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Ryanair Holdings (RYAAY)
NASDAQ:RYAAY
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Ryanair Holdings
(NASDAQ:RYAAY)
Rating:73Outperform
Price Target:
$63.00
▲(7.07%Upside)
Ryanair Holdings (RYAAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.35B
Dividend Yield1.59%
Average Volume (3M)1.22M
Price to Earnings (P/E)18.6
Beta (1Y)0.56
Revenue Growth3.12%
EPS Growth-13.82%
CountryUS
Employees27,000
SectorIndustrials
Sector Strength89
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.62
Shares Outstanding530,716,600
10 Day Avg. Volume917,785
30 Day Avg. Volume1,223,830
Financial Highlights & Ratios
PEG Ratio-3.63
Price to Book (P/B)1.45
Price to Sales (P/S)0.00
P/FCF Ratio2.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.75Price Target Upside8.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Ryanair Holdings Business Overview & Revenue Model
Company DescriptionRyanair Holdings (RYAAY) is an Irish ultra-low-cost carrier (ULCC) that operates primarily in the European aviation market. Founded in 1984, Ryanair has grown to become one of Europe's largest airlines by passenger numbers, serving over 200 destinations across more than 40 countries. The company operates a fleet of Boeing 737 aircraft and is known for its no-frills service model, offering low-cost flights with the option for customers to purchase additional services and amenities.
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:May 19, 2025
(Q4-2025)
| % Change Since: 17.68%|
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 has shown a strong recovery in its financial performance. The income statement reflects substantial revenue growth and improved margins, while the balance sheet demonstrates financial stability with a manageable debt-to-equity ratio. Strong cash flow generation further underscores effective cash management, 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
58.84
Price Trends
54.09
Positive
49.76
Positive
47.06
Positive
Market Momentum
1.16
Negative
65.32
Neutral
83.84
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 58.84 is above the 20-day moving average (MA) of 56.86, above the 50-day MA of 54.09, and above the 200-day MA of 47.06, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 65.32 is Neutral, neither overbought nor oversold. The STOCH value of 83.84 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $26.49B | 7.40 | 33.57% | ― | 5.31% | 35.95% | |
78 Outperform | $32.65B | 8.86 | 27.52% | 1.20% | 4.91% | -27.21% | |
73 Outperform | $30.35B | 18.56 | 22.41% | 1.59% | 3.12% | -13.82% | |
73 Outperform | $11.61B | 24.98 | 36.66% | 3.75% | -2.56% | -14.94% | |
68 Neutral | $19.27B | 40.15 | 5.63% | 2.13% | 3.26% | 27.77% | |
65 Neutral | $10.75B | 15.65 | 5.18% | 1.92% | 3.09% | -27.41% | |
64 Neutral | $7.64B | 13.38 | -21.27% | ― | 1.92% | 36.07% |
* Industrials Sector Average
Performance Comparison
RYAAY
Ryanair Holdings
58.84
12.09
25.86%
DAL
Delta Air Lines
50.52
4.21
9.09%
PAC
Grupo Aeroportuario del Pacifico
228.59
74.17
48.03%
LUV
Southwest Airlines
33.98
6.98
25.85%
UAL
United Airlines Holdings
81.21
34.06
72.24%
AAL
American Airlines
11.58
0.43
3.86%
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.