JetBlue Airways Corp

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JBLU : NASDAQ : Services
$23.43 up 0.1 | 0.43%
Today's Range: 23.12 - 23.52
Avg. Daily Volume: 4695400.0
07/21/17 - 3:59 PM ET

Financial Analysis


JETBLUE AIRWAYS CORP's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. JETBLUE AIRWAYS CORP has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 16.93% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)1604.01616.0
EBITDA ($mil)237.0428.0
EBIT ($mil)147.0349.0
Net Income ($mil)85.0207.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1046.01287.0
Total Assets ($mil)9473.09062.0
Total Debt ($mil)1337.01780.0
Equity ($mil)3992.03414.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin32.8643.69
EBITDA Margin14.7726.48
Operating Margin9.1621.6
Sales Turnover0.70.72
Return on Assets6.728.24
Return on Equity15.9521.88
Debt Q1 FY17 Q1 FY16
Current Ratio0.610.72
Debt/Capital0.250.34
Interest Expense25.029.0
Interest Coverage5.8812.03


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)333.67322.16
Div / share0.00.0
EPS0.250.61
Book value / share11.9610.6
Institutional Own % n/a n/a
Avg Daily Volume4692890.06873953.0

Valuation


BUY. JETBLUE AIRWAYS CORP's P/E ratio indicates a significant discount compared to an average of 22.81 for the Airlines industry and a significant discount compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 1.99 indicates a discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 4.18. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, JETBLUE AIRWAYS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JBLU 12.57 Peers 22.81   JBLU 5.50 Peers 7.60

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

JBLU is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

JBLU is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JBLU 11.31 Peers 15.61   JBLU NM Peers 1.40

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

JBLU is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

JBLU's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JBLU 1.99 Peers 4.18   JBLU -13.70 Peers -16.18

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

JBLU is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, JBLU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JBLU 1.20 Peers 1.52   JBLU 1.70 Peers 0.50

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

JBLU is trading at a discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

JBLU has a sales growth rate that significantly exceeds its peers.

 

 

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