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Jet2 PLC (GB:JET2)
LSE:JET2

Jet2 PLC (JET2) AI Stock Analysis

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GB

Jet2 PLC

(LSE:JET2)

78Outperform
Jet2 PLC demonstrates strong financial performance, supported by robust revenue and profitability growth, effective equity leverage, and strategic financial maneuvers like share buybacks. These strengths are somewhat offset by high liabilities and potential overbought technical indicators. The stock is undervalued, presenting an opportunity for investors, although caution is advised due to mixed technical signals.
Positive Factors
Earnings Expectations
The company now expects PBT pre-FX and exceptionals to be ahead of consensus at £541m.
Pricing Trends
Summer pricing trends are encouraging and unchanged vs the last update.
Share Buyback Programme
Jet2's new £250m share buyback programme marks the cash-generative business model, simplified balance sheet and underlying trading confidence.
Negative Factors
Operating Expenses
The updated FY25/26E PBT sits below consensus and factors in higher FY26E operating expenses inflation.
Winter Trading
Jet2's FY25 PBT guidance range reflects softer Winter trading.

Jet2 PLC (JET2) vs. S&P 500 (SPY)

Jet2 PLC Business Overview & Revenue Model

Company DescriptionJet2 PLC (JET2) is a leading leisure travel group headquartered in the United Kingdom. The company operates in the travel and tourism sectors, providing package holidays, hotel bookings, and scheduled leisure flights. Its core services are delivered through its two main brands: Jet2holidays, which offers ATOL-protected package holidays, and Jet2.com, an award-winning airline offering flights to various holiday destinations.
How the Company Makes MoneyJet2 PLC generates revenue primarily through its integrated model of holiday packages and airline services. The company makes money by selling holiday packages through Jet2holidays, which include flights, accommodation, and other travel-related services. Revenue is also derived from ticket sales via Jet2.com, which operates as a low-cost airline. Additional income streams include ancillary services such as in-flight sales, seat selection fees, and travel insurance. Partnerships with hotels and other travel service providers play a significant role in its business model by ensuring competitive pricing and exclusive offers for customers, thus enhancing its package holiday offerings.

Jet2 PLC Financial Statement Overview

Summary
Jet2 PLC exhibits a robust financial trajectory with significant improvements in revenue, profitability, and return on equity. The company has effectively leveraged its equity base to enhance profitability, though high liabilities necessitate careful management. Strong operational cash flows provide a solid foundation for ongoing financial health, positioning Jet2 well in the competitive hotels, lodging, and leisure industry. Continued focus on optimizing leverage and managing capital expenditures could further strengthen its financial standing.
Income Statement
85
Very Positive
Jet2 PLC has demonstrated robust revenue growth, showing a remarkable recovery with a consistent increase in total revenue over the past few years. The gross profit margin improved to 13.45% from a negative figure in 2022, indicating enhanced operational efficiency. Net profit margin stands at 6.38%, reflecting profitability improvements. Additionally, the EBIT and EBITDA margins are healthy at 6.84% and 13.57%, respectively, suggesting strong operational performance. However, maintaining these levels in a competitive industry remains a challenge.
Balance Sheet
78
Positive
The company's balance sheet shows a solid equity position with an equity ratio of 25.29%, indicating a stable financial structure. The debt-to-equity ratio is 1.03, reflecting manageable leverage. The return on equity has significantly improved to 28.32%, showcasing effective use of shareholders' funds to generate profits. However, the overall liabilities are relatively high, which could pose risks if not managed efficiently.
Cash Flow
82
Very Positive
Jet2 PLC's cash flow statement presents a strong operating cash flow to net income ratio of 2.74, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.72, demonstrating robust cash flow relative to earnings, supporting future investments and debt obligations. However, the free cash flow growth rate is slightly negative, suggesting the need for improved capital expenditure management.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
6.26B5.03B1.23B395.40M3.58B
Gross Profit
841.20M707.70M-147.90M-264.90M503.30M
EBIT
428.20M394.00M-323.90M-336.10M293.00M
EBITDA
849.20M579.20M-172.00M-165.70M427.20M
Net Income Common Stockholders
399.20M290.80M-315.40M-271.20M116.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.18B2.62B2.23B1.38B1.39B
Total Assets
5.57B4.53B3.99B2.87B3.38B
Total Debt
1.46B1.38B1.57B1.32B1.16B
Net Debt
15.80M-1.25B522.70M-60.70M-229.10M
Total Liabilities
4.16B3.51B3.10B1.91B2.75B
Stockholders Equity
1.41B1.01B896.60M964.20M634.10M
Cash FlowFree Cash Flow
685.50M755.50M642.60M-872.20M205.00M
Operating Cash Flow
1.09B952.10M751.00M-834.80M443.10M
Investing Cash Flow
-482.30M-675.80M-1.29B41.10M-185.60M
Financing Cash Flow
-124.60M-370.30M201.00M797.40M-88.10M

