EasyJet (GB:EZJ)
LSE:EZJ
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EasyJet
(LSE:EZJ)
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Rating:63Neutral
Price Target:
418.00 p
▲(17.02% Upside)
Action:DowngradedDate:03/21/26
The score is supported primarily by improving profitability and a solid balance sheet, plus an attractive valuation (low P/E and decent dividend yield). These positives are meaningfully offset by very weak technicals, with the stock far below key moving averages and strong bearish momentum indicators.
Positive Factors
Improving profitability
EasyJet's documented improvement in gross and net margins, plus rising EBIT/EBITDA, indicate durable gains in cost control and unit economics. Coupled with steady revenue growth, improved margins suggest the business can sustain profitability through cycle and better absorb cost shocks over the next several months.
Negative Factors
Negative free cash flow growth
Negative free cash flow growth limits the company's ability to fund fleet renewal, capex or shareholder returns from internal resources. Over a multi-month horizon this may force higher reliance on external financing, constrain strategic projects or delay maintenance and growth investments, weakening resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
EasyJet's documented improvement in gross and net margins, plus rising EBIT/EBITDA, indicate durable gains in cost control and unit economics. Coupled with steady revenue growth, improved margins suggest the business can sustain profitability through cycle and better absorb cost shocks over the next several months.
Read all positive factors
EasyJet (EZJ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.97B
Dividend Yield2.37%
Average Volume (3M)4.19M
Price to Earnings (P/E)7.1
Beta (1Y)1.03
Revenue Growth8.56%
EPS Growth10.47%
CountryUK
Employees17,797
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding758,010,000
10 Day Avg. Volume4,493,322
30 Day Avg. Volume4,191,156
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.00
Price to Sales (P/S)0.34
P/FCF Ratio4.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£482.66Price Target Upside35.12% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)0.57
Revenue Forecast (FY)£11.05B
EasyJet Business Overview & Revenue Model
Company Description
easyJet plc operates as an airline carrier primarily in Europe. It also leases aircrafts, as well as operates tours; and provides financing services. As of September 31, 2021, the company operated 927 routes with approximately 308 aircrafts in 34 ...
How the Company Makes Money
easyJet primarily makes money by selling passenger air travel on its network of point-to-point routes. Revenue is generated from (1) passenger ticket sales (air fares), which are typically priced dynamically based on demand, booking lead time, rou...
EasyJet Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and financial progress with notable near-term challenges. Highlights include a 9% PBT increase to GBP 665m, an 18% EBIT improvement, strong easyJet Holidays performance (20% customer growth, 32% profit increase, target upgraded to GBP 450m), ROCE rising to 18%, net cash of GBP 602m, and concrete fleet upgauging plans that should deliver substantial per-seat cost benefits over time. Offsetting these positives are slower-than-expected winter loss reduction, airline PBT being flat versus the holidays business, ongoing French ATC disruption, geopolitical route gaps (Tel Aviv/Jordan), modest near-term unit cost pressure due to inflation and required investments (including c. GBP 30m winter cost for Linate), and the fact that most upgauging gains are back-loaded beyond 2027. Overall, the positives around profitability, holiday growth, balance sheet strength and a clear delivery path for future cost savings outweigh the near-term operational and market challenges.Positive Updates
Third Consecutive Year of Earnings Growth
Profit before tax (PBT) rose 9% year-on-year to GBP 665 million, marking the third consecutive year of earnings growth.
Negative Updates
Airline PBT Underperformance Versus Holidays
At the PBT level the airline was effectively flat/slightly negative (around a GBP 5 million adverse contribution) while holidays produced most of the PBT growth; airline benefits are more evident at EBIT level but revenue maturity for new airline capacity is slower.
Read all updates
Q4-2025 Updates
Positive
Negative
Third Consecutive Year of Earnings Growth
Profit before tax (PBT) rose 9% year-on-year to GBP 665 million, marking the third consecutive year of earnings growth.
