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easyJet

LSE:EZJ
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EZJ
LSE
£5B
Market Cap
  1. Home
  2. GB
  3. Transportation
Company description

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. The last earnings update was 50 days ago. More info.


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EZJ Share Price and Events
7 Day Returns
0.6%
LSE:EZJ
1.3%
GB Airlines
-1.2%
GB Market
1 Year Returns
-26%
LSE:EZJ
-13.5%
GB Airlines
-11%
GB Market
EZJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
easyJet (EZJ) 0.6% 9% 9.7% -26% -28.5% -27.9%
GB Airlines 1.3% 2.6% 7.8% -13.5% -2.7% 20.7%
GB Market -1.2% 2% -2.5% -11% 13.8% -8.3%
1 Year Return vs Industry and Market
  • EZJ underperformed the Airlines industry which returned -13.5% over the past year.
  • EZJ underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -11% over the past year.
Price Volatility
EZJ
Industry
5yr Volatility vs Market

Value

 Is easyJet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of easyJet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for easyJet.

LSE:EZJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:EZJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.368 (1 + (1- 19%) (21.13%))
0.431
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 8.77%)
8.25%

Discounted Cash Flow Calculation for LSE:EZJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for easyJet is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:EZJ DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (GBP, Millions) -56.95 -103.41 502.50 -29.50 154.00
Source Analyst x16 Analyst x10 Analyst x4 Analyst x2 Analyst x1
Present Value
Discounted (@ 8.25%)
-52.61 -88.25 396.19 -21.49 103.63
Present value of next 5 years cash flows £337.47
LSE:EZJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= £154.00 × (1 + 1.23%) ÷ (8.25% – 1.23%)
£2,221.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £2,221.16 ÷ (1 + 8.25%)5
£1,494.62
LSE:EZJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £337.47 + £1,494.62
£1,832.09
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,832.09 / 395.47
£4.63
LSE:EZJ Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.63
Current discount Discount to share price of £11.72
= -1 x (£11.72 - £4.63) / £4.63
-153%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of easyJet is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for easyJet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are easyJet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:EZJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £0.91
LSE:EZJ Share Price ** LSE (2019-01-18) in GBP £11.72
United Kingdom of Great Britain and Northern Ireland Airlines Industry PE Ratio Median Figure of 6 Publicly-Listed Airlines Companies 9.17x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 815 Publicly-Listed Companies 15.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of easyJet.

LSE:EZJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:EZJ Share Price ÷ EPS (both in GBP)

= 11.72 ÷ 0.91

12.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • easyJet is overvalued based on earnings compared to the GB Airlines industry average.
  • easyJet is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does easyJet's expected growth come at a high price?
Raw Data
LSE:EZJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
9.9%per year
United Kingdom of Great Britain and Northern Ireland Airlines Industry PEG Ratio Median Figure of 5 Publicly-Listed Airlines Companies 0.61x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.25x

*Line of best fit is calculated by linear regression .

LSE:EZJ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.9x ÷ 9.9%

1.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • easyJet is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on easyJet's assets?
Raw Data
LSE:EZJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £8.24
LSE:EZJ Share Price * LSE (2019-01-18) in GBP £11.72
United Kingdom of Great Britain and Northern Ireland Airlines Industry PB Ratio Median Figure of 8 Publicly-Listed Airlines Companies 1.5x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,360 Publicly-Listed Companies 1.49x
LSE:EZJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:EZJ Share Price ÷ Book Value per Share (both in GBP)

= 11.72 ÷ 8.24

1.42x

* Primary Listing of easyJet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • easyJet is good value based on assets compared to the GB Airlines industry average.
X
Value checks
We assess easyJet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. easyJet has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is easyJet expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is easyJet expected to grow at an attractive rate?
  • easyJet's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • easyJet's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • easyJet's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:EZJ Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:EZJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 9.9%
LSE:EZJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 7.4%
United Kingdom of Great Britain and Northern Ireland Airlines Industry Earnings Growth Rate Market Cap Weighted Average 9.3%
United Kingdom of Great Britain and Northern Ireland Airlines Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:EZJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:EZJ Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 8,182 1,064 490 1
2022-09-30 7,802 835 422 3
2021-09-30 7,614 1,079 565 17
2020-09-30 7,092 952 495 27
2019-09-30 6,550 899 470 26
LSE:EZJ Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 5,898 1,123 358
2018-06-30 5,651 1,128 401
2018-03-31 5,403 1,133 443
2017-12-31 5,225 1,005 374
2017-09-30 5,047 877 305
2017-06-30 4,886 793 283
2017-03-31 4,725 709 260
2016-12-31 4,697 658 349
2016-09-30 4,669 606 437
2016-06-30 4,680 656 483
2016-03-31 4,690 705 528
2015-12-31 4,688 747 538

