easyJet plc
easyJet plc Fundamental Analysis
easyJet plc (ESYJY) shows moderate financial fundamentals with a PE ratio of 7.41, profit margin of 3.84%, and ROE of 11.36%. The company generates $10.6B in annual revenue with moderate year-over-year growth of 8.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ESYJY's fundamental strength across five key dimensions:
Efficiency Score
WeakESYJY struggles to generate sufficient returns from assets.
Valuation Score
ModerateESYJY shows balanced valuation metrics.
Growth Score
ModerateESYJY shows steady but slowing expansion.
Financial Health Score
ExcellentESYJY maintains a strong and stable balance sheet.
Profitability Score
WeakESYJY struggles to sustain strong margins.
Key Financial Metrics
Is ESYJY Expensive or Cheap?
P/E Ratio
ESYJY trades at 7.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ESYJY's PEG of 5.38 indicates potential overvaluation.
Price to Book
The market values easyJet plc at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.74 times EBITDA. This is generally considered low.
How Well Does ESYJY Make Money?
Net Profit Margin
For every $100 in sales, easyJet plc keeps $3.84 as profit after all expenses.
Operating Margin
Core operations generate 5.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.36 in profit for every $100 of shareholder equity.
ROA
easyJet plc generates $3.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
easyJet plc produces operating cash flow of $1.53B, showing steady but balanced cash generation.
Free Cash Flow
easyJet plc produces free cash flow of $537.91M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.72 in free cash annually.
FCF Yield
ESYJY converts 17.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ESYJY Stacks Against Its Sector Peers
| Metric | ESYJY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.41 | 26.48 | Better (Cheaper) |
| ROE | 11.36% | 1270.00% | Weak |
| Net Margin | 3.84% | -38743.00% (disorted) | Weak |
| Debt/Equity | 0.82 | 0.73 | Neutral |
| Current Ratio | 1.10 | 10.55 | Neutral |
| ROA | 3.19% | -1494373.00% (disorted) | Weak |
ESYJY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews easyJet plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
172.87%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
137.20%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
337.10%
Industry Style: Cyclical, Value, Infrastructure
High Growth