Is Republic Airways Holdings Inc. (RJET)’s Stock Destined for Greatness?

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Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Republic Airways Holdings Inc. (NASDAQ:RJET) fit the bill? Let’s take a look at what its recent results tell us about its potential for future gains.

Republic Airways Holdings Inc. (NASDAQ:RJET)

What we’re looking for
The graphs you’re about to see tell Republic’s story, and we’ll be grading the quality of that story in several ways:

  • Growth: are profits, margins, and free cash flow all increasing?
  • Valuation: is share price growing in line with earnings per share?
  • Opportunities: is return on equity increasing while debt to equity declines?
  • Dividends: are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let’s take a look at Republic’s key statistics:

Is Republic Airways Holdings Inc. (RJET)' Stock Destined for Greatness?RJET Total Return Price data by YCharts

Passing Criteria 3-Year* Change Grade
Revenue growth > 30% 42.8% Pass
Improving profit margin 100.8% Pass
Free cash flow growth > Net income growth 152.2% vs. 5,800% Fail
Improving EPS 618.9% Pass
Stock growth (+ 15%) < EPS growth 68.5% vs. 618.9% Pass

Source: YCharts.
*Period begins at end of Q1 2010.

RJET Return on Equity data by YCharts

Passing Criteria 3-Year* Change Grade
Improving return on equity 5,820% Pass
Declining debt to equity (31.1%) Pass

Source: YCharts.
*Period begins at end of Q1 2010.





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