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Wizz Air Holdings (GB:WIZZ)
LSE:WIZZ

Wizz Air Holdings (WIZZ) AI Stock Analysis

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GB

Wizz Air Holdings

(LSE:WIZZ)

62Neutral
Wizz Air Holdings shows a strong income recovery and strategic corporate developments, enhancing growth potential. However, high leverage and negative free cash flow present significant risks. The stock is technically weak but attractively valued, offering a mixed investment outlook.
Positive Factors
Analyst Recommendation
The stock has been upgraded to Buy with a new target price of 1,900p, implying approximately 50% upside.
Earnings
Net income is expected to be higher than guidance, boosted by stronger foreign exchange rates.
Stock Valuation
The stock trades at a PE of 5.7x, which implies more than a 20% discount to pre-pandemic valuation lows.
Negative Factors
Cost Management
Wizz Air continues to suffer from GTF groundings: non-fuel costs rose +22% YoY in FQ2’25, in large part on uncompensated extra charges.
Operational Performance
A tough Q4 operationally is expected, with continued cost pressure impacting performance.
Yields and Competitive Pressure
Medium term risks are anticipated as yields could be pressured by ASK growth and potential competitive pressure.

Wizz Air Holdings (WIZZ) vs. S&P 500 (SPY)

Wizz Air Holdings Business Overview & Revenue Model

Company DescriptionWizz Air Holdings Plc, together with its subsidiaries, provides passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes in Europe and the Middle East. As of June 08, 2022, it operated a fleet of 154 aircraft that offered services for approximately 1000 routes from 194 airports in 51 countries. The company provides its services under the Wizz Air brand. Wizz Air Holdings Plc was founded in 2003 and is based in Saint Helier, Jersey.
How the Company Makes MoneyWizz Air Holdings makes money through a combination of ticket sales and ancillary revenues. The primary revenue stream is the sale of airline tickets, which are offered at competitive prices to attract a wide customer base. In addition to ticket sales, the company generates substantial income from ancillary services, including baggage fees, seat selection, priority boarding, in-flight refreshments, and other add-ons. These ancillary services often contribute significantly to the company's profitability. Wizz Air also benefits from partnerships with various airports and service providers, enabling cost efficiencies and enhancing its competitive pricing strategy. The company's low-cost operational model, combined with strategic route selection and high aircraft utilization, further supports its revenue generation.

Wizz Air Holdings Financial Statement Overview

Summary
Wizz Air Holdings has shown strong revenue growth and improved margins, indicating a robust recovery in its income statement. However, its high leverage and low equity base on the balance sheet pose potential risks. Cash flow is improving but still impacted by high capital expenditures.
Income Statement
75
Positive
Wizz Air Holdings has shown a significant recovery in its income statement metrics. The revenue growth rate from 2023 to 2024 was an impressive 30.22%, reflecting a strong recovery. Gross profit margin improved to 23.94%, and the net profit margin returned to profitability at 7.42% in 2024. The EBIT margin and EBITDA margin were 8.63% and 25.50%, respectively, indicating improved operational efficiency. Despite previous years of losses, the company has shown resilience and a strong turnaround.
Balance Sheet
45
Neutral
The balance sheet shows some areas of concern. The debt-to-equity ratio is extremely high due to low stockholder equity, suggesting high leverage. However, return on equity (ROE) improved to 205.29% in 2024, indicating efficient use of equity, albeit from a low base. The equity ratio is quite low at 2.11%, which could pose risks during economic downturns. Overall, the high leverage and low equity base remain concerns despite the company's return to profitability.
Cash Flow
60
Neutral
Cash flow analysis shows mixed results. The operating cash flow to net income ratio is 1.80, indicating strong cash generation relative to net income. However, free cash flow remains negative, reflecting high capital expenditures. The free cash flow growth rate improved significantly from 2023 to 2024, indicating better cash management, but the company still needs to focus on generating positive free cash flow.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
5.10B5.07B3.90B1.66B739.00M2.76B
Gross Profit
947.00M1.21B-314.90M-368.60M-507.20M453.60M
EBIT
443.00M437.90M-466.80M-465.30M-528.10M338.30M
EBITDA
405.05M1.29B171.70M-105.70M-143.20M767.10M
Net Income Common Stockholders
321.30M376.60M-523.00M-631.80M-572.10M281.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.73B1.48B1.41B1.22B1.45B1.31B
Total Assets
0.008.69B7.03B5.36B4.72B4.36B
Total Debt
0.006.27B5.30B3.96B3.14B2.04B
Net Debt
1.73B5.54B3.89B3.20B2.04B728.90M
Total Liabilities
0.008.55B7.39B5.09B3.82B3.12B
Stockholders Equity
225.50M183.40M-331.00M279.30M907.80M1.23B
Cash FlowFree Cash Flow
330.40M-32.10M-218.00M-173.80M-639.80M319.70M
Operating Cash Flow
625.62M676.80M421.90M370.60M-224.60M771.90M
Investing Cash Flow
-537.01M-360.00M532.90M-407.20M-146.50M-682.40M
Financing Cash Flow
-370.34M-1.02B-311.20M-325.50M624.60M-93.60M

