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Ryanair Holdings (RYAAY)
NASDAQ:RYAAY
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Ryanair Holdings
(NASDAQ:RYAAY)
Rating:82Outperform
Price Target:
$73.00
▲(17.51%Upside)
Ryanair Holdings (RYAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.06B
Dividend Yield1.36%
Average Volume (3M)1.50M
Price to Earnings (P/E)14.7
Beta (1Y)0.60
Revenue Growth10.61%
EPS Growth37.32%
CountryUS
Employees27,000
SectorIndustrials
Sector Strength88
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.79
Shares Outstanding530,716,600
10 Day Avg. Volume2,085,889
30 Day Avg. Volume1,498,937
Financial Highlights & Ratios
PEG Ratio-4.22
Price to Book (P/B)3.90
Price to Sales (P/S)0.00
P/FCF Ratio14.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.33Price Target Upside6.78% 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 makes money primarily through ticket sales, which are priced competitively to attract cost-conscious travelers. The company's ultra-low-cost carrier model focuses on maximizing aircraft utilization and minimizing operational costs, which allows Ryanair to offer low base fares. In addition to ticket sales, Ryanair generates significant revenue from ancillary services, which include fees for checked baggage, seat selection, onboard refreshments, priority boarding, and other optional services. These ancillary revenues are a critical aspect of Ryanair's business model, often contributing a substantial portion of total revenue. The company also engages in partnerships with other service providers, such as car rental companies and hotels, earning commissions on these transactions. Additionally, Ryanair's cost efficiency is bolstered by its use of secondary airports, which often have lower landing fees, and its focus on direct sales through its website and mobile app, reducing distribution costs.
Ryanair Holdings Earnings Call Summary
Earnings Call Date:Jul 21, 2025
(Q1-2026)
| % Change Since: 10.63%|
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, highlighting significant profit growth, effective cost management, and strategic expansions, despite challenges such as Boeing delivery delays and increased operational costs.Q1-2026 Updates
Positive Updates
Strong Profit Growth
Ryanair reported a Q1 profit after tax of EUR 820 million, up from EUR 360 million the previous year, marking an increase of 128% against weak prior year comparisons.
Traffic and Fare Increase
Traffic grew by 4% to 58 million passengers, with average fares rising by 21%.
Unit Cost Control
Unit cost inflation was limited to 1%, demonstrating effective cost management despite external cost pressures.
Fleet Expansion
Ryanair took delivery of 5 new Gamechanger aircraft, bringing the total Gamechanger fleet to 181 aircraft.
Fuel Hedging Strategy
Ryanair has hedged 85% of its FY '26 fuel at $76 a barrel and 36% of FY '27 fuel at just under $66 a barrel, representing a 13% saving.
Strong Balance Sheet
Net cash increased by EUR 2 billion, positioning Ryanair well to repay large bonds upcoming in the next 10 months.
Addition to MSCI World Index
Ryanair was added to the MSCI World Index in June and is expected to join the FTSE Russell in September.
Negative Updates
Boeing Delivery Delays
Ryanair's growth has been constrained by Boeing's delivery delays, impacting traffic growth which is only expected to increase by 3% this year.
Increased Operating Costs
Operating costs per passenger rose by 1%, driven by significant ATC fees and higher environmental costs, despite fuel hedging.
Challenges Ahead
Ryanair faces potential risks from terrorism, tariff wars, macroeconomic shocks, and European ATC strikes, which could impact future performance.
Second Half Uncertainty
There is zero visibility for H2, with only 6% of seats sold and dependency on last-minute bookings.
