and Sun Country announced a definitive merger agreement under which Allegiant will acquire Sun Country in a cash‑and‑stock transaction valued at about $1.5 billion, including net debt; companies cited complementary route networks and expected close in second half of 2026. Jan. 22, 2026 — Allegiant reported preliminary December 2025 traffic showing year‑over‑year passenger gains (scheduled passengers +4.6% in December; full‑year passengers +10.3%).
Technical Analysis
Directional indicators: ADX at 30.25 signals a strong trending environment; DI‑ registered a peak & reversal while DI+ registered a dip & reversal, both patterns consistent with a bullish directional shift despite the current DI‑ level remaining above DI+.
MACD: MACD sits at −5.06 and shows a decreasing trajectory, trading below its signal line (−2.62); that configuration denotes bearish momentum and suggests short‑term momentum pressure despite directional indicator shifts.
MRO: Momentum/Regression Oscillator reads 3.04 (positive), indicating price sits modestly above the quantitative target and carries downward pressure toward the model target.
RSI: RSI at 50.12 with a decreasing trend indicates waning buying momentum around neutral territory rather than an extreme reading.
Price vs. moving averages and bands: Last close at $80.00 sits beneath short‑term exponential and simple averages (12‑day EMA $83.85, 26‑day EMA $89.89, 20‑day avg $86.65, 50‑day avg $94.35) while remaining above the 200‑day average ($70.98), implying short‑term weakness overlaid on structural longer‑term support. Price lies near the lower 1x Bollinger band ($75.07), signaling proximity to a short‑term lower volatility boundary.
Volatility, beta and volume: 42‑day beta 2.24 and 52‑week beta 2.10 confirm elevated sensitivity to market moves. Intraday volume at 563,340 trails the 10‑day average (615,554) but exceeds the 200‑day average (421,449), suggesting reduced near‑term participation versus the very short term while longer‑term interest remains above historic averages.
Fundamental Analysis
Revenue and margins: Total revenue $656,189,000 with YoY revenue growth 43.96% and QoQ change −1.91%; full‑year passenger volumes rose 10.3%. Gross margin 19.15% and operating margin 12.909%; EBIT margin 11.597% versus an industry peer mean of 12.632% and a peer median of 10.366%, placing Allegiant marginally below the industry peer mean but above the peer median.
Profitability and earnings: EBIT $76,095,000, EBITDA $134,498,000, net income $31,941,000. Reported EPS $2.85 versus estimate $1.99, producing an EPS surprise ratio of 43.22% (EPS beat $0.86). Earnings growth shows a YoY increase of 15.887% and a QoQ rise of 4.592%.
Cash flow and liquidity: Operating cash flow $112,172,000 and free cash flow $90,412,000 yield a free cash flow yield of 6.00%, which compares favorably to the industry peer mean. Cash and short‑term investments total $805,655,000 while net debt equals $1,626,920,000; current ratio 0.95 and quick ratio 0.916 reflect liquidity below the industry peer mean values for those ratios.
Capital structure and coverage: Total debt $1,864,722,000 produces debt/EBITDA of 13.86x and debt/equity 1.771x; interest coverage ratio stands at 2.36 versus an industry peer mean near 8.49, indicating materially tighter coverage capacity relative to peers.
