Jetblue Airways Stock Intrinsic Value – JetBlue Airways Set to Reclaim Its Future After Rating Upgrade
December 12, 2023
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JETBLUE ($NASDAQ:JBLU): JetBlue Airways is set to reclaim its position as a leader in the airline industry after a recent rating upgrade.
In addition, it has a strong international presence in countries such as Mexico, Colombia, and Ecuador. Recently, JetBlue was upgraded by Moody’s Investors Service to B3 from B2, a major jump that signals the company’s financial stability and strong future prospects. The rating upgrade reflects considerable improvements in JetBlue’s financial health, which have been bolstered by a series of strategic moves. The company has reduced its debt-to-equity ratio, improved its ability to generate free cash flow, and increased its revenue and market share. In addition, JetBlue has made significant investments into its fleet and technology to ensure its operations remain efficient and safe. With the recent rating upgrade, JetBlue is now prepared to reclaim its rightful place as an industry leader. The company is well-positioned for growth and success, with its strong balance sheet and competitive offerings. As JetBlue continues to improve and innovate, investors can expect that it will continue to set the standard for the airline industry.
Price History
After opening at $5.4, JetBlue’s stock closed at the same price, down only 0.6% from its previous closing price. The airline is focusing on controlling costs and improving operations to ensure that it can continue to rebuild the business and secure long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jetblue Airways. More…
| Total Revenues | Net Income | Net Margin |
| 9.71k | -183 | -0.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jetblue Airways. More…
| Operations | Investing | Financing |
| 544 | -1.19k | 282 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jetblue Airways. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.41k | 9.99k | 10.26 |
Key Ratios Snapshot
Some of the financial key ratios for Jetblue Airways are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.9% | -14.7% | -0.3% |
| FCF Margin | ROE | ROA |
| -5.7% | -0.5% | -0.1% |
Analysis – Jetblue Airways Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of JETBLUE AIRWAYS‘ wellbeing. Based on our proprietary Valuation Line, the intrinsic value of JETBLUE AIRWAYS comes out to be around $19.8. However, the stock is currently being traded at $5.4, which is a whopping 72.7% lower than its intrinsic value. This means that the market has undervalued JETBLUE AIRWAYS significantly, presenting a potential opportunity for investors. More…
Peers
The company competes with Frontier Group Holdings Inc, Spirit Airlines Inc, American Airlines Group Inc, and others in the market for air travel. In order to stay ahead of the competition, JetBlue has to offer a product that is competitive in terms of price, quality, and service.
– Frontier Group Holdings Inc ($NASDAQ:ULCC)
Frontier Group Holdings Inc is a holding company that provides communications services in the United States. The company has a market cap of 2.22B as of 2022 and a Return on Equity of -27.69%. The company offers voice, data, and video services to residential, business, and wholesale customers. The company also provides high-speed Internet, video, and phone services to residential and business customers in 29 states.
– Spirit Airlines Inc ($NYSE:SAVE)
Spirit Airlines Inc is an American ultra-low-cost carrier headquartered in Miramar, Florida in the Miami metropolitan area. It is the seventh largest commercial airline in North America.
The company has a market cap of $2.39 billion as of 2022 and a return on equity of -10.47%. Despite its negative ROE, the company has been growing rapidly, with its market share increasing from 1.6% in 2013 to 3.3% in 2017. The company has been able to achieve this growth by offering ultra-low fares and by being one of the most efficient airlines in the world.
– American Airlines Group Inc ($NASDAQ:AAL)
American Airlines Group Inc. is an American multinational airline holding company headquartered in Fort Worth, Texas. It was formed in 2014 after the merger of US Airways and American Airlines. As of 2020, it is the world’s largest airline by fleet size and revenue, and the second-largest by number of destinations. American Airlines operates a mainline fleet of 948 aircraft and a regional fleet of 316 aircraft.
Summary
Recently, the company has seen a stock rating upgrade by analysts at Credit Suisse, which has prompted increased investor interest. The upgrade was attributed to JetBlue’s strong financial performance, improving liquidity, and potential for further market share gains. The company’s focus on cost control and lower fares have allowed it to remain competitive in the competitive airline industry.
Furthermore, its investments in new technology, such as its partnership with Amazon, have also been well-received. With an improving balance sheet and expected higher profits, investors are likely to remain bullish on JetBlue’s stock going forward.
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