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JET2

Jet2 AIM:JET2 Stock Report

Last Price

UK£9.02

Market Cap

UK£2.0b

7D

-7.4%

1Y

-28.1%

Updated

04 Jul, 2022

Data

Company Financials +
JET2 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health3/6
Dividends0/6

JET2 Stock Overview

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

Rewards

Trading at 80.3% below our estimate of its fair value

Earnings are forecast to grow 108.17% per year

Risk Analysis

No risks detected for JET2 from our risk checks.

Jet2 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Jet2
Historical stock prices
Current Share PriceUK£9.02
52 Week HighUK£14.34
52 Week LowUK£8.71
Beta2.16
1 Month Change-20.16%
3 Month Change-22.39%
1 Year Change-28.08%
3 Year Change5.83%
5 Year Change43.89%
Change since IPO5,864.96%

Recent News & Updates

Feb 22
Calculating The Intrinsic Value Of Jet2 plc (LON:JET2)

Calculating The Intrinsic Value Of Jet2 plc (LON:JET2)

Today we will run through one way of estimating the intrinsic value of Jet2 plc ( LON:JET2 ) by taking the forecast...

Jan 26
Health Check: How Prudently Does Jet2 (LON:JET2) Use Debt?

Health Check: How Prudently Does Jet2 (LON:JET2) Use Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

JET2GB AirlinesGB Market
7D-7.4%-4.6%-1.1%
1Y-28.1%-53.9%-9.7%

Return vs Industry: JET2 exceeded the UK Airlines industry which returned -53.9% over the past year.

Return vs Market: JET2 underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is JET2's price volatile compared to industry and market?
JET2 volatility
JET2 Average Weekly Movement6.4%
Airlines Industry Average Movement6.5%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

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.

About the Company

FoundedEmployeesCEOWebsite
19719,051Steve Heapyhttps://www.jet2plc.com

Jet2 plc, together with its subsidiaries, engages in the leisure travel business in the United Kingdom. The company operates scheduled holiday flights to leisure destinations in the Mediterranean, the Canary Islands, and European Leisure Cities. It is also involved in the package holiday and non-ticket retail activities, as well as passenger and charter aircraft operations.

Jet2 Fundamentals Summary

How do Jet2's earnings and revenue compare to its market cap?
JET2 fundamental statistics
Market CapUK£1.97b
Earnings (TTM)-UK£366.00m
Revenue (TTM)UK£525.10m

3.7x

P/S Ratio

-5.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
JET2 income statement (TTM)
RevenueUK£525.10m
Cost of RevenueUK£685.50m
Gross Profit-UK£160.40m
Other ExpensesUK£205.60m
Earnings-UK£366.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jul 07, 2022

Earnings per share (EPS)-1.71
Gross Margin-30.55%
Net Profit Margin-69.70%
Debt/Equity Ratio131.6%

How did JET2 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is JET2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JET2?

Other financial metrics that can be useful for relative valuation.

JET2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA-6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does JET2's PS Ratio compare to its peers?

JET2 PS Ratio vs Peers
The above table shows the PS ratio for JET2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
EZJ easyJet
1x18.1%UK£2.7b
WIZZ Wizz Air Holdings
1.3x25.6%UK£1.8b
IAG International Consolidated Airlines Group
0.6x12.1%UK£5.3b
ESKN Esken
0.8x9.9%UK£87.9m
JET2 Jet2
3.7x65.0%UK£1.9b

Price-To-Sales vs Peers: JET2 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the peer average (0.9x).


Price to Earnings Ratio vs Industry

How does JET2's PE Ratio compare vs other companies in the European Airlines Industry?

Price-To-Sales vs Industry: JET2 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the UK Airlines industry average (1x)


Price to Sales Ratio vs Fair Ratio

What is JET2's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JET2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.7x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: JET2 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Share Price vs Fair Value

What is the Fair Price of JET2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JET2 (£9.02) is trading below our estimate of fair value (£45.82)

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


Price to Earnings Growth Ratio

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


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Future Growth

How is Jet2 forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


108.2%

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 is expected to become profitable in the next 3 years.

Revenue vs Market: JET2's revenue (65% per year) is forecast to grow faster than the UK market (4.2% per year).

High Growth Revenue: JET2's revenue (65% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JET2's Return on Equity is forecast to be high in 3 years time (23%)


Discover growth companies

Past Performance

How has Jet2 performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-56.0%

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 56% 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 (61.1%).


Return on Equity

High ROE: JET2 has a negative Return on Equity (-39.67%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Jet2's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: JET2's short term assets (£2.2B) exceed its short term liabilities (£1.3B).

Long Term Liabilities: JET2's short term assets (£2.2B) exceed its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: JET2 has more cash than its total debt.

Reducing Debt: JET2's debt to equity ratio has increased from 23.8% to 131.6% 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


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.26%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as JET2 has not reported any payouts.


Discover strong dividend paying companies

Management

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

8.3yrs

Average management tenure


CEO

Steve Heapy (53 yo)

1.83yrs

Tenure

UK£690,000

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 ($USD835.83K) is below average for companies of similar size in the UK market ($USD2.05M).

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 (8.3 years average tenure).


Board Members

Experienced Board: JET2's board of directors are considered experienced (9.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Jet2 plc
  • Ticker: JET2
  • Exchange: AIM
  • Founded: 1971
  • Industry: Airlines
  • Sector: Transportation
  • Implied Market Cap: UK£1.970b
  • Shares outstanding: 214.62m
  • Website: https://www.jet2plc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/04 00:00
Earnings2021/09/30
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.