Valuation multiples: Trailing P/E about 28.75, forward P/E about 28.70, P/B about 1.43 versus an industry peer mean near 3.88; enterprise multiple about 19.07. WMDST values the stock as under‑valued given current fundamentals and the corporate catalyst provided by the announced transaction.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-04 |
| NEXT REPORT DATE: | 2026-05-06 |
| CASH FLOW | Begin Period Cash Flow | $ 344.8 M |
| Operating Cash Flow | $ 112.2 M | |
| Capital Expenditures | $ -21.76 M | |
| Change In Working Capital | $ 5.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -154.07 M | |
| End Period Cash Flow | $ 190.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 656.2 M | |
| Forward Revenue | $ 245.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 530.5 M | |
| Depreciation | $ 58.4 M | |
| Depreciation and Amortization | $ 58.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 571.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 125.7 M | |
| EBITDA | $ 134.5 M | |
| EBIT | $ 76.1 M | |
| Operating Income | $ 84.7 M | |
| Interest Income | $ 9.3 M | |
| Interest Expense | $ 32.2 M | |
| Net Interest Income | $ -22.90 M | |
| Income Before Tax | $ 43.9 M | |
| Tax Provision | $ 12.0 M | |
| Tax Rate | 27.248 % | |
| Net Income | $ 31.9 M | |
| Net Income From Continuing Operations | $ 31.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.99 | |
| EPS Actual | $ 2.85 | |
| EPS Difference | $ 0.86 | |
| EPS Surprise | 43.216 % | |
| Forward EPS | $ 2.60 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.2 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 1.1 B | |
| Total Current Assets | $ 967.7 M | |
| Cash and Short-Term Investments | $ 805.7 M | |
| Cash | $ 172.7 M | |
| Net Receivables | $ 57.1 M | |
| Inventory | $ 34.4 M | |
| Long-Term Investments | $ 49.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 64.5 M | |
| Short-Term Debt | $ 118.1 M | |
| Total Current Liabilities | $ 1.0 B | |
| Net Debt | $ 1.6 B | |
| Total Debt | $ 1.9 B | |
| Total Liabilities | $ 3.2 B | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 958.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 57.28 | |
| Shares Outstanding | 18.378 M | |
| Revenue Per-Share | $ 35.71 | |
| VALUATION | Market Capitalization | $ 1.5 B |
| Enterprise Value | $ 2.6 B | |
| Enterprise Multiple | 19.07 | |
| Enterprise Multiple QoQ | -65.275 % | |
| Enterprise Multiple YoY | -381.999 % | |
| Enterprise Multiple IPRWA | high: 163.385 mean: 86.379 median: 51.655 ALGT: 19.07 low: -7.826 |
|
| EV/R | 3.909 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.999 | |
| Asset To Liability | 1.333 | |
| Debt To Capital | 0.639 | |
| Debt To Assets | 0.443 | |
| Debt To Assets QoQ | -8.475 % | |
| Debt To Assets YoY | 331.512 % | |
| Debt To Assets IPRWA | high: 0.789 ALGT: 0.443 mean: 0.358 median: 0.335 low: 0.091 |
|
| Debt To Equity | 1.771 | |
| Debt To Equity QoQ | -15.394 % | |
| Debt To Equity YoY | 324.341 % | |
| Debt To Equity IPRWA | high: 10.323 mean: 2.253 ALGT: 1.771 median: 0.972 low: -1.825 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.43 | |
| Price To Book QoQ | 29.271 % | |
| Price To Book YoY | -3.105 % | |
| Price To Book IPRWA | high: 8.27 mean: 3.883 median: 2.262 ALGT: 1.43 low: -3.044 |
|
| Price To Earnings (P/E) | 28.749 | |
| Price To Earnings QoQ | -197.996 % | |
| Price To Earnings YoY | -31.069 % | |
| Price To Earnings IPRWA | high: 260.531 mean: 130.325 median: 36.801 ALGT: 28.749 low: -9.844 |
|
| PE/G Ratio | -0.122 | |
| Price To Sales (P/S) | 2.295 | |
| Price To Sales QoQ | 14.771 % | |
| Price To Sales YoY | -10.435 % | |
| Price To Sales IPRWA | high: 22.128 mean: 10.449 median: 5.578 ALGT: 2.295 low: 0.685 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 28.698 | |
| Forward PE/G | -0.121 | |
| Forward P/S | 6.043 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -32.331 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.153 | |
| Asset Turnover Ratio QoQ | 19.214 % | |
| Asset Turnover Ratio YoY | 12.027 % | |
| Asset Turnover Ratio IPRWA | high: 0.226 median: 0.198 mean: 0.174 ALGT: 0.153 low: 0.031 |
|
| Receivables Turnover | 11.484 | |
| Receivables Turnover Ratio QoQ | 34.972 % | |
| Receivables Turnover Ratio YoY | 39.718 % | |
