EasyJet (EZJ) AI Stock Analysis

• Market Cap: £3.85B
• Dividend Yield: 2.37%
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.01
• Revenue Growth: 8.56%
• EPS Growth: 10.47%
• Country: UK
• Employees: 17,797
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.05
• Shares Outstanding: 758,010,000
• 10 Day Avg. Volume: 4,493,322
• 30 Day Avg. Volume: 4,191,156
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £600.38
• Price Target Upside: 17.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 584.00p ▲(14.60% Upside)

EasyJet's stock is rated positively due to strong technical indicators and an attractive valuation. Financial performance is solid, with improvements in profitability and a stable balance sheet, though cash flow challenges remain. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects EasyJet's ability to capture market demand and expand its customer base, supporting long-term business sustainability.

Profitability Improvements

Improved profitability through cost management enhances EasyJet's competitive position, allowing for reinvestment and resilience against market fluctuations.

Stable Balance Sheet

A stable balance sheet with a manageable debt load provides financial flexibility and reduces risk, ensuring EasyJet can navigate economic challenges.

Negative Factors

Negative Free Cash Flow Growth

Negative free cash flow growth may limit EasyJet's ability to fund new projects or reduce debt, potentially impacting long-term strategic initiatives.

Industry Competition

Intense competition in the airline industry can pressure margins and market share, challenging EasyJet's ability to maintain revenue growth and profitability.

Cash Flow Challenges

Mixed cash flow performance indicates potential liquidity issues, which could constrain EasyJet's operational flexibility and investment capacity.

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 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 Money

EasyJet generates revenue primarily through ticket sales, which constitute the largest portion of its earnings. The company employs a low-cost model, offering competitive fares while charging for additional services such as checked baggage, seat selection, and in-flight refreshments. This ancillary revenue stream has become increasingly significant, contributing to the overall profitability of the airline. EasyJet also benefits from partnerships with hotels, car rental companies, and travel insurance providers, allowing it to offer bundled services that enhance customer convenience. Furthermore, the company implements dynamic pricing strategies to optimize revenue based on demand fluctuations, and its frequent flyer program encourages customer loyalty, driving repeat business.

EasyJet Financial Statement Overview

Summary

EasyJet has shown strong profitability improvements with better cost management and steady revenue growth. The balance sheet is stable with a manageable debt-to-equity ratio, but cash flow performance is mixed, with strong operating cash flow but negative free cash flow growth.

Income Statement

EasyJet has shown a consistent improvement in its income statement metrics over the past few years. The gross profit margin and net profit margin have improved significantly, indicating better cost management and profitability. Revenue growth has been steady, with a 5.55% increase in the latest year. EBIT and EBITDA margins have also improved, reflecting operational efficiency. However, the airline industry is highly competitive, and external factors such as fuel prices and economic conditions can impact future performance.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 0.84, which has improved from previous years. The return on equity is strong at 14.12%, indicating effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure. However, the industry is capital-intensive, and maintaining a strong balance sheet is crucial to weather economic downturns.

Cash Flow

Cash flow metrics indicate a mixed performance. While operating cash flow has been strong, free cash flow growth has been negative, which could be a concern for future investments and debt repayments. The operating cash flow to net income ratio is robust, suggesting good cash generation relative to profits. However, the free cash flow to net income ratio is lower, indicating potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.11B	10.11B	9.31B	8.17B	5.77B	1.46B
Gross Profit	1.70B	1.70B	1.56B	1.38B	801.00M	-663.00M
EBITDA	1.56B	1.56B	1.50B	1.28B	499.00M	-439.00M
Net Income	494.00M	494.00M	452.00M	324.00M	-169.00M	-858.00M
Balance Sheet
Total Assets	11.51B	11.51B	11.04B	9.84B	10.45B	9.77B
Cash, Cash Equivalents and Short-Term Investments	3.53B	3.53B	3.46B	2.92B	3.64B	3.55B
Total Debt	2.93B	2.93B	3.28B	2.88B	4.31B	4.45B
Total Liabilities	8.01B	8.01B	8.06B	7.05B	7.92B	7.13B
Stockholders Equity	3.50B	3.50B	2.97B	2.79B	2.53B	2.64B
Cash Flow
Free Cash Flow	895.00M	804.00M	536.00M	797.00M	246.00M	-1.18B
Operating Cash Flow	1.81B	1.72B	1.47B	1.55B	776.00M	-1.03B
Investing Cash Flow	-872.00M	-872.00M	-2.95B	-552.00M	-569.00M	719.00M
Financing Cash Flow	-705.00M	-705.00M	35.00M	-1.42B	-532.00M	1.64B

EasyJet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 509.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 509.6 is above the 20-day moving average (MA) of 496.51, above the 50-day MA of 485.16, and above the 200-day MA of 497.48, indicating a bullish trend. The MACD of 8.87 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 78.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EZJ.

EasyJet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZJ	78 Outperform	£3.85B	7.75	15.74%	2.37%	8.56%	10.47%
IAG	77 Outperform	£18.99B	7.67	57.50%	2.07%	6.42%	17.62%
WIZZ	69 Neutral	£1.32B	6.65	41.72%	―	8.26%	-20.45%
FGP	64 Neutral	£1.04B	8.65	19.57%	3.66%	3.45%	43.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MCG	45 Neutral	£150.39M	-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.