Last Updated: 18 Sep 2024
Executive Summary
Air Transport Services Group Inc. (ATSG) is a leading provider of aircraft leasing and air cargo transportation services. The company has a strong financial position with a market capitalization of $1.03 billion and an EBITDA of $464.79 million. ATSG's trailing P/E ratio of 52.4 is relatively high, but its forward P/E ratio of 11.9 is attractive. The company's stock price has underperformed the market in recent months, but analysts are bullish on its long-term prospects.
Company Overview
Air Transport Services Group Inc. is headquartered in Wilmington, Ohio. The company was founded in 1985 and has grown to become one of the largest aircraft leasing and air cargo transportation companies in the world. ATSG operates a fleet of over 100 aircraft and provides services to a wide range of customers, including airlines, freight forwarders, and government agencies.
Fundamental Analysis
ATSG's financial performance has been strong in recent years. The company's revenue has grown by an average of 10% per year over the past five years. In 2023, ATSG reported revenue of $2.01 billion and net income of $190.7 million. The company's profit margin is relatively low, but its operating margin is healthy. ATSG's return on assets and return on equity are also respectable.
Technical Analysis
ATSG's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold. However, the moving average convergence divergence (MACD) is positive, which suggests that the stock could be due for a rebound.
Short Term Outlook
ATSG's stock price is likely to remain volatile in the short term. The company's earnings are expected to decline in the next quarter due to the impact of the COVID-19 pandemic. However, analysts are optimistic about the company's long-term prospects.
Long Term Outlook
ATSG is well-positioned to benefit from the growth of the air cargo market. The company's fleet of modern aircraft and its strong customer relationships are key competitive advantages. ATSG is also expected to benefit from the growth of e-commerce.
Analyst Recommendations
Analysts are bullish on ATSG's long-term prospects. The consensus price target for the stock is $20.8, which represents a potential upside of over 30%. Two analysts have a strong buy rating on the stock, one analyst has a buy rating, and two analysts have a hold rating. No analysts have a sell or strong sell rating on the stock.