| Receivables Turnover Ratio IPRWA | ALGT: 11.484 high: 6.824 mean: 5.036 median: 4.953 low: 1.674 |
|
| Inventory Turnover | 15.543 | |
| Inventory Turnover Ratio QoQ | -0.698 % | |
| Inventory Turnover Ratio YoY | 8.907 % | |
| Inventory Turnover Ratio IPRWA | high: 16.502 ALGT: 15.543 median: 6.927 mean: 6.606 low: 0.406 |
|
| Days Sales Outstanding (DSO) | 7.946 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 3.501 | |
| Cash Conversion Cycle Days QoQ | -43.216 % | |
| Cash Conversion Cycle Days YoY | -50.335 % | |
| Cash Conversion Cycle Days IPRWA | high: 218.607 mean: 14.22 ALGT: 3.501 median: -11.294 low: -56.989 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -12.915 | |
| CapEx To Revenue | -0.033 | |
| CapEx To Depreciation | -0.373 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.7 B | |
| Net Invested Capital | $ 2.9 B | |
| Invested Capital | $ 2.9 B | |
| Net Tangible Assets | $ 1.1 B | |
| Net Working Capital | $ -50.81 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.791 | |
| Current Ratio | 0.95 | |
| Current Ratio QoQ | -2.686 % | |
| Current Ratio YoY | 22.394 % | |
| Current Ratio IPRWA | high: 5.283 mean: 1.445 ALGT: 0.95 median: 0.666 low: 0.231 |
|
| Quick Ratio | 0.916 | |
| Quick Ratio QoQ | -3.209 % | |
| Quick Ratio YoY | 22.496 % | |
| Quick Ratio IPRWA | high: 3.382 mean: 1.073 ALGT: 0.916 median: 0.665 low: 0.262 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 13.864 | |
| Cost Of Debt | 1.403 % | |
| Interest Coverage Ratio | 2.364 | |
| Interest Coverage Ratio QoQ | -580.215 % | |
| Interest Coverage Ratio YoY | -125.066 % | |
| Interest Coverage Ratio IPRWA | high: 18.823 median: 10.576 mean: 8.489 ALGT: 2.364 low: -15.199 |
|
| Operating Cash Flow Ratio | 0.097 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 10.332 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -4.163 % | |
| Revenue Growth | 16.774 % | |
| Revenue Growth QoQ | -190.729 % | |
| Revenue Growth YoY | 43.958 % | |
| Revenue Growth IPRWA | ALGT: 16.774 % high: 14.94 % mean: -0.59 % median: -0.755 % low: -9.338 % |
|
| Earnings Growth | -236.364 % | |
| Earnings Growth QoQ | 459.243 % | |
| Earnings Growth YoY | 15.887 % | |
| Earnings Growth IPRWA | high: 74.0 % median: -20.523 % mean: -31.705 % low: -92.992 % ALGT: -236.364 % |
|
| MARGINS | ||
| Gross Margin | 19.15 % | |
| Gross Margin QoQ | 226.68 % | |
| Gross Margin YoY | 3.67 % | |
| Gross Margin IPRWA | high: 67.725 % median: 23.633 % mean: 22.766 % ALGT: 19.15 % low: -5.724 % |
|
| EBIT Margin | 11.597 % | |
| EBIT Margin QoQ | -478.739 % | |
| EBIT Margin YoY | -128.582 % | |
| EBIT Margin IPRWA | high: 29.467 % mean: 12.632 % ALGT: 11.597 % median: 10.366 % low: -2.986 % |
|
| Return On Sales (ROS) | 12.909 % | |
| Return On Sales QoQ | -405.828 % | |
| Return On Sales YoY | -131.815 % | |
| Return On Sales IPRWA | high: 29.155 % ALGT: 12.909 % mean: 11.928 % median: 8.937 % low: -22.951 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 90.4 M | |
| Free Cash Flow Yield | 6.004 % | |
| Free Cash Flow Yield QoQ | -155.413 % | |
| Free Cash Flow Yield YoY | 301.605 % | |
| Free Cash Flow Yield IPRWA | ALGT: 6.004 % high: 3.929 % median: -0.558 % mean: -2.172 % low: -31.405 % |
|
| Free Cash Growth | -174.271 % | |
| Free Cash Growth QoQ | -116.456 % | |
| Free Cash Growth YoY | -5.15 % | |
| Free Cash Growth IPRWA | high: 350.956 % median: 133.903 % mean: 97.818 % ALGT: -174.271 % low: -875.856 % |
|
| Free Cash To Net Income | 2.831 | |
| Cash Flow Margin | 15.09 % | |
| Cash Flow To Earnings | 3.1 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.743 % | |
| Return On Assets QoQ | -174.899 % | |
| Return On Assets YoY | -115.839 % | |
| Return On Assets IPRWA | high: 2.684 % mean: 1.054 % median: 0.881 % ALGT: 0.743 % low: -2.974 % |
|
| Return On Capital Employed (ROCE) | 2.385 % | |
| Return On Equity (ROE) | 0.03 | |
| Return On Equity QoQ | -170.69 % | |
| Return On Equity YoY | -115.285 % | |
| Return On Equity IPRWA | high: 0.672 mean: 0.069 median: 0.035 ALGT: 0.03 low: -0.083 |
|
| DuPont ROE | 3.089 % | |
| Return On Invested Capital (ROIC) | 1.941 % | |
| Return On Invested Capital QoQ | -514.744 % | |
| Return On Invested Capital YoY | -96.76 % | |
| Return On Invested Capital IPRWA | high: 4.443 % mean: 2.325 % median: 2.132 % ALGT: 1.941 % low: -0.524 % |
|