📊 ALGT Key Takeaways
Is Allegiant Travel CO (ALGT) a Good Investment?
Allegiant Travel is experiencing severe profitability distress with negative net income and margins despite strong 12.1% revenue growth, indicating operational challenges that exceed top-line expansion. Critical liquidity concerns are evident with a current ratio below 1.0x, high leverage at 1.60x debt-to-equity, and dangerously low interest coverage of 0.2x, suggesting the company is struggling to service debt obligations. While free cash flow generation of $75.1M provides temporary relief, the negative ROE and ROA combined with persistent unprofitability raise substantial concerns about capital efficiency and financial sustainability.
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.
Why Buy Allegiant Travel CO Stock? ALGT Key Strengths
- Revenue growth of 12.1% YoY demonstrates market demand and top-line expansion capability
- Free cash flow generation of $75.1M (2.9% FCF margin) provides liquidity cushion despite net losses
- Operating cash flow of $389.8M exceeds capital expenditure needs, supporting operational independence
- 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
- Negative net margin of -1.7% with net income loss of $44.7M indicates structural profitability problems
- Current ratio of 0.95x and quick ratio of 0.95x signal acute liquidity constraints and working capital stress
- Interest coverage ratio of 0.2x is critically low, suggesting severe debt service distress and refinancing risk
- High leverage at 1.60x debt-to-equity with $1.7B long-term debt creates financial fragility in cyclical aviation industry
- Negative ROE of -4.2% and ROA of -1.1% demonstrate poor capital allocation and value destruction
- EPS of -$2.48 with only marginal improvement from prior period indicates unresolved operational challenges
- 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
- Operating margin trend - must improve toward positive territory to restore profitability
- Current ratio and cash position - monitor liquidity deterioration and debt refinancing needs
- Interest coverage ratio - critical indicator of debt sustainability; must improve above 1.0x minimum
- Free cash flow - track whether operational cash generation can sustain debt servicing obligations
- 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 relatively thin 2.9% FCF margin may limit capital allocation flexibility. 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $592.6M | -$3.5M | $-0.20 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALGT's key strengths?
Claude: Revenue growth of 12.1% YoY demonstrates market demand and top-line expansion capability. Free cash flow generation of $75.1M (2.9% FCF margin) provides liquidity cushion despite net losses. 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: Negative net margin of -1.7% with net income loss of $44.7M indicates structural profitability problems. Current ratio of 0.95x and quick ratio of 0.95x signal acute liquidity constraints and working capital stress. 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 $2.6B.
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 $-2.48.
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 rating reflects both perspectives for balanced insights.
Is ALGT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Allegiant Travel CO has a SELL rating with 77% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ALGT stock overvalued or undervalued?
Valuation metrics for ALGT: ROE of -4.2% (sector avg: 18%), net margin of -1.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ALGT stock in 2026?
Our dual AI analysis gives Allegiant Travel CO a combined SELL rating 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 $389.8M, with capital expenditures of $314.7M. FCF margin is 2.9%.
How does ALGT compare to other Transportation stocks?
Vs Transportation sector averages: Net margin -1.7% (avg: 10%), ROE -4.2% (avg: 18%), current ratio 0.95 (avg: 1).
Is Allegiant Travel CO carrying too much debt?
ALGT has a debt-to-equity ratio of 1.60x, which is above the Transportation sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.