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Ryanair Holdings (RYAAY)
NASDAQ:RYAAY
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Ryanair Holdings
(NASDAQ:RYAAY)75Outperform
Ryanair Holdings (RYAAY) vs. S&P 500 (SPY)
Market Cap
$23.57B
Dividend Yield1.74%
Average Volume (3M)1.72M
Price to Earnings (P/E)14.7
Beta (1Y)0.57
Revenue Growth5.39%
EPS Growth92.99%
CountryUS
Employees27,076
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)3.28
Shares Outstanding533,359,400
10 Day Avg. Volume2,246,832
30 Day Avg. Volume1,720,887
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)N/A
Price to Sales (P/S)6.83
Price to Cash Flow (P/CF)17.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$42.66Price Target Upside-9.52% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Ryanair Holdings Business Overview & Revenue Model
Company DescriptionRyanair Holdings (RYAAY) is Europe's largest low-cost airline, operating more than 1,800 daily flights across 40 countries. The company is headquartered in Dublin, Ireland, and serves more than 225 destinations. Ryanair is renowned for its no-frills service, offering affordable air travel by minimizing overhead costs. The airline primarily focuses on short-haul, point-to-point routes, targeting price-sensitive leisure and business travelers. It operates a fleet of Boeing 737 aircraft, which facilitates efficient operations and cost management.
How the Company Makes MoneyRyanair Holdings primarily generates revenue through the sale of airline tickets, leveraging its low-cost model to offer competitive pricing and attract a high volume of passengers. This approach relies on maintaining a lean operational structure, optimizing aircraft turnaround times, and utilizing secondary airports to reduce fees and charges. Additional revenue streams include ancillary services such as baggage fees, seat selection, in-flight sales, and travel-related services like car rentals and hotel bookings. Ryanair also benefits from partnerships with other travel service providers, contributing to its non-ticket revenue. The company's profitability is significantly influenced by factors such as fuel costs, labor expenses, and regulatory changes within the aviation industry.
Ryanair Holdings Financial Statement Overview
Summary
Ryanair demonstrates a strong recovery and growth trajectory post-pandemic, with impressive revenue and profitability metrics. The balance sheet is solid with low leverage, although liquidity management requires attention. Cash flow generation is robust, supporting operational and strategic flexibility. Overall, Ryanair is well-positioned for continued growth and stability in the transportation industry.Income Statement
Ryanair's income statement shows strong revenue growth, with a significant increase from 2022 to TTM 2024. The gross profit margin is solid at 24.7% TTM, and net profit margin is healthy at 12%. The company has rebounded strongly from the pandemic lows, with consistent improvement in EBIT and EBITDA margins, indicating operational efficiency.82
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a favorable debt-to-equity ratio of 0.33 TTM, showcasing low leverage. The equity ratio of 49.9% TTM highlights strong equity financing. However, the slight decrease in cash reserves and increase in net debt from the previous year suggest a cautious approach to liquidity management is needed.75
Positive
Cash Flow
Ryanair's cash flow statement shows robust operating cash flow, significantly exceeding net income, which suggests strong cash-generating ability. The free cash flow to net income ratio is positive, indicating effective capital expenditure management. Despite fluctuations in free cash flow growth, the company has managed to maintain positive free cash flow in TTM 2024.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.82B | 13.44B | 10.78B | 4.80B | 1.64B | 8.49B | Gross Profit |
| 3.42B | 3.88B | 3.04B | 791.10M | -66.90M | 2.45B | EBIT |
| 1.71B | 2.06B | 1.44B | -339.60M | -839.40M | 1.13B | EBITDA |
| 2.48B | 3.06B | 2.28B | 325.30M | -467.90M | 1.82B | Net Income Common Stockholders |
| 1.66B | 1.92B | 1.31B | -240.80M | -1.02B | 648.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.75B | 4.11B | 4.66B | 3.12B | 3.77B | 3.16B | Total Assets |
| 16.37B | 17.18B | 16.41B | 12.33B | 14.75B | 13.25B | Total Debt |
| 2.70B | 2.75B | 4.12B | 5.43B | 4.21B | 3.64B | Net Debt |
| -51.40M | -1.13B | 516.90M | 2.78B | 1.64B | 1.97B | Total Liabilities |
| 8.20B | 9.56B | 10.76B | 7.68B | 9.78B | 8.04B | Stockholders Equity |
| 8.17B | 7.61B | 5.64B | 4.65B | 4.97B | 5.21B |
| Cash Flow | Free Cash Flow | ||||
| 1.42B | 766.00M | 1.98B | -2.74B | 910.50M | 423.20M | Operating Cash Flow |
| 2.97B | 3.16B | 3.89B | -2.45B | 2.11B | 2.06B | Investing Cash Flow |
| -1.17B | -1.56B | -1.90B | 937.10M | -918.10M | -1.02B | Financing Cash Flow |
| -1.61B | -1.33B | -1.05B | 1.62B | -297.40M | -883.40M |
Ryanair Holdings Technical Analysis
Positive
47.15
Price Trends
45.25
Positive
44.86
Positive
44.35
Positive
Market Momentum
0.76
Negative
52.14
Neutral
50.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAAY, the sentiment is Positive. The current price of 47.15 is above the 20-day moving average (MA) of 46.52, above the 50-day MA of 45.25, and above the 200-day MA of 44.35, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 52.14 is Neutral, neither overbought nor oversold. The STOCH value of 50.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYAAY.
