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Sky Harbour Group (SKYH)
NYSE:SKYH
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Sky Harbour Group
(NYSE:SKYH)
49Neutral
Positive Factors
Expansion
Two new airports have been announced, and guidance on future expansions has been reaffirmed.
Financial Performance
Revenue increased significantly year-over-year due to contributions from more airports.
Market Demand
Demand for private jet aviation hangar space continues to exceed supply, providing a favorable market for the company.
Negative Factors
Valuation
Shares are considered undervalued, now trading at 8.5x the pro forma 2027E EBITDA.
Sky Harbour Group (SKYH) vs. S&P 500 (SPY)
Market Cap
$886.30M
Dividend YieldN/A
Average Volume (3M)187.87K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth94.86%
EPS Growth-78.25%
CountryUS
Employees84
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-1.93
Shares Outstanding33,770,640
10 Day Avg. Volume392,453
30 Day Avg. Volume187,869
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)98.67
Price to Cash Flow (P/CF)-185.40
P/FCF Ratio708.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.00Price Target Upside113.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sky Harbour Group Business Overview & Revenue Model
Company DescriptionSky Harbour Group (SKYH) is a company that specializes in the development and management of private aviation infrastructure, specifically focusing on the creation of private hangar campuses for business aircraft. The company aims to provide innovative solutions for private aviation needs, enhancing the efficiency and accessibility of airport hangar facilities for private aircraft owners and operators. Sky Harbour Group is committed to delivering premium infrastructure services that cater to the unique requirements of the private aviation sector.
How the Company Makes MoneySky Harbour Group makes money primarily through the leasing of private hangar spaces and associated services to aircraft owners and operators. The company develops and manages hangar campuses where clients can lease space for their private aircraft, benefiting from secure, dedicated facilities that provide convenience and privacy. Revenue is generated from long-term lease agreements, service fees for additional amenities, and potentially through strategic partnerships with airports or aviation service providers. The company's ability to attract high-net-worth individuals and corporate clients is a critical factor in driving its earnings.
Sky Harbour Group Financial Statement Overview
Summary
Sky Harbour Group shows promising revenue growth but struggles with profitability and cash flow management. The balance sheet reflects a strong equity position and lack of debt, which enhances financial stability. However, operational inefficiencies and negative profit margins pose significant challenges for future growth and sustainability.Income Statement
Sky Harbour Group has shown a positive revenue growth rate of 94.89% from 2023 to 2024, reflecting an upward trajectory in sales. However, the company struggles with profitability, as indicated by a negative gross profit margin of 5.95% and a net profit margin of -306.38%. The negative EBIT and EBITDA margins further highlight challenges in operational efficiency.32
Negative
Balance Sheet
The company has a strong equity position, with an equity ratio of 18.71% in 2024. The debt-to-equity ratio has improved to 0, indicating no debt, which is a positive sign of financial stability. Despite this, the return on equity is negative at -43.45%, signaling inefficiencies in generating returns on shareholder investments.48
Neutral
Cash Flow
Sky Harbour Group faces challenges with cash flow, as evidenced by a negative free cash flow. While operating cash flow to net income ratio is positive, indicating some alignment between reported income and cash generation, the company needs to improve its free cash flow management to ensure sustainability.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.36M | 14.76M | 7.58M | 1.84M | -2.55B | 685.60K | Gross Profit |
| 2.51M | 879.00K | -1.87M | -3.20M | -2.55B | -1.26M | EBIT |
| -19.71M | -4.64M | -16.99M | -18.51M | -9.28M | -2.14M | EBITDA |
| -47.45M | -1.93M | -22.62M | -11.02M | -9.25M | -2.05M | Net Income Common Stockholders |
| -42.30M | -45.23M | -16.18M | 1.65M | 9.04M | -2.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| -34.81M | 42.44M | 72.12M | 2.17M | 114.63K | -34.81M | Total Assets |
| 52.02M | 556.56M | 402.20M | 331.20M | 139.11M | 52.02M | Total Debt |
| 57.49M | 0.00 | 241.17M | 215.74M | 1.00M | 57.49M | Net Debt |
| 92.30M | -42.44M | 180.91M | 213.57M | 885.37K | 92.30M | Total Liabilities |
| 58.53M | 396.74M | 269.95M | 232.83M | 18.84M | 58.53M | Stockholders Equity |
| -6.51M | 104.10M | 69.16M | 26.28M | 120.27M | -6.51M |
| Cash Flow | Free Cash Flow | ||||
| -23.61M | -9.10M | -63.88M | -73.46M | -17.96M | -12.94M | Operating Cash Flow |
| -8.11M | -9.10M | -7.74M | -27.49M | -1.97M | -1.04M | Investing Cash Flow |
| -10.04M | -43.91M | -16.27M | -187.84M | -42.28K | -11.90M | Financing Cash Flow |
| 55.55M | 75.09M | 54.87M | 52.79M | 1.00M | 11.99M |
Sky Harbour Group Technical Analysis
Positive
11.69
Price Trends
11.24
Positive
11.60
Positive
11.11
Positive
Market Momentum
0.55
Negative
54.39
Neutral
59.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYH, the sentiment is Positive. The current price of 11.69 is above the 20-day moving average (MA) of 11.60, above the 50-day MA of 11.24, and above the 200-day MA of 11.11, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 59.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYH.
