Mesa Air

0.13 (1.84%)

NASDAQ:MESA | Last traded on 11-15-2019 4:00 PM

Market Reaction

Offer Price

$12.00

Today Open Price

$7.11

Change Since IPO

Market Cap

$223M

Day High

$7.34

Day Low

$7.11

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Featured Analysis

Mesa Air. Interesting. Small company with good operating numbers. Bad industry. I don't know what to do with this one. I give it a two HIPPO rating as a cop-out because it is making money and the valuation is reasonable, but it does not have tons of scale. Plus, it is in an industry where, had Adam Smith been living when the Wright Brothers had invented the first successful plane, he would have quickly shuffled to Kitty Hawk NC and shot the plane cleanly to the ground. Airlines just don't do well. Then again, there is Southwest Airlines- Hallelullah. I'm rooting for these guys, but I just don't know. Curious as to what you think.

Company Data

Location

Phoenix, AZ

Valuation

$409.5M

-

Founded

1980

Total Shares Offered

34,131,142

-

Employees

3,229

IPO Date

2018-08-10

Background Information

Mesa Airlines, Inc. is a regional airliner based in Phoenix, AZ. It specifically offers passenger transportation. Mesa has been in operation for around 40 years, which allowed it to secure code sharing agreements with United and American Airlines. Mesa filed for chapter 11 bankruptcy in 2010 and reemerged in 2011. Ever since, it has been more active in increasing its fleet of aircraft more than any other regional airliner.

Financial Analysis

Years 2016 2017
Revenue growth -- 10%
Net profit margin 2.5%5%
Valuation -- $410M
Revenue multiple -- 0.6x
Profit multiple --12x

Financial Information

Income Statement ($M) 2016 2017
Revenue588644
Total operating expense531543
EBIT57100
Pretax profit2554
Net Income1533
Balance Sheet ($M) 2016 2017
Total current assets105146
Cash and cash equivalents3857
Total assets1,2831,358
Total current liabilities192218
Total liabilities1,0941,135
Total shareholder equity189222
Total liabilities and equity1,2831,358
Cash Flow Statement ($M) 20162017
Net cash from operating activities 10475
Net cash from investing activities (491)(84)
Net cash from financing activities 36628
Net increase in cash and cash equivalents (21)19