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EasyJet (GB:EZJ)
LSE:EZJ

EasyJet (EZJ) AI Stock Analysis

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GB

EasyJet

(LSE:EZJ)

78Outperform
EasyJet's overall stock score of 77.9 reflects strong financial recovery and strategic corporate actions. The financial performance is a key strength, supported by robust revenue growth and profitability. Technical indicators suggest caution due to potential overbought conditions. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Positive corporate events further bolster confidence in EasyJet's future prospects.
Positive Factors
Financial Performance
EasyJet reported FY-24 pre-tax profit marginally above expectation at £610m, and FCF at £308m is better.
Growth Strategy
There is a re-rating opportunity as easyJet benefits from a growing package holiday business, fleet renewal and self help opportunities through optimising winter trading and ancillaries.
Valuation
Valuation is attractive; the market values 'Holidays' at 0, indicating potential for value crystallisation.
Negative Factors
Earnings Pressure
There is a risk of yield and earnings pressure if peace comes later than expected.
Sector Risks
The sector is expected to be weak as US-Russia ceasefire talks underwhelmed, and fighting restarted in Russia-Ukraine and Israel-Gaza.
Unit Revenue
Later 1H25 does face a 4ppt unit revenue headwind.

EasyJet (EZJ) vs. S&P 500 (SPY)

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 generates revenue primarily through the sale of airline tickets. The company operates on a low-cost business model, which focuses on maximizing seat occupancy and minimizing operational costs. Additional revenue streams include ancillary services such as baggage fees, seat selection, onboard sales, and travel insurance. EasyJet also benefits from strategic partnerships with travel agencies and other service providers, which help expand its customer base and enhance service offerings. The company focuses on efficient use of resources, including fuel management and fleet utilization, to maintain profitability.

EasyJet Financial Statement Overview

Summary
EasyJet has demonstrated strong revenue and profit growth, effective operational management, and a stable balance sheet. Although increasing debt requires careful management, the company's robust cash generation and profitability metrics position it well for future growth.
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
Positive
Last Price523.00
Price Trends
50DMA
480.61
Positive
100DMA
498.25
Positive
200DMA
490.96
Positive
Market Momentum
MACD
11.84
Negative
RSI
69.25
Neutral
STOCH
92.61
Negative
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 523 is above the 20-day moving average (MA) of 475.59, above the 50-day MA of 480.61, and above the 200-day MA of 490.96, indicating a bullish trend. The MACD of 11.84 indicates Negative momentum. The RSI at 69.25 is Neutral, neither overbought nor oversold. The STOCH value of 92.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EZJ.

EasyJet Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£133.10M2.8646.48%13.64%
GBEZJ
78
Outperform
$3.94B8.6815.85%2.23%13.93%40.22%
72
Outperform
£1.73B6.9188.27%5.20%13.48%
GBIAG
68
Neutral
£13.32B5.9258.10%0.73%6.07%0.66%
64
Neutral
$4.25B11.695.23%249.83%4.04%-9.46%
GBAA4
55
Neutral
£150.04M-0.02%15.62%-5.22%-100.30%
GBMCG
46
Neutral
£188.75M-135.03%8.30%-346.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EZJ
EasyJet
523.00
10.97
2.14%
GB:IAG
International Consolidated Airlines
284.30
102.32
56.23%
GB:MCG
Mobico Group
30.48
-30.52
-50.03%
GB:AA4
Amedeo Air Four Plus
57.40
23.16
67.64%
GB:WIZZ
Wizz Air Holdings
1,637.00
-555.00
-25.32%
GB:DNA3
Doric Nimrod Air Three
60.00
15.66
35.32%

EasyJet Corporate Events

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.

Spark’s Take on GB:EZJ Stock

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

EasyJet’s overall stock score of 77.9 reflects strong financial recovery and strategic corporate actions. The financial performance is a key strength, supported by robust revenue growth and profitability. Technical indicators suggest caution due to potential overbought conditions. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Positive corporate events further bolster confidence in EasyJet’s future prospects.

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

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.

