📊 ALGT Key Takeaways
Is Allegiant Travel CO (ALGT) a Good Investment?
Despite 12.1% revenue growth and strong free cash flow generation, Allegiant faces severe financial distress with an interest coverage ratio of only 0.5x, indicating operating income cannot cover debt service obligations. The combination of high leverage (1.63x debt/equity), weak profitability metrics (3.9% ROE, 5.8% net margin), flat net income growth despite revenue expansion, and a sub-1.0 current ratio creates elevated bankruptcy risk in this cyclical industry.
Allegiant Travel shows solid top-line growth and still generates positive operating cash flow and free cash flow, which indicates the core business retains earnings power before financing and capital intensity. However, current fundamentals are weighed down by negative net income, very thin operating margins, sub-1.0 liquidity, and heavy leverage with extremely weak interest coverage, making the growth profile low quality until profitability normalizes and balance-sheet pressure eases.
Allegiant Travel CO Key Strengths (ALGT)
- Solid revenue growth of 12.1% YoY demonstrates market demand and operational scaling
- Exceptional free cash flow generation with 30.4% FCF margin providing near-term liquidity buffer
- Strong operating cash flow of $268.1M supports current operations independent of profitability trends
- Revenue grew 12.1% year over year, showing continued demand and network resilience
- Operating cash flow of $389.77M and positive free cash flow of $75.10M indicate the business is still producing cash despite earnings pressure
- Asset base and equity remain meaningful, providing some financial flexibility if execution improves
ALGT Stock Risks: Allegiant Travel CO Investment Risks
- Critical interest coverage of 0.5x indicates operating income cannot service debt; unsustainable debt dynamics
- High leverage with 1.63x debt/equity ratio and $1.8B long-term debt creates default vulnerability
- Current ratio of 0.91x signals liquidity stress; margin compression despite revenue growth suggests deteriorating unit economics
- Net margin of -1.7% and operating margin of 1.4% leave little cushion against fuel, labor, or demand shocks
- Debt-to-equity of 1.60x and interest coverage of 0.2x signal elevated balance-sheet and refinancing risk
- Current and quick ratios of 0.95x suggest tight near-term liquidity for a cyclical, capital-intensive airline
Key Metrics to Watch
- Interest coverage ratio trajectory - must improve above 2.5x to indicate financial stability
- Operating margin preservation - critical to ensure revenue growth converts to sustainable cash profits
- Free cash flow sustainability - monitor if strong FCF can persist if demand weakens or fuel costs rise
- Operating margin and interest coverage
- Free cash flow after capital expenditures and long-term debt reduction
Allegiant Travel CO (ALGT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 30.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ALGT Profit Margin, ROE & Profitability Analysis
ALGT vs Transportation Sector: How Allegiant Travel CO Compares
How Allegiant Travel CO compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Allegiant Travel CO Stock Overvalued? ALGT Valuation Analysis 2026
Based on fundamental analysis, Allegiant Travel CO shows some fundamental concerns relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Allegiant Travel CO Balance Sheet: ALGT Debt, Cash & Liquidity
ALGT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Allegiant Travel CO's revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.29 reflects profitable operations.
ALGT Revenue Growth, EPS Growth & YoY Performance
ALGT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $616.8M | $32.1M | $1.73 |
| Q3 2025 | $489.0M | -$24.0M | $-1.38 |
| Q2 2025 | $594.5M | $12.8M | $0.68 |
| Q1 2025 | $579.9M | -$919.0K | $-0.07 |
| Q3 2024 | $489.0M | -$24.0M | $-1.38 |
| Q2 2024 | $594.5M | $12.8M | $0.68 |
| Q1 2024 | $579.9M | -$919.0K | $-0.07 |
| Q3 2023 | $516.3M | -$25.1M | $-1.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Allegiant Travel CO Dividends, Buybacks & Capital Allocation
ALGT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Allegiant Travel CO (CIK: 0001362468)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALGT
What is the AI rating for ALGT?
Allegiant Travel CO (ALGT) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALGT's key strengths?
Claude: Solid revenue growth of 12.1% YoY demonstrates market demand and operational scaling. Exceptional free cash flow generation with 30.4% FCF margin providing near-term liquidity buffer. ChatGPT: Revenue grew 12.1% year over year, showing continued demand and network resilience. Operating cash flow of $389.77M and positive free cash flow of $75.10M indicate the business is still producing cash despite earnings pressure.
What are the risks of investing in ALGT?
Claude: Critical interest coverage of 0.5x indicates operating income cannot service debt; unsustainable debt dynamics. High leverage with 1.63x debt/equity ratio and $1.8B long-term debt creates default vulnerability. ChatGPT: Net margin of -1.7% and operating margin of 1.4% leave little cushion against fuel, labor, or demand shocks. Debt-to-equity of 1.60x and interest coverage of 0.2x signal elevated balance-sheet and refinancing risk.
What is ALGT's revenue and growth?
Allegiant Travel CO reported revenue of $732.4M.
Does ALGT pay dividends?
Allegiant Travel CO does not currently pay dividends.
Where can I find ALGT SEC filings?
Official SEC filings for Allegiant Travel CO (CIK: 0001362468) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALGT's EPS?
Allegiant Travel CO has a diluted EPS of $2.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ALGT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Allegiant Travel CO has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ALGT stock overvalued or undervalued?
Valuation metrics for ALGT: ROE of 3.9% (sector avg: 18%), net margin of 5.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ALGT's AI grade for 2026?
Our dual AI analysis gives Allegiant Travel CO a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALGT's free cash flow?
Allegiant Travel CO's operating cash flow is $268.1M, with capital expenditures of $45.4M. FCF margin is 30.4%.
How does ALGT compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 5.8% (avg: 10%), ROE 3.9% (avg: 18%), current ratio 0.91 (avg: 1).
Is Allegiant Travel CO carrying too much debt?
ALGT has a debt-to-equity ratio of 1.63x, which is above the Transportation sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.