LSE:EZJ

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


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%

LSE:EZJ

0.4%

GB Airlines

1.1%

GB Market


1 Year Return

-40.0%

LSE:EZJ

-35.8%

GB Airlines

-4.8%

GB Market

EZJ underperformed the Airlines industry which returned -35.8% over the past year.

EZJ underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -4.8% over the past year.


Share holder returns

EZJIndustryMarket
7 Day5.4%0.4%1.1%
30 Day-15.8%-8.8%-3.5%
90 Day2.0%-6.9%-0.7%
1 Year-37.2%-40.0%-30.9%-35.8%-0.3%-4.8%
3 Year-3.6%-15.1%23.6%7.7%19.4%5.3%
5 Year-16.2%-30.7%22.9%0.9%27.8%0.9%

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?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

easyJet is poor value based on expected growth next year.


Price Based on Value of Assets

easyJet is overvalued based on assets compared to the GB Airlines industry average.


Next Steps

Future Growth

How is easyJet expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

easyJet's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

easyJet's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

easyJet's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

easyJet's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

easyJet's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

easyJet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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.


Return on Equity

easyJet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

easyJet used its assets less efficiently than the GB Airlines industry average last year based on Return on Assets.


Return on Capital Employed

easyJet's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is easyJet's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 increased over the past 5 years (25.8% 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).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

5.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

easyJet's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.07%).

easyJet's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.66%).

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

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).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Johan Lundgren (53yo)

1.7yrs

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

Johan's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Johan to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

55.5yo

Average Age

The average tenure for the easyJet management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

The average tenure for the easyJet board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by easyJet individual insiders 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: 1.0yrs
  • Johan Lundgren (53yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: UK£1.62m
  • Andy Findlay (50yo)

    CFO, Chief Information Officer & Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£1.18m
  • Ella Bennett

    Group People Director

    • Tenure: 1.3yrs
  • Mario Yiannopoulos

    Head of Reward

    • Tenure: 0.0yrs
  • Sophie Dekkers

    Head of Scheduling

    • Tenure: 0.0yrs
  • Maaike de Bie

    Group General Counsel & Company Secretary

    • Tenure: 0.2yrs
  • Chris Browne (59yo)

    Chief Operating Officer

    • Tenure: 2.8yrs
  • Robert Carey

    Chief Commercial & Strategy Officer

    • Tenure: 0.9yrs
  • Lis Blair

    Chief Marketing Officer

    • Tenure: 1.3yrs

Board Members

  • Charles Gurassa (63yo)

    Non-Executive Deputy Chairman & Senior Independent Director

    • Tenure: 7.9yrs
    • Compensation: UK£100.00k
  • Robert John Barton (75yo)

    Non-Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: UK£300.00k
  • Andy Martin (59yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: UK£70.00k
  • Nick Leeder (50yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Moya Greene (65yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£60.00k
  • Johan Lundgren (53yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: UK£1.62m
  • Andreas Bierwirth (48yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£75.00k
  • Julie Southern (60yo)

    Independent Non-Executive Director

    • Tenure: 1.0yrs
    • Compensation: UK£10.00k
  • Anastassia Lauterbach (47yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Andy Findlay (50yo)

    CFO, Chief Information Officer & Executive Director

    • Tenure: 3.8yrs
    • 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£3.707b
  • 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 Analysis2019/08/22 20:37
End of Day Share Price2019/08/22 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.