JetBlue Airways Corp (JBLU, Financial) has experienced a significant uptick in its stock price, with an 8.96% gain over the past week and an impressive 57.11% surge over the past three months. The current market capitalization stands at $2.29 billion, with a stock price of $6.75. Despite these gains, the GF Value suggests caution, labeling the stock as a Possible Value Trap, Think Twice, both currently and in the past when the GF Value was higher at $18.13.
JetBlue Airways: A Snapshot
JetBlue Airways Corp, a player in the transportation industry, is known for its low-cost yet high-quality airline services. The company serves a wide range of destinations across the United States, the Caribbean, Latin America, Canada, and England. With a fleet that includes Airbus A321, Airbus A320, Airbus A321neo, and Embraer E190 aircraft, JetBlue operates through segments such as Domestic & Canada, Caribbean & Latin America, and Atlantic, with the majority of its revenue stemming from the Domestic & Canada segment.
Assessing Profitability
JetBlue's Profitability Rank is a moderate 6/10. The airline's Operating Margin is currently at -0.33%, which is better than 16.39% of its industry peers. Its ROE stands at -9.02%, surpassing 9.75% of industry competitors, while the ROA is -2.32%, outperforming 13.66% of peers. The ROIC is -0.22%, which is better than 18.03% of the industry. Over the past decade, JetBlue has maintained profitability for 7 years, ranking higher than 45.49% of its industry counterparts.
Growth Trajectory of JetBlue
JetBlue's Growth Rank is a robust 7/10. The company's 3-Year Revenue Growth Rate per Share is 1.40%, which is better than 40.11% of industry peers. However, the 5-Year Revenue Growth Rate per Share shows a slight decline of -0.70%, still outperforming 39.62% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at an optimistic 19.76%, which is better than 92.49% of industry peers, indicating potential for significant future growth.
Key Stakeholders in JetBlue
JetBlue's shareholder base includes notable names such as Donald Smith & Co, holding 12,450,690 shares, which translates to a 3.74% share percentage. PRIMECAP Management (Trades, Portfolio) follows with 3,351,100 shares, accounting for 1.01% of shares, and Jim Simons (Trades, Portfolio) with 1,588,583 shares, representing a 0.48% share percentage. These significant stakeholders reflect confidence in the airline's business model and future prospects.
JetBlue's Competitive Landscape
When compared to its closest competitors by market capitalization, JetBlue stands in the middle of the pack. Allegiant Travel Co (ALGT, Financial) has a market cap of $1.44 billion, while SkyWest Inc (SKYW, Financial) boasts a slightly higher market cap of $2.4 billion. Frontier Group Holdings Inc (ULCC, Financial) trails with a market cap of $1.61 billion. This positioning gives JetBlue a competitive edge in terms of market presence within the industry.
Conclusion: Evaluating JetBlue's Market Position
In summary, JetBlue Airways Corp's recent stock performance has been remarkable, with a 57.11% gain over the past three months. However, the GF Value warns of a possible value trap, urging investors to think twice. The company's profitability metrics, although not stellar, are competitive within the industry, and its growth prospects appear promising. The presence of significant shareholders like Donald Smith & Co, PRIMECAP Management (Trades, Portfolio), and Jim Simons (Trades, Portfolio) adds a layer of investor confidence. When juxtaposed with its competitors, JetBlue maintains a solid market position, suggesting that its recent stock price rally may be underpinned by substantive business growth and strategic positioning within the transportation sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
