JETBLUE AIRWAYS CORP (JBLU) Stock Analysis
JETBLUE AIRWAYS CORP (JBLU) Stock Analysis
Overall Grade: F (Concerning)
View interactive company profile →
JETBLUE AIRWAYS CORP faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -2.4% | Below expectations |
| FCF Margin | -12.9% | Cash flow pressure |
| Debt/Equity | 3.6x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is JETBLUE AIRWAYS CORP's Profitability and ROIC?
JETBLUE AIRWAYS CORP's return on invested capital of -2.4% is below the typical cost of capital.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -2.4% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -25.3% | Red flag | Moderate equity returns |
| Operating Margin | -4.1% | Warning | Moderate operational efficiency |
How Strong is JETBLUE AIRWAYS CORP's Cash Flow Quality?
JETBLUE AIRWAYS CORP generated $-1.2B in free cash flow over the trailing twelve months, representing a -12.9% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -12.9% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-1.2B | Red flag | Cash burn |
| OCF/Net Income | 0.2x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is JETBLUE AIRWAYS CORP's Financial Health?
JETBLUE AIRWAYS CORP's debt-to-equity ratio of 3.6x indicates elevated leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 3.6x | Red flag | Elevated leverage |
| Net Cash Position | $-5.2B | Warning | Net debt position |
Is JETBLUE AIRWAYS CORP Stock Overvalued or Undervalued?
JETBLUE AIRWAYS CORP trades at a P/E of -2.7x, representing a premium to the sector median of N/A. Free cash flow yield of -71.1% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -2.7x | Red flag | Reasonable valuation |
| EV/Sales | 0.7x | Excellent | Attractive revenue multiple |
| FCF Yield | -71.1% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -2.4% | Bottom 10% | -0.4x below |
| Free Cash Flow Margin | -12.9% | Bottom 10% | -3.0x below |
| Operating Margin | -4.1% | Bottom 10% | -0.6x below |
| Return on Equity (ROE) | -25.3% | Bottom 10% | -2.4x below |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -2.4% (Red flag)
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -12.9% (Red flag)
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 364.6% (Red flag)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -71.1% (Red flag)
Frequently Asked Questions
Q: What is JETBLUE AIRWAYS CORP's Return on Invested Capital (ROIC)?
JETBLUE AIRWAYS CORP (JBLU) has a trailing twelve-month Return on Invested Capital (ROIC) of -2.4%. This compares below the sector median of 6.7%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is JETBLUE AIRWAYS CORP's Free Cash Flow Margin?
JETBLUE AIRWAYS CORP (JBLU) has a free cash flow margin of -12.9%, generating $-1.2 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is JETBLUE AIRWAYS CORP stock overvalued or undervalued?
JETBLUE AIRWAYS CORP (JBLU) trades at a P/E ratio of -2.7x, which is above the sector median of N/A. The EV/Sales multiple is 0.7x.
Q: How much debt does JETBLUE AIRWAYS CORP have?
JETBLUE AIRWAYS CORP (JBLU) has a debt-to-equity ratio of 3.6x with total debt of $7.7 billion. Net debt position is $5.2 billion.
Q: What is JETBLUE AIRWAYS CORP's revenue and earnings growth?
JETBLUE AIRWAYS CORP (JBLU) declined revenue by 2.3% year-over-year. Earnings per share increased by 28.3% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does JETBLUE AIRWAYS CORP compare to competitors in Transportation?
Compared to other companies in Transportation, JETBLUE AIRWAYS CORP (JBLU) shows: ROIC of -2.4% is below the sector median of 6.7% (-0.4x median). FCF margin of -12.9% trails the sector median of 4.3%. These rankings are based on MetricDuck's analysis of all Transportation companies with available SEC filings.
Q: What warning signs should I watch for with JETBLUE AIRWAYS CORP?
Investors in JETBLUE AIRWAYS CORP (JBLU) should monitor these potential warning signs: 1) FCF margin is thin at -12.9%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 3.6x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.