# EasyJet (EZJ.LSE)

Canonical: https://gigainvestors.com/s/EZJ.LSE

Analysis as of: 2026-10-16T07:36:46.074Z. Financial observations: FY1998–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 683.40 per share; close as of 2026-10-15.

Estimated value: low GBX 662.18 per share, central GBX 693.64 per share, high GBX 735.53 per share. Buy at or below the central value GBX 693.64 per share. Valuation as of 2026-10-16T07:36:46.074Z; scenarios are not confidence intervals.

Expected annual return: 10.3% at the stated quote. About 10.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 6.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.09×

- FY2018: 0.10×

- FY2019: 0.07×

- FY2020: -0.26×

- FY2021: -0.69×

- FY2022: 0.00×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.07×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 15.4%

- ROIC, second-lowest year: -23.2%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 16.8%

- Recent gross margin (lower of latest and 3-year median): 16.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.9%

- ROIC including acquisitions, ten-year median: 3.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.7%

- FY2017: 16.5%

- FY2018: 19.2%

- FY2019: 12.8%

- FY2020: -23.2%

- FY2021: -25.1%

- FY2022: 0.1%

- FY2023: 14.3%

- FY2024: 18.4%

- FY2025: 21.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -1.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -472M

- Net income, five-year total: GBP 243M

- Return on incremental invested capital: -1.3%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.7 pp

- Working capital / revenue, final three-year average: 2.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.87×

- FY2022: 2.12×

- FY2023: 0.39×

- FY2024: 0.48×

- FY2025: 0.58×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.2% vs 18.4%

- Per-share earnings: 0.57 to 0.60 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 4.5%

- Market cap gain: GBP -4.2B

- Cumulative retained earnings: GBP -919M

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 4.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.7%

- Per-share value change: GBP 0.03

- Per-share value, starting three-year median: GBP 0.57

- Per-share value, ending three-year median: GBP 0.60

- Buybacks concentrated in cheaper years (correlation): 0.75

- Average buyback yield: 0.4%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 622M

- Cumulative net income, 10 years: GBP 603M

- ROIC, first three-year median: 19.2%

- ROIC, last three-year median: 18.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.57

- FY2017: GBP 0.40

- FY2018: GBP 0.47

- FY2019: GBP 0.74

- FY2020: GBP -1.77

- FY2021: GBP -1.14

- FY2022: GBP -0.22

- FY2023: GBP 0.43

- FY2024: GBP 0.60

- FY2025: GBP 0.65

### accounting: pass

- Sloan accruals: -10.6%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: -9.6%

- FY2018: -10.9%

- FY2019: -7.9%

- FY2020: -5.8%

- FY2021: 1.8%

- FY2022: -9.0%

- FY2023: -12.5%

- FY2024: -9.2%

- FY2025: -10.6%

## Holders

## Price story

Price needs cash profits to grow 0.4% a year for ten years · "EasyJet cuts thousands of winter flights to save on fuel" (uk.finance.yahoo.com, Oct 2026) · sales +8.6%

Story as of 2026-10-16T10:00:08.041Z; price observation 2026-10-15.

Price needs cash profits to grow 0.4% a year for ten years

- 2026-04-16: easyJet Flags First-Half Loss as Middle East Conflict Bites ([finance.yahoo.com](https://finance.yahoo.com/m/dde086eb-4e7d-3ef4-87b3-ed098cba55c9/easyjet-flags-first-half-loss.html))

- 2026-07-23: EasyJet Jumps 8% After Earnings Beat Despite 70% Profit Drop ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/easyjet-jumps-8-earnings-beat-203900559.html))

### Sales · FY2024–2025

sales +8.6%; source https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml; observed 2025-12-16.

- FY2016: GBP 4.7B 

- FY2017: GBP 5.0B 

- FY2018: GBP 5.9B 

- FY2019: GBP 6.4B 

- FY2020: GBP 3.0B 

- FY2021: GBP 1.5B 

- FY2022: GBP 5.8B 

- FY2023: GBP 8.2B 

- FY2024: GBP 9.3B 

- FY2025: GBP 10B 

### Gross margin · FY2025

gross margin 16.8%; source https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml; observed 2025-12-16.

- FY2016: 23.0% 

- FY2017: 22.1% 

- FY2018: 24.3% 

- FY2019: 24.3% 

- FY2022: 13.9% 

- FY2023: 16.9% 

- FY2024: 16.8% 

- FY2025: 16.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in airlines; annual sales are GBP 10.1 billion.

