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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.76
ALK's Cash to Debt is ranked higher than
94% of the 134 Companies
in the Global Airlines industry.

( Industry Median: 0.47 vs. ALK: 1.76 )
ALK' s 10-Year Cash to Debt Range
Min: 0.15   Max: No Debt
Current: 1.76

Equity to Asset 0.35
ALK's Equity to Asset is ranked higher than
89% of the 133 Companies
in the Global Airlines industry.

( Industry Median: 0.26 vs. ALK: 0.35 )
ALK' s 10-Year Equity to Asset Range
Min: 0.13   Max: 0.46
Current: 0.35

0.13
0.46
Interest Coverage 23.94
ALK's Interest Coverage is ranked higher than
94% of the 100 Companies
in the Global Airlines industry.

( Industry Median: 3.40 vs. ALK: 23.94 )
ALK' s 10-Year Interest Coverage Range
Min: 1.47   Max: 23.94
Current: 23.94

1.47
23.94
F-Score: 8
Z-Score: 2.81
M-Score: -2.65
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 18.72
ALK's Operating margin (%) is ranked higher than
97% of the 133 Companies
in the Global Airlines industry.

( Industry Median: 4.40 vs. ALK: 18.72 )
ALK' s 10-Year Operating margin (%) Range
Min: -5.87   Max: 16.25
Current: 18.72

-5.87
16.25
Net-margin (%) 11.67
ALK's Net-margin (%) is ranked higher than
95% of the 133 Companies
in the Global Airlines industry.

( Industry Median: 2.65 vs. ALK: 11.67 )
ALK' s 10-Year Net-margin (%) Range
Min: -5.33   Max: 9.85
Current: 11.67

-5.33
9.85
ROE (%) 32.37
ALK's ROE (%) is ranked higher than
97% of the 128 Companies
in the Global Airlines industry.

( Industry Median: 6.46 vs. ALK: 32.37 )
ALK' s 10-Year ROE (%) Range
Min: -16.11   Max: 29.45
Current: 32.37

-16.11
29.45
ROA (%) 10.46
ALK's ROA (%) is ranked higher than
94% of the 136 Companies
in the Global Airlines industry.

( Industry Median: 1.37 vs. ALK: 10.46 )
ALK' s 10-Year ROA (%) Range
Min: -4.07   Max: 8.96
Current: 10.46

-4.07
8.96
ROC (Joel Greenblatt) (%) 25.82
ALK's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 136 Companies
in the Global Airlines industry.

( Industry Median: 5.91 vs. ALK: 25.82 )
ALK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -7.29   Max: 22.34
Current: 25.82

-7.29
22.34
Revenue Growth (%) 11.80
ALK's Revenue Growth (%) is ranked higher than
88% of the 115 Companies
in the Global Airlines industry.

( Industry Median: 4.20 vs. ALK: 11.80 )
ALK' s 10-Year Revenue Growth (%) Range
Min: -5.1   Max: 11.8
Current: 11.8

-5.1
11.8
EBITDA Growth (%) 16.00
ALK's EBITDA Growth (%) is ranked higher than
92% of the 102 Companies
in the Global Airlines industry.

( Industry Median: -6.70 vs. ALK: 16.00 )
ALK' s 10-Year EBITDA Growth (%) Range
Min: -40.2   Max: 117.8
Current: 16

-40.2
117.8
EPS Growth (%) 27.90
ALK's EPS Growth (%) is ranked higher than
93% of the 89 Companies
in the Global Airlines industry.

( Industry Median: -3.80 vs. ALK: 27.90 )
ALK' s 10-Year EPS Growth (%) Range
Min: -30.1   Max: 77.8
Current: 27.9

-30.1
77.8
» ALK's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

ALK Guru Trades in Q3 2013

Diamond Hill Capital 221,592 sh (+38.8%)
PRIMECAP Management 3,595,200 sh (+0.58%)
Robert Olstein 82,000 sh (unchged)
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
Jim Simons 4,269,100 sh (-6.99%)
Ray Dalio 4,886 sh (-66.3%)
Steven Cohen 16,567 sh (-75.9%)
» More
Q4 2013

ALK Guru Trades in Q4 2013

David Dreman 988 sh (New)
Paul Tudor Jones 10,613 sh (New)
Ray Dalio 6,186 sh (+26.61%)
Jim Simons 4,600,800 sh (+7.77%)
PRIMECAP Management 3,595,200 sh (unchged)
Steven Cohen 14,167 sh (-14.49%)
Robert Olstein 63,000 sh (-23.17%)
Diamond Hill Capital 158,865 sh (-28.31%)
» More
Q1 2014

ALK Guru Trades in Q1 2014

Steven Cohen 63,020 sh (+344.84%)
Jim Simons 4,689,301 sh (+1.92%)
PRIMECAP Management 3,595,200 sh (unchged)
Ray Dalio Sold Out
David Dreman Sold Out
Diamond Hill Capital 131,955 sh (-16.94%)
Robert Olstein 49,000 sh (-22.22%)
Paul Tudor Jones 4,500 sh (-57.6%)
» More
Q2 2014

