RYANAIR HOLDINGS PLC (RYA.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:RYA - IE00BYTBXV33 - Common Stock
28.03 EUR
-0.01 (-0.04%)
RYA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 industry peers in the Passenger Airlines industry. Both the health and profitability get an excellent rating, making RYA a very profitable company, without any liquidiy or solvency issues. RYA has a decent growth rate and is not valued too expensively. These ratings could make RYA a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year RYA was profitable.
- RYA had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: RYA reported negative net income in multiple years.
- Of the past 5 years RYA 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of RYA (11.46%) is better than 100.00% of its industry peers.
- RYA's Return On Equity of 27.99% is fine compared to the rest of the industry. RYA outperforms 64.29% of its industry peers.
- RYA's Return On Invested Capital of 22.96% is amongst the best of the industry. RYA outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RYA is significantly above the industry average of 9.17%.
- 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
- With an excellent Profit Margin value of 14.13%, RYA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- RYA's Profit Margin has improved in the last couple of years.
- 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.
- RYA has a worse Gross Margin (40.89%) 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
- RYA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- RYA has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RYA has less shares outstanding
- RYA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.26 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 (2.26) 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.
- With an excellent Debt to FCF ratio value of 1.12, RYA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.03 indicates that RYA is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.03, RYA belongs to the best 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 | 2.26 |
ROIC/WACC3.07
WACC7.47%
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 in the better half of the industry: RYA outperforms 64.29% of its industry peers.
- A Quick Ratio of 0.66 indicates that RYA may have some problems paying its short term obligations.
- RYA has a better Quick ratio (0.66) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 54.87% over the past year.
- RYA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.18% yearly.
- The Revenue has been growing slightly by 3.75% in the past year.
- The Revenue has been growing by 10.43% on average over the past years. This is quite good.
EPS 1Y (TTM)54.87%
EPS 3YN/A
EPS 5Y20.18%
EPS Q2Q%61.2%
Revenue 1Y (TTM)3.75%
Revenue growth 3Y42.69%
Revenue growth 5Y10.43%
Sales Q2Q%6.59%
3.2 Future
- The Earnings Per Share is expected to grow by 14.82% on average over the next years. This is quite good.
- Based on estimates for the next years, RYA will show a small growth in Revenue. The Revenue will grow by 5.63% on average per year.
EPS Next Y46.75%
EPS Next 2Y30.53%
EPS Next 3Y22.82%
EPS Next 5Y14.82%
Revenue Next Year9.99%
Revenue Next 2Y7.64%
Revenue Next 3Y7.51%
Revenue Next 5Y5.63%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.13, the valuation of RYA can be described as correct.
- 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.
- When comparing the Price/Earnings ratio of RYA to the average of the S&P500 Index (27.25), we can say RYA is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.32, which indicates a very decent valuation of RYA.
- RYA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RYA is more expensive than 78.57% of the companies in the same industry.
- RYA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.13 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
- RYA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RYA is cheaper than 71.43% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RYA is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
- RYA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- RYA has a very decent profitability rating, which may justify a higher PE ratio.
- RYA's earnings are expected to grow with 22.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)0.6
EPS Next 2Y30.53%
EPS Next 3Y22.82%
5. Dividend
5.1 Amount
- No dividends for RYA!.
| 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 5 / 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 12.13 and the Price/Book (PB) ratio is 1.99.
Can you provide the financial health for RYA stock?
The financial health rating of RYANAIR HOLDINGS PLC (RYA.I) is 7 / 10.