Jet2 plc
Jet2 plc Fundamental Analysis
Jet2 plc (DRTGF) shows strong financial fundamentals with a PE ratio of 5.10, profit margin of 6.11%, and ROE of 24.70%. The company generates $6.8B in annual revenue with strong year-over-year growth of 24.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DRTGF's fundamental strength across five key dimensions:
Efficiency Score
WeakDRTGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDRTGF trades at attractive valuation levels.
Growth Score
ExcellentDRTGF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDRTGF maintains a strong and stable balance sheet.
Profitability Score
ModerateDRTGF maintains healthy but balanced margins.
Key Financial Metrics
Is DRTGF Expensive or Cheap?
P/E Ratio
DRTGF trades at 5.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DRTGF's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Jet2 plc at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.41 times EBITDA. This is generally considered low.
How Well Does DRTGF Make Money?
Net Profit Margin
For every $100 in sales, Jet2 plc keeps $6.11 as profit after all expenses.
Operating Margin
Core operations generate 6.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.70 in profit for every $100 of shareholder equity.
ROA
Jet2 plc generates $7.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jet2 plc produces operating cash flow of $776.76M, showing steady but balanced cash generation.
Free Cash Flow
Jet2 plc produces free cash flow of $338.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.86 in free cash annually.
FCF Yield
DRTGF converts 18.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How DRTGF Stacks Against Its Sector Peers
| Metric | DRTGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.10 | 24.38 | Better (Cheaper) |
| ROE | 24.70% | 1158.00% | Weak |
| Net Margin | 6.11% | 858.00% | Weak |
| Debt/Equity | 0.62 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.40 | 2.59 | Neutral |
| ROA | 7.23% | -7980.00% (disorted) | Weak |
DRTGF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Jet2 plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.84%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
89.89%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
71.77%
Industry Style: Cyclical, Growth, Discretionary
High Growth