ALK Guru Trades in Q2 2014

David Dreman 871 sh (New)
Joel Greenblatt 102,099 sh (New)
Paul Tudor Jones 9,383 sh (+108.51%)
Diamond Hill Capital 132,173 sh (+0.17%)
Robert Olstein Sold Out
PRIMECAP Management 3,587,500 sh (-0.21%)
Jim Simons 4,655,000 sh (-0.73%)
» More
» Details

Insider Trades

Latest Guru Trades with ALK

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Robert Olstein 2014-06-30 Sold Out 0.63%$44.675 - $50.035 $ 49.955%0
Joel Greenblatt 2014-06-30 New Buy0.12%$44.675 - $50.035 $ 49.955%102099
David Dreman 2014-06-30 New Buy0.01%$44.675 - $50.035 $ 49.955%871
Robert Olstein 2014-03-31 Reduce -22.22%0.15%$36.02 - $46.42 $ 49.9521%98000
David Dreman 2014-03-31 Sold Out 0.01%$36.02 - $46.42 $ 49.9521%0
Ray Dalio 2014-03-31 Sold Out $36.02 - $46.42 $ 49.9521%0
Robert Olstein 2013-12-31 Reduce -23.17%0.18%$30.67 - $39.1 $ 49.9540%126000
David Dreman 2013-12-31 New Buy0.01%$30.67 - $39.1 $ 49.9540%1976
Ray Dalio 2013-12-31 Add 26.61%$30.67 - $39.1 $ 49.9540%12372
Joel Greenblatt 2013-09-30 Sold Out 0.08%$25.91 - $32.11 $ 49.9567%0
Ray Dalio 2013-09-30 Reduce -66.3%$25.91 - $32.11 $ 49.9567%9772
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 11.20
ALK's P/E(ttm) is ranked higher than
92% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 19.40 vs. ALK: 11.20 )
ALK' s 10-Year P/E(ttm) Range
Min: 4.03   Max: 817.56
Current: 11.2

4.03
817.56
P/B 3.12
ALK's P/B is ranked higher than
59% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 1.90 vs. ALK: 3.12 )
ALK' s 10-Year P/B Range
Min: 0.42   Max: 3.23
Current: 3.12

0.42
3.23
P/S 1.30
ALK's P/S is ranked higher than
58% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 0.54 vs. ALK: 1.30 )
ALK' s 10-Year P/S Range
Min: 0.13   Max: 1.32
Current: 1.3

0.13
1.32
PFCF 19.06
ALK's PFCF is ranked higher than
87% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. ALK: 19.06 )
ALK' s 10-Year PFCF Range
Min: 1.8   Max: 20.62
Current: 19.06

1.8
20.62
EV-to-EBIT 5.97
ALK's EV-to-EBIT is ranked higher than
96% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 18.02 vs. ALK: 5.97 )
ALK' s 10-Year EV-to-EBIT Range
Min: 4   Max: 411.4
Current: 5.97

4
411.4
PEG 0.62
ALK's PEG is ranked higher than
96% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. ALK: 0.62 )
ALK' s 10-Year PEG Range
Min: 0.16   Max: 5.43
Current: 0.62

0.16
5.43
Shiller P/E 26.87
ALK's Shiller P/E is ranked higher than
82% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 284.82 vs. ALK: 26.87 )
ALK' s 10-Year Shiller P/E Range
Min: 16.69   Max: 389.17
Current: 26.87

16.69
389.17
Current Ratio 1.08
ALK's Current Ratio is ranked higher than
88% of the 136 Companies
in the Global Airlines industry.

( Industry Median: 0.93 vs. ALK: 1.08 )
ALK' s 10-Year Current Ratio Range
Min: 0.56   Max: 1.35
Current: 1.08

0.56
1.35
Quick Ratio 1.05
ALK's Quick Ratio is ranked higher than
88% of the 136 Companies
in the Global Airlines industry.

( Industry Median: 0.75 vs. ALK: 1.05 )
ALK' s 10-Year Quick Ratio Range
Min: 0.46   Max: 1.32
Current: 1.05

0.46
1.32

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.95
ALK's Dividend Yield is ranked lower than
72% of the 65 Companies
in the Global Airlines industry.

( Industry Median: 1.60 vs. ALK: 0.95 )
ALK' s 10-Year Dividend Yield Range
Min: 0.26   Max: 1.06
Current: 0.95

0.26
1.06
Dividend Payout 0.10
ALK's Dividend Payout is ranked higher than
98% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. ALK: 0.10 )
ALK' s 10-Year Dividend Payout Range
Min: 0.05   Max: 0.19
Current: 0.1

0.05
0.19
Yield on cost (5-Year) 1.00
ALK's Yield on cost (5-Year) is ranked lower than
76% of the 67 Companies
in the Global Airlines industry.

