We initiate EasyJet with a no moat rating and a fair value estimate of GBX 640. The valuation is being driven by improved business quality and the company increasing its capacity in slot-constrained airports and its ancillary revenue offering.
The group has embarked on a long-overdue cost-restructuring program and fleet modernization, which could see it emerge with a leaner cost structure.
Despite good cost controls, overcapacity and low demand levels could result in prolonged depressed market pricing, which could be a margin headwind.
|
Metric
|
EZJ
|
RYA
|
AF
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.54 | 11.36 | 17.60 |
Price/Book Value | 1.50 | 2.31 | — |
Price/Sales | 0.42 | 1.37 | 0.51 |
Price/Cash Flow | 3.00 | 6.61 | 4.55 |
|
Metric
|
EZJ
|
RYA
|
AF
|
|---|---|---|---|
Quick Ratio | 0.80 | 0.65 | 0.51 |
Current Ratio | 1.03 | 0.93 | 0.67 |
Interest Coverage | 3.53 | — | 1.30 |
|
Metric
|
EZJ
|
RYA
|
AF
|
|---|---|---|---|
Return on Assets (Normalized) | 3.71% | 9.48% | 0.77% |
Return on Equity (Normalized) | 16.30% | 20.03% | — |
Return on Invested Capital (Normalized) | 6.96% | 14.23% | 7.31% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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DAL
| Ptjydtn | Klny | $31.8 Bil | |||
| United Airlines Holdings Inc
UAL
| Lthqkrnf | Pkg | $19.5 Bil | |||
| Ryanair Holdings PLC ADR
RYAAY
| — | Mlyfrsk | $19.3 Bil | |||
| Ryanair Holdings PLC
RYAOF
| — | Pfcqkj | $19.3 Bil | |||
| Southwest Airlines Co
LUV
| Hpsjprmqw | Qkjk | $18.7 Bil | |||
| Air China Ltd ADR
AIRYY
| — | Pvpf | $15.7 Bil | |||
| Air China Ltd Class H
AICAF
| — | Xnz | $15.7 Bil | |||
| Singapore Airlines Ltd
SINGF
| — | Hlnp | $15.1 Bil | |||
| Singapore Airlines Ltd ADR
SINGY
| — | Vdtt | $15.1 Bil | |||
| American Airlines Group Inc
AAL
| Txmgxrns | Zkkp | $7.6 Bil |
United States