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • easyJet's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • easyJet's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:EZJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from easyJet Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:EZJ Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 1.24 1.24 1.24 1.00
2022-09-30 1.07 1.19 0.94 2.00
2021-09-30 1.46 1.95 1.07 11.00
2020-09-30 1.29 1.54 1.10 16.00
2019-09-30 1.16 1.39 0.94 16.00
LSE:EZJ Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 0.91
2018-06-30 1.02
2018-03-31 1.12
2017-12-31 0.95
2017-09-30 0.77
2017-06-30 0.72
2017-03-31 0.66
2016-12-31 0.89
2016-09-30 1.11
2016-06-30 1.22
2016-03-31 1.34
2015-12-31 1.37

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • easyJet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess easyJet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
easyJet has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has easyJet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare easyJet's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • easyJet's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • easyJet's 1-year earnings growth exceeds its 5-year average (17.4% vs -5%)
  • easyJet's earnings growth has exceeded the GB Airlines industry average in the past year (17.4% vs 8.2%).
Earnings and Revenue History
easyJet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from easyJet Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:EZJ Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 5,898.00 358.00 143.00
2018-06-30 5,650.50 400.50 136.50
2018-03-31 5,403.00 443.00 130.00
2017-12-31 5,225.00 374.00 126.00
2017-09-30 5,047.00 305.00 122.00
2017-06-30 4,886.00 282.50 118.50
2017-03-31 4,725.00 260.00 115.00
2016-12-31 4,697.00 348.50 111.00
2016-09-30 4,669.00 437.00 107.00
2016-06-30 4,679.50 482.50 104.50
2016-03-31 4,690.00 528.00 102.00
2015-12-31 4,688.00 538.00 102.00
2015-09-30 4,686.00 548.00 102.00
2015-06-30 4,639.00 522.00 101.50
2015-03-31 4,592.00 496.00 101.00
2014-12-31 4,559.50 473.00 102.00
2014-09-30 4,527.00 450.00 103.00
2014-06-30 4,443.00 427.00 103.50
2014-03-31 4,359.00 404.00 104.00
2013-12-31 4,308.50 401.00 102.50
2013-09-30 4,258.00 398.00 101.00
2013-06-30 4,124.00 348.00 100.00
2013-03-31 3,990.00 298.00 99.00
2012-12-31 3,922.00 276.50 101.50
2012-09-30 3,854.00 255.00 104.00
2012-06-30 3,752.50 252.00 107.00
2012-03-31 3,651.00 249.00 110.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • easyJet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • easyJet used its assets less efficiently than the GB Airlines industry average last year based on Return on Assets.
  • easyJet's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess easyJet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
easyJet has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is easyJet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up easyJet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • easyJet's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • easyJet's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of easyJet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from easyJet Company Filings, last reported 3 months ago.

LSE:EZJ Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 3,259.00 977.00 1,373.00
2018-06-30 3,259.00 977.00 1,373.00
2018-03-31 2,655.00 959.00 1,624.00
2017-12-31 2,655.00 959.00 1,624.00
2017-09-30 2,802.00 979.00 1,328.00
2017-06-30 2,802.00 979.00 1,328.00
2017-03-31 2,340.00 955.00 1,308.00
2016-12-31 2,340.00 955.00 1,308.00
2016-09-30 2,694.00 756.00 969.00
2016-06-30 2,694.00 756.00 969.00
2016-03-31 1,952.00 761.00 1,057.00
2015-12-31 1,952.00 761.00 1,057.00
2015-09-30 2,249.00 504.00 939.00
2015-06-30 2,249.00 504.00 939.00
2015-03-31 1,739.00 560.00 976.00
2014-12-31 1,739.00 560.00 976.00
2014-09-30 2,172.00 563.00 985.00
2014-06-30 2,172.00 563.00 985.00
2014-03-31 1,661.00 620.00 1,069.00
2013-12-31 1,661.00 620.00 1,069.00
2013-09-30 2,017.00 679.00 1,237.00
2013-06-30 2,017.00 679.00 1,237.00
2013-03-31 1,667.00 761.00 1,194.00
2012-12-31 1,667.00 761.00 1,194.00
2012-09-30 1,794.00 957.00 883.00
2012-06-30 1,794.00 957.00 883.00
2012-03-31 1,506.00 1,169.00 1,211.00
  • easyJet's level of debt (30%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (33.7% vs 30% today).
  • Debt is well covered by operating cash flow (114.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.4x coverage).
X
Financial health checks
We assess easyJet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. easyJet has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is easyJet's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5%
Current annual income from easyJet dividends. Estimated to be 5.55% next year.
If you bought £2,000 of easyJet shares you are expected to receive £100 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • easyJet's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • easyJet's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.36%).
Upcoming dividend payment

Purchase easyJet on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:EZJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Airlines Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 708 Stocks 4.4%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:EZJ Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.62 1.00
2022-09-30 0.51 2.00
2021-09-30 0.73 18.00
2020-09-30 0.65 27.00
2019-09-30 0.61 26.00
LSE:EZJ Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-29 0.586 5.277
2018-11-20 0.586 5.008
2017-12-05 0.409 2.707
2017-11-21 0.409 2.938
2017-01-12 0.538 4.584
2015-11-17 0.552 4.428
2015-11-16 0.552 3.162
2014-12-05 0.454 2.653
2014-11-18 0.454 2.827
2013-12-05 0.335 2.228
2013-11-19 0.335 2.381
2012-11-20 0.215 1.979
2012-11-19 0.215 3.201
2011-11-15 0.115 2.275
2011-11-14 0.115 2.906

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • easyJet has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but easyJet only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of easyJet's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
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Income/ dividend checks
We assess easyJet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can easyJet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. easyJet has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of easyJet's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Johan Lundgren
COMPENSATION £1,618,800
AGE 52
TENURE AS CEO 1.1 years
CEO Bio

Mr. Johan Lundgren has been Chief Executive Officer at easyJet plc since December 1, 2017. Mr. Lundgren has been an Executive Director of TUI Travel PLC since December 21, 2007. Mr. Lundgren serves as a Member of Group Management Board of TUI Travel PLC. He has over 30 years' experience in the travel sector, the last 12 of which were with TUI Group where he was Group Deputy Chief Executive Officer since October 20, 2011. He served as Managing Director of Mainstream Markets and Deputy Chief Executive at TUI AG until May 31st 2015. Mr. Lundgren served as a Member of Executive Board at TUI AG since December 2014 until May 31st 2015 and served as its Chief Executive Officer of Mainstream. He is also responsible for tourism sales in the source markets of Italy and Russia. Mr. Lundgren served as the Chief Executive of TUI Nordic of TUI Travel PLC. He is employed at Swedbank Robur Fonder AB and Swedbank Robur Mix Indexfond Sverige. Mr. Lundgren served as Managing Director of Northern Europe at TUI Travel PLC since December 21, 2007. He served as the Managing Director UK & Ireland at TUI Travel PLC from October 2010 to October 20, 2011. Mr. Lundgren served as Managing Director of Nordic of TUI Travel PLC. Mr. Lundgren has been working in the Nordic tourism industry for almost 20 years. Having worked in the tourism industry since 1986, Mr. Lundgren has considerable industry experience and a proven track record in driving global business performance and change management. He served as President of Sunquest Vacations from 1999 to 2001. Mr. Lundgren has been Director at easyJet plc since December 1, 2017. He serves as a Member of Supervisory Board at TUI Deutschland GmbH. He serves as a Member of Supervisory Board at TUI France SAS and TUI Nederland Holding N.V.

CEO Compensation
  • Insufficient data for Johan to compare compensation growth.
  • Johan's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the easyJet management team in years:

0.8
Average Tenure
54.5
Average Age
  • The average tenure for the easyJet management team is less than 2 years, this suggests a new team.
Management Team

Johan Lundgren

TITLE
CEO & Director
COMPENSATION
£2M
AGE
52
TENURE
1.1 yrs

Andy Findlay

TITLE
CFO, Chief Information Officer & Executive Director
COMPENSATION
£1M
AGE
49
TENURE
3.3 yrs

Chris Browne

TITLE
Chief Operating Officer
AGE
58
TENURE
2.3 yrs

Daud Khan

TITLE
Interim Company Secretary
TENURE
1 yrs

Flic Howard-Allen

TITLE
Chief Communications Officer
AGE
57
TENURE
0.4 yrs

Lis Blair

TITLE
Chief Marketing Officer
TENURE
0.7 yrs

Ella Bennett

TITLE
Group People Director
TENURE
0.7 yrs

Sophie Dekkers

TITLE
Head of Scheduling

Robert Carey

TITLE
Chief Commercial & Strategy Officer
TENURE
0.3 yrs

Mario Yiannopoulos

TITLE
Head of Reward
Board of Directors Tenure

Average tenure and age of the easyJet board of directors in years:

4.5
Average Tenure
55.5
Average Age
  • The tenure for the easyJet board of directors is about average.
Board of Directors

Robert John Barton

TITLE
Non-Executive Chairman
COMPENSATION
£300K
AGE
74
TENURE
5.7 yrs

Johan Lundgren

TITLE
CEO & Director
COMPENSATION
£2M
AGE
52
TENURE
1.1 yrs

Charles Gurassa

TITLE
Non-Executive Deputy Chairman & Senior Independent Director
COMPENSATION
£100K
AGE
62
TENURE
7.3 yrs

