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Ryanair Holdings (RYAAY)
NASDAQ:RYAAY
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Ryanair Holdings
(NASDAQ:RYAAY)
Rating:75Outperform
Price Target:
$69.00
▲(17.59% Upside)
Positive Factors
Strong Financial Performance
Ryanair's robust financial health, characterized by consistent revenue growth and strong cash flow, ensures long-term sustainability and competitiveness in the airline industry.
Cost Control Success
Effective cost control enhances Ryanair's competitive advantage by maintaining low operational costs, allowing for competitive pricing and improved profitability.
Fleet Expansion
Expanding and modernizing the fleet with cost-efficient aircraft supports Ryanair's growth strategy and operational efficiency, enhancing its market position.
Negative Factors
Boeing Delivery Delays
Delays in aircraft deliveries limit Ryanair's capacity expansion, potentially hindering growth plans and market share gains in the short to medium term.
Environmental and ATC Cost Pressures
Rising environmental and ATC costs increase operational expenses, potentially squeezing margins and affecting long-term profitability if not managed effectively.
Regulatory and Market Challenges
Regulatory hurdles and market-specific challenges can disrupt operations and increase costs, impacting Ryanair's ability to maintain its low-cost model and market competitiveness.
Ryanair Holdings (RYAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.61B
Dividend Yield1.7%
Average Volume (3M)926.78K
Price to Earnings (P/E)13.9
Beta (1Y)0.61
Revenue Growth10.61%
EPS Growth37.32%
CountryUS
Employees27,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.79
Shares Outstanding529,673,800
10 Day Avg. Volume902,530
30 Day Avg. Volume926,776
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit8.15
Enterprise Value/Ebitda7.81
Forecast
1Y Price Target
$69.50Price Target Upside18.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Ryanair Holdings Business Overview & Revenue Model
Company DescriptionRyanair Holdings plc is a leading low-cost airline group headquartered in Dublin, Ireland. It operates an extensive network of scheduled passenger services across Europe, with a strong focus on providing affordable travel options. The company primarily serves the leisure and business travel markets, utilizing a fleet of Boeing 737 aircraft to connect over 200 destinations in 40 countries. Ryanair is known for its no-frills service model, emphasizing low fares while charging for additional services and amenities.
How the Company Makes MoneyRyanair generates revenue primarily through the sale of passenger tickets, which constitute the largest portion of its income. The company’s low-cost model allows it to offer competitive fares, attracting a large volume of travelers. In addition to ticket sales, Ryanair earns significant revenue from ancillary services, which include fees for baggage, seat selection, priority boarding, and in-flight purchases. The airline also benefits from partnerships with various travel-related companies, such as hotels and car rental services, allowing it to offer bundled packages to customers. Moreover, Ryanair has leveraged its brand to create additional revenue streams through advertising and promotional collaborations. The company's efficient operational model, characterized by high aircraft utilization and quick turnaround times, further enhances its profitability by minimizing costs and maximizing capacity.
Ryanair Holdings Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call highlights Ryanair's strong financial performance and strategic positioning, with significant profit growth and effective cost control being major positives. However, ongoing challenges such as Boeing delivery delays, regulatory hurdles, and environmental cost pressures present notable concerns. Despite these challenges, Ryanair's strong balance sheet and strategic fleet management provide a solid foundation for future growth.Q1-2026 Updates
Positive Updates
Profit Surge in Q1
Ryanair reported a strong Q1 profit after tax of EUR 820 million, up from EUR 360 million in the previous year, marking a 128% increase against the weak prior year comparison.
Traffic and Fare Growth
Traffic grew 4% to 58 million passengers, with a 21% increase in average fares and revenue per passenger rising 15%.
Cost Control Success
Unit cost inflation was kept to just 1%, significantly widening the cost gap between Ryanair and its EU competitors.
Fleet Expansion
Ryanair took delivery of 5 new Gamechanger aircraft, bringing the total to 181, and secured 30 spare LEAP-1B engines at a significant discount.
Strong Balance Sheet
Net cash increased by EUR 2 billion, positioning Ryanair well to repay two large bonds totaling EUR 2.05 billion over the next 10 months.
Negative Updates
Boeing Delivery Delays
Traffic growth is constrained by Boeing's delivery delays, impacting the ability to expand more rapidly.
Environmental and ATC Cost Pressures
Operating costs rose by 1% per passenger due to significant ATC fees and environmental costs, despite effective fuel hedging.
Regulatory and Market Challenges
Ongoing regulatory challenges in Spain regarding cabin baggage and uncompetitive costs in countries like Germany and parts of Spain affecting operations.
