RYANAIR HOLDINGS PLC (RYA.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:RYA - IE00BYTBXV33 - Common Stock
28.71 EUR
-0.7 (-2.38%)
RYA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 industry peers in the Passenger Airlines industry. RYA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RYA has a decent growth rate and is not valued too expensively. With these ratings, RYA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- RYA had positive earnings in the past year.
- RYA had a positive operating cash flow in the past year.
- In multiple years RYA reported negative net income over the last 5 years.
- RYA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RYA's Return On Assets of 11.46% is amongst the best of the industry. RYA outperforms 100.00% of its industry peers.
- RYA has a better Return On Equity (27.99%) than 71.43% of its industry peers.
- RYA has a Return On Invested Capital of 22.96%. This is amongst the best in the industry. RYA outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RYA is significantly above the industry average of 9.24%.
- The last Return On Invested Capital (22.96%) for RYA is above the 3 year average (15.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 27.99% | ||
| ROIC | 22.96% |
ROA(3y)9.46%
ROA(5y)3.71%
ROE(3y)23.79%
ROE(5y)9.03%
ROIC(3y)15.59%
ROIC(5y)N/A
1.3 Margins
- RYA's Profit Margin of 14.13% is amongst the best of the industry. RYA outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RYA has grown nicely.
- The Operating Margin of RYA (14.36%) is better than 100.00% of its industry peers.
- RYA's Operating Margin has declined in the last couple of years.
- The Gross Margin of RYA (40.89%) is worse than 78.57% of its industry peers.
- In the last couple of years the Gross Margin of RYA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.36% | ||
| PM (TTM) | 14.13% | ||
| GM | 40.89% |
OM growth 3YN/A
OM growth 5Y-3.39%
PM growth 3YN/A
PM growth 5Y8.63%
GM growth 3Y7.87%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RYA is creating value.
- RYA has less shares outstanding than it did 1 year ago.
- RYA has less shares outstanding than it did 5 years ago.
- RYA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.31 indicates that RYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- RYA has a better Altman-Z score (2.31) than 92.86% of its industry peers.
- The Debt to FCF ratio of RYA is 1.12, which is an excellent value as it means it would take RYA, only 1.12 years of fcf income to pay off all of its debts.
- RYA has a better Debt to FCF ratio (1.12) than 100.00% of its industry peers.
- RYA has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.03, RYA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 2.31 |
ROIC/WACC2.97
WACC7.72%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that RYA may have some problems paying its short term obligations.
- RYA has a Current ratio of 0.66. This is comparable to the rest of the industry: RYA outperforms 57.14% of its industry peers.
- RYA has a Quick Ratio of 0.66. This is a bad value and indicates that RYA is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.66, RYA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- RYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.70%, which is quite impressive.
- Measured over the past years, RYA shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.18% on average per year.
- The Revenue has been growing slightly by 3.75% in the past year.
- Measured over the past years, RYA shows a quite strong growth in Revenue. The Revenue has been growing by 10.43% on average per year.
EPS 1Y (TTM)62.7%
EPS 3YN/A
EPS 5Y20.18%
EPS Q2Q%25.21%
Revenue 1Y (TTM)3.75%
Revenue growth 3Y42.69%
Revenue growth 5Y10.43%
Sales Q2Q%8.17%
3.2 Future
- The Earnings Per Share is expected to grow by 14.82% on average over the next years. This is quite good.
- RYA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.63% yearly.
EPS Next Y45.54%
EPS Next 2Y29.61%
EPS Next 3Y21.78%
EPS Next 5Y14.82%
Revenue Next Year9.99%
Revenue Next 2Y7.64%
Revenue Next 3Y7.51%
Revenue Next 5Y5.63%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.87, which indicates a correct valuation of RYA.
- RYA's Price/Earnings ratio is a bit more expensive when compared to the industry. RYA is more expensive than 71.43% of the companies in the same industry.
- RYA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 11.75 indicates a reasonable valuation of RYA.
- Based on the Price/Forward Earnings ratio, RYA is valued a bit more expensive than 78.57% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, RYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RYA is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, RYA is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 3.8 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of RYA may justify a higher PE ratio.
- RYA's earnings are expected to grow with 21.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)0.64
EPS Next 2Y29.61%
EPS Next 3Y21.78%
5. Dividend
5.1 Amount
- RYA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RYANAIR HOLDINGS PLC / RYA.I FAQ
Can you provide the ChartMill fundamental rating for RYANAIR HOLDINGS PLC?
ChartMill assigns a fundamental rating of 6 / 10 to RYA.I.
What is the valuation status for RYA stock?
ChartMill assigns a valuation rating of 6 / 10 to RYANAIR HOLDINGS PLC (RYA.I). This can be considered as Fairly Valued.
How profitable is RYANAIR HOLDINGS PLC (RYA.I) stock?
RYANAIR HOLDINGS PLC (RYA.I) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RYA stock?
The Price/Earnings (PE) ratio for RYANAIR HOLDINGS PLC (RYA.I) is 12.87 and the Price/Book (PB) ratio is 2.04.
Can you provide the financial health for RYA stock?
The financial health rating of RYANAIR HOLDINGS PLC (RYA.I) is 7 / 10.