Corporate Webpages Spirit Airlines, Inc.
Prior to the virus, Spirit Airlines, Inc. (SAVE) was expanding
rapidly with new routes across the U.S. from coast to coast and
to Latin America. Its entire fleet consists of European-made
Airbus aircraft, so it has no Boeing 737MAX liability. After
the virus, Spirit sought to curtail flights along many major
routes which was opposed inn some cases by the Federal Aviation
Administration. Our staff attempted to investigate the state of
the airline by attempting to book flights along major routes.
On the company's website, for example, LAX to Phoenix, a very
busy route showed "No seats available" through the rest of the
entire year. A call to the company revealed that while they
have not shut down all their routes, LAX to PHX was clossed down
entirely. So many aircraft are sitting idle just as SAVE went
on a shopping spree for more than 100 more Airbuses.
Spirit is a "discount" airline but has special fees for baggage
and seating preferences. Reviews of the airline experience
appearing in various news and internet items were highly
critical and suggested when a "bargain" is not a bargain.
Spirit has a good website, although contacting someone is
difficult and there is no glitzy annual report nor CEO Letter to
Shareholders, showing lack of concern for shareholders. Spirit
recently injected poison pills into its stock to thwart any
takeover attempts.
The stock is liked by Standard & Poor's, but not by most other
researchers while analysts are more optimistic. All airlines as
a whole have taken a big hit, and it is one of the weakest
industry groups, with Spirit's stock performance weakest among them.
The Zenith Index is unfavorable for this stock which has taken a
terrific meltdown since the virus affected travel. Fundamentals
appear poor to us.
The stock does now have some very strong supporters and there
are a number of warning signs in our analysis that could cause
traders who sell the stock short to get caught in a short squeeze.
Short sales are comparitively high in this stock which could
help start an upward avalanche. Current p/e ratio is low and
projected p/e is lower, where one of our strongest indicators, average
to current p/e is flashing a big turnaround warning sign.
Frankly, we do not see how this could be when the virus effects will
probably reduce demand for the next two years.
Spirit has its strong analyst supporters. Institutions are net
acquirers. The valuation of this company includes its large
fleet of Airbusses which give it a asset and book value. We did
not see any intangibles in its accounting statements.
A number of other warnings are not supported by chart patterns
which are mostly very negative, but the "Val Idea" strategists
are issuing a somewhat rare overall positive opinion.
This is not an airline we particularly like from a customer or
reliability standpoint, but we have to concede it will the stock
will likely return to former lofty heights as a question not of
"if" but rather "when." The worst is not behind us for airlines.
News includes Spirit management pulling back all previous "guidance"
for unanticipated problems.
04-23-202020: Spirit Airlines, Inc. (SAVE): Many Routes Closed Down
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Spirit Airlines, Inc. (SAVE) Exchange: NYSE
2800 Executive Way
Miramar, FL 33025 Sector: Industrials
United States Industry: Airlines
Spirit Airlines, Inc. provides low-fare airline services. The company
operates approximately 600 daily flights to 77 destinations in the
United States, the Caribbean, and Latin America. As of December 31,
2019, the company had a fleet of 145 Airbus single-aisle aircraft
comprising 31 A319ceos, 64 A320ceos, 20 A320neos and 30 A321ceos. It
offers tickets through its call centers and airport ticket counters, as
well as online through spirit.com; and through various third parties,
including online, traditional travel agents, and electronic global
distribution systems. The company was formerly known as Clippert
Trucking Company and changed its name to Spirit Airlines, Inc. in 1992.
Spirit Airlines, Inc. was founded in 1964 and is headquartered in
Miramar, Florida.
Last Trade: 13.35 52-Week Range: 58.55 - 7.01
Employees: 8,938 Avg.Volume: 4,238,800 Shares
Corporate Governance:
Pillar scores are Audit: 1; Board: 1; Shareholder Rights: 8; Compensation: 3.
(A lower number means less governance risk.)
