The average target price of SKYH is 16 and suggests 50% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 25.0. This translates into 129% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 13.5. This suggests 24% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Sky Harbour Group Corporation operates as an aviation infrastructure development company in the United States. It develops, leases, and manages general aviation hangars for business aircraft. The company was founded in 2017 and is based in White Plains, New York.

Sky Harbour Group Corporation

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

SKYH reported revenue of USD 18mn in the last 12 months, up 22% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 32% from FY24 to USD -1.23. Market expects EPS to reach USD -1.04 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. When measured against its worldwide peers from the same industry (as shown above), the stock has been weaker, underperforming by 20ppts. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months it exceeded the performance of this peer group by 8ppts and its growth decelerated by 9ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Historically, SKYH has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -182.0%, a growth from -258.8% in FY23. 

Sky Harbour Group Corporation reported a return on equity (RoE) of -39.0% in the last 12 months, down from -28.3% in FY23. The market consensus projects an RoE of -36.9% in FY24, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -7.0%, below the peers. The consensus estimate for FY24 for RoCE is -8.4%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to -6.8% in the last 12 months, a decrease from -4.9% in FY23. The market analysts predict that RoA will be -6.3% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -1.4 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

SKYH has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to slow historical revenue growth, negligible return on capital, excessive margin volatility, inadequate interest coverage, and an unfavourable capital structure. We note robust profitability, among the positive credit factors. 

In highly turbulent market conditions, SKYH is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, SKYH is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. 

Sky Harbour Group Corporation

$ 11.42

2

Sky Harbour Group Corporation

$ 11.42

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 11.42

About

About

Sky Harbour Group Corporation

$ 11.42

2

Sky Harbour Group Corporation

$ 11.42

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 11.42

About

About

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