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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 : 7/10

vs
industry
vs
history
Cash to Debt 1.53
ALK's Cash to Debt is ranked higher than
95% of the 119 Companies
in the Global Airlines industry.

( Industry Median: 0.43 vs. ALK: 1.53 )
ALK' s 10-Year Cash to Debt Range
Min: 0.15   Max: No Debt
Current: 1.53

Equity to Asset 0.35
ALK's Equity to Asset is ranked higher than
85% of the 117 Companies
in the Global Airlines industry.

( Industry Median: 0.26 vs. ALK: 0.35 )
ALK' s 10-Year Equity to Asset Range
Min: 0.14   Max: 0.46
Current: 0.35

0.14
0.46
Interest Coverage 23.94
ALK's Interest Coverage is ranked higher than
95% of the 92 Companies
in the Global Airlines industry.

( Industry Median: 3.71 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: 2.72
M-Score: -2.67
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 (%) 16.25
ALK's Operating margin (%) is ranked higher than
96% of the 115 Companies
in the Global Airlines industry.

( Industry Median: 5.23 vs. ALK: 16.25 )
ALK' s 10-Year Operating margin (%) Range
Min: -5.87   Max: 16.25
Current: 16.25

-5.87
16.25
Net-margin (%) 9.85
ALK's Net-margin (%) is ranked higher than
92% of the 115 Companies
in the Global Airlines industry.

( Industry Median: 2.82 vs. ALK: 9.85 )
ALK' s 10-Year Net-margin (%) Range
Min: -5.33   Max: 9.85
Current: 9.85

-5.33
9.85
ROE (%) 25.04
ALK's ROE (%) is ranked higher than
95% of the 111 Companies
in the Global Airlines industry.

( Industry Median: 7.98 vs. ALK: 25.04 )
ALK' s 10-Year ROE (%) Range
Min: -20.53   Max: 25.04
Current: 25.04

-20.53
25.04
ROA (%) 8.70
ALK's ROA (%) is ranked higher than
92% of the 118 Companies
in the Global Airlines industry.

( Industry Median: 1.96 vs. ALK: 8.70 )
ALK' s 10-Year ROA (%) Range
Min: -4.12   Max: 8.7
Current: 8.7

-4.12
8.7
ROC (Joel Greenblatt) (%) 21.53
ALK's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 118 Companies
in the Global Airlines industry.

( Industry Median: 7.26 vs. ALK: 21.53 )
ALK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -6.93   Max: 21.53
Current: 21.53

-6.93
21.53
Revenue Growth (%) 11.70
ALK's Revenue Growth (%) is ranked higher than
85% of the 102 Companies
in the Global Airlines industry.

( Industry Median: 6.70 vs. ALK: 11.70 )
ALK' s 10-Year Revenue Growth (%) Range
Min: -5.1   Max: 11.7
Current: 11.7

-5.1
11.7
EBITDA Growth (%) 16.00
ALK's EBITDA Growth (%) is ranked higher than
90% of the 86 Companies
in the Global Airlines industry.

( Industry Median: 9.80 vs. ALK: 16.00 )
ALK' s 10-Year EBITDA Growth (%) Range
Min: -40.1   Max: 117.1
Current: 16

-40.1
117.1
EPS Growth (%) 28.10
ALK's EPS Growth (%) is ranked higher than
89% of the 76 Companies
in the Global Airlines industry.

( Industry Median: 13.40 vs. ALK: 28.10 )
ALK' s 10-Year EPS Growth (%) Range
Min: -29.3   Max: 77.8
Current: 28.1

-29.3
77.8
» ALK's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2013

ALK Guru Trades in Q1 2013

Paul Tudor Jones 5,100 sh (New)
Steven Cohen 30,770 sh (+14.61%)
Jim Simons 4,458,800 sh (+5.76%)
HOTCHKIS & WILEY Sold Out
Joel Greenblatt Sold Out
PRIMECAP Management 3,570,500 sh (-1.38%)
Pioneer Investments 171,300 sh (-2.73%)
Robert Olstein 55,000 sh (-25.68%)
Diamond Hill Capital 79,790 sh (-85.45%)
» More
Q2 2013