EPS: 4.89 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Payout Ratio: 0.00
Key Statistics:
Trailing P/E: 2.65 Forward P/E (est.): 2.43
Target Price: 24.33
Qrtly Stock Price Growth (yoy): -76.01% Beta: 1.30
Qrtly S&P Index Growth (yoy): 12.40% Short Ratio: 1.32%
Qrtly Revenue Growth (yoy): 52.00% Shares Out: 68450000
Qrtly Earnings Growth (yoy): -11.70%
Book Value: 33.03 Debt/Equity: 157.34%
Price/Book Value: 0.40 Operating Profit Margin: 13.55%
Price/Sales: 0.24 Profit Margin: 8.75%
Market Cap: 886,492,000 Return on Equity: 16.00%
Enterprise Value: 3,390,000,000 Return on Assets: 5.32%
Operating Cash Flow: 409,221
Free Cash Flow: -25,776
Annual Income Statement: (All numbers in thousands)
Period Ending 12/31/2019 12/31/2018 12/31/2017
Total Revenue 3,830,536 3,323,034 2,647,666
Cost of Revenue 2,819,990 2,494,083 1,894,258
Gross Profit 1,010,546 828,951 753,408
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 0 0 0
Total Operating Expenses 491,432 379,536 347,820
Operating Income or Loss 519,114 449,415 405,588
Income from Continuing Operations:
Total Other Income/Expenses Net -18,942 -189,610 -17,163
Interest Expense 88,879 73,936 43,509
Income Before Taxes 436,426 204,976 353,652
Income Tax Expense 101,171 49,227 -66,954
Net Income from Continuing Op.s 335,255 155,749 420,606
Non-recurring Events:
Extraordinary Items 0 0 0
Net Income 335,255 155,749 420,606
Net Income Avail to Common Shares 335,255 155,749 420,606
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 12/31/2019 12/31/2018 12/31/2017
Net Income 335,255 155,749 420,606
Operating Activities:
Depreciation 225,264 176,727 140,152
Changes in Accounts Recv'bls -26,147 1,674 -8,134
Changes in Liabilities 206,010 -109,237 -215,946
Changes in Inventories 0 0 0
Changes in other Oper'g Acts -300,638 7,978 -167,833
Total Cash Flow f Operations 409,221 506,463 425,240
Investing Activities:
Capital Exenditures -203,211 -615,700 -641,186
Investments 0 0 0
Other Cash Flows fr Investing -110,038 -177,925 -149,477
Total Cash Flows from Investing -314,829 -783,708 -792,003
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock -5,439 -5,439 -5,439
Other Cash Flows fr Financing 0 0 -149,477
Total Cash Flows from Financing -120,168 481,129 466,712
Change in Cash & Cash Equiv. -25,776 203,884 99,949
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 12/31/2019 12/31/2018 12/31/2017
Current Assets:
Cash & Cash Equivalents 1,004,733 800,849 700,900
Short Term Investments 102,789 100,937 100,155
Net Receivables 47,660 49,323 41,136
Inventory 0 0 0
Other Current Assets 0 0 0
Total Current Assets 1,345,466 1,280,260 975,845
Long-Term Investments 3,448,876 2,446,276 1,587,731
Property, Plant & Equipt 3,116,012 2,238,468 1,465,222
Goodwill 0 0 0
Intangible Assets 0 0 0
Other Assets 79,456 121,003 110,223
Total Assets 5,165,457 4,143,950 3,151,927
Current Liabilities:
Accounts Payable 39,320 22,822 15,193
Current Portion LT Debt 279,073 220,334 183,947
Other Current Liabilities 339,677 275,854 226,011
Total Current Liabilities 834,535 647,026 531,950
Long Term Debt 2,024,774 1,387,498 897,359
Other Liabilities 0 0 0
Total Liabilities 3,236,953 2,366,869 1,757,320
Stockholder Equity:
Common Stock 7 7 7
Retained Earnings 1,625,481 1,484,239 1,063,633
Capital Surplus -1,193 -1,464 -1,345
Total Stockholder Equity 1,928,504 1,777,081 1,394,607
Spirit Airlines, Inc. (SAVE) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 3.0000 P/E Ratio > 5? 0.0000
P/E Ratio Vs Growth Rate: -2.0670 Forward P/E Ratio < 28? 3.0000
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 1.0000
Sales < $1 Billion? 0.2611 Operating Margin < 7.5%? 0.5535
Balance Sheet Tests:
Debt/Equity < 0.40? 0.2542 Long-Term Debt Service: 0.9525
LTD Being Reduced? -3.0000 Short-Term Debt Service: 0.0000
Current Ratio > 2? 0.8061 Working Capital >= 1.5? 0.9428
Leverage Ratio < 20%? 0.1329 Debt/Assets < 1? 2.5511
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 1.0000
Share Equity Increase: 2.3595 Market Cap.< 1.5 Billion? 1.6921
Intangibles < 3% Assets? 3.0000
Income Tests:
Profit Margin < 7.5%? 1.1666 EPS Annual Growth > 10%? 0.0465
Dividend Yield > 2.0%? 0.0000 EPS 3-yr Growth > 15? 0.1882
Enterprise Value/Revenue 0.2317 EPS Growth Consistent? 0.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 3.0000
EPS Qrtly Growth > 10%? -0.0085 Gross Pft/Cur. LTD > 1? 3.0000
Borrowing Int. Rate < 6%? 1.3669
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 1.0400 % Held by Institut. < 50? 0.4904
50 Da MA > 200 Da MA? -3.0000 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: -1.4617 Short Ratio > 5? 0.2640
Price/Book Value < 3? 3.0000 Short % of Float > 20? 0.0000
Return on Assets > 17%? 0.3129 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: -3.0000 Positive Free Cash Flow? -1.0000
Positive Oper. Cash Flow? 3.0000 Price to C.F.Ratio < 14?: 3.0000
Cash Flow / Assets > 10%? 1.6344
SAVE Spirit Airlines, Inc. Overall Zenith Index: 1.0351
Financial Statements |
SPIRIT AIRLINES INC (SAVE) INCOME STATEMENT Fiscal year ends in December. USD in thousand 2015-12 2016-12 2017-12 2018-12 2019-12 TTM Revenue 2,141,463 2,321,956 2,647,666 3,323,034 3,830,536 3,830,536 Cost of revenue 1,336,621 1,473,101 1,780,638 2,357,082 2,666,220 2,666,220 Gross profit 804,842 848,855 867,028 965,952 1,164,316 1,164,316 Operating expenses Sales, General and administrative 86,576 96,627 113,620 137,001 153,770 153,770 Other operating expenses 206,867 267,191 347,820 379,536 491,432 491,432 Total operating expenses 293,443 363,818 461,440 516,537 645,202 645,202 Operating income 511,399 485,037 405,588 449,415 519,114 519,114 Interest Expense 8,829 28,949 43,509 73,936 77,948 77,948 Other income (expense) -167 -36,628 -8,427 -170,503 -4,740 -4,740 Income before taxes 502,403 419,460 353,652 204,976 436,426 436,426 Provision for income taxes 185,183 154,581 -66,954 49,227 101,171 101,171 Net income from continuing operations 317,220 264,879 420,606 155,749 335,255 335,255 Net income 317,220 264,879 420,606 155,749 335,255 335,255 Net income available to common shareholders 317,220 264,879 420,606 155,749 335,255 335,255 Earnings per share Basic 4.39 3.77 6.08 2.28 4.90 4.90 Diluted 4.38 3.76 6.06 2.28 4.89 4.89 Weighted average shares outstanding Basic 72,208 70,344 69,221 68,249 68,429 68,429 Diluted 72,426 70,508 69,377 68,431 68,559 68,559 ____________________________________________________________________________________________________________________________________________ SPIRIT AIRLINES INC (SAVE) BALANCE SHEET Fiscal year ends in December. USD in thousand 2015-12 2016-12 2017-12 2018-12 2019-12 Assets Current assets Cash Short-term investments 0 100,155 100,937 102,789 105,321 Total cash 803,632 801,055 901,786 1,107,522 1,084,278 Receivables 28,266 41,136 49,323 47,660 73,807 Prepaid expenses 194,442 133,654 259,307 190,284 206,345 Other current assets 0 0 69,844 0 21,013 Total current assets 1,026,340 975,845 1,280,260 1,345,466 1,385,443 Non-current assets Property, plant and equipment Gross property, plant and equipment 909,741 1,587,731 2,446,276 3,448,876 5,392,304 Accumulated Depreciation -65,524 -122,509 -207,808 -332,864 -492,447 Net property, plant and equipment 844,217 1,465,222 2,238,468 3,116,012 4,899,857 Other long-term assets 659,988 710,860 625,222 703,979 758,112 Total non-current assets 1,504,205 2,176,082 2,863,690 3,819,991 5,657,969 Total assets 2,530,545 3,151,927 4,143,950 5,165,457 7,043,412 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 49,637 84,354 115,430 163,557 258,852 Capital leases 24,014 10,378 16,992 15,149 141,318 Accounts payable 17,043 15,193 22,822 39,320 43,601 Taxes payable 38,254 42,064 42,036 60,604 65,312 Accrued liabilities 120,461 173,569 203,342 263,924 287,553 Deferred revenues 216,831 206,392 246,404 291,981 315,408 Total current liabilities 466,240 531,950 647,026 834,535 1,112,044 Non-current liabilities Long-term debt 596,693 897,359 1,387,498 2,024,774 1,960,453 Capital leases 0 0 0 0 1,218,014 Deferred taxes liabilities 221,481 308,143 313,140 355,141 469,292 Deferred revenues 20,821 19,868 19,205 22,503 22,277 Total non-current liabilities 838,995 1,225,370 1,719,843 2,402,418 3,670,036 Total liabilities 1,305,235 1,757,320 2,366,869 3,236,953 4,782,080 Stockholders' equity Common stock 7 7 7 7 7 Additional paid-in capital 544,277 551,004 360,153 371,225 379,380 Retained earnings 798,754 1,063,633 1,484,239 1,625,481 1,955,187 Treasury stock -116,182 -218,692 -65,854 -67,016 -72,455 Accumulated