Last Updated: 17 Oct 2024
Executive Summary
Sun Country Airlines Holdings Inc. (SNCY) is an air transportation company that provides scheduled passenger service, air cargo service, charter air transportation, and related services in the United States, Latin America, and internationally. The company has a market capitalization of $557.11 million, with the latest stock price being $11.51. SNCY's financial performance has been improving, with a profit margin of 4.75% and a return on equity of 9.26%. The company has a strong balance sheet with $10.36 in book value per share. Analysts are bullish on SNCY, with 5 buy ratings and 2 hold ratings. The analyst target price is $17.57.
Company Overview
Sun Country Airlines Holdings Inc. was founded in 1989 and is headquartered in Minneapolis, Minnesota. The company operates a fleet of 50 aircraft and serves over 100 destinations in the United States, Latin America, and internationally. SNCY has a strong brand reputation and is known for its low fares and friendly service.
Fundamental Analysis
SNCY's financial performance has been improving in recent years. The company's revenue increased by 2.6% in 2023 to $1.06 billion. Net income also increased by 14.3% to $50.4 million. SNCY's profit margin has also improved, from 3.9% in 2022 to 4.75% in 2023. The company's return on equity has also improved, from 7.8% in 2022 to 9.26% in 2023.
SNCY has a strong balance sheet with $10.36 in book value per share. The company also has a low level of debt, with a debt-to-equity ratio of 0.34.
Technical Analysis
SNCY's stock price has been trading in a range between $9.22 and $17.56 over the past 52 weeks. The stock price is currently trading near the bottom of this range. The 50-day moving average is $10.55 and the 200-day moving average is $12.53. The relative strength index (RSI) is 34.5, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for SNCY is mixed. The stock price is currently trading near the bottom of its 52-week range and the RSI is oversold. This suggests that the stock could be due for a rebound. However, the company's earnings growth has slowed in recent quarters and the airline industry is facing headwinds from rising fuel costs and labor shortages.
Long Term Outlook
The long-term outlook for SNCY is positive. The company has a strong brand reputation, a loyal customer base, and a low cost structure. The company is also benefiting from the growing demand for air travel. SNCY is expected to continue to grow its revenue and earnings in the long term.
Analyst Recommendations
Analysts are bullish on SNCY, with 5 buy ratings and 2 hold ratings. The analyst target price is $17.57. Analysts believe that SNCY is a good value at its current price and that the company has the potential to continue to grow its revenue and earnings in the long term.