Wizz Air Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1380.00
Price Trends
50DMA
1563.48
Negative
100DMA
1466.47
Negative
200DMA
1476.11
Negative
Market Momentum
MACD
-8.02
Positive
RSI
36.55
Neutral
STOCH
1.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WIZZ, the sentiment is Negative. The current price of 1380 is below the 20-day moving average (MA) of 1551.55, below the 50-day MA of 1563.48, and below the 200-day MA of 1476.11, indicating a bearish trend. The MACD of -8.02 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 1.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WIZZ.

Wizz Air Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBIAG
73
Outperform
£11.71B5.2158.10%0.83%6.07%0.66%
62
Neutral
£1.45B5.7088.27%5.20%13.48%
62
Neutral
$7.50B12.893.19%3.38%3.64%-14.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WIZZ
Wizz Air Holdings
1,380.00
-636.00
-31.55%
EJTTF
EasyJet
5.27
-1.14
-17.78%
GB:IAG
International Consolidated Airlines
240.80
81.97
51.61%

Wizz Air Holdings Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: 0.58% | Next Earnings Date: Jun 5, 2025
Earnings Call Sentiment Neutral
Wizz Air's earnings call highlighted a mixed performance with positive revenue developments and operational improvements, but significant challenges related to cost pressures, fleet groundings, and geopolitical issues. The company's strategic adjustments and strong cash position provide a degree of resilience, yet the Fitch downgrade and ongoing cost issues weigh on the outlook.
Highlights
Positive Revenue Development
Wizz Air reported positive unit revenue development in the first half of the fiscal year, with expectations of continuation into the second half driven by strong booking trends and reshuffled network strategies.
Operational Improvements
The company achieved a slight improvement in fleet utilization and operational KPIs, including an increase in completion rate to 99.4%, targeting 99.5%.
Sustainability Recognition
Wizz Air received recognition from CAPA for being the most sustainable airline in Europe for the third consecutive time.
Increased Fleet Size
The fleet grew from 189 to 232 aircraft, despite challenges, and the company managed to phase out the expensive wet-leased aircraft by the end of October.
Strong Cash Position
Wizz Air reported a strong cash position with €1.9 billion at the end of September, highlighting robust cash generation capabilities.
Lowlights
GTF Engine Groundings Impact
The grounding of 44 GTF aircraft significantly affected costs and operations, leading to substantial financial impacts and strategic adjustments.
Cost Pressures
Continued pressure on non-fuel costs, especially due to Pratt & Whitney-related disruptions, with high disruption and crew costs impacting profitability.
Flat Capacity and ASK Reduction
Capacity remained flat with a 1% decrease in Available Seat Kilometers (ASK), attributed to shorter stage lengths and inefficiencies.
Fitch Downgrade
Wizz Air was downgraded by Fitch from investment grade, primarily due to leverage issues resulting from the grounding of aircraft and high spare engine ratios.
Challenges in Geopolitical Markets
Operations in the Middle East faced challenges due to geopolitical tensions, leading to capacity reallocations and market performance issues.
Company Guidance
During Wizz Air's call, the company provided guidance for fiscal year '25, highlighting several key metrics. They reported positive unit revenue development in H1, with expectations for continued revenue strength into H2, driven by network restructuring and improved pricing strategies. Passenger numbers rose by nearly 1%, despite a slight decline in available seat kilometers (ASK) by 1%. The fleet expanded from 189 to 232 aircraft, including eight wet-leased planes, which were phased out by October, reducing costs. Wizz Air experienced operational improvements, with a completion rate of 99.4% and slightly better on-time performance. They forecast a 15%-20% growth in fiscal year '26, with a focus on mature market capacity, and anticipate a mid-single-digit revenue growth for the full year. Challenges included high ex-fuel costs due to groundings and wet leases, but the company expects cost reductions as grounded aircraft return to service. The company maintained its net profit guidance, citing a strong revenue environment and strategic cost management.