- Source: https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml (filed 2025-12-16); FY2025: revenue 10106000000; grossProfit 1695000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EZJ.LSE: easyJet plc operates as a low-cost airline carrier in Europe. The company engages in the development of building projects; financing and insurance business; and tour operator activities, as well as provides holiday packages. It also offers heavy base maintenance and air transport services. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom.

### Why customers stay

Margins ranged from 16.8% to 16.9% during 2023–25; it earns 15.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2023: grossProfit / revenue = 16.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2024: grossProfit / revenue = 16.8%.

- Source: https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml (filed 2025-12-16); FY2025: grossProfit / revenue = 16.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); 10-year return on capital observations [[2016,0.20652173913043478],[2017,0.16453546453546453],[2018,0.19168575688156794],[2019,0.1283837761884463],[2020,-0.23237051039697543],[2021,-0.25062756228319144],[2022,0.000836273817925194],[2023,0.14269214615707687],[2024,0.18388324434836065],[2025,0.21035639479030507]]; median 0.1536138053462707. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 59.3% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2016: growth capex 0; upkeep 549000000; owner earnings 47000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2017: growth capex 212483325.63074994; upkeep 373516674.36925006; owner earnings 126483325.63074994. Growth capex / owner earnings = 1.6799315211798334.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2018: growth capex 514536249.60125667; upkeep 416463750.39874333; owner earnings 155536249.60125667. Growth capex / owner earnings = 3.308143605881953.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2019: growth capex 325447504.849401; upkeep 628552495.150599; owner earnings 103847504.849401. Growth capex / owner earnings = 3.133898164634412.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2023: growth capex 81000000; upkeep 673000000; owner earnings 126200000. Growth capex / owner earnings = 0.6418383518225039.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); FY2024: growth capex 159000000; upkeep 770000000; owner earnings 217200000. Growth capex / owner earnings = 0.7320441988950276.

- Source: https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml (filed 2025-12-16); FY2025: growth capex 169000000; upkeep 743000000; owner earnings 285000000. Growth capex / owner earnings = 0.5929824561403508.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); Dividend observations: [[2016,219000000],[2017,214000000],[2018,162000000],[2019,233000000],[2020,174000000],[2021,1549000000],[2022,206000000],[2023,203000000],[2024,34000000],[2025,91000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml (filed 2025-12-16); FY2025: cash repurchases 48000000 GBP.

### Are managers owners

Insiders own 17.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EZJ.LSE SharesStats.PercentInsiders = 17.769 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 0.4% yearly over ten years; actual growth was 1.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-16); Ten-year compound average after fade. Initial solved rate -0.007155820382539868. Price 683.4; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.334713823044489 → FY2025 0.37546122447258895. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 788.87 per share

