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 12 industry peers in the Passenger Airlines industry. While EJT1 seems to be doing ok healthwise, there are quite some concerns on its profitability. EJT1 has a decent growth rate and is not valued too expensively.
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.
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
EJT1 has a Return On Assets (3.51%) which is comparable to the rest of the industry.
EJT1's Return On Equity of 15.55% is in line compared to the rest of the industry. EJT1 outperforms 58.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.87%, EJT1 is in line with its industry, outperforming 58.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EJT1 is significantly below the industry average of 9.37%.
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
With a Profit Margin value of 4.30%, EJT1 perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
EJT1's Profit Margin has declined in the last couple of years.
EJT1 has a Operating Margin (5.93%) which is in line with its industry peers.
EJT1's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 40.32%, EJT1 is doing worse than 91.67% of the companies in the same industry.
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
EJT1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EJT1 has about the same amount of shares outstanding.
The number of shares outstanding for EJT1 has been increased compared to 5 years ago.
The debt/assets ratio for EJT1 is higher compared to a year ago.
2.2 Solvency
EJT1 has an Altman-Z score of 1.20. This is a bad value and indicates that EJT1 is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EJT1 (1.20) is better than 75.00% of its industry peers.
The Debt to FCF ratio of EJT1 is 5.17, which is a neutral value as it means it would take EJT1, 5.17 years of fcf income to pay off all of its debts.
EJT1 has a better Debt to FCF ratio (5.17) than 66.67% of its industry peers.
EJT1 has a Debt/Equity ratio of 1.00. This is a neutral value indicating EJT1 is somewhat dependend on debt financing.
EJT1 has a better Debt to Equity ratio (1.00) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.94
WACC7.31%
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.
EJT1 has a better Current ratio (0.91) than 91.67% of its industry peers.
A Quick Ratio of 0.91 indicates that EJT1 may have some problems paying its short term obligations.
EJT1 has a Quick ratio of 0.91. This is amongst the best in the industry. EJT1 outperforms 91.67% of its industry peers.
| 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.
Measured over the past years, EJT1 shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.93% on average per year.
EJT1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.43%.
Measured over the past years, EJT1 shows a small growth in Revenue. The Revenue has been growing by 7.83% on average per year.
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 9.33% on average over the next years. This is quite good.
EJT1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.17% yearly.
EPS Next Y19.87%
EPS Next 2Y12.95%
EPS Next 3Y11.93%
EPS Next 5Y9.33%
Revenue Next Year8.92%
Revenue Next 2Y7.64%
Revenue Next 3Y7.54%
Revenue Next 5Y7.17%
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
The Price/Earnings ratio is 8.65, which indicates a very decent valuation of EJT1.
EJT1's Price/Earnings ratio is a bit more expensive when compared to the industry. EJT1 is more expensive than 66.67% of the companies in the same industry.
EJT1 is valuated cheaply when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
EJT1 is valuated cheaply with a Price/Forward Earnings ratio of 6.28.
The rest of the industry has a similar Price/Forward Earnings ratio as EJT1.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.13, EJT1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 6.28 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 1.29 |
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)0.44
PEG (5Y)N/A
EPS Next 2Y12.95%
EPS Next 3Y11.93%
5. Dividend
5.1 Amount
EJT1 has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.08, EJT1 pays a better dividend. On top of this EJT1 pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EJT1 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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 (7/30/2025, 7:00:00 PM)
5.62
-0.05 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners43.03%
Inst Owner ChangeN/A
Ins Owners0.64%
Ins Owner ChangeN/A
Market Cap4.26B
Analysts81.43
Price Target8.26 (46.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)-4.16%
PT rev (3m)0.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 6.28 | ||
| P/S | 0.38 | ||
| P/FCF | 5.77 | ||
| P/OCF | 2.29 | ||
| P/B | 1.39 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 1.29 |
EPS(TTM)0.65
EY11.57%
EPS(NY)0.9
Fwd EY15.93%
FCF(TTM)0.97
FCFY17.34%
OCF(TTM)2.46
OCFY43.72%
SpS14.65
BVpS4.05
TBVpS2.85
PEG (NY)0.44
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
WACC7.31%
ROIC/WACC0.94
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 5Y9.33%
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 5Y7.17%
EBIT growth 1Y10.29%
EBIT growth 3YN/A
EBIT growth 5Y5.08%
EBIT Next Year146.3%
EBIT Next 3Y42.89%
EBIT Next 5Y27.34%
FCF growth 1Y17.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.35%
OCF growth 3YN/A
OCF growth 5Y14%