Company Guidance
In the Ryanair Q1 FY '26 earnings call, CEO Michael O'Leary reported a strong financial performance with a profit after tax of EUR 820 million, up from EUR 360 million the previous year. Traffic grew by 4% to 58 million passengers, with average fares increasing by 21%. The revenue per passenger rose 15%, while ancillary revenues increased by 3%. The company managed to keep unit cost inflation at just 1%, despite challenges such as Boeing's delivery delays and increased ATC fees. Ryanair successfully hedged 85% of its fuel for FY '26 at $76 a barrel and began hedging FY '27 at $66 a barrel. The balance sheet remains robust with net cash up by EUR 2 billion, positioning the company well to meet upcoming bond repayments. While maintaining a cautious outlook due to potential external risks, Ryanair expects to achieve modest net profit growth for FY '26, supported by strong summer travel demand and effective cost control.Ryanair Holdings Financial Statement Overview
Summary
Ryanair demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow generation. The balance sheet is solid with low leverage and high returns on equity, positioning the company well in its industry.Income Statement
Ryanair shows strong revenue growth with a 5.1% increase in TTM (Trailing-Twelve-Months) revenue. The gross profit margin is healthy at 23.8%, and the net profit margin is robust at 14.1%. EBIT margin stands at 14.4% and EBITDA margin is at 22.6%, indicating solid operational efficiency and profitability.85
Very Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.31, showing prudent leverage. Return on Equity (ROE) is 28.0%, suggesting effective management in generating returns. The equity ratio is 40.9%, indicating a healthy proportion of equity financing.78
Positive
Cash Flow
Free cash flow has grown by 11.3% over the previous period, illustrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.81, and the free cash flow to net income ratio is 1.00, indicating effective conversion of income to cash.82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.66B | 13.95B | 13.44B | 10.78B | 4.80B | 1.64B |
| Gross Profit | 3.49B | 2.65B | 3.88B | 3.04B | 791.10M | -66.90M |
| EBITDA | 3.64B | 3.07B | 3.06B | 2.28B | 325.30M | -337.00M |
| Net Income | 2.07B | 1.61B | 1.92B | 1.31B | -240.80M | -1.02B |
Balance Sheet | ||||||
| Total Assets | 18.08B | 17.51B | 17.18B | 16.41B | 12.33B | 14.75B |
| Cash, Cash Equivalents and Short-Term Investments | 4.35B | 3.96B | 4.11B | 4.66B | 3.60B | 3.12B |
| Total Debt | 2.32B | 2.68B | 2.75B | 4.12B | 5.08B | 5.43B |
| Total Liabilities | 10.68B | 10.47B | 9.56B | 10.76B | 7.68B | 9.78B |
| Stockholders Equity | 7.40B | 7.04B | 7.61B | 5.64B | 5.55B | 4.65B |
Cash Flow | ||||||
| Free Cash Flow | 2.07B | 1.86B | 766.00M | 1.98B | -2.74B | 910.50M |
| Operating Cash Flow | 3.75B | 3.42B | 3.16B | 3.89B | -2.45B | 2.11B |
| Investing Cash Flow | -1.90B | -1.43B | -1.56B | -1.90B | 937.10M | 937.00M |
| Financing Cash Flow | -2.14B | -2.00B | -1.33B | -1.05B | 1.62B | 1.62B |
Ryanair Holdings Technical Analysis
Neutral
58.68
Price Trends
61.43
Negative
57.17
Positive
50.82
Positive
Market Momentum
-1.00
Positive
38.41
Neutral
6.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAAY, the sentiment is Neutral. The current price of 58.68 is below the 20-day moving average (MA) of 62.34, below the 50-day MA of 61.43, and above the 200-day MA of 50.82, indicating a neutral trend. The MACD of -1.00 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 6.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks
1.
In 2021, a law was passed in France prohibiting domestic flights where an alternative direct train service operates in under 2.5 hours, with an exception made for connecting flights. The European Commission found this distorted competition between point to point carriers and network operators. Consequently, France amended the law to remove this exemption for connecting flights. The new formulation of the law de facto means that only 3 routes to Paris Orly airport are affected. The European Commission approved this law in December 2022. Q1, 2023
Ryanair Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $34.50B | 10.68 | 27.70% | ― | 4.23% | 13.13% | |
80 Outperform | $39.09B | 8.68 | 30.07% | 1.06% | 3.01% | -0.90% | |
75 Outperform | $29.61B | 13.88 | 27.12% | 1.70% | 10.61% | 37.32% | |
72 Outperform | $13.95B | 12.46 | 161.29% | 2.09% | 5.64% | 63.23% | |
66 Neutral | $8.52B | 16.60 | -21.27% | ― | 1.50% | ― | |
63 Neutral | $10.74B | 15.33 | 7.44% | 2.00% | 2.86% | -14.57% | |
61 Neutral | $16.63B | 47.61 | 4.30% | 2.27% | 1.64% | 284.24% |
* Industrials Sector Average
Performance Comparison
RYAAY
Ryanair Holdings
58.68
16.74
39.91%
DAL
Delta Air Lines
59.87
15.08
33.67%
LUV
Southwest Airlines
31.66
3.76
13.48%
UAL
United Airlines Holdings
106.58
55.24
107.60%
AAL
American Airlines
12.91
2.10
19.43%
LTM
LATAM Airlines Group SA Sponsored ADR
48.39
22.88
89.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.