Ryanair Holdings Risk Analysis
Ryanair Holdings disclosed 10 risk factors in its most recent earnings report. Ryanair Holdings reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ryanair 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.46B | 19.86 | 9.31% | ― | 12.56% | 69.33% | |
75 Outperform | $23.57B | 14.73 | 21.21% | 1.74% | 5.39% | 92.99% | |
74 Outperform | $1.51B | 18.00 | 15.12% | ― | 5.18% | ― | |
63 Neutral | $17.31B | 38.71 | 4.50% | 2.46% | 5.34% | -6.20% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
58 Neutral | $8.22B | 11.28 | -21.27% | ― | 2.70% | 2.20% | |
47 Neutral | $2.16B | ― | -26.60% | ― | -3.50% | -148.99% |
* Industrials Sector Average
Performance Comparison
RYAAY
Ryanair Holdings
47.15
-8.28
-14.94%
ALK
Alaska Air
55.47
18.11
48.47%
JBLU
JetBlue Airways
5.52
-1.52
-21.59%
LUV
Southwest Airlines
28.18
-5.01
-15.09%
AAL
American Airlines
12.50
-2.15
-14.68%
ULCC
Frontier Group Holdings
6.04
-1.32
-17.93%
Ryanair Holdings Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: 2.19% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
Ryanair's earnings call highlighted strong Q3 profit and traffic growth, effective cost management, and a solid financial position. However, challenges such as Boeing delivery delays, legal issues in Spain, and cost inflation present significant concerns. The company's cautious outlook on future pricing and traffic targets adds uncertainty.Highlights
Q3 Profit and Traffic Growth
Ryanair reported a Q3 profit after tax of EUR149 million with a 9% increase in traffic to 45 million passengers.
Strong Ancillary Revenue
Ancillary revenues in Q3 rose 10% to EUR1.04 billion, with improvements in the OTA partnerships.
Successful Cost Management
Operating costs increased by 8% with 9% traffic growth, with fuel hedge savings offsetting higher staff and other costs.
Sound Financial Position
Gross cash was EUR2.77 billion with a net cash balance of over EUR70 million despite significant CapEx and share buybacks.
Hedging Strategy
The company is over 75% hedged at $77 a barrel for the next year, providing stability against fuel price volatility.
Lowlights
Year-to-Date Profit Decline
For the nine months, profits of EUR1.94 billion are 12% below the prior year, with airfares 8% lower.
Boeing Delivery Delays
Delays have forced Ryanair to revise its FY 2026 traffic target from 215 million to 206 million passengers.
Legal Challenges in Spain
Ryanair faced a EUR107 million fine related to baggage charges, which it plans to contest in court.
Cost Inflation
Non-fuel costs increased by 8% due to crew pay, productivity issues, higher handling, and ATC fees.
Limited Visibility on Future Pricing
The company expressed uncertainty about future pricing trends and market conditions.
Company Guidance
In the Ryanair Q3 results call for fiscal year 2025, the company reported a profit after tax of EUR149 million, driven by a 9% increase in traffic to 45 million passengers and slightly higher average fares. Despite this quarterly performance, the nine-month cumulative profit was 12% lower than the previous year, attributed to an 8% drop in airfares. Ancillary revenue rose by 10% to EUR1.04 billion, while operating costs increased by 8% to EUR2.93 billion, partially offset by fuel hedge savings. Ryanair completed over 60% of its EUR800 million share buyback program, with an expectation to return almost EUR9 billion to shareholders by mid-2025. Challenges included Boeing aircraft delivery delays, leading to a revised FY 2026 traffic target of 206 million passengers, down from the initial 215 million. The company remains cautiously optimistic about the upcoming summer, with full-year 2025 profit after tax projected between EUR1.55 billion and EUR1.61 billion, contingent on external factors such as Boeing delivery schedules and geopolitical conflicts.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.