Company Guidance
During the Ryanair Holdings Q1 FY '26 earnings call, CEO Michael O'Leary highlighted a significant profit after tax of EUR 820 million, marking an impressive 128% increase from the previous year, albeit against weak prior year comparisons. The company's traffic rose by 4% to 58 million passengers, accompanied by a 21% increase in average fares. Notably, revenue per passenger increased by 15%, while ancillary revenues were up by 3%. The unit cost inflation was controlled at a mere 1%, amid Boeing's delivery delays impacting traffic growth. Ryanair added five Gamechanger aircraft, totaling 181 in the fleet. The company also reported a robust balance sheet, with net cash up by EUR 2 billion, positioning it to repay EUR 2.1 billion in bonds over the next year. O'Leary mentioned that Ryanair's hedging strategy has secured 85% of FY '26 fuel at $76 a barrel and 36% of FY '27 at just under $66 a barrel. Looking ahead, Ryanair anticipates a modest unit cost inflation between 1% and 3% for FY '26, with traffic growth projected to reach 206 million passengers. However, O'Leary expressed caution due to external risks such as potential strikes, economic shocks, and geopolitical tensions.Ryanair Holdings Financial Statement Overview
Summary
Ryanair's financial statements reflect a strong recovery and growth trajectory. The income statement shows robust revenue and profit growth, while the balance sheet indicates stability with improved leverage ratios. Cash flow analysis highlights efficient cash management and strong cash flow generation, positioning the company well for future growth.Income Statement
Ryanair has shown a strong recovery in its income statement with significant revenue growth from the previous years. The gross profit margin has improved, indicating better cost management, and the net profit margin has turned positive after previous losses. EBIT and EBITDA margins are healthy, reflecting robust operational efficiency.78
Positive
Balance Sheet
The balance sheet shows a stable financial position with a manageable debt-to-equity ratio and increasing equity ratio, demonstrating financial stability. The return on equity is solid, indicating effective utilization of shareholder funds. Overall, the company has improved its leverage position, reducing financial risks.70
Positive
Cash Flow
Cash flow from operations is strong, with consistent free cash flow generation. The operating cash flow to net income ratio indicates efficient cash generation relative to reported profits. The free cash flow growth rate is positive, showcasing effective capital expenditure management and cash flow utilization.82
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.95B | 13.44B | 10.78B | 4.80B | 1.64B |
| Gross Profit | 2.65B | 3.88B | 3.04B | 791.10M | -66.90M |
| EBITDA | 3.07B | 3.06B | 2.28B | 325.30M | -467.90M |
| Net Income | 1.61B | 1.92B | 1.31B | -240.80M | -1.02B |
Balance Sheet | |||||
| Total Assets | 17.51B | 17.18B | 16.41B | 12.33B | 14.75B |
| Cash, Cash Equivalents and Short-Term Investments | 3.96B | 4.11B | 4.66B | 3.12B | 3.77B |
| Total Debt | 2.68B | 2.75B | 4.12B | 5.43B | 4.21B |
| Total Liabilities | 10.47B | 9.56B | 10.76B | 7.68B | 9.78B |
| Stockholders Equity | 7.04B | 7.61B | 5.64B | 4.65B | 4.97B |
Cash Flow | |||||
| Free Cash Flow | 1.86B | 766.00M | 1.98B | -2.74B | 910.50M |
| Operating Cash Flow | 3.42B | 3.16B | 3.89B | -2.45B | 2.11B |
| Investing Cash Flow | -1.43B | -1.56B | -1.90B | 937.10M | -918.10M |
| Financing Cash Flow | -2.00B | -1.33B | -1.05B | 1.62B | -297.40M |
Ryanair Holdings Technical Analysis
Positive
62.12
Price Trends
57.85
Positive
52.20
Positive
48.53
Positive
Market Momentum
1.63
Negative
61.69
Neutral
69.11
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 62.12 is above the 20-day moving average (MA) of 60.05, above the 50-day MA of 57.85, and above the 200-day MA of 48.53, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 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 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $31.06B | 14.69 | 27.12% | 1.36% | 10.61% | 37.32% | |
80 Outperform | $27.38B | 8.47 | 27.70% | ― | 4.23% | 13.13% | |
76 Outperform | $33.40B | 7.42 | 30.07% | 1.25% | 3.01% | -0.90% | |
73 Outperform | $11.54B | 24.74 | 47.69% | 5.06% | 7.45% | -13.53% | |
64 Neutral | $10.64B | 16.52 | 6.24% | 2.15% | 3.01% | -28.89% | |
59 Neutral | $7.28B | 14.18 | -21.27% | ― | 1.50% | ― | |
49 Neutral | $16.24B | 46.51 | 4.30% | 2.42% | 1.64% | 284.24% |
* Industrials Sector Average
Performance Comparison
RYAAY
Ryanair Holdings
62.12
23.51
60.89%
DAL
Delta Air Lines
51.15
13.67
36.47%
PAC
Grupo Aeroportuario del Pacifico
228.55
82.70
56.70%
LUV
Southwest Airlines
29.80
6.64
28.67%
UAL
United Airlines Holdings
84.57
46.69
123.26%
AAL
American Airlines
11.03
1.75
18.86%
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.