Company Overview
Sun Country Airlines Holdings, Inc. functions as an air carrier company that operates scheduled passenger, air cargo, charter air transportation, and related services across the United States, Latin America, and international destinations. The company executes its operations through two distinct segments, Passenger and Cargo, while also providing aircraft services. It operates within the Industrials sector and specifically within the Airlines industry, a classification that positions the firm as a provider of essential mobility infrastructure and logistics solutions. The company holds a market capitalization of $883.24M and reported annual revenue of $1.13B TTM, supporting a workforce of 3,281 employees. These valuation and revenue figures indicate that Sun Country Airlines maintains a mid-cap profile within the airline industry, reflecting a scale that is significant enough to sustain complex operations but remains sensitive to broader economic fluctuations typical of the sector.
Financial Health
The company reported a revenue of $1.13B TTM with a net income of $52.81M and an EBITDA of $201.34M, revealing a substantial gap between pre-tax earnings and bottom-line profit. This disparity highlights a cost structure where significant expenses, such as interest, taxes, and non-operating costs, consume a large portion of the operating earnings before reaching net income. Sun Country Airlines generated free cash flow of $25.08M, which provides a baseline measure of the cash remaining after capital expenditures and operating costs, offering a degree of financial flexibility despite the high operating leverage inherent in aviation. The firm's margins illustrate its profitability profile, with a gross margin of 31.1%, an operating margin of 6.5%, and a profit margin of 4.7%. The gross margin of 31.1% indicates the efficiency of core operations relative to direct costs, while the operating margin of 6.5% reflects overhead management, and the profit margin of 4.7% shows the final ability to convert revenue into net earnings. On the balance sheet, the company holds $234.31M in cash against $591.83M in debt, resulting in a debt-to-equity ratio of 94.67, which indicates a leveraged capital structure common in the capital-intensive airline industry. The current ratio stands at 0.82, suggesting that short-term assets are currently insufficient to cover short-term liabilities without relying on cash flow generation or asset liquidation. Return on Equity is 8.8% and Return on Assets is 3.9%, metrics that reveal management's effectiveness in generating profits from shareholder equity and total assets respectively, with the lower ROA reflecting the asset-heavy nature of the business.
Valuation Assessment
The stock carries a P/E Ratio (TTM) of 17.29 and a Forward P/E of 7.68, implying that the market expects a significant improvement in earnings in the future compared to historical performance. The forward P/E of 7.68 is substantially lower than the trailing P/E of 17.29, which suggests analysts anticipate a sharp contraction in earnings or a re-rating of the stock to a much cheaper multiple relative to current income. The price-to-book ratio is 1.41, indicating that the market values the company at a 41% premium over its net asset value, reflecting intangible factors like brand and route networks. Additional valuation metrics include a price-to-sales ratio of 0.78 and an EV/EBITDA of 5.99, figures that suggest the stock is priced at less than one dollar of sales and offers a low multiple relative to cash-flow generation. The 52-week high is $22.29 and the 52-week low is $8.10, providing a context for price volatility and trading range. Without the current price explicitly stated in the source facts, the relative position cannot be calculated; however, the wide range between the high and low demonstrates significant price movement over the past year. The beta value is 1.56, indicating that the stock is expected to be 56% more volatile than the broader market, amplifying both gains and losses during periods of market turbulence.
Growth & Income
Revenue growth (YoY) stands at 7.9% while earnings growth (YoY) is -37.9%, demonstrating that earnings are contracting significantly faster than revenue expansion. This divergence implies that cost pressures, margin compression, or one-time charges are impacting profitability disproportionately to top-line growth in the most recent period. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the firm reinvests all available earnings back into the business rather than distributing income to shareholders. This approach is typical for airlines in a growth or recovery phase, prioritizing fleet maintenance, fleet expansion, or debt reduction over cash distributions. The overall growth and income profile is characterized by strong revenue expansion coupled with significant earnings contraction and a complete lack of dividend distribution, presenting a high-risk, high-reward scenario dependent on future margin stabilization.