* Note: Prices are in Million (M) USD.
Description:
JetBlue Airways Corporation (JBLU) is a prominent American airline based in Long Island City, New York, specializing in low-cost, high-quality air travel primarily across domestic and Caribbean routes. Renowned for its customer-centric services, JetBlue offers unique in-flight amenities, including complimentary snacks, beverages, and in-flight entertainment, enhancing the overall travel experience for its customers. The company is committed to operational efficiency and sustainability, positioning itself strategically for growth and profitability in an increasingly competitive aviation landscape. With its robust brand reputation and focus on innovation, JetBlue remains a compelling option for both leisure and business travelers.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $783 M
EBITDA : $429 M
Net Debt (Debt - Cash): $783 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Energy & transportation
Industry: Air transportation, scheduled
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-230 M
Average Revenue: $5,548 M
Revenue Converted To Free Cash Flow (%): -4.1%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $9,279 M
Revenue 5 Years Ago (2019-12-31): $8,094 M
Total Growth over 5 Years: 14.6%
5-Year Revenue CAGR (Historical): 2.8%
Forward 5-Year CAGR (Tapered): 2.5%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $347 M
Share Count 5 Years Ago (2020-12-31): $278 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.94
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.94
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 1.4%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $4.2
52-Week Low: $3.34
Threshold Price (15% Above 52-Week Low): $3.84
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,528 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2021-12-31): $1.87
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 10 points to above JetBlue Airways Corp (JBLU) stock.
Last 11 Years Avg PE 15.81, Fair Value PE 12, Industry Based PE 12, Growth Based PE 15, ROE Based PE 1.43, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 6 values, average assigned is 12.41. The fair value of JetBlue Airways Corp (JBLU) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