Read all positive updates
Company Guidance
Management reiterated its medium‑term ambition to reach £1.0bn group PBT and upgraded easyJet Holidays’ target to £450m by FY30 after FY25 results showing PBT £665m (up 9%) and EBIT up 18% (EBIT +£106m: +£56m holidays, +£50m airline); holidays hit the £250m target ahead of schedule with packaged customers +20% and profit up c.32%, H1 ~80% sold, and holiday ASPs +5% (margin up from 12% to 13%). Balance‑sheet and capital guidance included net cash of £602m, cash/liquidity c.£3.0–3.5bn, owned aircraft assets £4.8bn rising to >£7.5bn by FY28, and ROCE at 18% (from 13%). Fleet and cost guidance: 9 neo deliveries in FY25 and expected deliveries of 17/30/43 in the next three years with ~60% of A319s to be retired by FY28, targeting c.£3 per‑seat upgauge benefit (only ~£0.25 realized to date, ~£2.75 beyond 2027; replacement benefits ~£10/seat for A320neo vs A319 and ~£16/seat for A321 vs A319). Near‑term operating guidance flagged a modest CASK increase for FY26 (FY25 CASK down 3% overall, ex‑fuel CASK down 1%), aircraft productivity +5% and crew productivity +6%, one‑off maintenance provision release c.£54m, and an expected ~£30m winter investment in Linate/Fiumicino (c.£20m in first summer) with winter loss reduction taking longer than hoped.EasyJet Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.11B | 9.31B | 8.17B | 5.77B | 1.46B |
| Gross Profit | 1.70B | 1.56B | 1.38B | 801.00M | -663.00M |
| EBITDA | 1.56B | 1.50B | 1.28B | 499.00M | -439.00M |
| Net Income | 494.00M | 452.00M | 324.00M | -169.00M | -858.00M |
Balance Sheet | |||||
| Total Assets | 11.51B | 11.04B | 9.84B | 10.45B | 9.77B |
| Cash, Cash Equivalents and Short-Term Investments | 3.53B | 3.46B | 2.92B | 3.64B | 3.55B |
| Total Debt | 2.93B | 3.28B | 2.88B | 4.31B | 4.45B |
| Total Liabilities | 8.01B | 8.06B | 7.05B | 7.92B | 7.13B |
| Stockholders Equity | 3.50B | 2.97B | 2.79B | 2.53B | 2.64B |
Cash Flow | |||||
| Free Cash Flow | 804.00M | 536.00M | 797.00M | 246.00M | -1.18B |
| Operating Cash Flow | 1.72B | 1.47B | 1.55B | 776.00M | -1.03B |
| Investing Cash Flow | -872.00M | -2.95B | -552.00M | -569.00M | 719.00M |
| Financing Cash Flow | -705.00M | 35.00M | -1.42B | -532.00M | 1.64B |
EasyJet Technical Analysis
Negative
357.20
Price Trends
423.82
Negative
450.66
Negative
463.89
Negative
Market Momentum
-20.37
Negative
35.53
Neutral
65.24
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 357.2 is below the 20-day moving average (MA) of 364.98, below the 50-day MA of 423.82, and below the 200-day MA of 463.89, indicating a bearish trend. The MACD of -20.37 indicates Negative momentum. The RSI at 35.53 is Neutral, neither overbought nor oversold. The STOCH value of 65.24 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | £17.57B | 2.87 | 73.24% | 2.07% | 6.42% | 17.62% | |
64 Neutral | £952.11M | 5.69 | 19.28% | 3.66% | 3.45% | 43.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £2.97B | 7.05 | 16.07% | 2.37% | 8.56% | 10.47% | |
61 Neutral | £985.47M | 1.06 | 41.72% | ― | 8.26% | -20.45% | |
45 Neutral | £127.32M | -0.48 | 160.47% | ― | -4.74% | -610.71% |
* Industrials Sector Average
GB:EZJ
EasyJet
392.90
-28.30
-6.72%
GB:FGP
Firstgroup
175.30
29.90
20.56%
GB:IAG
International Consolidated Airlines
389.40
160.00
69.75%
GB:MCG
Mobico Group
20.86
-33.49
-61.62%
GB:WIZZ
Wizz Air Holdings
952.50
-482.50
-33.62%
EasyJet Corporate Events
DividendsRegulatory Filings and Compliance
EasyJet Executives Reinvest Dividends Into Shares Under Incentive Plan
Positive
Mar 31, 2026
EasyJet disclosed that several persons discharging managerial responsibilities have acquired additional ordinary shares under the company’s Share Incentive Plan. The purchases were made by the plan’s trustee on 27 March 2026 as dividen...
Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Executives Add Shares Under HMRC-Approved Incentive Plan
Neutral
Mar 11, 2026
EasyJet plc, the U.K.-listed low-cost airline focused on short-haul European routes, operates a point-to-point model targeting price-conscious leisure and business travellers. The group also generates revenue from ancillary services and employs eq...
Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Confirms Auditor Change from PwC to Deloitte
Neutral
Feb 27, 2026
EasyJet has confirmed a planned change of auditor, with PricewaterhouseCoopers resigning as the company’s auditor effective 27 February 2026, following completion of work related to the annual renewal of its Euro Medium Term Note programme. ...
Private Placements and FinancingRegulatory Filings and Compliance
EasyJet Updates Euro Medium Term Note Programme with New FCA-Approved Prospectus
Neutral
Feb 16, 2026
EasyJet has published an Offering Circular dated 16 February 2026 for the update of its Euro Medium Term Note Programme, which covers notes issued by easyJet plc and easyJet FinCo B.V., with guarantees provided by easyJet Airline Company Limited a...
Business Operations and StrategyDividendsShareholder Meetings
EasyJet Secures Strong Shareholder Backing at 2026 AGM
Positive
Feb 12, 2026
EasyJet reported that all resolutions at its 12 February 2026 Annual General Meeting were approved by shareholders via poll, including both ordinary and special resolutions. The strong level of support, covering items such as the annual report, di...
Business Operations and StrategyFinancial Disclosures
EasyJet Sticks to 2026 Outlook as Demand and Holidays Unit Offset Wider Q1 Loss
Positive
Jan 29, 2026
EasyJet reported a wider headline loss before tax of £93 million for the first quarter of its 2026 financial year, despite robust demand that lifted passenger numbers by 7% and improved load factors to 90%, supported by capacity growth and a ...
Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Executives Acquire Shares Through Employee Incentive Plan
Positive
Jan 14, 2026
EasyJet has disclosed that Equiniti Share Plan Trustees, acting as trustee of the company’s HMRC-approved Share Incentive Plan, purchased ordinary shares on 12 January 2026 on behalf of several senior managers, including Robert Birge, Kenton...
Regulatory Filings and ComplianceShareholder Meetings
EasyJet Sets February AGM and Tightens Voting Rules to Meet EU Ownership Requirements
Neutral
Jan 12, 2026
EasyJet has published its Notice of Annual General Meeting (AGM) and proxy form for shareholders, with the materials available via the UK’s National Storage Mechanism and the company’s website, alongside its 2025 Annual Report and Acco...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.