Jet2 PLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1666.00
Price Trends
50DMA
1352.30
Positive
100DMA
1440.37
Positive
200DMA
1435.98
Positive
Market Momentum
MACD
72.53
Negative
RSI
77.44
Negative
STOCH
99.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JET2, the sentiment is Positive. The current price of 1666 is above the 20-day moving average (MA) of 1354.25, above the 50-day MA of 1352.30, and above the 200-day MA of 1435.98, indicating a bullish trend. The MACD of 72.53 indicates Negative momentum. The RSI at 77.44 is Negative, neither overbought nor oversold. The STOCH value of 99.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:JET2.

Jet2 PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.57B7.1129.34%1.04%18.05%16.71%
GBEZJ
78
Outperform
$3.89B8.5315.85%2.17%13.93%40.22%
72
Outperform
£1.79B7.1488.27%5.20%13.48%
GBIAG
68
Neutral
£13.21B5.9258.10%0.77%6.07%0.66%
61
Neutral
$6.66B11.712.96%4.01%2.64%-20.91%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:JET2
Jet2 PLC
1,666.00
338.88
25.54%
GB:EZJ
EasyJet
524.00
26.21
5.27%
GB:IAG
International Consolidated Airlines
279.00
103.55
59.02%
GB:WIZZ
Wizz Air Holdings
1,727.00
-355.00
-17.05%

Jet2 PLC Corporate Events

Stock BuybackBusiness Operations and Strategy
Jet2 plc Initiates Share Buyback Program
Positive
May 2, 2025

Jet2 plc has initiated a share buyback program, purchasing 70,415 ordinary shares at a volume-weighted average price of £16.2317 per share, as authorized by shareholders at the 2024 Annual General Meeting. The company plans to cancel these shares, reducing the total number of shares in issue to 214,363,654. This move is part of Jet2’s strategy to manage its capital structure and potentially enhance shareholder value.

Spark’s Take on GB:JET2 Stock

According to Spark, TipRanks’ AI Analyst, GB:JET2 is a Outperform.

Jet2 PLC’s strong financial performance, characterized by robust revenue and profitability growth, is the primary strength driving the stock’s positive outlook. The company’s undervaluation, as indicated by a low P/E ratio, and strategic corporate maneuvers such as share buybacks further enhance its appeal. While technical indicators suggest caution due to potential overbought conditions, the company’s strategic financial management and strong cash flows provide a solid foundation for future stability and growth.

To see Spark’s full report on GB:JET2 stock, click here.

Stock BuybackBusiness Operations and Strategy
Jet2 plc Initiates Share Buyback Program
Positive
May 1, 2025

Jet2 plc has initiated a share buyback program, purchasing 119,781 ordinary shares as part of the first tranche of the program. The company intends to cancel these shares, reducing the total number of shares in issue to 214,434,069. This move is part of Jet2’s strategy to manage its capital structure and potentially enhance shareholder value.

Spark’s Take on GB:JET2 Stock

According to Spark, TipRanks’ AI Analyst, GB:JET2 is a Outperform.

Jet2 PLC’s strong financial performance, evidenced by robust revenue and profitability growth, is a key strength. The stock’s low P/E ratio further enhances its appeal, suggesting it is undervalued. Corporate events such as the share buyback and bond repurchases reflect strategic financial management. Technical indicators are mixed, with short-term bullish signals but caution due to potential overbought conditions. High liabilities remain a risk factor, requiring careful management.

To see Spark’s full report on GB:JET2 stock, click here.

Stock BuybackBusiness Operations and Strategy
Jet2 plc Initiates Share Buyback Program
Positive
May 1, 2025

Jet2 plc has initiated a share buyback program, purchasing 119,781 ordinary shares as part of the first tranche of the program. The company plans to cancel these shares, which will reduce the total number of shares in circulation, potentially increasing shareholder value. This move reflects Jet2’s strategic financial management and could have implications for its market positioning by signaling confidence in its financial health.

Spark’s Take on GB:JET2 Stock

According to Spark, TipRanks’ AI Analyst, GB:JET2 is a Outperform.

Jet2 PLC’s strong financial performance, evidenced by robust revenue and profitability growth, is a key strength. The stock’s low P/E ratio further enhances its appeal, suggesting it is undervalued. Corporate events such as the share buyback and bond repurchases reflect strategic financial management. Technical indicators are mixed, with short-term bullish signals but caution due to potential overbought conditions. High liabilities remain a risk factor, requiring careful management.

To see Spark’s full report on GB:JET2 stock, click here.

Stock BuybackBusiness Operations and Strategy
Jet2 Initiates Share Buyback Program
Neutral
Apr 30, 2025

Jet2 plc has initiated a share buyback program, purchasing 130,000 ordinary shares as part of its first tranche. This move is part of a strategy to manage its capital structure and potentially enhance shareholder value. The shares will be canceled, reducing the total number of shares in circulation, which may impact the company’s market dynamics and investor calculations.

Spark’s Take on GB:JET2 Stock

According to Spark, TipRanks’ AI Analyst, GB:JET2 is a Outperform.

Jet2 PLC’s strong financial performance, evidenced by robust revenue and profitability growth, is a key strength. The stock’s low P/E ratio further enhances its appeal, suggesting it is undervalued. Corporate events such as the share buyback and bond repurchases reflect strategic financial management. Technical indicators are mixed, with short-term bullish signals but caution due to potential overbought conditions. High liabilities remain a risk factor, requiring careful management.

To see Spark’s full report on GB:JET2 stock, click here.

Stock BuybackBusiness Operations and Strategy
Jet2 plc Launches £250 Million Share Buyback Programme
Positive
Apr 29, 2025

Jet2 plc has announced a share buyback programme of up to £250 million, reflecting its strong financial position and confidence in future business prospects. This initiative is part of Jet2’s strategy to maximize shareholder value through organic growth, maintaining fleet flexibility, and returning surplus cash to shareholders, while ensuring a robust balance sheet to withstand unforeseen events.

Spark’s Take on GB:JET2 Stock

According to Spark, TipRanks’ AI Analyst, GB:JET2 is a Outperform.

Jet2 PLC’s strong financial performance, evidenced by improved profitability and robust cash flows, is a major positive factor. While technical indicators present a mixed picture, the stock’s low P/E ratio suggests it may be undervalued. The recent strategic repurchase of bonds further strengthens the company’s financial position. These factors contribute to an overall positive outlook, despite challenges in managing high liabilities and competitive industry pressures.