- 2016-11: GBX 833.49 per share

- 2016-12: GBX 846.12 per share

- 2017-01: GBX 799.82 per share

- 2017-02: GBX 800.66 per share

- 2017-03: GBX 863.80 per share

- 2017-04: GBX 983.35 per share

- 2017-05: GBX 1,190.47 per share

- 2017-06: GBX 1,144.16 per share

- 2017-07: GBX 1,040.60 per share

- 2017-08: GBX 1,006.93 per share

- 2017-09: GBX 1,024.61 per share

- 2017-10: GBX 1,127.32 per share

- 2017-11: GBX 1,183.73 per share

- 2017-12: GBX 1,232.56 per share

- 2018-01: GBX 1,397.58 per share

- 2018-02: GBX 1,413.57 per share

- 2018-03: GBX 1,350.85 per share

- 2018-04: GBX 1,338.64 per share

- 2018-05: GBX 1,438.83 per share

- 2018-06: GBX 1,408.52 per share

- 2018-07: GBX 1,363.06 per share

- 2018-08: GBX 1,283.92 per share

- 2018-09: GBX 1,106.27 per share

- 2018-10: GBX 1,010.30 per share

- 2018-11: GBX 936.63 per share

- 2018-12: GBX 930.31 per share

- 2019-01: GBX 1,064.18 per share

- 2019-02: GBX 1,033.45 per share

- 2019-03: GBX 940.84 per share

- 2019-04: GBX 979.57 per share

- 2019-05: GBX 733.47 per share

- 2019-06: GBX 802.51 per share

- 2019-07: GBX 811.60 per share

- 2019-08: GBX 811.10 per share

- 2019-09: GBX 968.20 per share

- 2019-10: GBX 1,042.29 per share

- 2019-11: GBX 1,126.48 per share

- 2019-12: GBX 1,199.31 per share

- 2020-01: GBX 1,172.78 per share

- 2020-02: GBX 926.53 per share

- 2020-03: GBX 480.73 per share

- 2020-04: GBX 507.84 per share

- 2020-05: GBX 572.50 per share

- 2020-06: GBX 572.50 per share

- 2020-07: GBX 415.23 per share

- 2020-08: GBX 533.10 per share

- 2020-09: GBX 422.30 per share

- 2020-10: GBX 425.84 per share

- 2020-11: GBX 678.08 per share

- 2020-12: GBX 698.79 per share

- 2021-01: GBX 613.25 per share

- 2021-02: GBX 829.79 per share

- 2021-03: GBX 823.56 per share

- 2021-04: GBX 872.22 per share

- 2021-05: GBX 847.39 per share

- 2021-06: GBX 753.34 per share

- 2021-07: GBX 712.43 per share

- 2021-08: GBX 670.16 per share

- 2021-09: GBX 662.80 per share

- 2021-10: GBX 623.00 per share

- 2021-11: GBX 496.50 per share

- 2021-12: GBX 556.00 per share

- 2022-01: GBX 618.60 per share

- 2022-02: GBX 602.60 per share

- 2022-03: GBX 556.60 per share

- 2022-04: GBX 561.00 per share

- 2022-05: GBX 517.60 per share

- 2022-06: GBX 366.60 per share

- 2022-07: GBX 399.40 per share

- 2022-08: GBX 359.80 per share

- 2022-09: GBX 296.40 per share

- 2022-10: GBX 348.40 per share

- 2022-11: GBX 391.10 per share

- 2022-12: GBX 324.60 per share

- 2023-01: GBX 491.90 per share

- 2023-02: GBX 486.40 per share

- 2023-03: GBX 518.40 per share

- 2023-04: GBX 497.60 per share

- 2023-05: GBX 471.30 per share

- 2023-06: GBX 482.60 per share

- 2023-07: GBX 452.30 per share

- 2023-08: GBX 423.20 per share

- 2023-09: GBX 427.30 per share

- 2023-10: GBX 366.00 per share

- 2023-11: GBX 453.30 per share

- 2023-12: GBX 510.00 per share

- 2024-01: GBX 556.20 per share

- 2024-02: GBX 543.80 per share

- 2024-03: GBX 570.80 per share

- 2024-04: GBX 538.60 per share

- 2024-05: GBX 460.00 per share

- 2024-06: GBX 457.70 per share

- 2024-07: GBX 450.60 per share

- 2024-08: GBX 475.10 per share

- 2024-09: GBX 520.00 per share

- 2024-10: GBX 510.80 per share

- 2024-11: GBX 552.80 per share

- 2024-12: GBX 560.00 per share

- 2025-01: GBX 511.80 per share

- 2025-02: GBX 505.40 per share

- 2025-03: GBX 442.30 per share

- 2025-04: GBX 494.60 per share

- 2025-05: GBX 576.20 per share

- 2025-06: GBX 532.20 per share

- 2025-07: GBX 493.70 per share

- 2025-08: GBX 489.60 per share

- 2025-09: GBX 464.00 per share

- 2025-10: GBX 484.50 per share

- 2025-11: GBX 499.40 per share

- 2025-12: GBX 510.60 per share

- 2026-01: GBX 477.80 per share

- 2026-02: GBX 464.00 per share

- 2026-03: GBX 347.10 per share

- 2026-04: GBX 351.60 per share

- 2026-05: GBX 398.00 per share

- 2026-06: GBX 558.40 per share

- 2026-07: GBX 630.00 per share

- 2026-08: GBX 674.00 per share

- 2026-09: GBX 677.60 per share

- 2026-10: GBX 683.40 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 569.52 per share, central GBX 763.81 per share, high GBX 876.95 per share

- FY2017: low GBX 641.47 per share, central GBX 830.30 per share, high GBX 946.04 per share

- FY2018: low GBX 446.89 per share, central GBX 567.07 per share, high GBX 637.04 per share

- FY2019: low GBX 770.72 per share, central GBX 969.00 per share, high GBX 1,084.45 per share

- FY2020: low GBX 459.49 per share, central GBX 471.58 per share, high GBX 487.66 per share

- FY2021: low GBX 499.91 per share, central GBX 504.64 per share, high GBX 510.93 per share

- FY2025: low GBX 662.91 per share, central GBX 693.90 per share, high GBX 735.15 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:32.162Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138001S47XKWIB7TH90/2025-09-30/ESEF/GB/0/2138001S47XKWIB7TH90-2025-09-30/reports/2138001S47XKWIB7TH90-2025-09-30-T01.xhtml); period 2025-09-30, filed 2025-12-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations