LSE:EZJ

Stock Analysis Report

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Executive Summary

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe.


Snowflake Analysis

Very undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EZJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

EZJ

6.9%

GB Airlines

2.4%

GB Market


1 Year Return

-35.6%

EZJ

-34.0%

GB Airlines

-8.4%

GB Market

Return vs Industry: EZJ underperformed the UK Airlines industry which returned -34% over the past year.

Return vs Market: EZJ underperformed the UK Market which returned -8.4% over the past year.


Shareholder returns

EZJIndustryMarket
7 Day-0.7%6.9%2.4%
30 Day-16.7%-5.3%0.5%
90 Day14.3%27.7%9.0%
1 Year-33.2%-35.6%-32.8%-34.0%-4.8%-8.4%
3 Year-50.7%-55.8%-44.4%-50.6%-2.8%-14.6%
5 Year-57.0%-64.9%-33.3%-44.7%22.9%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is easyJet 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: EZJ (£5.71) is trading below our estimate of fair value (£23.02)

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


Price To Earnings Ratio

PE vs Industry: EZJ is good value based on its PE Ratio (9.2x) compared to the GB Airlines industry average (34.2x).

PE vs Market: EZJ is good value based on its PE Ratio (9.2x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: EZJ is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: EZJ is good value based on its PB Ratio (1.1x) compared to the GB Airlines industry average (1.4x).


Next Steps

Future Growth

How is easyJet forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

89.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EZJ's forecast earnings growth (89.5% per year) is above the savings rate (1.2%).

Earnings vs Market: EZJ's earnings (89.5% per year) are forecast to grow faster than the UK market (23.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EZJ's revenue (19.5% per year) is forecast to grow faster than the UK market (5.6% per year).

High Growth Revenue: EZJ's revenue (19.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EZJ's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has easyJet performed over the past 5 years?

-14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EZJ has a large one-off loss of £161.0M impacting its March 31 2020 financial results.

Growing Profit Margin: EZJ's current net profit margins (3.8%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: EZJ's earnings have declined by 14.8% per year over the past 5 years.

Accelerating Growth: EZJ's earnings growth over the past year (24.7%) exceeds its 5-year average (-14.8% per year).

Earnings vs Industry: EZJ earnings growth over the past year (24.7%) exceeded the Airlines industry -74.7%.


Return on Equity

High ROE: EZJ's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is easyJet's financial position?


Financial Position Analysis

Short Term Liabilities: EZJ's short term assets (£2.0B) do not cover its short term liabilities (£3.7B).

Long Term Liabilities: EZJ's short term assets (£2.0B) do not cover its long term liabilities (£2.4B).


Debt to Equity History and Analysis

Debt Level: EZJ's debt to equity ratio (63%) is considered high.

Reducing Debt: EZJ's debt to equity ratio has increased from 21.2% to 63% over the past 5 years.

Debt Coverage: EZJ's debt is well covered by operating cash flow (67%).

Interest Coverage: EZJ's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet


Next Steps

Dividend

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

7.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EZJ's dividend (7.69%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: EZJ's dividend (7.69%) is in the top 25% of dividend payers in the UK market (5.37%)


Stability and Growth of Payments

Stable Dividend: EZJ has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EZJ's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.9%), EZJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EZJ's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Johan Lundgren (54 yo)

2.67yrs

Tenure

UK£1,006,000

Compensation

Mr. Johan Peter 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 a ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD1.32M) is below average for companies of similar size in the UK market ($USD2.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Johan Lundgren
CEO & Director2.67yrsUK£1.01m0.0088%
£ 228.3k
Andrew Findlay
CFO & Executive Director4.83yrsUK£1.40m0.018%
£ 458.6k
Peter Bellew
Chief Operating Officer0.58yrno datano data
Sam Kini
Chief Data & Information Officer1yrno datano data
Maaike de Bie
Group General Counsel & Company Secretary1.17yrsno datano data
Ella Bennett
Group People Director2.25yrsno datano data
Sophie Dekkers
Head of Schedulingno datano datano data
Robert Carey
Chief Commercial & Strategy Officer1.92yrsno datano data
Mario Yiannopoulos
Head of Rewardno datano datano data
Garry Wilson
Chief Executive Officer of easyJet Holidays1.75yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: EZJ's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Johan Lundgren
CEO & Director2.67yrsUK£1.01m0.0088%
£ 228.3k
Andrew Findlay
CFO & Executive Director4.83yrsUK£1.40m0.018%
£ 458.6k
Charles Gurassa
Non-Executive Deputy Chairman8.92yrsUK£101.00k0.024%
£ 618.9k
Robert John Barton
Non-Executive Chairman7.25yrsUK£305.00k0.0099%
£ 256.8k
Andrew Martin
Independent Non-Executive Director8.92yrsUK£71.00k0.0015%
£ 39.9k
Nicholas Leeder
Independent Non-Executive Director1.58yrsUK£46.00k0.00021%
£ 5.4k
Moya Greene
Independent Non-Executive Director3.08yrsUK£68.00k0.0032%
£ 82.5k
Andreas Bierwirth
Independent Non-Executive Director6.08yrsUK£76.00k0.0012%
£ 30.1k
Julie Southern
Senior Independent Directorno dataUK£72.00k0.00056%
£ 14.5k
Anastassia Lauterbach
Independent Non-Executive Director1.58yrsUK£46.00kno data
Catherine-Annick Bradley
Independent Non-Executive Director0.58yrno datano data
Mansurah Mannings
Independent Non-Executive Directorno datano datano data

4.0yrs

Average Tenure

58yo

Average Age

Experienced Board: EZJ's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EZJ insiders have bought more shares than they have sold 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 14.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: easyJet plc
  • Ticker: EZJ
  • Exchange: LSE
  • Founded: 1995
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£2.594b
  • Shares outstanding: 454.43m
  • Website: https://www.easyjet.com

Number of Employees


Location

  • easyJet plc
  • Hangar 89
  • London Luton Airport
  • Luton
  • Bedfordshire
  • LU2 9PF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EJTT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2000
EZJLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2000
EJTXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 2000
EJT1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2000
EZJLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2000
ESYJ.FOTCPK (Pink Sheets LLC)SPONSORED ADR NEUSUSDMar 2012
EJTSDB (Deutsche Boerse AG)SPONSORED ADR NEDEEURMar 2012

Biography

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. As of September 30, 2019, the company operated 1,051 routes and a fleet of 331 aircrafts. It also engages in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 05:27
End of Day Share Price2020/08/14 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.