To see Spark’s full report on GB:JET2 stock, click here.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Jet2 Announces Strong Financial Performance and £250m Share Buyback
Positive
Apr 29, 2025

Jet2 plc has announced a trading update revealing a strong financial performance for the year ending March 31, 2025, with profits expected to be in line with market expectations. The company has also announced a £250 million share buyback program, reflecting confidence in its sustainable business model and strong balance sheet. The company is well-positioned for the upcoming summer season with increased capacity and new operating bases, despite limited forward visibility due to late bookings. Jet2’s strategic capital allocation includes investments in growth, debt repayment, and shareholder returns, ensuring a robust financial position and continued market competitiveness.

Spark’s Take on GB:JET2 Stock

According to Spark, TipRanks’ AI Analyst, GB:JET2 is a Outperform.

Jet2 PLC’s strong financial performance, evidenced by improved profitability and robust cash flows, is a major positive factor. While technical indicators present a mixed picture, the stock’s low P/E ratio suggests it may be undervalued. The recent strategic repurchase of bonds further strengthens the company’s financial position. These factors contribute to an overall positive outlook, despite challenges in managing high liabilities and competitive industry pressures.

To see Spark’s full report on GB:JET2 stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Jet2 PLC Announces Final Repurchase Price for Convertible Bonds
Positive
Mar 12, 2025

Jet2 PLC has announced the final repurchase price for its 1.625% Guaranteed Senior Unsecured Convertible Bonds due 2026, with a principal amount of £301.5 million accepted for purchase. This move is part of a strategic financial maneuver to manage its debt obligations, potentially improving its financial stability and market position.

Private Placements and FinancingBusiness Operations and Strategy
Jet2 PLC Successfully Repurchases Majority of Convertible Bonds
Positive
Mar 11, 2025

Jet2 PLC has announced the successful repurchase of £301.5 million of its convertible bonds due in 2026, representing approximately 99% of the outstanding bonds. This strategic move significantly reduces the company’s debt obligations and positions it for potential future financial flexibility, as the remaining bonds will be redeemed early, impacting stakeholders by potentially enhancing the company’s financial stability.

Private Placements and FinancingBusiness Operations and Strategy
Jet2 PLC Initiates Convertible Bonds Repurchase to Strengthen Financial Position
Positive
Mar 11, 2025

Jet2 PLC has announced a repurchase initiative for its outstanding convertible bonds due in 2026, valued at £304.4 million. This strategic move is aimed at strengthening the company’s financial position by reducing debt, potentially enhancing its market standing and providing stability for stakeholders.

Other
Jet2 PLC Announces Change in Voting Rights Ownership
Neutral
Feb 21, 2025

Jet2 PLC, a UK-based company, has announced a change in the ownership of its voting rights. Computershare Trustees (Jersey) Limited has increased its holding from 3.1857% to 4.0783% of the total voting rights in Jet2 PLC. This development reflects a shift in shareholder dynamics, which could influence the company’s future decision-making and governance structure.

Business Operations and StrategyFinancial Disclosures
Jet2 plc Projects Increased Profit Amid Expansion and Economic Challenges
Positive
Feb 19, 2025

Jet2 plc reports an anticipated profit growth of 8% to 10% for the financial year ending March 2025, despite a decrease in average load factor and competitive pricing pressures. The company has expanded its seat capacity for both winter 2024/25 and summer 2025, with new bases at Bournemouth and London Luton contributing to this growth. However, these new bases are expected to be modestly loss-making initially due to their late introduction. Inflationary pressures and additional costs from government regulations pose challenges, but strategic investments in new aircraft and cost hedging are helping to mitigate these issues. Jet2 is focused on maintaining its Customer First proposition, even as macroeconomic conditions may pressure profit margins. The company remains confident in its ability to attract customers due to its trusted brand and comprehensive holiday offerings.

Private Placements and FinancingBusiness Operations and Strategy
Jet2 plc Strengthens Position with Bond Repurchase
Positive
Feb 6, 2025

Jet2 plc has repurchased an additional £33 million of its £337.4 million convertible bonds due in 2026, at a total consideration of £34.5 million. This move reduces the outstanding bond principal to £304.4 million, potentially strengthening Jet2’s financial position and reflecting strategic financial management.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.