tiprankstipranks
Trending News
More News >
EasyJet (GB:EZJ)
LSE:EZJ

EasyJet (EZJ) AI Stock Analysis

Compare
946 Followers

Top Page

GB

EasyJet

(LSE:EZJ)

Rating:72Outperform
Price Target:
576.00p
▲(10.98%Upside)
EasyJet's strong financial recovery and positive corporate events are key strengths, although technical indicators suggest caution due to bearish momentum. Valuation metrics support a moderate outlook.
Positive Factors
Fleet and Efficiency
New-generation fleet deliveries should drive margin and profit per seat uplift via increased fuel efficiency.
Valuation
EasyJet's valuation looks attractive, offering value crystallisation opportunities as the company raises its Holidays targets.
Negative Factors
Revenue and Expectations
Revenue in the second quarter was below expectations.
Sector and Geopolitical Risks
The sector is expected to be weak as US-Russia ceasefire talks underwhelmed, and fighting restarted in Russia-Ukraine and Israel-Gaza.

EasyJet (EZJ) vs. iShares MSCI United Kingdom ETF (EWC)

EasyJet Business Overview & Revenue Model

Company DescriptioneasyJet 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 countries; and 153 airports. It sells seats through its own website www.easyjet.com and its easyJet Worldwide' platform, its mobile application, global distribution systems, corporate online booking tools, content aggregators, and tour operator. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom.
How the Company Makes MoneyEasyJet primarily makes money through ticket sales for its flights, which constitute the bulk of its revenue. The airline adopts a low-cost carrier model, charging passengers for optional services such as checked baggage, seat selection, and in-flight refreshments, thereby generating ancillary revenue. EasyJet also benefits from partnerships with car rental companies, hotels, and travel insurance providers, earning commissions on these services. Additionally, the company engages in fuel hedging practices to manage costs and improve profit margins.

EasyJet Financial Statement Overview

Summary
EasyJet has demonstrated a strong recovery with significant revenue growth and improved profitability margins. The balance sheet shows manageable leverage, but the increase in total debt warrants caution. Robust cash flow is evident despite increased capital expenditures.
Income Statement
82
Very Positive
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
75
Positive
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
78
Positive
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
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
9.31B8.17B5.77B1.46B3.01B
Gross Profit
1.56B1.38B801.00M-663.00M-267.00M
EBIT
589.00M453.00M3.00M-1.01B-778.00M
EBITDA
1.50B1.28B499.00M-439.00M-700.00M
Net Income Common Stockholders
452.00M324.00M-169.00M-858.00M-1.08B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.46B2.92B3.64B3.55B2.33B
Total Assets
11.04B9.84B10.45B9.77B8.47B
Total Debt
3.28B2.88B4.31B4.45B3.44B
Net Debt
1.94B-41.00M792.00M897.00M1.14B
Total Liabilities
8.06B7.05B7.92B7.13B6.57B
Stockholders Equity
2.97B2.79B2.53B2.64B1.90B
Cash FlowFree Cash Flow
536.00M797.00M246.00M-1.18B-1.28B
Operating Cash Flow
1.47B1.55B776.00M-1.03B-588.00M
Investing Cash Flow
-2.95B-552.00M-569.00M719.00M266.00M
Financing Cash Flow
35.00M-1.42B-532.00M1.64B1.38B

EasyJet Technical Analysis

Technical Analysis Sentiment
Negative
Last Price519.00
Price Trends
50DMA
528.69
Negative
100DMA
508.02
Positive
200DMA
510.18
Positive
Market Momentum
MACD
-1.65
Positive
RSI
34.73
Neutral
STOCH
10.04
Positive
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 519 is below the 20-day moving average (MA) of 562.66, below the 50-day MA of 528.69, and above the 200-day MA of 510.18, indicating a neutral trend. The MACD of -1.65 indicates Positive momentum. The RSI at 34.73 is Neutral, neither overbought nor oversold. The STOCH value of 10.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EZJ.

