NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£4.6b

Last Updated

2021/05/14 05:57 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Exceptional growth potential and overvalued.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

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


Market Performance


7 Day Return

-8.2%

EZJ

-7.6%

GB Airlines

-1.8%

GB Market


1 Year Return

101.4%

EZJ

49.8%

GB Airlines

26.9%

GB Market

Return vs Industry: EZJ exceeded the UK Airlines industry which returned 49.8% over the past year.

Return vs Market: EZJ exceeded the UK Market which returned 26.9% over the past year.


Shareholder returns

EZJIndustryMarket
7 Day-8.2%-7.6%-1.8%
30 Day2.8%-1.8%0.9%
90 Day31.4%19.5%5.9%
1 Year101.4%101.4%87.1%49.8%32.3%26.9%
3 Year-37.4%-42.4%-34.9%-55.5%10.1%-2.5%
5 Year-19.4%-31.6%-7.6%-41.1%47.8%20.0%

Long-Term 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?

2.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EZJ (£10.06) is trading above our estimate of fair value (£3.52)

Significantly Below Fair Value: EZJ is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: EZJ 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 EZJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EZJ is good value based on its PB Ratio (2.4x) compared to the GB Airlines industry average (2.5x).


Future Growth

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

75.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: EZJ's revenue (23% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: EZJ's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EZJ's Return on Equity is forecast to be high in 3 years time (35.1%)


Past Performance

How has easyJet performed over the past 5 years?

-38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EZJ is currently unprofitable.

Growing Profit Margin: EZJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EZJ is unprofitable, and losses have increased over the past 5 years at a rate of 38.2% per year.

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

Earnings vs Industry: EZJ is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-26.2%).


Return on Equity

High ROE: EZJ has a negative Return on Equity (-56.82%), as it is currently unprofitable.


Financial Health

How is easyJet's financial position?


Financial Position Analysis

Short Term Liabilities: EZJ's short term assets (£2.6B) do not cover its short term liabilities (£3.8B).

Long Term Liabilities: EZJ's short term assets (£2.6B) do not cover its long term liabilities (£2.7B).


Debt to Equity History and Analysis

Debt Level: EZJ's debt to equity ratio (143.8%) is considered high.

Reducing Debt: EZJ's debt to equity ratio has increased from 14.4% to 143.8% over the past 5 years.

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

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


Balance Sheet


Dividend

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

1.97%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate EZJ'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 EZJ's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EZJ'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?

1.6yrs

Average management tenure


CEO

Johan Lundgren (54 yo)

3.42yrs

Tenure

UK£755,000

Compensation

Mr. Johan Peter Lundgren has been Chief Executive Officer at easyJet plc since December 1, 2017. Mr. Lundgren had been an Executive Director of TUI Travel Limited since December 21, 2007. Mr. Lundgren serv...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD1.06M) is below average for companies of similar size in the UK market ($USD2.25M).

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


Leadership Team

Experienced Management: EZJ's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: EZJ's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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 15.1%.


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£4.571b
  • Shares outstanding: 454.63m
  • Website: https://www.easyjet.com

Number of Employees


Location

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

Listings


Biography

easyJet plc, together with its subsidiaries, operates as an airline carrier primarily in Europe. It also engages in the trading and leasing of aircrafts, as well as in tour operations; develops building pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/14 05:57
End of Day Share Price2021/05/13 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.