ALGT - Embedded Expectations Analysis - 2020 08 27
Allegiant Travel Company (ALGT:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 278.4x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about their cash burn rate outlook, business model, and used aircraft marketSpecifically, management may lack confidence in their ability to stay within their cash burn rate outlook, trade in the used aircraft market, and adjust their route network given the dramatic reduction in demand. In addition, they may be exaggerating their willingness and creativity to adapt and their business model's earning power and flexibility. Moreover, they may have concerns about continuing their purchase of aircrafts, the effectiveness of their Airbus aircraft storage program, and further non-cash impairments
Allegiant Travel is a travel company. The company's travel services and products are: scheduled service air transportation, which provides scheduled air transportation on flights mainly between cities and other destinations; ancillary air-related products and services, which provides unbundled air-related services and products in conjunction with air transportation; third party products and services, which provides third party travel products such as hotel rooms and ground transportation for sale to its passengers; and fixed fee contract air transportation, which provides air transportation through fixed fee agreements and charter service on a year-round and ad-hoc basis.
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