Sky Harbour Group Risk Analysis
Sky Harbour Group disclosed 50 risk factors in its most recent earnings report. Sky Harbour Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sky Harbour Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $19.72B | 6.39 | 28.63% | ― | 6.23% | 20.08% | |
70 Outperform | $25.01B | 7.26 | 26.19% | 1.42% | 6.19% | -25.26% | |
68 Neutral | $5.64B | 15.05 | 9.31% | ― | 12.56% | 69.33% | |
67 Neutral | $17.10B | 38.26 | 4.50% | 2.49% | 5.34% | -6.20% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
49 Neutral | $886.30M | ― | -52.21% | ― | 94.86% | -78.25% | |
47 Neutral | $1.47B | ― | -26.60% | ― | -3.50% | -148.99% |
* Industrials Sector Average
Performance Comparison
SKYH
Sky Harbour Group
11.89
0.97
8.88%
ALK
Alaska Air
44.45
1.97
4.64%
DAL
Delta Air Lines
37.25
-8.32
-18.26%
JBLU
JetBlue Airways
3.94
-2.86
-42.06%
LUV
Southwest Airlines
25.87
-1.81
-6.54%
UAL
United Airlines Holdings
57.67
14.48
33.53%
Sky Harbour Group Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -9.17% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive trajectory in revenue growth and strategic expansions with new campus operations. The company is also making strides in cost management and successfully raising capital. However, there are some challenges with increased operating expenses and adjustments in debt service coverage expectations. Overall, the company is on a positive growth path with strategic planning to mitigate upcoming challenges.Highlights
Revenue Growth
Revenues experienced an increase of 13% sequentially over Q3, with consolidated revenues doubling over those from 2023.
Asset Expansion
Assets under construction and completed construction accelerated, reaching over $250 million as of year-end.
New Campus Operations
The company began operations at new campuses in Phoenix and Dallas, with Denver expected to commence in the next month.
Successful Equity and Bond Initiatives
Raised approximately $75 million from a PIPE equity placement and in compliance with bond covenant requirements, positioning for a future bond issuance.
Cost Containment Efforts
Efforts to reduce costs through national procurement and in-house manufacturing via RapidBuilt have started to bear fruit, saving approximately $32 to $33 per square foot.
Lowlights
Increased Operating Expenses
Operating expenses increased due to hiring for new campuses and noncash accrual of ground lease expenses, which amounted to over $1.4 million in Q4.
Debt Service Coverage Ratios
Projected debt service coverage for 2025 was adjusted down to 1.36 from a previously projected over 3x, though still above the required 1.25.
Material Cost Increases
The company faced macroeconomic pressures with steel price hikes due to tariffs, although they managed to hedge against immediate impacts.
Company Guidance
In the Sky Harbour 2024 Year-End Earnings Call, the company provided guidance on several key metrics for the fourth quarter and the full fiscal year. Assets under construction and completed construction accelerated to over $250 million by year-end, driven by activities in Phoenix, Dallas, and Denver. Consolidated revenues increased by 13% sequentially over Q3, with full-year revenues doubling compared to 2023. Operating expenses rose due to staffing for new campuses and non-cash ground lease accruals, particularly the $1.4 million in Q4. The company reaffirmed guidance to reach cash flow breakeven on a consolidated basis by Q4 2024. Additionally, they highlighted the introduction of adjusted EBITDA as a performance metric, reflecting non-cash items like ground lease expenses and share-based compensation. Looking ahead, Sky Harbour anticipates significant revenue growth from new campus openings and plans further debt issuance, aiming to secure investment-grade ratings for existing bonds.Sky Harbour Group Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Sky Harbour Group’s Successful Equity Raise and Expansion
Positive
Dec 23, 2024
Sky Harbour Group Corporation has successfully completed the second closing of its equity raise, issuing 3,955,790 additional shares for net proceeds of approximately $37.6 million, bringing the total from both closings to about $75.2 million. The combined funds, along with expected private debt financing and existing cash, will support the development of new airport campuses, expanding Sky Harbour’s portfolio to 23 airports by the end of 2025, demonstrating strong investor interest and strategic growth in the business aviation sector.
Business Operations and Strategy
Sky Harbour Group Expands with Trenton-Mercer Lease
Positive
Dec 19, 2024
Sky Harbour Group Corporation has signed a 30-year ground lease agreement with Mercer County for the development of a Home Base campus at Trenton-Mercer Airport, spanning approximately 10 acres. This initiative is expected to boost the local economy by creating or sustaining hundreds of jobs and offering state-of-the-art facilities for business jets, further strengthening Trenton-Mercer Airport’s role as a key business aviation hub in the region.
Delistings and Listing Changes
Sky Harbour Group Uplists to New York Stock Exchange
Positive
Dec 17, 2024
Sky Harbour Group Corporation announced its approval for uplisting from the NYSE American to the New York Stock Exchange, with trading under the same ticker symbols to commence on January 27, 2025. This strategic move is expected to enhance the company’s visibility, expand its investor base, and increase stockholder liquidity, reflecting the company’s growth and stability in the aviation infrastructure sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.