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Ryanair Holdings (RYAAY)
NASDAQ:RYAAY
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Ryanair Holdings
(NASDAQ:RYAAY)
Rating:74Outperform
Price Target:―
Ryanair Holdings (RYAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.87B
Dividend Yield1.5%
Average Volume (3M)1.50M
Price to Earnings (P/E)17.8
Beta (1Y)0.57
Revenue Growth5.39%
EPS Growth-15.92%
CountryUS
Employees27,000
SectorIndustrials
Sector Strength92
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.62
Shares Outstanding531,275,400
10 Day Avg. Volume2,477,100
30 Day Avg. Volume1,495,471
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)1.18
Price to Sales (P/S)0.00
P/FCF Ratio3.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.67Price Target Upside7.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Ryanair Holdings Business Overview & Revenue Model
Company DescriptionRyanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, Italy, Spain, Germany, and other European countries. It is also involved in the provision of various ancillary services, such as non-flight scheduled and Internet-related services; in-flight sale of beverages, food, duty-free, and merchandise; and marketing of car hire and accommodation services, and travel insurance through its website and mobile app. In addition, the company offers aircraft and passenger handling, ticketing, and maintenance and repair services; and markets car parking, fast-track, airport transfers, attractions, and activities on its website and mobile app, as well as sells gift vouchers. As of June 30, 2022, it had a principal fleet of approximately 483 Boeing 737 aircrafts and 29 Airbus A320 aircrafts; and offered approximately 3,000 short-haul flights per day serving approximately 225 airports. Ryanair Holdings plc was founded in 1985 and is headquartered in Swords, Ireland.
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 Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q4-2025)
| % Change Since: 12.78%|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Neutral
Ryanair demonstrated strong operational metrics with record passenger traffic and effective cost control. However, financial performance was impacted by profit declines and external challenges like Boeing delivery delays and increasing regulatory costs. While the company maintains a strong cash position and is actively returning value to shareholders through buybacks, it faces significant debt repayment obligations and market uncertainties.Q4-2025 Updates
Positive Updates
Record Passenger Traffic
Ryanair achieved a 9% growth in passenger traffic, reaching a new record of 200 million passengers, despite facing Boeing delivery delays.
Cost Control Success
Unit cost per passenger remained flat, widening the cost gap between Ryanair and its competitors, which positions the company well for future growth.
Strong Cash Position
Ryanair reported a gross cash position of EUR4 billion and net cash of EUR1.3 billion, supported by Boeing delivery delays.
Positive Outlook on Fuel Costs
Ryanair has hedged 85% of its FY '26 fuel at $76 per barrel, a 4% saving from the previous year, and secured 40% of next summer's fuel at $66 per barrel, a 13% saving.
Share Buyback Program
Ryanair conducted a 7% share buyback last year and plans to launch another EUR750 million buyback, returning cash to shareholders.
Expansion into MSCI Index
Ryanair's inclusion in the MSCI World Index was confirmed, enhancing the company's profile among global investors.
Negative Updates
Profit Decline
Ryanair's full-year profit after tax fell to EUR1.6 billion from EUR1.92 billion the previous year, primarily due to a 7% decline in airfares.
Boeing Delivery Delays
Ryanair faced growth constraints due to delays in Boeing deliveries, impacting planned expansion and resulting in only a 3% growth forecast for the current year.
Increasing Regulatory and Environmental Costs
Ryanair anticipates modest unit cost inflation due to rising route and ATC charges, as well as higher environmental costs including SAF mandates and ETS unwinding.
Debt Repayment Challenge
The company faces a significant cash flow challenge with EUR2 billion of maturing bonds, which it plans to pay down using internal cash balances.
Geopolitical and Market Risks
The overall market outlook remains uncertain with potential geopolitical risks and competitive pressures that could impact pricing and demand.
Company Guidance
In the Ryanair Holdings FY '25 earnings call, the company reported a decrease in after-tax profit to EUR 1.6 billion, down from EUR 1.92 billion the previous year, primarily due to a 7% decline in airfares. Despite this decrease, passenger traffic increased by 9% to 200 million, driven by lower fares, while unit ancillary revenue rose by 1%, and total ancillary revenue climbed 10%. The unit cost per passenger remained flat, widening the cost gap with competitors. Ryanair experienced Boeing delivery delays but still expanded its fleet to 618 aircraft, expecting a 3% growth in passengers to 206 million this year. The airline announced a 7% share buyback last year, with an additional EUR 750 million buyback planned this year. The company expects to be nearly debt-free by next year after paying down EUR 2 billion in maturing bonds. Ryanair's fuel hedging strategy secured significant savings, with 85% of FY '26 fuel hedged at $76 per barrel and 40% of next summer’s oil hedged at $66 per barrel. Despite constrained growth due to delivery delays, Ryanair anticipates a reasonable recovery in net profit, with summer 2025 demand strong and fares trending ahead of the previous year.Ryanair Holdings Financial Statement Overview
Summary
Ryanair's financial performance is robust, with strong revenue growth and profitability metrics post-pandemic. The income statement indicates solid gross and net profit margins, and the balance sheet shows low leverage with a stable financial position. However, liquidity management needs attention due to a slight decrease in cash reserves. Cash flow generation is strong, supporting operational flexibility.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 | ||||
| 4.11B | 4.11B | 4.66B | 3.12B | 3.77B | 3.16B | Total Assets |
| 17.18B | 17.18B | 16.41B | 12.33B | 14.75B | 13.25B | Total Debt |
| 2.75B | 2.75B | 4.12B | 5.43B | 4.21B | 3.64B | Net Debt |
| -1.13B | -1.13B | 516.90M | 2.78B | 1.64B | 1.97B | Total Liabilities |
| 9.56B | 9.56B | 10.76B | 7.68B | 9.78B | 8.04B | Stockholders Equity |
| 7.61B | 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
56.39
Price Trends
47.26
Positive
46.38
Positive
45.00
Positive
Market Momentum
2.44
Negative
80.30
Negative
97.20
Negative
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 56.39 is above the 20-day moving average (MA) of 51.33, above the 50-day MA of 47.26, and above the 200-day MA of 45.00, indicating a bullish trend. The MACD of 2.44 indicates Negative momentum. The RSI at 80.30 is Negative, neither overbought nor oversold. The STOCH value of 97.20 is Negative, 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 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.26B | 8.76 | 27.52% | 1.15% | 4.91% | -27.21% | |
75 Outperform | $25.53B | 7.13 | 33.57% | ― | 5.31% | 35.95% | |
74 Outperform | $28.87B | 17.84 | 22.41% | 1.50% | 5.39% | -15.92% | |
70 Outperform | $11.46B | 24.40 | 36.66% | 3.06% | -2.56% | -14.94% | |
65 Neutral | $4.41B | 12.06 | 5.22% | 249.80% | 4.09% | -12.16% | |
62 Neutral | $7.68B | 13.44 | -21.27% | ― | 1.92% | 36.07% | |
59 Neutral | $17.64B | 36.75 | 5.63% | 2.33% | 3.26% | 27.77% |
* Industrials Sector Average
Performance Comparison
RYAAY
Ryanair Holdings
56.39
9.31
19.77%
DAL
Delta Air Lines
49.40
0.09
0.18%
PAC
Grupo Aeroportuario del Pacifico
225.09
51.03
29.32%
LUV
Southwest Airlines
32.66
7.74
31.06%
UAL
United Airlines Holdings
78.18
26.35
50.84%
AAL
American Airlines
11.64
0.02
0.17%
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.