RYANAIR HOLDINGS PLC-SP ADR (RYAAY) Stock Fundamental Analysis
NASDAQ:RYAAY - Nasdaq - US7835132033 - ADR - Currency: USD
RYAAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Passenger Airlines industry. RYAAY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RYAAY is not valued too expensively and it also shows a decent growth rate. These ratings could make RYAAY a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RYAAY had positive earnings in the past year.
In the past year RYAAY had a positive cash flow from operations.
In multiple years RYAAY reported negative net income over the last 5 years.
RYAAY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.21%, RYAAY belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
With an excellent Return On Equity value of 22.90%, RYAAY belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
The Return On Invested Capital of RYAAY (15.02%) is better than 91.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RYAAY is significantly above the industry average of 10.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 22.9% | ||
| ROIC | 15.02% |
ROA(3y)9.46%
ROA(5y)3.71%
ROE(3y)23.79%
ROE(5y)9.03%
ROIC(3y)15.59%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RYAAY (11.55%) is better than 95.65% of its industry peers.
In the last couple of years the Profit Margin of RYAAY has grown nicely.
RYAAY has a Operating Margin of 11.17%. This is amongst the best in the industry. RYAAY outperforms 82.61% of its industry peers.
In the last couple of years the Operating Margin of RYAAY has declined.
The Gross Margin of RYAAY (38.73%) is worse than 60.87% of its industry peers.
RYAAY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.17% | ||
| PM (TTM) | 11.55% | ||
| GM | 38.73% |
OM growth 3YN/A
OM growth 5Y-3.39%
PM growth 3YN/A
PM growth 5Y8.63%
GM growth 3Y7.87%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RYAAY is creating value.
The number of shares outstanding for RYAAY has been reduced compared to 1 year ago.
RYAAY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RYAAY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that RYAAY is not a great score, but indicates only limited risk for bankruptcy at the moment.
RYAAY has a better Altman-Z score (2.85) than 91.30% of its industry peers.
RYAAY has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
The Debt to FCF ratio of RYAAY (1.44) is better than 100.00% of its industry peers.
RYAAY has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RYAAY (0.26) is better than 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 2.85 |
ROIC/WACC2.08
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.74 indicates that RYAAY may have some problems paying its short term obligations.
RYAAY has a Current ratio (0.74) which is comparable to the rest of the industry.
RYAAY has a Quick Ratio of 0.74. This is a bad value and indicates that RYAAY is not financially healthy enough and could expect problems in meeting its short term obligations.
RYAAY has a better Quick ratio (0.74) than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
RYAAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.93%.
Measured over the past years, RYAAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.18% on average per year.
Looking at the last year, RYAAY shows a small growth in Revenue. The Revenue has grown by 3.75% in the last year.
The Revenue has been growing by 10.43% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.93%
EPS 3YN/A
EPS 5Y20.18%
EPS Q2Q%-16.05%
Revenue 1Y (TTM)3.75%
Revenue growth 3Y42.69%
Revenue growth 5Y10.43%
Sales Q2Q%5.87%
3.2 Future
Based on estimates for the next years, RYAAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.22% on average per year.
RYAAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.18% yearly.
EPS Next Y30.2%
EPS Next 2Y19.94%
EPS Next 3Y19.51%
EPS Next 5Y17.22%
Revenue Next Year6.29%
Revenue Next 2Y6.1%
Revenue Next 3Y6.49%
Revenue Next 5Y5.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RYAAY is valuated correctly with a Price/Earnings ratio of 16.34.
Based on the Price/Earnings ratio, RYAAY is valued a bit cheaper than 60.87% of the companies in the same industry.
RYAAY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
RYAAY is valuated correctly with a Price/Forward Earnings ratio of 12.55.
The rest of the industry has a similar Price/Forward Earnings ratio as RYAAY.
The average S&P500 Price/Forward Earnings ratio is at 22.13. RYAAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RYAAY.
The rest of the industry has a similar Price/Free Cash Flow ratio as RYAAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
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.
A more expensive valuation may be justified as RYAAY's earnings are expected to grow with 19.51% in the coming years.
