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The n00b analysis - FTSE:AIM - Jet2
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
[THREAD]
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
[THREAD]
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 running
26% turnover increase for 5 years running
26% profit growth for 5 years running
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 base
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 aircraft + £1.4bn cash 
Manageable creditors - £700m deferred income, £600m leases, £400m borrowings.
Net Liquidity £634m 2020 (£578m: 2019)
Substantial assets - £1.5bn aircraft
+ £1.4bn cash Manageable creditors - £700m deferred income, £600m leases, £400m borrowings. Net Liquidity £634m 2020 (£578m: 2019)
Cash View
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
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 2021
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 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
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
Analysis and Opinions are my own. I am NOT a financial advisor. Please do YOUR OWN research