other comprehensive income -1,546 -1,345 -1,464 -1,193 -787 Total stockholders' equity 1,225,310 1,394,607 1,777,081 1,928,504 2,261,332 Total liabilities and stockholders' equity 2,530,545 3,151,927 4,143,950 5,165,457 7,043,412 ____________________________________________________________________________________________________________________________________________ SPIRIT AIRLINES INC (SAVE) Statement of CASH FLOW Fiscal year ends in December. USD in thousand 2015-12 2016-12 2017-12 2018-12 2019-12 TTM Cash Flows From Operating Activities Net income 317,220 264,879 420,606 155,749 335,255 335,255 Depreciation & amortization 73,908 101,136 140,152 176,727 225,264 225,264 Investments losses (gains) 2,334 0 0 0 0 0 Deferred income taxes 155,614 86,146 -1,610 46,303 115,689 115,689 Stock based compensation 9,222 7,105 8,522 11,021 8,154 8,154 Change in working capital -88,094 -33,336 -167,833 7,978 -300,638 -300,638 Accounts receivable -5,592 -12,951 -8,134 1,674 -26,147 -26,147 Prepaid expenses -32,101 26,409 -37,930 14,019 23,884 23,884 Accounts payable 2,706 -6,823 6,030 15,317 569 569 Other working capital -53,107 -39,971 -127,799 -23,032 -298,944 -298,944 Other non-cash items 2,781 47,748 25,403 108,685 25,497 25,497 Net cash provided by operating activities 472,985 473,678 425,240 506,463 409,221 409,221 Cash Flows From Investing Activities Investments in property, plant, and equipmen -548,800 -541,122 -628,881 -606,971 -192,437 -192,437 Property, plant, and equipment reductions 0 50 0 11,400 0 0 Purchases of investments 0 -103,258 -107,246 -124,430 -122,410 -122,410 Sales/Maturities of investments 0 2,842 105,906 122,947 120,830 120,830 Other investing activities -152,482 -184,781 -161,782 -186,654 -120,812 -120,812 Net cash used for investing activities -701,282 -826,269 -792,003 -783,708 -314,829 -314,829 Cash Flows From Financing Activities Debt issued 544,080 417,275 629,725 832,099 225,891 225,891 Debt repayment -26,364 -64,421 -102,738 -342,995 -343,330 -343,330 Common stock repurchased -112,261 -102,510 -46,580 -1,162 -5,439 -5,439 Other financing activities -6,310 -485 -13,695 -6,813 2,710 2,710 Net cash provided by (used for) financing 399,145 249,859 466,712 481,129 -120,168 -120,168 Net change in cash 170,848 -102,732 99,949 203,884 -25,776 -25,776 Cash at beginning of period 632,784 803,632 700,900 800,849 1,004,733 1,004,733 Cash at end of period 803,632 700,900 800,849 1,004,733 978,957 978,957 Free Cash Flow Operating cash flow 472,985 473,678 425,240 506,463 409,221 409,221 Capital expenditure -558,959 -551,956 -641,186 -615,700 -203,211 -203,211 Free cash flow -85,974 -78,278 -215,946 -109,237 206,010 206,010 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(SAVE) Spirit Airlines Inc.
2015 2016 2017 2018 2019
Annual Earnings: 4.38 3.76 5.99 2.28 4.89
Average Price During Year: 62.87 44.31 47.53 42.92 48.05
P/E Ratio: 14.35 11.78 7.93 18.82 9.83
Average 5-Year P/E Ratio = 12.54
Current Price = 12.57
Previous 5 Quarter Earnings: 1.34 0.82 1.67 1.22 1.18
Current Annualized (Last Four Quarters) Earnings = 4.07
________
Average PE / Current PE = 4.06
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Ownership:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for SPIRIT AIRLINES:
Symbol? save
Total Months Available: 11
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
55.21 0.00 40.90 32.97 47.50 7.01
RANGE = 55.21 TO 0.00 Close = 12.95
CHANNEL = 40.90 TO 32.97 Degree = 1
Volatility = 61.24% Index = 6
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
5 out of 8 favorable, (positive opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor an upmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | + 1 |
| Industry | - 1 |
| Bond Issue | + 1 |
| Zenith Index | - 1 |
| Non-GAAP vs. GAAP Earnings | - 1 |
| Cash Flow | - 1 |
| Average to Current P/E | + 1 |
| Ratios | - 1 |
| Intrinsic Value DCF | + 1 |
| Fair Value Estimator | + 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | + 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | + 1 |
| MACD Histogram Divergence | + 1 |
| Val Idea | + 1 |
| Stock Consultant | - 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 1 |
Place 2,410 shares of Spirit Airlines, Inc. (SAVE) on the Active List.
