Last Updated: 15 Sep 2024
Executive Summary
Hawaiian Holdings Inc. (HA) is a leading air transportation provider in the United States, operating under the Hawaiian Airlines brand. Despite recent financial challenges, the company has a strong brand presence, a loyal customer base, and significant growth potential in the Asia-Pacific region.
Company Overview
Hawaiian Holdings, Inc. is headquartered in Honolulu, Hawaii, and operates a fleet of over 60 aircraft. The company provides scheduled passenger and cargo services to destinations within the Hawaiian Islands, the continental United States, and international destinations in Asia and the Pacific.
Fundamental Analysis
Financial Performance: HA reported a net loss of $286.7 million in the latest fiscal year, primarily due to the impact of the COVID-19 pandemic. Revenue grew modestly by 3.5% to $2.77 billion.
Profitability: The company's profit margin remains negative at -0.128%, and its operating margin is also negative at -0.0706%.
Valuation: HA trades at a forward price-to-earnings ratio of 19.8, which is above the industry average. However, the company's low price-to-sales ratio of 0.324 indicates potential undervaluation.
Technical Analysis
Price Action: HA's stock price has been trading within a range of $13.66 to $17.75 over the past year. It currently trades at $17.3, above its 50-day moving average but below its 200-day moving average.
Technical Indicators: The relative strength index (RSI) is at 55, indicating that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) indicator is also neutral.
Short Term Outlook
In the short term, HA's stock price is likely to be influenced by the following factors:
Travel Demand: The recovery of the travel industry from the pandemic will impact HA's earnings.
Fuel Costs: Rising fuel prices could put pressure on the company's profitability.
Competition: HA faces competition from other airlines, including Southwest Airlines and United Airlines.
Long Term Outlook
Over the long term, HA has the potential for significant growth due to:
Strong Brand: Hawaiian Airlines is a well-known and trusted brand in the travel industry.
Expansion Opportunities: The company has plans to expand its international routes, particularly in the Asia-Pacific region.
Tourism Growth: Hawaii is a popular tourist destination, which should drive demand for HA's services.
Analyst Recommendations
Based on the fundamental and technical analysis, most analysts have a "Hold" rating on HA stock. One analyst has a "Buy" rating, while four have a "Hold" rating. The consensus analyst target price is $12.75.