ALK Guru Trades in Q2 2013

Ray Dalio 14,500 sh (New)
Joel Greenblatt 36,892 sh (New)
Paul Tudor Jones 13,000 sh (+154.9%)
Steven Cohen 68,743 sh (+123.41%)
Diamond Hill Capital 159,645 sh (+100.08%)
Robert Olstein 82,000 sh (+49.09%)
Jim Simons 4,590,100 sh (+2.94%)
PRIMECAP Management 3,574,300 sh (+0.11%)
Pioneer Investments Sold Out
» More
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
» Details

Insider Trades

Latest Guru Trades with ALK

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Dreman 2013-12-31 New Buy0.01%$61.33 - $78.19 $ 89.3526%988
Ray Dalio 2013-12-31 Add 26.61%$61.33 - $78.19 $ 89.3526%6186
Joel Greenblatt 2013-09-30 Sold Out 0.08%$51.82 - $64.21 $ 89.3550%0
Ray Dalio 2013-09-30 Reduce -66.3%$51.82 - $64.21 $ 89.3550%4886
Joel Greenblatt 2013-06-30 New Buy0.08%$50.42 - $67.47 $ 89.3552%36892
Ray Dalio 2013-06-30 New Buy0.01%$50.42 - $67.47 $ 89.3552%14500
Joel Greenblatt 2013-03-31 Sold Out 0.08%$43.09 - $63.96 $ 89.3574%0
Joel Greenblatt 2012-12-31 New Buy0.08%$35.68 - $44.92 $ 89.35120%31475
PRIMECAP Management 2012-06-30 Reduce -25.09%0.07%$32.25 - $36.39 $ 89.35160%3744000
Joel Greenblatt 2012-03-31 Sold Out 0.15%$33.93 - $39.185 $ 89.35166%0
Joel Greenblatt 2011-12-31 Reduce -49.1%0.14%$25.66 - $38.26 $ 89.35167%16320
Joel Greenblatt 2011-06-30 Add 565.61%0.22%$30.01 - $34.89 $ 89.35174%27623
George Soros 2011-06-30 Sold Out $30.01 - $34.89 $ 89.35174%0
Joel Greenblatt 2011-03-31 New Buy0.08%$28.27 - $32.37 $ 89.35194%4150
George Soros 2011-03-31 New Buy$28.27 - $32.37 $ 89.35194%4900
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 12.60
ALK's P/E(ttm) is ranked higher than
83% of the 98 Companies
in the Global Airlines industry.

( Industry Median: 13.40 vs. ALK: 12.60 )
ALK' s 10-Year P/E(ttm) Range
Min: 4.03   Max: 774.47
Current: 12.6

4.03
774.47
P/B 3.00
ALK's P/B is ranked higher than
58% of the 110 Companies
in the Global Airlines industry.

( Industry Median: 1.31 vs. ALK: 3.00 )
ALK' s 10-Year P/B Range
Min: 0.42   Max: 3.19
Current: 3

0.42
3.19
P/S 1.20
ALK's P/S is ranked higher than
53% of the 118 Companies
in the Global Airlines industry.

( Industry Median: 0.47 vs. ALK: 1.20 )
ALK' s 10-Year P/S Range
Min: 0.13   Max: 1.27
Current: 1.2

0.13
1.27
PFCF 15.20
ALK's PFCF is ranked higher than
77% of the 57 Companies
in the Global Airlines industry.

( Industry Median: 23.00 vs. ALK: 15.20 )
ALK' s 10-Year PFCF Range
Min: 1.81   Max: 21.38
Current: 15.2

1.81
21.38
EV-to-EBIT 6.90
ALK's EV-to-EBIT is ranked higher than
91% of the 106 Companies
in the Global Airlines industry.

( Industry Median: 13.08 vs. ALK: 6.90 )
ALK' s 10-Year EV-to-EBIT Range
Min: 4   Max: 411.4
Current: 6.9

4
411.4
PEG 0.70
ALK's PEG is ranked higher than
87% of the 68 Companies
in the Global Airlines industry.

