One of the cheapest stocks in our all All Investable – Stock Screener and the cheapest airline stock is Hawaiian Holdings, Inc. (NASDAQ:HA).
Hawaiian Holdings, Inc. (Hawaiian) is the parent company for its subsidiary, Hawaiian Airlines, Inc.
Hawaiian Airlines is now in its 88th year of continuous service, Hawaiian is Hawaii’s biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. Mainland. Hawaiian offers non-stop service to Hawaii from more U.S. gateway cities (11) than any other airline, along with service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of more than 200 daily flights system-wide. For those who may be passengers of such flights, they can read this guide if they run into some flight concerns.
If you’re planning a trip to Hawaii, it’s always a good idea to do some research and read product reviews before booking tours or activities. With so many options available, it can be overwhelming to decide which ones are worth your time and money. Luckily, there are plenty of resources available online where you can read reviews from other travelers who have tried these activities themselves. This can help you make more informed decisions and ensure that you have the best possible experience during your visit to the islands. And when it comes to getting there, Hawaiian Airlines is a great choice for reliable and convenient air travel to Hawaii.
A quick look at the company’s share price over the past twelve month shows that the price is up 26% to $50.30, 31% off its week two week low.
(Source, Google Finance)
Hawaiian is well positioned for continued growth in 2017. The company has clearly transformed itself over the past 10 years by investing in new aircraft and new routes. There’s no question that delivery of the company’s first 3 A321neos, completion of its new maintenance hanger and re-configuration of its A330 cabins will further enhance the company’s ability to compete strongly while reducing costs.
Hawaiian continues to enjoy a strong competitive positive thanks to demand for leisure travel and its strategic geographic location in Hawaii. The company should see further revenue increases due to a strengthening yen and its new Tokyo routes.
Hawaiian is doing a great job of locking in long terms contracts with all of its staff, having recently announced a tentative agreement with the Air Line Pilots Association (ALPA). This comes off the back of its 2016 agreements with three labor unions representing more than 2,200 employees and its current negotiations with the Association of Flight Attendants.
The company is well managed with strong earnings growth, margin expansion, solid free cash flow and a strengthening balance sheet. In terms of its valuation, Hawaiian is currently trading on a P/E of 11.08 compared to its 5Y average of 15.4, a P/S of 1.08, a FCF/Price Yield of 9% (ttm), and an Acquirer’s Multiple of 5.06, or 5.06 times Operating Earnings*, which means Hawaiian is currently undervalued.
You can get our full analysis on Hawaiian Holdings at ValueWalk here.
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