Alaska Air Group, Inc.

Worth knowing

• Profit growing, cash flow isn't. Profit +72% since 2022 (an unusually weak year for profit), operating cash flow −12%.Profit +72% since 2022, operating cash flow −12%.

  Alaska Air's reported profit rose 72% since 2022, but the cash its operations generate changed −12%. When profit and cash diverge like this, it's worth understanding why (for example, customers paying more slowly or gains that aren't cash).Alaska Air's reported profit rose 72% since 2022, but the cash its operations generate changed −12%. When profit and cash diverge like this, it's worth understanding why.

• Earnings slid into a loss. Loss per share this year after a profit last year.

  Alaska Air made a loss per share in its latest year after a profit the year before.

• Valuation signals disagree. Cheaper than 56% of peers on operating cash profit (EBITDA), but only 0% on earnings.Cheaper than 56% of peers on operating cash profit, but only 0% on earnings.

  Relative to its operating cash profit (EBITDA), Alaska Air looks cheaper than 56% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.Relative to its operating cash profit, Alaska Air looks cheaper than 56% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

• Profit recovered from an unusually weak 2022. Since 2022 (an unusually weak year for operating profit): revenue +48%, operating profit +333%.Since 2022: revenue +48%, operating profit +333%.

  Since 2022, Alaska Air's revenue grew 48% while operating profit grew 333%: each extra dollar of sales is adding more profit.