NasdaqGS:JBLU

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services.


Snowflake Analysis

Undervalued with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

JBLU

-2.6%

US Airlines

2.3%

US Market


1 Year Return

-44.0%

JBLU

-50.3%

US Airlines

6.7%

US Market

Return vs Industry: JBLU exceeded the US Airlines industry which returned -50.2% over the past year.

Return vs Market: JBLU underperformed the US Market which returned 6% over the past year.


Shareholder returns

JBLUIndustryMarket
7 Day-0.7%-2.6%2.3%
30 Day-32.0%-26.0%-0.7%
90 Day11.6%3.2%17.1%
1 Year-44.0%-44.0%-49.8%-50.3%9.0%6.7%
3 Year-54.5%-54.5%-51.0%-52.8%36.7%27.8%
5 Year-52.4%-52.4%-30.1%-34.0%65.2%46.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is JetBlue Airways 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: JBLU ($10.6) is trading below our estimate of fair value ($29.4)

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


Price To Earnings Ratio

PE vs Industry: JBLU is poor value based on its PE Ratio (11.9x) compared to the Airlines industry average (8.3x).

PE vs Market: JBLU is good value based on its PE Ratio (11.9x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: JBLU is good value based on its PB Ratio (0.7x) compared to the US Airlines industry average (0.8x).


Next Steps

Future Growth

How is JetBlue Airways forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

122.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBLU's forecast earnings growth (122.1% per year) is above the savings rate (2.2%).

Earnings vs Market: JBLU's earnings (122.1% per year) are forecast to grow faster than the US market (22.8% per year).

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

Revenue vs Market: JBLU's revenue (22.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: JBLU's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBLU's Return on Equity is forecast to be low in 3 years time (1.6%).


Next Steps

Past Performance

How has JetBlue Airways performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBLU has a large one-off loss of $204.0M impacting its March 31 2020 financial results.

Growing Profit Margin: JBLU's current net profit margins (3.3%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: JBLU's earnings have declined by -7.2% per year over the past 5 years.

Accelerating Growth: JBLU's earnings growth over the past year (79.5%) exceeds its 5-year average (-7.2% per year).

Earnings vs Industry: JBLU earnings growth over the past year (79.5%) exceeded the Airlines industry -14.4%.


Return on Equity

High ROE: JBLU's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is JetBlue Airways's financial position?


Financial Position Analysis

Short Term Liabilities: JBLU's short term assets ($2.2B) do not cover its short term liabilities ($3.6B).

Long Term Liabilities: JBLU's short term assets ($2.2B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: JBLU's debt to equity ratio (71.8%) is considered high.

Reducing Debt: JBLU's debt to equity ratio has reduced from 80.4% to 71.8% over the past 5 years.

Debt Coverage: JBLU's debt is well covered by operating cash flow (36.8%).

Interest Coverage: JBLU's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JBLU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Robin Hayes (53yo)

5.42yrs

Tenure

US$3,955,523

Compensation

Mr. Robin Hayes serves as Chief Executive Officer and Director at JetBlue Airways Corporation since February 16, 2015 and served as its President since January 1, 2014 until May 2018. Mr. Hayes served as t ...


CEO Compensation Analysis

Compensation vs Market: Robin's total compensation ($USD3.96M) is below average for companies of similar size in the US market ($USD5.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robin Hayes
CEO & Director5.42yrsUS$3.96m0.19% $5.4m
Joanna Geraghty
President & COO2.17yrsUS$2.49m0.063% $1.8m
Stephen Priest
Chief Financial Officer3.42yrsUS$2.11m0.015% $434.8k
Easwaran Sundaram
Chief Digital & Technology Officer2.58yrsUS$1.27m0.045% $1.3m
Brandon Nelson
General Counsel & Corporate Secretary2.08yrsUS$1.03m0.0011% $30.3k
Alexander Chatkewitz
VP, Controller & Chief Accounting Officer5.58yrsUS$515.73k0.0044% $126.9k
David Fintzen
Director of Investors Relationno datano datano data
Doug McGraw
Chief Communications Officer2.33yrsno datano data
David Clark
Vice President of Sales & Revenue Management3.42yrsno datano data
Elizabeth Windram
Vice President of Marketing2.33yrsno datano data

2.6yrs

Average Tenure

49yo

Average Age

Experienced Management: JBLU's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robin Hayes
CEO & Director5.42yrsUS$3.96m0.19% $5.4m
Virginia Gambale
Independent Director14.17yrsUS$234.99kno data
B. Baldanza
Independent Director1.92yrsUS$219.99k0.0035% $99.5k
Peter Boneparth
Independent Chairman0.17yrUS$242.65kno data
Robert Leduc
Independent Director0.17yrno data0.0028% $79.5k
Ellen Jewett
Independent Director9yrsUS$229.99kno data
Teri McClure
Independent Director1yrUS$77.49k0.0035% $99.5k
Thomas Winkelmann
Independent Director7.17yrsUS$234.99k0.0025% $72.6k
Sarah O'Hagan
Independent Director1.92yrsUS$214.99kno data
Vivek Sharma
Independent Director0.67yrUS$49.15kno data

1.9yrs

Average Tenure

60yo

Average Age

Experienced Board: JBLU's board of directors are not considered experienced ( 1.9 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: JBLU insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JetBlue Airways Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JetBlue Airways Corporation
  • Ticker: JBLU
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$2.859b
  • Shares outstanding: 269.71m
  • Website: https://www.jetblue.com

Number of Employees


Location

  • JetBlue Airways Corporation
  • 27-01 Queens Plaza North
  • Long Island City
  • New York
  • 11101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JBLUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2002
JAWDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2002
JBLU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2002
0JOTLSE (London Stock Exchange)YesCommon StockGBUSDApr 2002

Biography

JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2019, the company operated a fleet of 63 Airbus A321 aircraft, 6 Airbus A321 neo aircraft, 130 Airbus A320 aircraft, and 60 Embraer E190 aircraft. It also served 99 destinations in the 30 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 21 countries in the Caribbean and Latin America. JetBlue Airways Corporation was founded in 1998 and is based in Long Island City, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 23:53
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.