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The n00b analysis - FTSE:AIM - Jet2
http://Jet2.com"> http://Jet2.com are a UK based travel company
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏝️" title="Einsame Insel" aria-label="Emoji: Einsame Insel">
2nd Largest UK Holiday companyhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="😎" title="Lächelndes Gesicht mit Sonnenbrille" aria-label="Emoji: Lächelndes Gesicht mit Sonnenbrille">
3rd Largest UK Airlinehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✈️" title="Flugzeug" aria-label="Emoji: Flugzeug">
Multi Award Winning, Flying from 9 Airports - serving 64 Destinations
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread"> [THREAD]
http://Jet2.com"> http://Jet2.com are a UK based travel company
2nd Largest UK Holiday company
3rd Largest UK Airline
Multi Award Winning, Flying from 9 Airports - serving 64 Destinations
Covid restrictions have hit Jet2
BUT prior to this the company were growing strongly
Its all about the number 26!
26% passenger growth for 5 years runninghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
26% turnover increase for 5 years runninghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
26% profit growth for 5 years runninghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
BUT prior to this the company were growing strongly
Its all about the number 26!
26% passenger growth for 5 years running
26% turnover increase for 5 years running
26% profit growth for 5 years running
Profit & Loss View
Profitability in 2020 was 13.9% (incl Covid)
Profitability in 2019 was 12.4%
Jet2 hedge fuel costs so rarely tends to be "shocks" within their cost basehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤓" title="Nerd-Gesicht" aria-label="Emoji: Nerd-Gesicht">
Profitability in 2020 was 13.9% (incl Covid)
Profitability in 2019 was 12.4%
Jet2 hedge fuel costs so rarely tends to be "shocks" within their cost base
Balance Sheet View
Substantial assets - £1.5bn aircrafthttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✈️" title="Flugzeug" aria-label="Emoji: Flugzeug"> + £1.4bn cash https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen">Manageable creditors - £700m deferred income, £600m leases, £400m borrowings.
Net Liquidity £634m 2020 (£578m: 2019)https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
Substantial assets - £1.5bn aircraft
Net Liquidity £634m 2020 (£578m: 2019)
Cash View
Excluding flight refunds - i.e. own cashhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">
Balance was £520m in March 2020 (£368m March 2019)
Add to this:
£172m oversubscribed issue Summer 20https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">
£98m sale of haulage business Summer 20https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen">
Excluding flight refunds - i.e. own cash
Balance was £520m in March 2020 (£368m March 2019)
Add to this:
£172m oversubscribed issue Summer 20
£98m sale of haulage business Summer 20
EPS View
Current EPS 8.8 (approx £7/share), Pre-Covid EPS 25.3 (£19/share).
Perhaps supports increased price once Covid restrictions lifted. I would imagine some element of catch up with holidays being popular in 2021https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏝️" title="Einsame Insel" aria-label="Emoji: Einsame Insel">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏰" title="Europäisches Schloss" aria-label="Emoji: Europäisches Schloss">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏟️" title="Stadion" aria-label="Emoji: Stadion">
Current EPS 8.8 (approx £7/share), Pre-Covid EPS 25.3 (£19/share).
Perhaps supports increased price once Covid restrictions lifted. I would imagine some element of catch up with holidays being popular in 2021
Future View
Competitor Thomas Cook went into administration in September 2019https://abs.twimg.com/emoji/v2/... draggable="false" alt="😯" title="Schweigendes Gesicht" aria-label="Emoji: Schweigendes Gesicht">
Made JET2 the second largest holiday company in the UK. This pushed the share price from £9 up to £19https://abs.twimg.com/emoji/v2/... draggable="false" alt="😳" title="Errötetes Gesicht" aria-label="Emoji: Errötetes Gesicht">
So it appears growth potential for BUY & HOLDhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
Competitor Thomas Cook went into administration in September 2019
Made JET2 the second largest holiday company in the UK. This pushed the share price from £9 up to £19
So it appears growth potential for BUY & HOLD
