EASYJET PLC (EJT1.DE) Stock Fundamental Analysis
FRA:EJT1 - GB00B7KR2P84 - Common Stock
5.962 EUR
+0.12 (+1.98%)
We assign a fundamental rating of 4 out of 10 to EJT1. EJT1 was compared to 14 industry peers in the Passenger Airlines industry. While EJT1 seems to be doing ok healthwise, there are quite some concerns on its profitability. EJT1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year EJT1 was profitable.
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
EJT1 has a Return On Assets (3.51%) which is comparable to the rest of the industry.
EJT1 has a Return On Equity (15.55%) which is in line with its industry peers.
EJT1 has a Return On Invested Capital of 6.87%. This is in the lower half of the industry: EJT1 underperforms 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EJT1 is significantly below the industry average of 9.53%.
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 Profit Margin (4.30%) which is in line with its industry peers.
EJT1's Profit Margin has declined in the last couple of years.
EJT1 has a Operating Margin of 5.93%. This is in the lower half of the industry: EJT1 underperforms 64.29% 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: 92.86% of the companies in the same industry are doing better.
EJT1's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
EJT1 has an Altman-Z score of 1.21. This is a bad value and indicates that EJT1 is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.21, EJT1 is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
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.
The Debt to FCF ratio of EJT1 (5.17) is better than 78.57% 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.
With an excellent Debt to Equity ratio value of 1.00, EJT1 belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.9
WACC7.61%
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 92.86% of the companies in the same industry.
EJT1 has a Quick 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's Quick ratio of 0.91 is amongst the best of the industry. EJT1 outperforms 92.86% 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.
EJT1 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.93% yearly.
EJT1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.43%.
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
Based on estimates for the next years, EJT1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.27% on average per year.
EJT1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y14.34%
EPS Next 2Y13.2%
EPS Next 3Y13.85%
EPS Next 5Y10.27%
Revenue Next Year8.58%
Revenue Next 2Y7.74%
Revenue Next 3Y7.76%
Revenue Next 5Y9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 9.17 indicates a reasonable valuation of EJT1.
71.43% 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 27.24. EJT1 is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.65 indicates a rather cheap valuation of EJT1.
EJT1's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of EJT1 to the average of the S&P500 Index (35.82), we can say EJT1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EJT1 is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as EJT1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.14 | ||
| EV/EBITDA | 1.47 |
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.
A more expensive valuation may be justified as EJT1's earnings are expected to grow with 13.85% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y13.2%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
EJT1 has a Yearly Dividend Yield of 2.41%.
EJT1's Dividend Yield is rather good when compared to the industry average which is at 2.95. EJT1 pays more dividend than 85.71% of the companies 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 | 2.41% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y13.2%
EPS Next 3Y13.85%
FRA:EJT1 (8/22/2025, 7:00:00 PM)
5.962
+0.12 (+1.98%)
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 Cap4.52B
Analysts80.74
Price Target7.84 (31.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)-5.01%
PT rev (3m)-4.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.62%
EPS NY rev (3m)-4.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.41 | ||
| P/FCF | 6.14 | ||
| P/OCF | 2.43 | ||
| P/B | 1.48 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 1.47 |
EPS(TTM)0.65
EY10.9%
EPS(NY)0.9
Fwd EY15.03%
FCF(TTM)0.97
FCFY16.29%
OCF(TTM)2.45
OCFY41.07%
SpS14.6
BVpS4.04
TBVpS2.84
PEG (NY)0.64
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 | 1.21 |
F-Score7
WACC7.61%
ROIC/WACC0.9
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 Y14.34%
EPS Next 2Y13.2%
EPS Next 3Y13.85%
EPS Next 5Y10.27%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y85.52%
Revenue growth 5Y7.83%
Sales Q2Q%8.14%
Revenue Next Year8.58%
Revenue Next 2Y7.74%
Revenue Next 3Y7.76%
Revenue Next 5Y9%
EBIT growth 1Y10.29%
EBIT growth 3YN/A
EBIT growth 5Y5.08%
EBIT Next Year146.3%
EBIT Next 3Y42.89%
EBIT Next 5Y30.23%
FCF growth 1Y17.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.35%
OCF growth 3YN/A
OCF growth 5Y14%