01-09-2015, 06:11 AM
Hi everybody,
Just wanted to post an update on a stock I'm currently looking at.
EZJ - EasyJet Plc is a budget airline that has expanded rapidly over the last 5years.
At a 2.78% current yield it doesn't look that attractive considering they only started to pay a dividend in 2011. Saying this, they have aggressively raised dividends to 0.45gbp from only 0.11gbp over the space of 4years.
Current consensus is that the total payout for 2015 will be 35% larger than that of 2014 at 0.55gbp. EPS are forecast to grow 42%. It's worth noting that EZJ have beaten estimates in recent years.
It has a good/decent debt/equity ratio at 0.26.
Forward payout ratio is at 44%.
Worries:
Airlines are notoriously targeted by terrorists and any attack would cripple the share price. It's also a very competitive industry.
NOTE: I've just scratched the surface on my current research (as I currently have exams) but just want to collect opinion on the stock.
Regards
Lewys
Just wanted to post an update on a stock I'm currently looking at.
EZJ - EasyJet Plc is a budget airline that has expanded rapidly over the last 5years.
At a 2.78% current yield it doesn't look that attractive considering they only started to pay a dividend in 2011. Saying this, they have aggressively raised dividends to 0.45gbp from only 0.11gbp over the space of 4years.
Current consensus is that the total payout for 2015 will be 35% larger than that of 2014 at 0.55gbp. EPS are forecast to grow 42%. It's worth noting that EZJ have beaten estimates in recent years.
It has a good/decent debt/equity ratio at 0.26.
Forward payout ratio is at 44%.
Worries:
Airlines are notoriously targeted by terrorists and any attack would cripple the share price. It's also a very competitive industry.
NOTE: I've just scratched the surface on my current research (as I currently have exams) but just want to collect opinion on the stock.
Regards
Lewys