Wizz Air Holdings Corporate Events

Regulatory Filings and Compliance
Wizz Air Announces Share Capital and Voting Rights Update
Neutral
Apr 2, 2025

Wizz Air Holdings PLC announced its share capital details as of 31 March 2025, revealing a total of 103,396,078 ordinary shares in issue, each carrying one voting right, with no shares held in treasury. The company also provided a theoretical fully diluted share capital figure of 127,733,907, which includes potential shares from convertible notes and employee share options, impacting stakeholders’ calculations for notification obligations under the Financial Conduct Authority’s rules.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Passenger Growth and CO2 Emission Reductions in March 2025
Positive
Apr 2, 2025

Wizz Air Holdings reported a 6.4% increase in passenger numbers for March 2025, with a slight decrease in load factor compared to the previous year. The airline also achieved a 1.0% reduction in CO2 emissions per RPK, reinforcing its commitment to sustainability. The company anticipates a strong start to Q1 F26, with higher April fares due to Easter and promising summer bookings, indicating a positive outlook for future operations.

Shareholder MeetingsBusiness Operations and Strategy
Wizz Air Implements AGM-Approved Resolutions Following Shareholder Consultations
Neutral
Mar 31, 2025

Wizz Air Holdings PLC announced the results of its 2024 Annual General Meeting, where all proposed resolutions, including the Directors’ Remuneration Policy and amendments to the Wizz Air Omnibus Plan, were approved by shareholders, albeit with less than the desired percentage of votes. Following shareholder consultations, the company has decided to implement the approved resolutions, confident that the remuneration adjustments align management’s interests with those of shareholders, and will continue engaging on remuneration matters.

Business Operations and StrategyRegulatory Filings and Compliance
Wizz Air Announces Managerial Share Transaction
Neutral
Mar 31, 2025

Wizz Air Holdings Plc announced a managerial transaction involving the transfer of 444,472 ordinary shares to a new security account held by Vaxco Trust Limited Liability Company. This transaction, which does not alter the beneficiary or ownership, reflects internal adjustments in share custody, potentially impacting the company’s operational transparency and governance.

Executive/Board Changes
Wizz Air Announces Key Board Committee Changes
Neutral
Mar 14, 2025

Wizz Air Holdings PLC, a prominent player in the airline industry, has announced significant changes in its board committees following the return of Barry Eccleston from a temporary leave of absence. Eccleston is now the Chair of the Remuneration Committee and a member of the Nomination and Governance Committee. Other key appointments include Enrique Dupuy de Lome Chavarri and Charlotte Pedersen taking on permanent roles in their respective committees, which could impact the company’s governance and strategic direction.

