Allegiant Travel Company (ALGT) AI Stock Analysis

Allegiant Travel Company is a leisure travel provider specializing in services for residents in underserved cities across the United States. Founded in 1997 and headquartered in Las Vegas, Nevada, the company operates scheduled nonstop flights on limited-frequency routes between these cities and popular leisure destinations. As of February 1, 2023, Allegiant operated a fleet of 122 Airbus A320 series aircraft. In addition to air travel, the company offers unbundled services including baggage fees, advance seat assignments, priority boarding, and onboard food and beverage. It also sells third-party travel products such as hotel accommodations and rental cars, and provides charter air services.

Allegiant achieved a five-year revenue CAGR of 21.4% from FY2020 to FY2025. Annual revenue rose from $1.71B in FY2021 to $2.30B in FY2022, $2.51B in FY2023, and $2.61B in FY2025. Profitability has shown significant variance over this period. Net income moved from $151.9M in FY2021 to -$240.2M in FY2024 and -$44.7M in FY2025. In FY2025, operating margin was 6.7% alongside a gross margin of 15.4%. Across the trailing twelve months, revenue reached $2.89B with an operating margin of 9.2% and EPS of $1.17. For the latest quarter ended June 30, 2026, quarterly revenue increased 36.9% year-over-year while quarterly earnings expanded 32.6%.

As of June 30, 2026, Allegiant held $1.05B in cash and short-term investments against total debt of $2.85B, resulting in net debt of $1.80B. Shareholders' equity was $1.78B, resulting in a debt-to-equity ratio of 1.60 and a current ratio of 0.83. Total assets stood at $6.44B. During FY2025, operating cash flow reached $389.8M and free cash flow was $75.1M. Capital allocation in FY2025 included $314.7M for capital expenditures and $13.6M dedicated to share buybacks, while the five-year share count increased 28.1%.

Trading at $66.98 as of October 16, 2026, Allegiant holds a market capitalization of $1.83B and an enterprise value of $3.06B. The stock trades at a trailing P/E of 57.2x, higher than the median of 24.8x for its US-listed Industrials peers. In contrast, its forward P/E is 6.4x compared to the peer median of 17.2x. The enterprise value-to-EBITDA ratio is 17.0x versus the peer median of 13.9x. Over the past year, the stock returned 2.1%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, ALGT returned -63.5% compared to 83.0% for the S&P 500.

Consensus coverage includes 9 Strong Buy, 2 Buy, and 3 Hold ratings, with no Sell or Strong Sell ratings. The mean price target of $117.43 implies an upside of 75.3% over the last close of $66.98. For the fiscal year ending December 31, 2026, analysts estimate revenue of $3.72B and EPS of $5.50, reflecting projected EPS growth of 44.9%. For FY2027, 14 analysts project revenue of $4.55B and EPS of $9.85. Allegiant exceeded EPS expectations in 3 of the last 4 quarters, and its next earnings release is scheduled for November 3, 2026.

This page is an AI-written research summary of Allegiant Travel Company (ALGT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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