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 gets an excellent profitability rating and is at the same time showing great financial health properties. RYA has a correct valuation and a medium growth rate. This makes RYA very considerable 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.
- Of the past 5 years RYA 4 years had a positive operating cash flow.
1.2 Ratios
- RYA has a better Return On Assets (11.46%) than 92.86% of its industry peers.
- With a decent Return On Equity value of 27.99%, RYA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- 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.
- RYA had an Average Return On Invested Capital over the past 3 years of 15.59%. This is significantly above the industry average of 9.17%.
- The 3 year average ROIC (15.59%) for RYA is below the current ROIC(22.96%), indicating increased profibility in the last year.
| 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 92.86% of the companies in the same industry.
- In the last couple of years the Profit Margin of RYA has grown nicely.
- RYA's Operating Margin of 14.36% is amongst the best of the industry. RYA outperforms 92.86% of its industry peers.
- RYA's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 40.89%, RYA is doing worse than 85.71% of the companies in the same industry.
- 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.
- The number of shares outstanding for RYA has been reduced compared to 5 years ago.
- RYA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.28 indicates that RYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.28, RYA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- RYA has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
- RYA's Debt to FCF ratio of 1.12 is amongst the best of the industry. RYA outperforms 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.
- 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 | 2.28 |
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.
- The Current ratio of RYA (0.66) is better than 64.29% of its industry peers.
- A Quick Ratio of 0.66 indicates that RYA may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.66, RYA is doing good in 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
- The Earnings Per Share has grown by an impressive 62.70% over the past year.
- The Earnings Per Share has been growing by 20.18% on average over the past years. This is a very strong growth
- RYA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.75%.
- RYA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.43% yearly.
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
- RYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.82% yearly.
- 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.
- 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
- With a Price/Earnings ratio of 12.87, RYA is valued correctly.
- Based on the Price/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/Earnings ratio of 27.21, RYA is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.59, which indicates a very decent valuation of RYA.
- Based on the Price/Forward Earnings ratio, RYA is valued more expensive than 85.71% of the companies in the same industry.
- RYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RYA.
- RYA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RYA is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 3.68 |
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.
- A more expensive valuation may be justified as RYA's earnings are expected to grow with 22.82% in the coming years.
PEG (NY)0.28
PEG (5Y)0.64
EPS Next 2Y30.53%
EPS Next 3Y22.82%
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.