Spark’s Take on GB:EZJ Stock

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

EasyJet’s overall stock score of 77.9 reflects strong financial recovery and strategic corporate actions. The financial performance is a key strength, supported by robust revenue growth and profitability. Technical indicators suggest caution due to potential overbought conditions. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Positive corporate events further bolster confidence in EasyJet’s future prospects.

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

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.

Spark’s Take on GB:EZJ Stock

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

EasyJet’s overall stock score of 77.9 reflects strong financial recovery and strategic corporate actions. The financial performance is a key strength, supported by robust revenue growth and profitability. Technical indicators suggest caution due to potential overbought conditions. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Positive corporate events further bolster confidence in EasyJet’s future prospects.

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

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.

Spark’s Take on GB:EZJ Stock

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

EasyJet’s overall stock score of 77.9 reflects strong financial recovery and strategic corporate actions. The financial performance is a key strength, supported by robust revenue growth and profitability. Technical indicators suggest caution due to potential overbought conditions. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Positive corporate events further bolster confidence in EasyJet’s future prospects.

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

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.

Spark’s Take on GB:EZJ Stock

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

EasyJet’s overall stock score of 77.9 reflects strong financial recovery and strategic corporate actions. The financial performance is a key strength, supported by robust revenue growth and profitability. Technical indicators suggest caution due to potential overbought conditions. The valuation is attractive, with a low P/E ratio and reasonable dividend yield. Positive corporate events further bolster confidence in EasyJet’s future prospects.

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

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.

Spark’s Take on GB:EZJ Stock

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

EasyJet’s strong financial recovery and undervaluation drive a positive outlook, despite technical headwinds. Strategic corporate actions reinforce confidence, positioning EasyJet for future growth.

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

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.

Business Operations and Strategy
EasyJet Enhances Employee Investment with Share Incentive Plan
Positive
Mar 11, 2025

EasyJet plc announced that its Share Incentive Plan, approved by HM Revenue and Customs, facilitated the purchase of ordinary shares for key managerial personnel. This move allows employees in the UK to buy shares using monthly salary deductions, reflecting EasyJet’s commitment to employee investment and engagement. The plan’s implementation may enhance employee loyalty and align interests with the company’s performance, potentially impacting shareholder value positively.

Private Placements and FinancingBusiness Operations and Strategy
EasyJet Updates Euro Medium Term Note Programme
Positive
Feb 17, 2025

EasyJet plc has announced the publication of a new prospectus approved by the Financial Conduct Authority. This prospectus is related to the update of their Euro Medium Term Note Programme, which includes guarantees from easyJet Airline Company Limited. This strategic move is likely to enhance easyJet’s financial operations and flexibility, potentially strengthening its market position and offering more stability for its stakeholders.

Executive/Board ChangesShareholder Meetings
EasyJet’s Annual General Meeting Approves All Resolutions and Announces Board Changes
Neutral
Feb 13, 2025

EasyJet plc announced the successful passage of all resolutions during its Annual General Meeting, with both ordinary and special resolutions receiving the requisite majority votes. Significant board and committee changes were confirmed, including Moni Mannings OBE’s departure and the reshuffling of committee memberships, which may influence the company’s strategic direction and governance.

Executive/Board ChangesBusiness Operations and Strategy
EasyJet Director Joins International Paper Board
Positive
Feb 12, 2025

EasyJet plc announced that David Robbie, currently a Non-Executive Director at the airline, has been appointed to the Board of Directors of International Paper Company as a Non-Executive Director, effective February 11, 2025. This move reflects a strategic alignment in board expertise and indicates potential networking opportunities that could benefit EasyJet’s governance and operational strategies.

Private Placements and FinancingBusiness Operations and Strategy
EasyJet Executives Acquire Shares Under Incentive Plan
Positive
Feb 11, 2025

EasyJet has announced a recent transaction involving the purchase of ordinary shares by its management under the company’s Share Incentive Plan. Executives including the Chief Executive, Chief Customer and Marketing Officer, Chief Operating Officer, and CEO of EasyJet holidays participated in this plan, purchasing shares at a price of GBP £5.262 each. This move, facilitated by Equiniti Share Plan Trustees Limited, reflects EasyJet’s commitment to aligning management incentives with shareholder interests, potentially boosting confidence among stakeholders regarding the company’s future performance.

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.