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JET2

Jet2 AIM:JET2 Stock Report

Last Price

UK£6.93

Market Cap

UK£1.5b

7D

-13.6%

1Y

-47.0%

Updated

01 Oct, 2022

Data

Company Financials +
JET2 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance0/6
Financial Health5/6
Dividends0/6

JET2 Stock Overview

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

Jet2 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Jet2
Historical stock prices
Current Share PriceUK£6.93
52 Week HighUK£14.34
52 Week LowUK£6.79
Beta2.2
1 Month Change-19.98%
3 Month Change-24.51%
1 Year Change-46.96%
3 Year Change-25.48%
5 Year Change21.26%
Change since IPO4,481.82%

Recent News & Updates

Aug 17
Health Check: How Prudently Does Jet2 (LON:JET2) Use Debt?

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

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

JET2GB AirlinesGB Market
7D-13.6%-6.5%-1.7%
1Y-47.0%-51.7%-15.1%

Return vs Industry: JET2 exceeded the UK Airlines industry which returned -51.7% over the past year.

Return vs Market: JET2 underperformed the UK Market which returned -15.1% over the past year.

Price Volatility

Is JET2's price volatile compared to industry and market?
JET2 volatility
JET2 Average Weekly Movement6.7%
Airlines Industry Average Movement6.2%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
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 +/- 7% a week.

Volatility Over Time: JET2's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19718,270Steve 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£1.49b
Earnings (TTM)-UK£315.40m
Revenue (TTM)UK£1.23b

1.2x

P/S Ratio

-4.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
JET2 income statement (TTM)
RevenueUK£1.23b
Cost of RevenueUK£1.22b
Gross ProfitUK£10.40m
Other ExpensesUK£325.80m
Earnings-UK£315.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 24, 2022

Earnings per share (EPS)-1.47
Gross Margin0.84%
Net Profit Margin-25.61%
Debt/Equity Ratio110.6%

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

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue0.7x
Enterprise Value/EBITDA-3.8x
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 Average0.6x
EZJ easyJet
0.8x13.0%UK£2.2b
WIZZ Wizz Air Holdings
0.8x23.0%UK£1.6b
IAG International Consolidated Airlines Group
0.3x9.5%UK£4.7b
ESKN Esken
0.5x9.9%UK£53.5m
JET2 Jet2
1.2x27.3%UK£1.5b

Price-To-Sales vs Peers: JET2 is expensive based on its Price-To-Sales Ratio (1.2x) compared to the peer average (0.6x).


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 (1.2x) compared to the Global Airlines industry average (0.9x)


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 Ratio1.2x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: JET2 is expensive based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


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 (£6.93) is trading below our estimate of fair value (£26.44)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Jet2 forecast to perform in the next 1 to 3 years based on estimates from 10 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


43.6%

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 (27.3% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: JET2's revenue (27.3% 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 (20%)


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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


-60.4%

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 60.4% 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 (7.5%).


Return on Equity

High ROE: JET2 has a negative Return on Equity (-35.18%), as it is currently unprofitable.


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Financial Health

How is Jet2's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: JET2's short term assets (£2.6B) exceed its short term liabilities (£1.7B).

Long Term Liabilities: JET2's short term assets (£2.6B) 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 85.1% to 110.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable JET2 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: JET2 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 12.7% per year.


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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


1.63%

Forecast Dividend Yield

Dividend Yield vs Market

Jet2 Dividend Yield vs Market
How does Jet2 dividend yield compare to the market?
SegmentDividend Yield
Company (Jet2)0%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Airlines)3.4%
Analyst forecast in 3 Years (Jet2)1.6%

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?

8.4yrs

Average management tenure


CEO

Steve Heapy (53 yo)

9.25yrs

Tenure

UK£1,141,000

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

Steve Heapy's Compensation vs Jet2 Earnings
How has Steve Heapy's remuneration changed compared to Jet2's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022UK£1mUK£684k

