EasyJet (EZJ) AI Stock Analysis

• Market Cap: $3.55B
• Dividend Yield: 2.58%
• Average Volume (3M): 3.93M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.06
• Revenue Growth: 9.43%
• EPS Growth: 10.84%
• Country: UK
• Employees: 17,797
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.39
• Shares Outstanding: 758,010,000
• 10 Day Avg. Volume: 3,993,864
• 30 Day Avg. Volume: 3,925,735
• PEG Ratio: 0.22
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 7.27
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 2.47
• 1Y Price Target: $568.70
• Price Target Upside: 21.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 550.00p ▲(17.22% Upside)

EasyJet's strong financial recovery and attractive valuation are the primary drivers of its positive stock score. While technical indicators show mixed signals, the overall outlook remains favorable due to the company's solid financial position and undervaluation.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, enhancing EasyJet's competitive position.

Profitability Metrics

Improved profit margins suggest efficient cost management and pricing strategies, contributing to sustainable long-term profitability.

Cash Generation

Strong cash flow generation supports EasyJet's ability to invest in growth opportunities and maintain financial flexibility.

Negative Factors

Rising Debt Levels

Increased debt levels could strain financial resources and limit strategic flexibility if not managed carefully.

Free Cash Flow Decline

The decline in free cash flow due to higher capital expenditures may impact EasyJet's ability to fund future investments.

Equity Ratio Concerns

A relatively low equity ratio could indicate potential vulnerability to financial shocks, necessitating careful capital management.

EasyJet Business Overview & Revenue Model

Company Description

EasyJet (EZJ) is a leading low-cost airline based in the United Kingdom, primarily focused on providing affordable air travel across Europe and select international destinations. Founded in 1995, the company operates a fleet of over 300 aircraft, offering both domestic and international flights. EasyJet's core products and services include scheduled flights, holiday packages, and ancillary services such as baggage fees, seat selection, and in-flight sales, aimed at budget-conscious travelers.

How the Company Makes Money

EasyJet generates revenue primarily through ticket sales, which account for the majority of its income. The company follows a low-cost carrier model, keeping operational costs low while offering competitive fares. Additionally, EasyJet earns significant revenue from ancillary services, including fees for checked baggage, priority boarding, and in-flight refreshments. The airline also partners with hotels and car rental companies to provide package deals, further contributing to its earnings. Seasonal promotions and loyalty programs enhance customer retention and increase sales volume. Furthermore, EasyJet's ability to optimize its flight routes and manage operational efficiencies plays a crucial role in maintaining profitability.

EasyJet Financial Statement Overview

Summary

EasyJet has shown strong financial recovery with significant revenue growth and improved profitability metrics. The stable balance sheet and robust cash flow generation are positive, though increased debt levels require careful management.

Income Statement

EasyJet has demonstrated a strong recovery in its financial performance, with its revenue increasing from £5.77 billion in 2022 to £9.31 billion in 2024, representing a significant revenue growth rate of 13.92% from 2023 to 2024. The gross profit margin improved to 16.76% in 2024, and the net profit margin reached 4.86%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reaching 6.33% and 16.15% respectively in 2024, reflecting efficient operational management.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 1.10 in 2024, indicating manageable leverage. Return on Equity (ROE) was 15.20%, showcasing profitability relative to shareholder investments. The equity ratio stood at 26.93%, suggesting a balanced capital structure with room for growth. However, the increase in total debt over recent years signals potential risks if not managed effectively.

