Sky Harbour: Do The Return On CapEx Math Before You Buy (Archive, Full Access)
Strong demand, but weak CapEx returns, heavy funding needs, dilution risk, and rich valuation.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.
Elevator Pitch
- Sky Harbour Group Corporation benefits from strong U.S. business aviation demand and constrained hangar supply at airports.
- Occupancy and occupied square footage are rising quickly, driving rapid SKYH growth in lease and fuel revenue.
- CapEx per campus is high, and implied gross profit yields on incremental CapEx look unappealing.
- Funding the 50-campus plan likely requires heavy debt and a large equity raise with material dilution.
- SKYH stock trades at a premium 1-yr fwd EV/Revenue multiple versus REIT-like peers, and the charts' breakout status is not confirmed.
Read the full article here.
