Frontier Group Holdings Inc. Common Stock (ULCC)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Frontier Group is a low-fare airline serving leisure travelers, with 176 Airbus single-aisle jets and direct distribution. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $3.7B and a net loss of $137.0M, or diluted EPS of -$0.60, after earning $85.0M in fiscal 2024, the year ended 2024-12-31. The latest quarter, fiscal 2026-Q2, showed revenue of $1.3B and a net loss of $90.0M, a -7.04% margin. That is a business with real scale but no consistent profit. Its competitive position is based on low costs and unbundled fares, but airlines rarely have a durable moat; capital intensity and competition can erase thin margins. Financial health is poor: trailing free cash flow is -$126.0M, a -9.8% FCF yield, ROE is -120.25%, and the Altman Z-score is 0.03, which signals significant distress. The balance sheet carries a D/E of 38.54, and beta is 2.57, so the equity is volatile. On valuation, the P/E is -3.32 because EPS is -$1.68, while P/B is 5.75—not a bargain if book value is not earning a return. The Piotroski F-score of 7/9 offers a hint of accounting improvement, and the Lynch-style category is TURNAROUND because it moved from profit to loss. I would want to see several quarters of positive net income and free cash flow before trusting the turnaround. At $5.58, the market is already assigning a $1.3B value to a loss-making airline, so the margin of safety is thin unless losses narrow sharply.

In plain English: Frontier is a low-fare airline that flies leisure travelers in the U.S. and Latin America. It has lost money in its last full year and in the latest quarter, and it is burning cash. At $5.58, the stock does not look cheap compared with its weak profits and losses; it looks like a risky turnaround bet.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer