LSE:EZJ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet with limited growth.


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


Market Performance


7 Day Return

5.4%

EZJ

8.6%

GB Airlines

2.0%

GB Market


1 Year Return

0%

EZJ

-5.1%

GB Airlines

3.3%

GB Market

Return vs Industry: EZJ exceeded the UK Airlines industry which returned -5.1% over the past year.

Return vs Market: EZJ underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

EZJIndustryMarket
7 Day5.4%8.6%2.0%
30 Day13.7%11.0%-1.0%
90 Day20.5%13.3%-1.7%
1 Year4.7%0%2.3%-5.1%8.3%3.3%
3 Year54.4%36.0%67.3%45.8%19.0%4.5%
5 Year3.0%-14.8%54.3%26.8%38.4%8.4%

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

24.37x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: EZJ (£12) is trading above our estimate of fair value (£6.76)

Significantly Undervalued: EZJ is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: EZJ is poor value based on its PE Ratio (24.4x) compared to the Airlines industry average (9.5x).

PE vs Market: EZJ is poor value based on its PE Ratio (24.4x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: EZJ is poor value based on its PEG Ratio (2.1x)


Price Based on Value of Assets

PB vs Industry: EZJ is overvalued based on its PB Ratio (1.9x) compared to the GB Airlines industry average (1.8x).


Next Steps

Future Growth

How is easyJet expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: EZJ's forecast earnings growth (11.6% per year) is above the savings rate (1.2%).

Earnings vs Market: EZJ's earnings (11.6% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: EZJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: EZJ's revenue (5.1% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: EZJ's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: EZJ's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has easyJet performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EZJ's earnings have declined by -10.4% per year over the past 5 years.

Accelerating Growth: EZJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EZJ had negative earnings growth (-56.2%) over the past year, making it difficult to compare to the Airlines industry average (-3%).


Return on Equity

High ROE: EZJ's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: EZJ's Return on Assets is below or equal to the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: EZJ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is easyJet's financial position?


Financial Position Analysis

Short Term Liabilities: EZJ's short term assets (£1.7B) do not cover its short term liabilities (£2.9B)

Long Term Liabilities: EZJ's short term assets (£1.7B) do not cover its long term liabilities (£2.0B)


Debt to Equity History and Analysis

Debt Level: EZJ's debt to equity ratio (34.1%) is considered satisfactory

Reducing Debt: EZJ's debt to equity ratio has increased from 25.8% to 34.1% over the past 5 years.

Debt Coverage: EZJ's debt is well covered by operating cash flow (108.4%).

Interest Coverage: EZJ's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

Inventory Level: EZJ has a high level of physical assets or inventory.

Debt Coverage by Assets: EZJ's debt is covered by short term assets (assets are 2.017480x debt).


Next Steps

Dividend

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

4.37%

Expected Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.0%markettop25%5.4%industryaverage5.3%forecastin3Years4.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: EZJ's dividend (4.88%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: EZJ's dividend (4.88%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119%), EZJ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EZJ's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Johan Lundgren (53yo)

1.8yrs

Tenure

UK£1,618,800

Compensation

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 Me ...


CEO Compensation Analysis

Compensation vs. Market: Johan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Johan's compensation with company performance.


Management Age and Tenure

1.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: EZJ's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: EZJ's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£12,40807 Aug 19
Andrew Findlay
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Information Officer & Executive Director
Shares1,279
Max PriceUK£9.70
BuyUK£99,26423 May 19
Robert John Barton
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares11,000
Max PriceUK£9.02
BuyUK£181,32023 May 19
Johan Lundgren
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,000
Max PriceUK£9.07
BuyUK£40,72523 May 19
Andrew Findlay
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Information Officer & Executive Director
Shares4,500
Max PriceUK£9.05
BuyUK£9,92719 Feb 19
Julie Southern
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares776
Max PriceUK£12.79
BuyUK£147,47822 Nov 18
Andrew Findlay
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Information Officer & Executive Director
Shares13,000
Max PriceUK£11.34
SellUK£107,28522 Nov 18
Andrew Findlay
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Information Officer & Executive Director
Shares9,500
Max PriceUK£11.29

Ownership Breakdown


Management Team

  • Flic Howard-Allen (58yo)

    Chief Communications Officer

    • Tenure: 1.2yrs
  • Johan Lundgren (53yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£1.62m
  • Andy Findlay (50yo)

    CFO, Chief Information Officer & Executive Director

    • Tenure: 4yrs
    • Compensation: UK£1.18m
  • Ella Bennett

    Group People Director

    • Tenure: 1.4yrs
  • Mario Yiannopoulos

    Head of Reward

    • Tenure: 0yrs
  • Sophie Dekkers

    Head of Scheduling

    • Tenure: 0yrs
  • Maaike de Bie

    Group General Counsel & Company Secretary

    • Tenure: 0.3yrs
  • Chris Browne (59yo)

    Chief Operating Officer

    • Tenure: 3yrs
  • Robert Carey

    Chief Commercial & Strategy Officer

    • Tenure: 1.1yrs
  • Lis Blair

    Chief Marketing Officer

    • Tenure: 1.4yrs

Board Members

  • Charles Gurassa (63yo)

    Non-Executive Deputy Chairman & Senior Independent Director

    • Tenure: 8.1yrs
    • Compensation: UK£100.00k
  • Robert John Barton (75yo)

    Non-Executive Chairman

    • Tenure: 6.4yrs
    • Compensation: UK£300.00k
  • Andy Martin (59yo)

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£70.00k
  • Nick Leeder (50yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Moya Greene (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£60.00k
  • Johan Lundgren (53yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£1.62m
  • Andreas Bierwirth (48yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£75.00k
  • Julie Southern (60yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£10.00k
  • Anastassia Lauterbach (47yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Andy Findlay (50yo)

    CFO, Chief Information Officer & Executive Director

    • Tenure: 4yrs
    • Compensation: UK£1.18m

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£4.746b
  • Shares outstanding: 395.47m
  • 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
EJT1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2000
EZJLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2000
ESYJ.YOTCPK (Pink Sheets LLC)SPONSORED ADR NEUSUSDMar 2012

Biography

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 th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:40
End of Day Share Price2019/10/11 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)