Despite its growth, NASDAQ:RYAAY remains within the realm of affordability.

Last update: Jan 10, 2024

Consider RYANAIR HOLDINGS PLC-SP ADR (NASDAQ:RYAAY) as an affordable growth stock, identified by our stock screening tool. NASDAQ:RYAAY is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of NASDAQ:RYAAY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:RYAAY boasts a 8 out of 10:

RYAAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.51%, which is quite impressive.
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.
RYAAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.14% yearly.
The Revenue is expected to grow by 14.98% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

A Closer Look at Valuation for 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:

Based on the Price/Earnings ratio of 11.54, the valuation of RYAAY can be described as reasonable.
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 25.84.
Based on the Price/Forward Earnings ratio of 10.57, the valuation of RYAAY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RYAAY indicates a somewhat cheap valuation: RYAAY is cheaper than 69.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RYAAY to the average of the S&P500 Index (20.76), we can say RYAAY is valued slightly cheaper.
69.57% of the companies in the same industry are more expensive than RYAAY, based on the Price/Free Cash Flow ratio.
RYAAY's 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.
RYAAY's earnings are expected to grow with 26.14% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NASDAQ:RYAAY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:RYAAY was assigned a score of 8 for health:

An Altman-Z score of 3.85 indicates that RYAAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of RYAAY (3.85) is better than 95.65% of its industry peers.
The Debt to FCF ratio of RYAAY is 2.38, which is a good value as it means it would take RYAAY, 2.38 years of fcf income to pay off all of its debts.
RYAAY has a Debt to FCF ratio of 2.38. This is amongst the best in the industry. RYAAY outperforms 95.65% of its industry peers.
RYAAY has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
RYAAY has a Debt to Equity ratio of 0.32. This is amongst the best in the industry. RYAAY outperforms 86.96% of its industry peers.
Looking at the Current ratio, with a value of 1.19, RYAAY belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
With an excellent Quick ratio value of 1.19, RYAAY belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.

Profitability Examination for NASDAQ:RYAAY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:RYAAY was assigned a score of 6 for profitability:

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

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.

Keep in mind

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.