Frontier Group Holdings, Inc.

Frontier is an ultra-low-cost carrier that posted operating and net losses with negative operating cash flow and weak liquidity.

Strengths

• Genuine cost advantage from the most fuel-efficient major U.S. fleet and a disciplined ULCC model
• Experienced leadership and ancillary/loyalty initiatives (premium seats, co-brand card) to lift unit revenue

Risks

• Loss year: net margin -3.7%, operating margin -4%, ROE -27.9%, and negative operating cash margin (-14%)
• Thin liquidity (current ratio 0.46), fuel-price and capacity exposure, and intense ULCC fare competition

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -3.7%)
• Weak liquidityCurrent ratio 0.46 (<1)
• Strong balance sheetStrong balance sheet — $671M cash & investments