Andy Findlay

TITLE
CFO, Chief Information Officer & Executive Director
COMPENSATION
£1M
AGE
49
TENURE
3.3 yrs

Andy Martin

TITLE
Independent Non-Executive Director
COMPENSATION
£70K
AGE
58
TENURE
7.3 yrs

Andreas Bierwirth

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
47
TENURE
4.5 yrs

Julie Southern

TITLE
Independent Non-Executive Director
COMPENSATION
£10K
AGE
59
TENURE
0.4 yrs

Adèle Anderson

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
53
TENURE
7.3 yrs

Moya Greene

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
64
TENURE
1.5 yrs

Anastassia Lauterbach

TITLE
Independent Non-Executive Director
AGE
46
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by easyJet insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
22. Nov 18 Sell Andrew Findlay Individual 22. Nov 18 22. Nov 18 -9,500 £11.29 £-107,285
22. Nov 18 Buy Andrew Findlay Individual 22. Nov 18 22. Nov 18 13,000 £11.34 £147,478
X
Management checks
We assess easyJet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. easyJet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Should We Expect From easyJet plc's (LON:EZJ) Earnings In The Years Ahead?

easyJet plc's (LON:EZJ) announced its latest earnings update in September 2018, whicha … suggested

Simply Wall St -

Have Insiders Been Buying easyJet plc (LON:EZJ) Shares This Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … In the last twelve months, the biggest single purchase by an insider was when CFO, Chief Information Officer & Executive Director Andrew Findlay bought UK£147k worth of shares at a price of UK£11.34 per share. … Andrew Findlay was the only individual insider to buy shares in the last twelve months

Simply Wall St -

Is easyJet plc (LON:EZJ) A Smart Choice For Dividend Investors?

Historically, easyJet plc (LON:EZJ) has paid dividends to shareholders, and these days it yields 5.3%. … Does easyJet tick all the boxes of a great dividend stock? … See our latest analysis for easyJet

Simply Wall St -

Why easyJet plc's (LON:EZJ) High P/E Ratio Isn't Necessarily A Bad Thing

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … easyJet has a price to earnings ratio of 12.13, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio

Simply Wall St -

Is easyJet plc's (LON:EZJ) Stock Available For A Good Price After Accounting For Growth?

easyJet plc (LON:EZJ) is considered a high-growth stock, but its last closing price of £11.145 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Should you get excited about EZJ's future. … One reason why investors are attracted to EZJ is the high growth potential in the near future

Simply Wall St -

easyJet plc (LON:EZJ): The Return Story

and looking to gauge the potential return on investment in easyJet plc (LON:EZJ). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently easyJet is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

How Does easyJet plc's (LON:EZJ) Earnings Growth Stack Up Against Industry Performance?

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. … How Did EZJ's Recent Performance Stack Up Against Its Past. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -5.0%, indicating the rate at which EZJ is growing has accelerated

Simply Wall St -

What Are Analysts Saying About The Future Of easyJet plc's (LON:EZJ)?

Looking at easyJet plc's (LON:EZJ) earnings update in March 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of -1.4%

Simply Wall St -

Does easyJet plc's (LON:EZJ) PE Ratio Signal A Selling Opportunity?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While this makes EZJ appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

easyJet plc (LON:EZJ): The Return Story

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently easyJet is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Company Info

Map
Description

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. As of September 30, 2018, the company operated 979 routes and a fleet of 315 aircraft. It also engages in the trading and leasing of aircraft; and the provision of graphic design services. easyJet plc was founded in 1995 and is based in Luton, the United Kingdom.

Details
Name: easyJet plc
EZJ
Exchange: LSE
Founded: 1995
£4,623,049,478
395,470,443
Website: http://www.easyjet.com
Address: easyJet plc
Hangar 89,
London Luton Airport,
Luton,
Bedfordshire, LU2 9PF,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE EZJ Ordinary Shares London Stock Exchange GB GBP 15. Nov 2000
OTCPK EJTT.F Ordinary Shares Pink Sheets LLC US USD 15. Nov 2000
DB EJT1 Ordinary Shares Deutsche Boerse AG DE EUR 15. Nov 2000
BATS-CHIXE EZJL Ordinary Shares BATS 'Chi-X Europe' GB GBP 15. Nov 2000
OTCPK ESYJ.Y SPONSORED ADR NE Pink Sheets LLC US USD 09. Mar 2012
Number of employees
Current staff
Staff numbers
14,605
easyJet employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/18 20:39
End of day share price update: 2019/01/18 00:00
Last estimates confirmation: 2019/01/17
Last earnings filing: 2018/11/29
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.