-UK£315m

Dec 31 2021n/an/a

-UK£341m

Sep 30 2021n/an/a

-UK£366m

Jun 30 2021n/an/a

-UK£333m

Mar 31 2021UK£690kUK£597k

-UK£299m

Dec 31 2020n/an/a

-UK£281m

Sep 30 2020n/an/a

-UK£262m

Jun 30 2020n/an/a

-UK£75m

Mar 31 2020UK£835kUK£727k

UK£112m

Sep 30 2019n/an/a

UK£141m

Jun 30 2019n/an/a

UK£139m

Mar 31 2019UK£1mUK£530k

UK£137m

Dec 31 2018n/an/a

UK£171m

Sep 30 2018n/an/a

UK£202m

Jun 30 2018n/an/a

UK£155m

Mar 31 2018UK£1mUK£480k

UK£107m

Dec 31 2017n/an/a

UK£117m

Sep 30 2017n/an/a

UK£120m

Jun 30 2017n/an/a

UK£98m

Mar 31 2017UK£944kUK£433k

UK£77m

Dec 31 2016n/an/a

UK£91m

Sep 30 2016n/an/a

UK£106m

Jun 30 2016n/an/a

UK£97m

Mar 31 2016UK£755kUK£379k

UK£89m

Compensation vs Market: Steve's total compensation ($USD1.27M) is below average for companies of similar size in the UK market ($USD2.20M).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: JET2's management team is seasoned and experienced (8.4 years average tenure).


Board Members

Experienced Board: JET2's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JET2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

AIM:JET2 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
12 Jul 22BuyUK£49,998Stephen HeapyIndividual6,221UK£8.04
08 Jul 22BuyUK£49,996Stephen HeapyIndividual6,244UK£8.01
08 Jul 22BuyUK£25,001Gary BrownIndividual3,110UK£8.04
19 Nov 21SellUK£21,999,832Philip MeesonIndividual2,000,000UK£11.15
19 Nov 21SellUK£5,250,000The Philip Meeson 2019 SettlementCompany500,000UK£10.50

Ownership Breakdown

What is the ownership structure of JET2?
Owner TypeNumber of SharesOwnership Percentage
Public Companies1,230,9960.6%
Private Companies5,246,6102.4%
Hedge Funds10,928,8345.1%
General Public13,071,0836.1%
Individual Insiders43,980,52020.5%
Institutions140,223,23865.3%

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


Top Shareholders

Top 25 shareholders own 74.6% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
20.17%
Philip Meeson
43,305,000£300.1m0%no data
5.09%
Silver Point Capital, L.P.
10,928,834£75.7m-17.61%4.44%
4.86%
Gobi Capital LLC
10,437,024£72.3m13.21%6.36%
4.53%
Jupiter Fund Management Plc
9,731,461£67.4m-8.2%0.26%
4.47%
Artisan Partners Limited Partnership
9,604,263£66.6m2.85%0.08%
4.02%
Odey Asset Management LLP
8,640,668£59.9m25.4%3.59%
2.43%
J.P. Morgan Asset Management, Inc.
5,222,071£36.2m0.88%0.01%
2.33%
Goldman Sachs Group, Investment Banking and Securities Investments
5,008,826£34.7m5%0.03%
2.33%
The Philip Meeson 2019 Settlement
5,000,000£34.7m0%no data
2.27%
FMR LLC
4,879,983£33.8m17.73%no data
2.13%
BlackRock, Inc.
4,573,163£31.7m-7.4%no data
2.08%
Artemis Investment Management LLP
4,455,721£30.9m9.43%0.16%
1.97%
Castlefield Investment Partners LLP
4,225,000£29.3m0%2.98%
1.91%
Hargreave Hale Limited, Asset Management Arm
4,095,000£28.4m-1.33%0.84%
1.88%
Ignis Investment Services Limited
4,032,878£27.9m-1.08%0.12%
1.84%
UBS Asset Management
3,949,797£27.4m2.08%0.01%
1.71%
Fidelity International Ltd
3,680,354£25.5m11.53%0.02%
1.47%
abrdn plc
3,161,729£21.9m1.83%0.03%
1.44%
Ninety One UK Limited
3,093,979£21.4m1.78%0.04%
1.26%
Ruffer LLP
2,697,958£18.7m2.63%0.22%
0.96%
M&G Investment Management Limited
2,054,797£14.2m4.96%0.04%
0.94%
Janus Henderson Group plc
2,025,542£14.0m-18.17%0.01%
0.87%
Canaccord Genuity Wealth (International) Limited
1,875,675£13.0m-0.79%0.25%
0.82%
Martin Currie Limited
1,760,000£12.2m0%0.18%
0.8%
Premier Fund Managers Limited
1,709,978£11.9m27.97%0.16%

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£1.488b
  • Shares outstanding: 214.68m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JET2AIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992
DRTG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
DG1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.