( Industry Median: 1.10 vs. ALK: 0.70 )
ALK' s 10-Year PEG Range
Min: 0.16   Max: 5.47
Current: 0.7

0.16
5.47
Shiller P/E 28.90
ALK's Shiller P/E is ranked higher than
69% of the 62 Companies
in the Global Airlines industry.

( Industry Median: 22.00 vs. ALK: 28.90 )
ALK' s 10-Year Shiller P/E Range
Min: 16.51   Max: 389.17
Current: 28.9

16.51
389.17

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.70
ALK's Dividend Yield is ranked lower than
83% of the 58 Companies
in the Global Airlines industry.

( Industry Median: 1.69 vs. ALK: 0.70 )
ALK' s 10-Year Dividend Yield Range
Min: 0.26   Max: 0.56
Current: 0.7

0.26
0.56
Dividend Payout 0.06
ALK's Dividend Payout is ranked higher than
96% of the 50 Companies
in the Global Airlines industry.

( Industry Median: 0.21 vs. ALK: 0.06 )
ALK' s 10-Year Dividend Payout Range
Min: 0.06   Max: 0.06
Current: 0.06

Yield on cost (5-Year) 0.70
ALK's Yield on cost (5-Year) is ranked lower than
80% of the 54 Companies
in the Global Airlines industry.

( Industry Median: 1.82 vs. ALK: 0.70 )
ALK' s 10-Year Yield on cost (5-Year) Range
Min: 0.26   Max: 0.56
Current: 0.7

0.26
0.56
Share Buyback Rate 1.20
ALK's Share Buyback Rate is ranked higher than
91% of the 92 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 3.10
ALK's Price/Tangible Book is ranked higher than
60% of the 98 Companies
in the Global Airlines industry.

( Industry Median: 1.58 vs. ALK: 3.10 )
ALK' s 10-Year Price/Tangible Book Range
Min: 0.93   Max: 2.51
Current: 3.1

0.93
2.51
Price/DCF (Projected) 1.90
ALK's Price/DCF (Projected) is ranked higher than
69% of the 62 Companies
in the Global Airlines industry.

( Industry Median: 1.74 vs. ALK: 1.90 )
ALK' s 10-Year Price/DCF (Projected) Range
Min: 1.56   Max: 6.23
Current: 1.9

1.56
6.23
Price/Median PS Value 3.20
ALK's Price/Median PS Value is ranked higher than
53% of the 114 Companies
in the Global Airlines industry.

( Industry Median: 0.95 vs. ALK: 3.20 )
ALK' s 10-Year Price/Median PS Value Range
Min: 0.51   Max: 2.65
Current: 3.2

0.51
2.65
Price/Peter Lynch Fair Value 0.50
ALK's Price/Peter Lynch Fair Value is ranked higher than
92% of the 39 Companies
in the Global Airlines industry.

( Industry Median: 0.84 vs. ALK: 0.50 )
ALK' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.33   Max: 1.63
Current: 0.5

0.33
1.63
Price/Graham Number 1.30
ALK's Price/Graham Number is ranked higher than
71% of the 84 Companies
in the Global Airlines industry.

( Industry Median: 1.10 vs. ALK: 1.30 )
ALK' s 10-Year Price/Graham Number Range
Min: 0.56   Max: 1.67
Current: 1.3

0.56
1.67
Earnings Yield (Greenblatt) 14.50
ALK's Earnings Yield (Greenblatt) is ranked higher than
91% of the 114 Companies
in the Global Airlines industry.

( Industry Median: 7.60 vs. ALK: 14.50 )
ALK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 24.8
Current: 14.5

0.2
24.8
Forward Rate of Return (Yacktman) 44.97
ALK's Forward Rate of Return (Yacktman) is ranked higher than
96% of the 97 Companies
in the Global Airlines industry.

( Industry Median: 3.70 vs. ALK: 44.97 )
ALK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -57.7   Max: 59.4
Current: 44.97

-57.7
59.4

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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