( Industry Median: 1.70 vs. ALK: 1.00 )
ALK' s 10-Year Yield on cost (5-Year) Range
Min: 0.26   Max: 1.06
Current: 1

0.26
1.06
Share Buyback Rate 1.20
ALK's Share Buyback Rate is ranked higher than
91% of the 113 Companies
in the Global Airlines industry.

( Industry Median: -0.70 vs. ALK: 1.20 )
ALK' s 10-Year Share Buyback Rate Range
Min: 3.1   Max: -14.6
Current: 1.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.12
ALK's Price/Tangible Book is ranked higher than
70% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 2.90 vs. ALK: 3.12 )
ALK' s 10-Year Price/Tangible Book Range
Min: 0.55   Max: 4.57
Current: 3.12

0.55
4.57
Price/DCF (Projected) 1.59
ALK's Price/DCF (Projected) is ranked higher than
88% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. ALK: 1.59 )
ALK' s 10-Year Price/DCF (Projected) Range
Min: 1.45   Max: 6.24
Current: 1.59

1.45
6.24
Price/Median PS Value 3.18
ALK's Price/Median PS Value is ranked lower than
51% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 1.20 vs. ALK: 3.18 )
ALK' s 10-Year Price/Median PS Value Range
Min: 0.26   Max: 3.06
Current: 3.18

0.26
3.06
Price/Peter Lynch Fair Value 0.55
ALK's Price/Peter Lynch Fair Value is ranked higher than
98% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. ALK: 0.55 )
ALK' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.29   Max: 5.41
Current: 0.55

0.29
5.41
Price/Graham Number 1.23
ALK's Price/Graham Number is ranked higher than
82% of the 142 Companies
in the Global Airlines industry.

( Industry Median: 1.50 vs. ALK: 1.23 )
ALK' s 10-Year Price/Graham Number Range
Min: 0.34   Max: 2.98
Current: 1.23

0.34
2.98
Earnings Yield (Greenblatt) 16.80
ALK's Earnings Yield (Greenblatt) is ranked higher than
96% of the 117 Companies
in the Global Airlines industry.

( Industry Median: 7.80 vs. ALK: 16.80 )
ALK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 24.8
Current: 16.8

0.2
24.8
Forward Rate of Return (Yacktman) 23.45
ALK's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 113 Companies
in the Global Airlines industry.

( Industry Median: 3.27 vs. ALK: 23.45 )
ALK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -57.8   Max: 59.6
Current: 23.45

-57.8
59.6

Business Description

Industry: Airlines » Airlines
Compare:CPA, RYAAY, LFL, ALNPY, LUV » details
Traded in other countries:ALK.Germany
Alaska Air Group, Inc. is a holding company that was incorporated in Delaware in 1985. Its two principal subsidiaries are Alaska Airlines, Inc. 'Alaska' and Horizon Air Industries, Inc. 'Horizon'. Through these subsidiaries, the Company provides passenger air service to more than 24 million passengers per year to more than 100 destinations. Alaska Air also provides freight and mail services, mainly to and within the state of Alaska and on the West Coast. Although Alaska and Horizon both operate as airlines, their business plans, competition and economic risks differ. Alaska Airlines, Inc. is an Alaska corporation that was organized in 1932 and incorporated in 1937. It offers north/south service within the western U.S., Canada and Mexico, and passenger and dedicated cargo services to and within the state of Alaska. Alaska also provides long-haul east/west service to Hawaii and thirteen cities in the mid-continental and eastern U.S., mainly from Seattle. Horizon Air Industries is a Washington corporation that first began service, was incorporated in 1981 and was acquired by Air Group in 1986. Alaska and Horizon integrate their flight schedules to provide convenient, competitive connections between most points served by their systems. The airline industry is competitive. The principal competitive factors in the industry that are important to customers are: flight schedules, safety record and reputation, fares, customer service, routes served, frequent flyer programs, on-time arrivals, baggage handling, on-board amenities, type of aircraft, and code-sharing relationships. Alaska and Horizon have marketing alliances with other airlines that provide reciprocal frequent flyer mileage credit and redemption privileges and code sharing on certain flights. Airline tickets are distributed through three main channels: Airline websites such as alaskaair.com; Consumer reliance on traditional travel agencies is shrinking, while usage of online travel agencies is increasing. Both traditional and online travel agencies typically use Global Distribution Systems, such as Sabre, to obtain their fare and inventory data from airlines; Bookings made through these agencies result in a fee, the GDS fee, that is charged to the airline; Telephone reservation call centers. These call centers are located in Phoenix, Ariz.; Kent, Wash.; and Boise, Idaho. The Company is subject to various laws and government regulations concerning environmental matters and employee safety and health in the U.S. and other countries.

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