Cash Flow

Cash flow metrics reveal a robust operational cash flow of £1.47 billion in 2024, with a free cash flow growth rate of -32.74% from 2023 to 2024 due to increased capital expenditures. The operating cash flow to net income ratio was 3.24, reflecting strong cash generation relative to earnings. The free cash flow to net income ratio was 1.19, which indicates good cash conversion despite higher capital investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.57B	9.31B	8.17B	5.77B	1.46B	3.01B
Gross Profit	2.21B	1.56B	1.38B	801.00M	-663.00M	-267.00M
EBITDA	1.21B	1.50B	1.28B	499.00M	-439.00M	-700.00M
Net Income	412.00M	452.00M	324.00M	-169.00M	-858.00M	-1.08B
Balance Sheet
Total Assets	11.75B	11.04B	9.84B	10.45B	9.77B	8.47B
Cash, Cash Equivalents and Short-Term Investments	3.62B	3.46B	2.92B	3.64B	3.55B	2.33B
Total Debt	3.29B	3.28B	2.88B	4.31B	4.45B	3.44B
Total Liabilities	9.10B	8.06B	7.05B	7.92B	7.13B	6.57B
Stockholders Equity	2.65B	2.97B	2.79B	2.53B	2.64B	1.90B
Cash Flow
Free Cash Flow	862.00M	536.00M	797.00M	246.00M	-1.18B	-1.28B
Operating Cash Flow	1.73B	1.47B	1.55B	776.00M	-1.03B	-588.00M
Investing Cash Flow	-1.56B	-2.95B	-552.00M	-569.00M	719.00M	266.00M
Financing Cash Flow	-305.00M	35.00M	-1.42B	-532.00M	1.64B	1.38B

EasyJet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 469.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EZJ, the sentiment is Negative. The current price of 469.2 is below the 20-day moving average (MA) of 480.63, below the 50-day MA of 471.63, and below the 200-day MA of 498.98, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 31.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EZJ.

EasyJet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNA3	78 Outperform	£135.85M	2.88	41.54%	13.31%	-3.35%	2.48%
EZJ	77 Outperform	$3.55B	8.55	16.41%	2.58%	9.43%	10.84%
IAG	68 Neutral	£19.38B	7.79	57.50%	1.26%	6.42%	17.62%
WIZZ	65 Neutral	£1.05B	5.41	41.72%	―	8.26%	-20.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AA4	55 Neutral	―	13.94	4.33%	26.63%	-0.08%	-46.28%
MCG	41 Neutral	£154.66M	-0.14	-184.46%	―	-4.74%	-610.71%

EasyJet Corporate Events

EasyJet Enhances Employee Engagement with Share Incentive Plan

EasyJet announced that its Share Incentive Plan, approved by HM Revenue and Customs, allows UK employees to purchase ordinary shares using monthly salary deductions. This initiative, which saw managerial staff like Robert Birge and Kenton Jarvis acquiring shares, is part of EasyJet’s strategy to engage employees in its financial success, potentially impacting its market positioning by aligning employee interests with company performance.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £6.75 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Director Acquires Shares, Signaling Confidence

EasyJet announced that Sue Clark, a Non-Executive Director, has acquired 7,680 ordinary shares in the company at a price of £4.59 per share. This transaction reflects a vote of confidence in the company’s prospects and could positively influence investor sentiment, highlighting the board’s commitment to the company’s growth and stability.

The most recent analyst rating on (GB:EZJ) stock is a Hold with a £5.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Enhances Employee Share Ownership Through Incentive Plan

EasyJet announced that its Share Incentive Plan, approved by HM Revenue and Customs, allows UK employees to purchase ordinary shares in the company through monthly salary deductions. This initiative, which recently saw managerial staff acquiring shares, underscores EasyJet’s commitment to employee investment and engagement, potentially enhancing stakeholder confidence and aligning employee interests with company performance.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £7.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Directors Exercise Share Options Reflecting Confidence in Future

EasyJet announced that several of its directors and persons discharging managerial responsibilities have exercised their options under the company’s 2022 Save As You Earn scheme. This move reflects the confidence of the company’s leadership in its future prospects and aligns with its strategy to incentivize key personnel. The exercise of these options is expected to strengthen the alignment between the company’s management and its shareholders, potentially impacting the company’s market positioning positively.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £564.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Enhances Employee Engagement with Share Incentive Plan

EasyJet plc announced that its Share Incentive Plan, approved by HM Revenue and Customs, allows UK employees to purchase shares using monthly salary deductions. This initiative aims to enhance employee engagement and align their interests with the company’s performance, potentially impacting stakeholder confidence positively.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £7.85 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.