For those who appreciate growth without the sticker shock, NASDAQ:RYAAY is worth considering.

Last update: Dec 20, 2023

Discover RYANAIR HOLDINGS PLC-SP ADR (NASDAQ:RYAAY), an undervalued growth gem identified by our stock screener. NASDAQ:RYAAY is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

How do we evaluate the Growth for NASDAQ:RYAAY?

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:RYAAY, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an impressive 105.51% over the past year.
Looking at the last year, RYAAY shows a very strong growth in Revenue. The Revenue has grown by 37.49%.
Measured over the past years, RYAAY shows a quite strong growth in Revenue. The Revenue has been growing by 8.55% on average per year.
Based on estimates for the next years, RYAAY will show a very strong growth in Earnings Per Share. The EPS will grow by 26.14% on average per year.
The Revenue is expected to grow by 14.98% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Valuation: NASDAQ:RYAAY

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:RYAAY, the assigned 7 reflects its valuation:

65.22% of the companies in the same industry are more expensive than RYAAY, based on the Price/Earnings ratio.
RYAAY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.74.
With a Price/Forward Earnings ratio of 11.41, the valuation of RYAAY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RYAAY is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.31. RYAAY is valued slightly cheaper when compared to this.
Based on the Price/Free Cash Flow ratio, RYAAY is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RYAAY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RYAAY's earnings are expected to grow with 26.14% in the coming years.

How do we evaluate the Health for NASDAQ:RYAAY?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:RYAAY, the assigned 8 reflects its health status:

RYAAY has an Altman-Z score of 4.01. This indicates that RYAAY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.01, RYAAY belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
RYAAY has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as RYAAY would need 2.38 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.38, RYAAY belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
RYAAY has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RYAAY (0.32) is better than 86.96% of its industry peers.
RYAAY has a better Current ratio (1.19) than 82.61% of its industry peers.
Looking at the Quick ratio, with a value of 1.19, RYAAY belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:RYAAY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:RYAAY, the assigned 6 is noteworthy for profitability:

RYAAY has a better Return On Assets (13.61%) than 95.65% of its industry peers.
RYAAY has a Return On Equity of 26.44%. This is amongst the best in the industry. RYAAY outperforms 86.96% of its industry peers.
With an excellent Return On Invested Capital value of 18.04%, RYAAY belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
RYAAY's Profit Margin of 17.50% is amongst the best of the industry. RYAAY outperforms 100.00% of its industry peers.
Looking at the Operating Margin, with a value of 18.40%, RYAAY belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of RYAAY contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.