Regulatory Filings and Compliance
Wizz Air Announces Share Capital Details for February 2025
Neutral
Mar 4, 2025

Wizz Air Holdings Plc announced its share capital details as of February 28, 2025, with 103,392,447 ordinary shares in issue, each carrying one voting right. The announcement provides shareholders with important information for calculating their interests in the company, highlighting the potential for changes in share capital due to convertible notes and employee share options.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Passenger Growth and Emission Reductions for February 2025
Positive
Mar 4, 2025

Wizz Air reported a 5.1% increase in passengers for February 2025, with a load factor of 91.8%, indicating improved operational efficiency. The airline also achieved a 2.2% reduction in CO2 emissions per RPK, reinforcing its commitment to sustainability and enhancing its competitive position in the market.

Product-Related AnnouncementsBusiness Operations and Strategy
Wizz Air Marks 10 Years on LSE with New Route to Medina
Positive
Feb 25, 2025

Wizz Air celebrates its 10th anniversary on the London Stock Exchange by announcing a new direct flight route from London Gatwick to Medina, Saudi Arabia, using the Airbus XLR aircraft. This expansion is part of Wizz Air’s strategy to grow its network in the Middle East and enhance its market presence. The airline aims for a 15-20% annual passenger growth, supported by fleet expansion and sustainability initiatives, including a target to power 10% of flights with sustainable aviation fuel by 2030. With a disciplined cost structure and strong liquidity, Wizz Air is well-positioned for future growth and shareholder value.

Executive/Board ChangesBusiness Operations and Strategy
Wizz Air Grants Omnibus Plan Awards to Key Executive
Positive
Feb 6, 2025

Wizz Air Holdings Plc announced the grant of options under its Omnibus Share Plan to Krzysztof Krolak, the Central Operations Officer. This move, approved by the company’s remuneration committee, involves the allocation of 4,752 ordinary shares, emphasizing Wizz Air’s commitment to rewarding its management and potentially enhancing its operational leadership.

Financial DisclosuresRegulatory Filings and Compliance
Wizz Air Updates Share Capital and Voting Rights Information
Neutral
Feb 4, 2025

Wizz Air Holdings PLC announced its current share capital details as of 31 January 2025, noting the issuance of 103,391,947 ordinary shares. These shares carry voting rights, subject to certain restrictions for Non-Qualifying Nationals. The company’s theoretical fully diluted share capital is calculated at 127,733,907 shares, including potential shares from convertible notes and employee share options. This information is vital for shareholders and stakeholders to assess their interests and obligations under financial regulations.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Positive Traffic and Emission Trends for January 2025
Positive
Feb 4, 2025

In January 2025, Wizz Air reported a 4% increase in passengers compared to the previous year, despite a slight decrease in seat capacity. The airline also achieved a load factor of 86%, indicating improved efficiency. Additionally, Wizz Air continues to lead in low emissions per passenger, with a 3.4% year-on-year reduction in CO2 emissions per RPK, highlighting its commitment to sustainability.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Revenue Growth Amid FX Challenges and Expansion Plans
Positive
Jan 30, 2025

Wizz Air Holdings Plc reported a 14.7% increase in fleet size and a 10.5% rise in total revenue for the three months ending December 2024, despite facing challenges like foreign exchange headwinds and increased costs. The company managed to achieve record passenger traffic and improve its load factor, reflecting strong demand and favorable pricing. However, significant FX charges impacted profitability, prompting a hedging program to mitigate future volatility. Looking forward, Wizz Air is focusing on growth, with plans to expand its fleet and network, supported by new aircraft orders and adjusted delivery schedules to enhance its market position.

Wizz Air Holdings to Announce Q3 F25 Results
Jan 13, 2025

Wizz Air Holdings will release its unaudited Third Quarter F25 results for the period ending December 31, 2024, on January 30, 2025. The announcement includes an in-person presentation for analysts and investors, with a live webcast option available, indicating the company’s commitment to transparency and stakeholder engagement.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.