EASYJET PLC (EJT1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EJT1 - GB00B7KR2P84 - Common Stock
5.57 EUR
-0.17 (-3%)
EJT1 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Passenger Airlines industry. The financial health of EJT1 is average, but there are quite some concerns on its profitability. EJT1 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In multiple years EJT1 reported negative net income over the last 5 years.
- EJT1 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- EJT1 has a Return On Assets of 4.29%. This is comparable to the rest of the industry: EJT1 outperforms 50.00% of its industry peers.
- EJT1 has a worse Return On Equity (14.12%) than 78.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.18%, EJT1 is doing worse than 64.29% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for EJT1 is below the industry average of 9.24%.
- The last Return On Invested Capital (7.18%) for EJT1 is above the 3 year average (6.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 14.12% | ||
| ROIC | 7.18% |
ROA(3y)3.89%
ROA(5y)0.26%
ROE(3y)13.65%
ROE(5y)0.35%
ROIC(3y)6.7%
ROIC(5y)N/A
1.3 Margins
- EJT1 has a Profit Margin (4.89%) which is comparable to the rest of the industry.
- EJT1 has a Operating Margin (6.96%) which is comparable to the rest of the industry.
- EJT1's Operating Margin has improved in the last couple of years.
- EJT1's Gross Margin of 40.35% is on the low side compared to the rest of the industry. EJT1 is outperformed by 92.86% 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 | 6.96% | ||
| PM (TTM) | 4.89% | ||
| GM | 40.35% |
OM growth 3Y411.43%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.39%
GM growth 5Y1.26%
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.
- Compared to 5 years ago, EJT1 has more shares outstanding
- Compared to 1 year ago, EJT1 has an improved debt to assets ratio.
2.2 Solvency
- EJT1 has an Altman-Z score of 1.54. This is a bad value and indicates that EJT1 is not financially healthy and even has some risk of bankruptcy.
- EJT1 has a better Altman-Z score (1.54) than 78.57% of its industry peers.
- EJT1 has a debt to FCF ratio of 4.69. This is a neutral value as EJT1 would need 4.69 years to pay back of all of its debts.
- EJT1 has a Debt to FCF ratio of 4.69. This is in the better half of the industry: EJT1 outperforms 71.43% of its industry peers.
- EJT1 has a Debt/Equity ratio of 0.76. This is a neutral value indicating EJT1 is somewhat dependend on debt financing.
- EJT1 has a Debt to Equity ratio of 0.76. This is in the better half of the industry: EJT1 outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.84
WACC8.51%
2.3 Liquidity
- EJT1 has a Current Ratio of 1.11. This is a normal value and indicates that EJT1 is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.11, EJT1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Quick Ratio of 1.11 indicates that EJT1 should not have too much problems paying its short term obligations.
- EJT1's Quick ratio of 1.11 is amongst the best of the industry. EJT1 outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- EJT1 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.93%.
- The Revenue has grown by 8.56% in the past year. This is quite good.
- Measured over the past years, EJT1 shows a very strong growth in Revenue. The Revenue has been growing by 27.42% on average per year.
EPS 1Y (TTM)7.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.8%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y20.55%
Revenue growth 5Y27.42%
Sales Q2Q%8.79%
3.2 Future
- EJT1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.58% yearly.
- EJT1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.12% yearly.
EPS Next Y8.08%
EPS Next 2Y10.28%
EPS Next 3Y8.47%
EPS Next 5Y8.58%
Revenue Next Year8.83%
Revenue Next 2Y8.17%
Revenue Next 3Y8.25%
Revenue Next 5Y8.12%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.43 indicates a rather cheap valuation of EJT1.
- The rest of the industry has a similar Price/Earnings ratio as EJT1.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, EJT1 is valued rather cheaply.
- A Price/Forward Earnings ratio of 6.88 indicates a rather cheap valuation of EJT1.
- EJT1's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EJT1 is cheaper than 78.57% of the companies in the same industry.
- EJT1's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than EJT1, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EJT1 indicates a somewhat cheap valuation: EJT1 is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.9 | ||
| EV/EBITDA | 0.81 |
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)0.92
PEG (5Y)N/A
EPS Next 2Y10.28%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.73%, EJT1 has a reasonable but not impressive dividend return.
- EJT1's Dividend Yield is rather good when compared to the industry average which is at 1.10. EJT1 pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EJT1 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y10.28%
EPS Next 3Y8.47%
EASYJET PLC / EJT1.DE FAQ
Can you provide the ChartMill fundamental rating for EASYJET PLC?
ChartMill assigns a fundamental rating of 5 / 10 to EJT1.DE.
What is the valuation status of EASYJET PLC (EJT1.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to EASYJET PLC (EJT1.DE). This can be considered as Undervalued.
What is the profitability of EJT1 stock?
EASYJET PLC (EJT1.DE) has a profitability rating of 3 / 10.
What is the financial health of EASYJET PLC (EJT1.DE) stock?
The financial health rating of EASYJET PLC (EJT1.DE) is 5 / 10.