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In the world of growth stocks, NASDAQ:RYAAY shines as a value proposition.

By Mill Chart

Last update: Feb 27, 2024

Here's RYANAIR HOLDINGS PLC-SP ADR (NASDAQ:RYAAY) for you, a growth stock our stock screener believes is undervalued. NASDAQ:RYAAY is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NASDAQ:RYAAY's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:RYAAY, the assigned 8 reflects its growth potential:

  • RYAAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.88%, which is quite impressive.
  • RYAAY shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.85%.
  • Measured over the past years, RYAAY shows a quite strong growth in Revenue. The Revenue has been growing by 8.55% on average per year.
  • Based on estimates for the next years, RYAAY will show a very strong growth in Earnings Per Share. The EPS will grow by 26.22% on average per year.
  • RYAAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.90% yearly.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at Valuation for NASDAQ:RYAAY

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:RYAAY, the assigned 7 reflects its valuation:

  • RYAAY's Price/Earnings ratio is a bit cheaper when compared to the industry. RYAAY is cheaper than 66.67% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.81. RYAAY is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 11.97, the valuation of RYAAY can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RYAAY indicates a somewhat cheap valuation: RYAAY is cheaper than 62.50% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.49. RYAAY is valued slightly cheaper when compared to this.
  • 70.83% of the companies in the same industry are more expensive than RYAAY, based on the Enterprise Value to EBITDA ratio.
  • RYAAY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RYAAY is cheaper than 79.17% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • RYAAY has a very decent profitability rating, which may justify a higher PE ratio.
  • RYAAY's earnings are expected to grow with 26.22% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NASDAQ:RYAAY?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:RYAAY, the assigned 7 reflects its health status:

  • An Altman-Z score of 4.22 indicates that RYAAY is not in any danger for bankruptcy at the moment.
  • RYAAY has a better Altman-Z score (4.22) than 87.50% of its industry peers.
  • The Debt to FCF ratio of RYAAY is 3.15, which is a good value as it means it would take RYAAY, 3.15 years of fcf income to pay off all of its debts.
  • RYAAY has a Debt to FCF ratio of 3.15. This is amongst the best in the industry. RYAAY outperforms 100.00% of its industry peers.
  • RYAAY has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
  • RYAAY has a Debt to Equity ratio of 0.34. This is in the better half of the industry: RYAAY outperforms 79.17% of its industry peers.
  • The Current ratio of RYAAY (1.00) is better than 75.00% of its industry peers.
  • RYAAY's Quick ratio of 1.00 is fine compared to the rest of the industry. RYAAY outperforms 75.00% of its industry peers.

Understanding NASDAQ:RYAAY's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:RYAAY, the assigned 6 is a significant indicator of profitability:

  • The Return On Assets of RYAAY (13.21%) is better than 95.83% of its industry peers.
  • RYAAY has a Return On Equity of 25.93%. This is amongst the best in the industry. RYAAY outperforms 87.50% of its industry peers.
  • The Return On Invested Capital of RYAAY (17.71%) is better than 95.83% of its industry peers.
  • With an excellent Profit Margin value of 15.56%, RYAAY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • RYAAY has a better Operating Margin (16.56%) than 95.83% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of RYAAY for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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RYANAIR HOLDINGS PLC-SP ADR

NASDAQ:RYAAY (4/18/2024, 7:18:37 PM)

Premarket: 135.97 +0.57 (+0.42%)

135.4

-0.95 (-0.7%)

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