EasyJet Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£133.10M2.8946.48%13.64%
GBIAG
73
Outperform
£14.47B6.5658.10%0.68%6.07%0.66%
GBEZJ
72
Outperform
$3.94B9.5016.41%2.32%9.43%10.84%
72
Outperform
£1.11B5.7383.35%5.20%13.48%
66
Neutral
$4.44B12.065.34%6.22%4.17%-11.81%
GBAA4
55
Neutral
£151.08M-0.02%13.91%-5.22%-100.30%
GBMCG
41
Neutral
£157.71M-135.03%8.30%-346.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EZJ
EasyJet
519.00
74.88
16.86%
GB:IAG
International Consolidated Airlines
313.10
143.44
84.55%
GB:MCG
Mobico Group
25.64
-24.66
-49.03%
GB:AA4
Amedeo Air Four Plus
57.50
20.18
54.07%
GB:WIZZ
Wizz Air Holdings
1,072.00
-1,156.00
-51.89%
GB:DNA3
Doric Nimrod Air Three
60.50
13.77
29.47%

EasyJet Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Announces Change in Major Holdings
Neutral
Jun 19, 2025

EasyJet PLC, a UK-based airline company, has announced a change in major holdings as Bank of America Corporation has adjusted its financial instrument holdings in the company. This notification indicates a shift in voting rights, with the total percentage of voting rights through financial instruments now standing at 8.651449%, impacting EasyJet’s shareholder dynamics and potentially influencing future corporate decisions.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
EasyJet Announces Restricted Share Plan Awards
Neutral
Jun 18, 2025

EasyJet plc has announced the granting of Restricted Share Plan (RSP) awards to key personnel, Elly Tomlins and Opal Perry, with the shares set to vest in December 2027, contingent on performance criteria. This move is part of EasyJet’s strategy to align management incentives with long-term company performance, potentially impacting its operational focus and stakeholder confidence.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Announces Change in Shareholder Structure
Neutral
Jun 18, 2025

EasyJet PLC has announced a significant change in its shareholder structure, with Bank of America Corporation acquiring or disposing of financial instruments, leading to a change in voting rights. This development, which was notified on June 17, 2025, indicates a shift in the company’s ownership dynamics, potentially affecting its strategic decisions and market positioning.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Business Operations and Strategy
EasyJet Enhances Employee Engagement with Share Incentive Plan
Positive
Jun 12, 2025

EasyJet plc announced that its Share Incentive Plan, approved by HM Revenue and Customs, enabled UK employees to purchase ordinary shares using salary deductions. Key managerial figures, including the Chief Executive and Chief Operating Officer, participated in the plan, purchasing shares at £5.881 each. This initiative reflects EasyJet’s commitment to employee engagement and aligns with its strategic focus on enhancing stakeholder value.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
EasyJet Director Acquires Significant Shareholding
Positive
Jun 4, 2025

EasyJet plc announced that Elyes Mrad, a Non-Executive Director, has acquired 14,000 ordinary shares of the company at a price of £5.875 per share. This transaction, conducted in London, reflects a strategic move by a key member of the company’s board, potentially indicating confidence in the company’s future performance and market position.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
EasyJet Sees Strong Earnings Growth Amid Strategic Investments
Positive
May 22, 2025

EasyJet reported a headline loss before tax of £394 million for the first half of 2025, aligning with market expectations and showing slight year-on-year improvement when adjusted for the timing of Easter. The company anticipates strong earnings growth for FY25, driven by increased demand for summer travel and strategic capacity investments. EasyJet Holidays achieved a £44 million profit, with expectations of 25% customer growth this year. The airline is on track to meet its medium-term profit targets, supported by fleet modernization and new base openings in Europe and the UK. Sustainability efforts continue, with EasyJet maintaining strong ESG ratings and investing in sustainable aviation fuel initiatives.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Business Operations and Strategy
EasyJet Enhances Employee Engagement with Share Incentive Plan
Positive
May 13, 2025

EasyJet plc announced that Equiniti Share Plan Trustees Limited, acting as the trustee of the company’s Share Incentive Plan, has purchased ordinary shares on behalf of several key managerial figures, including the Chief Executive and Chief Operating Officer. This initiative allows UK employees to buy shares using salary deductions, potentially enhancing employee engagement and aligning interests with company performance.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £8.50 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Announces Change in Major Holdings by Bank of America
Neutral
May 6, 2025

EasyJet plc has announced a change in major holdings, with Bank of America Corporation adjusting its financial instruments and voting rights in the company. The notification indicates a decrease in the percentage of voting rights held by Bank of America, which could impact EasyJet’s shareholder dynamics and influence within the company. This adjustment reflects ongoing shifts in the financial landscape and may have implications for stakeholders regarding the company’s governance and strategic decisions.

