EASYJET PLC (EJT1.DE) Stock Fundamental Analysis
FRA:EJT1 - Deutsche Boerse Ag - GB00B7KR2P84 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to EJT1. EJT1 was compared to 13 industry peers in the Passenger Airlines industry. Both the profitability and the financial health of EJT1 get a neutral evaluation. Nothing too spectacular is happening here. EJT1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EJT1 had positive earnings in the past year.
EJT1 had a positive operating cash flow in the past year.
In multiple years EJT1 reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: EJT1 reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 3.51%, EJT1 perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
EJT1 has a Return On Equity (15.55%) which is in line with its industry peers.
The Return On Invested Capital of EJT1 (6.87%) is comparable to the rest of the industry.
EJT1 had an Average Return On Invested Capital over the past 3 years of 4.32%. This is below the industry average of 7.98%.
The 3 year average ROIC (4.32%) for EJT1 is below the current ROIC(6.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 15.55% | ||
| ROIC | 6.87% |
ROA(3y)1.92%
ROA(5y)-3.15%
ROE(3y)6.72%
ROE(5y)-13.83%
ROIC(3y)4.32%
ROIC(5y)N/A
1.3 Margins
EJT1 has a better Profit Margin (4.30%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of EJT1 has declined.
The Operating Margin of EJT1 (5.93%) is better than 66.67% of its industry peers.
EJT1's Operating Margin has declined in the last couple of years.
EJT1 has a Gross Margin of 40.32%. This is in the lower half of the industry: EJT1 underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of EJT1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.93% | ||
| PM (TTM) | 4.3% | ||
| GM | 40.32% |
OM growth 3YN/A
OM growth 5Y-2.55%
PM growth 3YN/A
PM growth 5Y-2.34%
GM growth 3Y3.63%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EJT1 is destroying value.
EJT1 has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, EJT1 has more shares outstanding
Compared to 1 year ago, EJT1 has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that EJT1 is in the distress zone and has some risk of bankruptcy.
EJT1 has a better Altman-Z score (1.24) than 83.33% of its industry peers.
EJT1 has a debt to FCF ratio of 5.17. This is a neutral value as EJT1 would need 5.17 years to pay back of all of its debts.
The Debt to FCF ratio of EJT1 (5.17) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that EJT1 is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, EJT1 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.98
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.91 indicates that EJT1 may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.91, EJT1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that EJT1 may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, EJT1 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.74% over the past year.
EJT1 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.93% yearly.
The Revenue has grown by 9.43% in the past year. This is quite good.
EJT1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.83% yearly.
EPS 1Y (TTM)8.74%
EPS 3YN/A
EPS 5Y-3.93%
EPS Q2Q%-13.08%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y85.52%
Revenue growth 5Y7.83%
Sales Q2Q%8.14%
3.2 Future
Based on estimates for the next years, EJT1 will show a small growth in Earnings Per Share. The EPS will grow by 7.67% on average per year.
EJT1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.87% yearly.
EPS Next Y19.87%
EPS Next 2Y12.95%
EPS Next 3Y11.93%
EPS Next 5Y7.67%
Revenue Next Year8.92%
Revenue Next 2Y7.64%
Revenue Next 3Y7.54%
Revenue Next 5Y6.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EJT1 is valuated reasonably with a Price/Earnings ratio of 10.13.
66.67% of the companies in the same industry are cheaper than EJT1, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. EJT1 is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.39 indicates a rather cheap valuation of EJT1.
Based on the Price/Forward Earnings ratio, EJT1 is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EJT1 to the average of the S&P500 Index (22.15), we can say EJT1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 7.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EJT1 indicates a rather cheap valuation: EJT1 is cheaper than 83.33% of the companies listed in the same industry.
EJT1's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | 1.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y12.95%
EPS Next 3Y11.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, EJT1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, EJT1 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, EJT1 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y12.95%
EPS Next 3Y11.93%
FRA:EJT1 (5/30/2025, 7:00:00 PM)
6.784
+0.03 (+0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners43.72%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner ChangeN/A
Market Cap5.14B
Analysts81.38
Price Target8.2 (20.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-5.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.45 | ||
| P/FCF | 6.79 | ||
| P/OCF | 2.69 | ||
| P/B | 1.63 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 1.77 |
EPS(TTM)0.67
EY9.88%
EPS(NY)0.92
Fwd EY13.52%
FCF(TTM)1
FCFY14.73%
OCF(TTM)2.52
OCFY37.13%
SpS15.02
BVpS4.16
TBVpS2.92
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 15.55% | ||
| ROCE | 9.16% | ||
| ROIC | 6.87% | ||
| ROICexc | 16.51% | ||
| ROICexgc | 23.8% | ||
| OM | 5.93% | ||
| PM (TTM) | 4.3% | ||
| GM | 40.32% | ||
| FCFM | 6.65% |
ROA(3y)1.92%
ROA(5y)-3.15%
ROE(3y)6.72%
ROE(5y)-13.83%
ROIC(3y)4.32%
ROIC(5y)N/A
ROICexc(3y)9.01%
ROICexc(5y)N/A
ROICexgc(3y)11.93%
ROICexgc(5y)N/A
ROCE(3y)5.76%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y13.24%
ROICexc growth 3YN/A
ROICexc growth 5Y10.1%
OM growth 3YN/A
OM growth 5Y-2.55%
PM growth 3YN/A
PM growth 5Y-2.34%
GM growth 3Y3.63%
GM growth 5Y-0.81%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 124.39% | ||
| Cap/Sales | 10.12% | ||
| Interest Coverage | 4.58 | ||
| Cash Conversion | 119.23% | ||
| Profit Quality | 154.61% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.24 |
F-Score7
WACC7.01%
ROIC/WACC0.98
Cap/Depr(3y)108.89%
Cap/Depr(5y)99.17%
Cap/Sales(3y)9.46%
Cap/Sales(5y)12.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.74%
EPS 3YN/A
EPS 5Y-3.93%
EPS Q2Q%-13.08%
EPS Next Y19.87%
EPS Next 2Y12.95%
EPS Next 3Y11.93%
EPS Next 5Y7.67%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y85.52%
Revenue growth 5Y7.83%
Sales Q2Q%8.14%
Revenue Next Year8.92%
Revenue Next 2Y7.64%
Revenue Next 3Y7.54%
Revenue Next 5Y6.87%
EBIT growth 1Y10.29%
EBIT growth 3YN/A
EBIT growth 5Y5.08%
EBIT Next Year146.3%
EBIT Next 3Y42.89%
EBIT Next 5Y26.42%
FCF growth 1Y17.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.35%
OCF growth 3YN/A
OCF growth 5Y14%