EASYJET PLC (EJT1.DE) Stock Fundamental Analysis
Europe - FRA:EJT1 - GB00B7KR2P84 - Common Stock
5.624 EUR
-0.23 (-3.93%)
Taking everything into account, EJT1 scores 4 out of 10 in our fundamental rating. EJT1 was compared to 13 industry peers in the Passenger Airlines industry. EJT1 scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. EJT1 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
EJT1 had positive earnings in the past year.
In the past year EJT1 had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EJT1 reported negative net income in multiple years.
In multiple years EJT1 reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of EJT1 (3.51%) is worse than 61.54% of its industry peers.
With a Return On Equity value of 15.55%, EJT1 is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Return On Invested Capital of EJT1 (6.87%) is worse than 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EJT1 is significantly below the industry average of 9.96%.
The last Return On Invested Capital (6.87%) for EJT1 is above the 3 year average (4.32%), which is a sign of increasing profitability.
| 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
The Profit Margin of EJT1 (4.30%) is worse than 61.54% of its industry peers.
EJT1's Profit Margin has declined in the last couple of years.
EJT1 has a worse Operating Margin (5.93%) than 69.23% of its industry peers.
EJT1's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 40.32%, EJT1 is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
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.
The number of shares outstanding for EJT1 remains at a similar level compared to 1 year ago.
EJT1 has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EJT1 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that EJT1 is in the distress zone and has some risk of bankruptcy.
EJT1's Altman-Z score of 1.20 is fine compared to the rest of the industry. EJT1 outperforms 76.92% 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.
EJT1 has a better Debt to FCF ratio (5.17) than 76.92% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that EJT1 is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 1.00, EJT1 is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.89
WACC7.71%
2.3 Liquidity
EJT1 has a Current Ratio of 0.91. This is a bad value and indicates that EJT1 is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Current ratio value of 0.91, EJT1 belongs to the best of the industry, outperforming 92.31% 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 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
EJT1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.74%, which is quite good.
EJT1 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.93% yearly.
Looking at the last year, EJT1 shows a quite strong growth in Revenue. The Revenue has grown by 9.43% in the last year.
The Revenue has been growing slightly by 7.83% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.53% on average over the next years.
Based on estimates for the next years, EJT1 will show a quite strong growth in Revenue. The Revenue will grow by 8.06% on average per year.
EPS Next Y12.26%
EPS Next 2Y12%
EPS Next 3Y12.65%
EPS Next 5Y7.53%
Revenue Next Year8.57%
Revenue Next 2Y7.74%
Revenue Next 3Y7.74%
Revenue Next 5Y8.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.79, the valuation of EJT1 can be described as very reasonable.
EJT1's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.53. EJT1 is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.45, the valuation of EJT1 can be described as very cheap.
EJT1's Price/Forward Earnings is on the same level as the industry average.
EJT1's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 6.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EJT1 is valued cheaper than 100.00% of the companies in the same industry.
EJT1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EJT1 is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 1.32 |
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.
EJT1's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y12%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
EJT1 has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.73, EJT1 pays a better dividend. On top of this EJT1 pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, EJT1 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y12%
EPS Next 3Y12.65%
FRA:EJT1 (10/15/2025, 7:00:00 PM)
5.624
-0.23 (-3.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners45.15%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap4.26B
Analysts80
Price Target7.74 (37.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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)-1.68%
PT rev (3m)-10.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.81%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 6.45 | ||
| P/S | 0.39 | ||
| P/FCF | 5.83 | ||
| P/OCF | 2.31 | ||
| P/B | 1.4 | ||
| P/tB | 2 | ||
| EV/EBITDA | 1.32 |
EPS(TTM)0.64
EY11.38%
EPS(NY)0.87
Fwd EY15.5%
FCF(TTM)0.97
FCFY17.17%
OCF(TTM)2.43
OCFY43.28%
SpS14.51
BVpS4.02
TBVpS2.82
PEG (NY)0.72
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 | 1.2 |
F-Score7
WACC7.71%
ROIC/WACC0.89
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 Y12.26%
EPS Next 2Y12%
EPS Next 3Y12.65%
EPS Next 5Y7.53%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y85.52%
Revenue growth 5Y7.83%
Sales Q2Q%8.14%
Revenue Next Year8.57%
Revenue Next 2Y7.74%
Revenue Next 3Y7.74%
Revenue Next 5Y8.06%
EBIT growth 1Y10.29%
EBIT growth 3YN/A
EBIT growth 5Y5.08%
EBIT Next Year139.32%
EBIT Next 3Y42.41%
EBIT Next 5Y29.91%
FCF growth 1Y17.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.35%
OCF growth 3YN/A
OCF growth 5Y14%