Business Operations and Strategy
EasyJet Announces Major Shareholding Change with Bank of America
Neutral
May 1, 2025

EasyJet plc has announced a change in major shareholdings, with Bank of America Corporation crossing a significant threshold in their voting rights. This adjustment in shareholding positions indicates a shift in the financial dynamics and control within the company, potentially impacting its strategic decisions and market positioning.

Business Operations and Strategy
Bank of America Increases Stake in EasyJet
Neutral
Apr 29, 2025

EasyJet plc has announced a significant change in its shareholder structure, with Bank of America Corporation crossing a major threshold in its holdings. As of April 28, 2025, Bank of America holds a total of 9.547979% of voting rights in EasyJet, marking an increase from its previous position. This change in holdings could impact EasyJet’s strategic decisions and influence its market positioning, as large institutional investors often play a crucial role in corporate governance.

Business Operations and StrategyRegulatory Filings and Compliance
Bank of America Increases Stake in EasyJet
Neutral
Apr 28, 2025

EasyJet plc announced a significant change in its shareholder structure as Bank of America Corporation has adjusted its holdings in the company. The notification revealed that Bank of America now holds a total of 9.224176% of voting rights in EasyJet, marking an increase from a previous position of 8.791438%. This adjustment in holdings could influence EasyJet’s strategic decisions and impact its market positioning, as major shareholders often play a crucial role in guiding company policies and future directions.

Business Operations and Strategy
Bank of America Increases Stake in EasyJet, Boosting Voting Influence
Neutral
Apr 25, 2025

EasyJet plc has announced a significant change in its major shareholding structure, with Bank of America Corporation increasing its voting rights in the company. This development, resulting from the acquisition of financial instruments, raises Bank of America’s total voting rights in EasyJet to 8.79%. This shift in shareholding is likely to impact EasyJet’s strategic decisions and could influence its market positioning, as major stakeholders like Bank of America gain more influence over the company’s governance.

Business Operations and Strategy
EasyJet Allocates Shares to Key Managers Under Incentive Plan
Positive
Apr 8, 2025

EasyJet plc has announced the allocation of ordinary shares to key managerial personnel as part of its HMRC approved all-employee Share Incentive Plan. This initiative, which involves the award of up to £1,500 worth of shares, aims to incentivize and retain employees by offering them a stake in the company’s future. The shares will become accessible after three years, contingent on continued service, reflecting EasyJet’s commitment to aligning employee interests with company performance.

DividendsBusiness Operations and Strategy
EasyJet Executives Reinvest Dividends in Company Shares
Positive
Apr 2, 2025

EasyJet announced that its senior management, including the Chief Executive, Chief Customer and Marketing Officer, and Chief Operating Officer, have reinvested dividends into purchasing additional company shares. This move, facilitated by Equiniti Financial Services Limited, underscores the leadership’s confidence in the company’s future prospects and aligns their interests with those of shareholders, potentially strengthening EasyJet’s market position.

Business Operations and Strategy
EasyJet Appoints Panmure Liberum as Joint Corporate Broker
Positive
Mar 25, 2025

EasyJet has announced the appointment of Panmure Liberum Limited as its Joint Corporate Broker, alongside BNP Paribas, effective immediately. This strategic move is likely to enhance EasyJet’s financial advisory capabilities and strengthen its market positioning, potentially benefiting stakeholders by improving investor relations and corporate communications.

DividendsBusiness Operations and Strategy
EasyJet Aligns Management Interests with Shareholders through Dividend Share Acquisition
Positive
Mar 24, 2025

EasyJet plc announced that its Share Incentive Plan Trustee, Equiniti Share Plan Trustees Limited, purchased ordinary shares on behalf of several key managerial figures within the company. These shares, acquired as Dividend Shares, were purchased following the reinvestment of the ordinary dividend for the year ended 30 September 2024. This move reflects the company’s ongoing commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence and reinforcing its market position.

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.