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easyJet

LSE:EZJ
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EZJ
LSE
£4B
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 31 days ago. More info.


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  • easyJet has significant price volatility in the past 3 months.
EZJ Share Price and Events
7 Day Returns
-3.9%
LSE:EZJ
0.1%
GB Airlines
0.4%
GB Market
1 Year Returns
-49.7%
LSE:EZJ
-34.1%
GB Airlines
-3.7%
GB Market
EZJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
easyJet (EZJ) -3.9% -13.3% -28.6% -49.7% -41.6% -37.6%
GB Airlines 0.1% -6.8% -13.9% -34.1% -4.2% 2.2%
GB Market 0.4% 0.3% 0.8% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • EZJ underperformed the Airlines industry which returned -34.1% over the past year.
  • EZJ underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% 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 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
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 6.7%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.848 (1 + (1- 19%) (42.15%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.092 * 6.65%)
8.49%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:EZJ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.49%)
2019 -137.60 Analyst x14 -126.83
2020 -211.37 Analyst x14 -179.59
2021 283.30 Analyst x11 221.86
2022 23.50 Analyst x2 16.96
2023 175.00 Analyst x2 116.44
2024 239.26 Est @ 36.72% 146.74
2025 301.64 Est @ 26.07% 170.52
2026 357.80 Est @ 18.62% 186.44
2027 405.75 Est @ 13.4% 194.88
2028 445.30 Est @ 9.75% 197.14
Present value of next 10 years cash flows £944.55
LSE:EZJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £445.30 × (1 + 1.23%) ÷ (8.49% – 1.23%)
£6,206.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £6,206.65 ÷ (1 + 8.49%)10
£2,747.73
LSE:EZJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £944.55 + £2,747.73
£3,692.28
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £3,692.28 / 395.47
£9.34
LSE:EZJ Discount to Share Price
Calculation Result
Value per share (GBP) From above. £9.34
Current discount Discount to share price of £8.88
= -1 x (£8.88 - £9.34) / £9.34
4.8%

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

Current Discount
Amount off the current price easyJet is available for.
Intrinsic value
5%
Share price is £8.88 vs Future cash flow value of £9.34
Current Discount Checks
For easyJet to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • easyJet's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • easyJet's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 (2019-03-31) in GBP £0.49
LSE:EZJ Share Price ** LSE (2019-06-17) in GBP £8.88
United Kingdom of Great Britain and Northern Ireland Airlines Industry PE Ratio Median Figure of 6 Publicly-Listed Airlines Companies 8.7x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* 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)

= 8.88 ÷ 0.49

18.04x

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 overvalued 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 18.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
14.7%per year
Europe Airlines Industry PEG Ratio Median Figure of 10 Publicly-Listed Airlines Companies 0.59x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.48x

*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

= 18.04x ÷ 14.7%

1.23x

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 (2019-03-31) in GBP £6.39
LSE:EZJ Share Price * LSE (2019-06-17) in GBP £8.88
United Kingdom of Great Britain and Northern Ireland Airlines Industry PB Ratio Median Figure of 8 Publicly-Listed Airlines Companies 1.49x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:EZJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 8.88 ÷ 6.39

1.39x

* 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 1/6, 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 24 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
14.7%
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 expected to exceed 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 24 Analysts 14.7%
LSE:EZJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 6%
United Kingdom of Great Britain and Northern Ireland Airlines Industry Earnings Growth Rate Market Cap Weighted Average 14%
United Kingdom of Great Britain and Northern Ireland Airlines Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*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 (2 months ago) See Below
Future Estimates Average of up to 24 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 7,679 972 567 2
2022-09-30 7,525 928 514 5
2021-09-30 7,318 977 454 21
2020-09-30 6,825 888 393 24
2019-09-30 6,344 830 341 24
LSE:EZJ Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 6,058 930 194
2018-12-31 5,978 1,027 276
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • easyJet's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).
  • easyJet's revenue is expected to grow by 6% 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 (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from easyJet Company Filings, last reported 2 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 1.25 1.42 1.09 2.00
2022-09-30 1.20 1.39 1.02 3.00
2021-09-30 1.11 1.28 0.92 15.00
2020-09-30 0.96 1.13 0.83 19.00
2019-09-30 0.85 0.89 0.79 16.00
LSE:EZJ Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.49
2018-12-31 0.70
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

*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 3/6, 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 is negative, it can't be compared to the 5-year average.
  • easyJet's 1-year earnings growth is negative, it can't be compared to the GB Airlines industry average.
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 2 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
2019-03-31 6,058.00 194.00 148.00
2018-12-31 5,978.00 276.00 145.50
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

*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 0/6, 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 long term commitments exceed its cash and other short term assets.
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 2 months ago.

LSE:EZJ Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,516.00 1,481.00 1,280.00
2018-12-31 2,516.00 1,481.00 1,280.00
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
  • easyJet's level of debt (34.1%) 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 (37.2% vs 34.1% today).
  • Debt is well covered by operating cash flow (108.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.1x 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 4/6, 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
6.6%
Current annual income from easyJet dividends. Estimated to be 5.79% next year.
If you bought £2,000 of easyJet shares you are expected to receive £132 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 (1.97%).
  • easyJet's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
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 24 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 6.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
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 0.54 1.00
2022-09-30 0.66 3.00
2021-09-30 0.59 22.00
2020-09-30 0.50 24.00
2019-09-30 0.45 24.00
LSE:EZJ Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-11-29 0.586 5.259
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 8 years.
Current Payout to shareholders
What portion of easyJet's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
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 1.5 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 about 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:

1.3
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
1.5 yrs

Andy Findlay

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

Chris Browne

TITLE
Chief Operating Officer
AGE
58
TENURE
2.7 yrs

Daud Khan

TITLE
Interim Company Secretary
TENURE
1.4 yrs

Flic Howard-Allen

TITLE
Chief Communications Officer
AGE
57
TENURE
0.8 yrs

Lis Blair

TITLE
Chief Marketing Officer
TENURE
1.1 yrs

Ella Bennett

TITLE
Group People Director
TENURE
1.1 yrs

Sophie Dekkers

TITLE
Head of Scheduling

Robert Carey

TITLE
Chief Commercial & Strategy Officer
TENURE
0.8 yrs

Mario Yiannopoulos

TITLE
Head of Reward
Board of Directors Tenure

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

2.8
Average Tenure
55
Average Age
  • The average tenure for the easyJet board of directors is less than 3 years, this suggests a new board.
Board of Directors

Robert John Barton

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

Johan Lundgren

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

Charles Gurassa

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

Andy Findlay

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

Andy Martin

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

Andreas Bierwirth

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

Julie Southern

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

Moya Greene

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

Anastassia Lauterbach

TITLE
Independent Non-Executive Director
AGE
46
TENURE
0.4 yrs

Nick Leeder

TITLE
Independent Non-Executive Director
AGE
49
TENURE
0.4 yrs
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 (£)
23. May 19 Buy Andrew Findlay Individual 23. May 19 23. May 19 4,500 £9.05 £40,725
23. May 19 Buy Johan Lundgren Individual 23. May 19 23. May 19 20,000 £9.07 £181,320
23. May 19 Buy Robert John Barton Individual 23. May 19 23. May 19 11,000 £9.02 £99,264
19. Feb 19 Buy Julie Southern Individual 15. Feb 19 15. Feb 19 776 £12.79 £9,927
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

Simply Wall St News

What Does easyJet plc's (LON:EZJ) P/E Ratio Tell You?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for easyJet: P/E of 18.87 = £9.29 ÷ £0.49 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … Therefore, even if you pay a low multiple of earnings now, that multiple will become higher in the future. … easyJet shrunk earnings per share by 56% over the last year.

Simply Wall St -

Here’s why easyJet plc’s (LON:EZJ) Returns On Capital Matters So Much

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for easyJet: 0.067 = UK£301m ÷ (UK£7.4b - UK£2.9b) (Based on the trailing twelve months to March 2019.) Therefore, easyJet has an ROCE of 6.7%.

Simply Wall St -

What Do Analysts Think About easyJet plc's (LON:EZJ) Future?

Based on easyJet plc's (LON:EZJ) earnings update on 31 March 2019, it seems that analyst forecasts are substantially optimistic, with earnings expected to grow by a high double-digit of 94% in the upcoming year, relative to the historical 5-year average growth rate of -10%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of EZJ's earnings growth over these next few years. … LSE:EZJ Past and Future Earnings, May 25th 2019 By 2022, EZJ's earnings should reach UK£892m, from current levels of UK£358m, resulting in an annual growth rate of 15%.

Simply Wall St -

Read This Before Selling easyJet plc (LON:EZJ) Shares

LSE:EZJ Recent Insider Trading, May 14th 2019 There are plenty of other companies that have insiders buying up shares. … Insiders at easyJet Have Bought Stock Recently We saw some easyJet insider buying shares in the last three months. … Judging from their transactions, and high insider ownership, easyJet insiders feel good about the company's future.

Simply Wall St -

Something To Consider Before Buying easyJet plc (LON:EZJ) For The 5.2% Dividend

Could easyJet plc (LON:EZJ) be an attractive dividend share to own for the long haul? Investors are often drawn to a company for its dividend.. … If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Has easyJet plc (LON:EZJ) Got Enough Cash?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as easyJet plc (LON:EZJ), with a market capitalization of UK£4.6b, rarely draw their attention from the investing community. … EZJ’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Is easyJet plc's (LON:EZJ) Growth Strong Enough To Justify Its April Share Price?

Growth expectations for easyJet plc (LON:EZJ) are high, but many investors are starting to ask whether its last close at £10.09 can still be rationalized by the future potential. … Investors in easyJet have been patiently waiting for the uptick in earnings. … Expectations from 25 analysts are

Simply Wall St -

Imagine Owning easyJet (LON:EZJ) And Wondering If The 24% Share Price Slide Is Justified

While not a mind-blowing move, it is good to see that the easyJet plc (LON:EZJ) share price has gained 20% in the last three months. … But that is minimal compensation for the share price under-performance over the last year. … During the unfortunate twelve months during which the easyJet share price fell, it actually saw its earnings per share (EPS) improve by 17%.

Simply Wall St -

easyJet plc’s (LON:EZJ) Investment Returns Are Lagging Its Industry

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Does easyJet plc's (LON:EZJ) Past Performance Indicate A Stronger Future?

For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. … In this article, I will take a look at easyJet plc's (LON:EZJ) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … 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 -

Company Info

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
£3,513,359,415
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: 2019/06/17 20:38
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/05/17
Last earnings reported: 2019/03/31
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.