AIM:JET2

Stock Analysis Report

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Market Cap

UK£2.7b

Last Updated

2021/07/31 17:52 UTC

Data Sources

Company Financials +

Executive Summary

Jet2 plc, together with its subsidiaries, engages in leisure travel business in the United Kingdom. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Jet2's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JET2 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: JET2's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

8.4%

JET2

6.6%

GB Airlines

0.3%

GB Market


1 Year Return

92.0%

JET2

63.0%

GB Airlines

22.5%

GB Market

Return vs Industry: JET2 exceeded the UK Airlines industry which returned 30.7% over the past year.

Return vs Market: JET2 exceeded the UK Market which returned 22.4% over the past year.


Shareholder returns

JET2IndustryMarket
7 Day8.4%6.6%0.3%
30 Day1.8%-1.1%-0.7%
90 Day-16.8%-11.4%1.5%
1 Year92.0%92.0%63.0%63.0%27.8%22.5%
3 Year37.4%34.6%-16.3%-20.4%13.3%0.9%
5 Year161.6%151.2%44.3%27.4%39.6%13.2%

Long-Term Price Volatility Vs. Market

How volatile is Jet2's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jet2 undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JET2 (£12.42) is trading below our estimate of fair value (£26.13)

Significantly Below Fair Value: JET2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JET2 is unprofitable, so we can't compare its PE Ratio to the Global Airlines industry average.

PE vs Market: JET2 is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JET2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JET2's PB Ratio (2.4x) is in line with the GB Airlines industry average.


Future Growth

How is Jet2 forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

91.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JET2 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: JET2 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: JET2's is expected to become profitable in the next 3 years.

Revenue vs Market: JET2's revenue (59.9% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: JET2's revenue (59.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JET2's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Jet2 performed over the past 5 years?

-35.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JET2 is currently unprofitable.

Growing Profit Margin: JET2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JET2 is unprofitable, and losses have increased over the past 5 years at a rate of 35.6% per year.

Accelerating Growth: Unable to compare JET2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JET2 is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (2.5%).


Return on Equity

High ROE: JET2 has a negative Return on Equity (-31.06%), as it is currently unprofitable.


Financial Health

How is Jet2's financial position?


Financial Position Analysis

Short Term Liabilities: JET2's short term assets (£1.5B) exceed its short term liabilities (£858.2M).

Long Term Liabilities: JET2's short term assets (£1.5B) exceed its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: JET2's debt to equity ratio (78.4%) is considered high.

Reducing Debt: JET2's debt to equity ratio has increased from 28.4% to 78.4% over the past 5 years.

Debt Coverage: JET2's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if JET2's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Jet2 current dividend yield, its reliability and sustainability?

0.73%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate JET2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate JET2's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JET2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JET2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JET2 is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JET2's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Steve Heapy (52 yo)

0.75

Tenure

UK£835,000

Compensation

Mr. Stephen Paul Heapy, also known as Steve, has been Chief Executive Officer at Jet2holidays Ltd. since November 30, 2009 and served as Managing Director. Mr. Heapy serves as Chief Executive Officer of Je...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.16M) is below average for companies of similar size in the UK market ($USD1.71M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: JET2's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: JET2's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: JET2 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.


Top Shareholders

Company Information

Jet2 plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jet2 plc
  • Ticker: JET2
  • Exchange: AIM
  • Founded: 1971
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£2.665b
  • Shares outstanding: 214.62m
  • Website: https://www.jet2plc.com

Number of Employees


Location

  • Jet2 plc
  • Low Fare Finder House
  • Leeds Bradford International Airport
  • Leeds
  • West Yorkshire
  • LS19 7TU
  • United Kingdom

Listings


Biography

Jet2 plc, together with its subsidiaries, engages in leisure travel business in the United Kingdom. The company operates scheduled holiday flights to leisure destinations in the Mediterranean, the Canary I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 17:52
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.