Spirit Airlines, Inc. [NYSE:SAVE]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Spirit Airlines, Inc. [SAVE], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give SAVE an Outperform rating. The average 12-month price forecast for this stock is $73.94, with the high estimate being $98.00, the low estimate being $60.00 and the median estimate amounting to $76.50. This is compared to its latest closing price of $57.06.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Spirit Airlines, Inc. [SAVE] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Sep-18 Spirit Airlines, Inc. [SAVE] generated $0.9 billion in sales. That’s 0.81% higher than the average estimate of $0.9 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 5 Feb (In 26 Days).
Fundamental Analysis of Spirit Airlines, Inc. [SAVE]
Now let’s turn to look at profitability: with a current Operating Margin for Spirit Airlines, Inc. [SAVE] sitting at +15.32 and its Gross Margin at +19.61, this company’s Net Margin is now 10.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 14.34, and its Return on Invested Capital has reached 7.90%. Its Return on Equity is 26.52, and its Return on Assets is 11.43. These metrics all suggest that Spirit Airlines, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Spirit Airlines, Inc. [SAVE] has generated a Total Debt to Total Equity ratio of 84.57. Similarly, its Total Debt to Total Capital is 45.82, while its Total Debt to Total Assets stands at 36.03. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 78.08, and its Long-Term Debt to Total Capital is 42.30. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.12 and its Total Debt to EBITDA Value is 2.75. The Enterprise Value to Sales for this firm is now 1.42, and its Total Debt to Enterprise Value stands at 0.40. Spirit Airlines, Inc. [SAVE] has a Price to Book Ratio of 1.72, a Price to Cash Flow Ratio of 7.32 and P/E Ratio of 13.07. These metrics all suggest that Spirit Airlines, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Spirit Airlines, Inc. [SAVE] earns $389,649 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 33.03 and its Total Asset Turnover is 0.72. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.98 and its Current Ratio is 1.98. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Spirit Airlines, Inc. [SAVE] has 70.38M shares outstanding, amounting to a total market cap of $4.18B. Its stock price has been found in the range of 34.36 to 65.35. At its current price, it has moved by -9.03% from its 52-week high, and it has moved 73.02% from its 52-week low.
This stock’s Beta value is currently 0.44, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.54. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Spirit Airlines, Inc. [SAVE] a Reliable Buy?
Shares of Spirit Airlines, Inc. [SAVE], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.