PEG (NY)0.54
PEG (5Y)0.81
EPS Next 2Y19.94%
EPS Next 3Y19.51%
5. Dividend
5.1 Amount
RYAAY has a Yearly Dividend Yield of 1.69%.
RYAAY's Dividend Yield is rather good when compared to the industry average which is at 2.75. RYAAY pays more dividend than 86.96% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, RYAAY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
RYAAY has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RYAAY pays out 27.16% of its income as dividend. This is a sustainable payout ratio.
DP27.16%
EPS Next 2Y19.94%
EPS Next 3Y19.51%
55.22
-1.12 (-1.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners54.8%
Inst Owner Change-3.46%
Ins Owners4.21%
Ins Owner ChangeN/A
Market Cap29.34B
Analysts76.8
Price Target60.97 (10.41%)
Short Float %0.78%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend0.92
Dividend Growth(5Y)N/A
DP27.16%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)87.17%
Min EPS beat(2)5.03%
Max EPS beat(2)169.31%
EPS beat(4)3
Avg EPS beat(4)34.06%
Min EPS beat(4)-38.77%
Max EPS beat(4)169.31%
EPS beat(8)4
Avg EPS beat(8)9.03%
EPS beat(12)6
Avg EPS beat(12)6.88%
EPS beat(16)8
Avg EPS beat(16)6.17%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)1.27%
Revenue beat(4)1
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-9.46%
Max Revenue beat(4)1.27%
Revenue beat(8)3
Avg Revenue beat(8)-1.43%
Revenue beat(12)6
Avg Revenue beat(12)-0.71%
Revenue beat(16)7
Avg Revenue beat(16)-1.59%
PT rev (1m)11.27%
PT rev (3m)15.89%
EPS NQ rev (1m)27.96%
EPS NQ rev (3m)22.95%
EPS NY rev (1m)-1.85%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)3.61%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 12.55 | ||
| P/S | 1.83 | ||
| P/FCF | 13.68 | ||
| P/OCF | 7.46 | ||
| P/B | 3.62 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 8.69 |
EPS(TTM)3.38
EY6.12%
EPS(NY)4.4
Fwd EY7.97%
FCF(TTM)4.04
FCFY7.31%
OCF(TTM)7.4
OCFY13.4%
SpS30.22
BVpS15.25
TBVpS14.93
PEG (NY)0.54
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 22.9% | ||
| ROCE | 16.66% | ||
| ROIC | 15.02% | ||
| ROICexc | 26.07% | ||
| ROICexgc | 26.8% | ||
| OM | 11.17% | ||
| PM (TTM) | 11.55% | ||
| GM | 38.73% | ||
| FCFM | 13.36% |
ROA(3y)9.46%
ROA(5y)3.71%
ROE(3y)23.79%
ROE(5y)9.03%
ROIC(3y)15.59%
ROIC(5y)N/A
ROICexc(3y)28.01%
ROICexc(5y)N/A
ROICexgc(3y)28.81%
ROICexgc(5y)N/A
ROCE(3y)17.28%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y6.99%
ROICexc growth 3YN/A
ROICexc growth 5Y6.98%
OM growth 3YN/A
OM growth 5Y-3.39%
PM growth 3YN/A
PM growth 5Y8.63%
GM growth 3Y7.87%
GM growth 5Y-1.58%
F-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.44 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 127.84% | ||
| Cap/Sales | 11.13% | ||
| Interest Coverage | 22.35 | ||
| Cash Conversion | 123.2% | ||
| Profit Quality | 115.61% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.85 |
F-Score6
WACC7.23%
ROIC/WACC2.08
Cap/Depr(3y)187%
Cap/Depr(5y)155.37%
Cap/Sales(3y)15.56%
Cap/Sales(5y)17.86%
Profit Quality(3y)102%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.93%
EPS 3YN/A
EPS 5Y20.18%
EPS Q2Q%-16.05%
EPS Next Y30.2%
EPS Next 2Y19.94%
EPS Next 3Y19.51%
EPS Next 5Y17.22%
Revenue 1Y (TTM)3.75%
Revenue growth 3Y42.69%
Revenue growth 5Y10.43%
Sales Q2Q%5.87%
Revenue Next Year6.29%
Revenue Next 2Y6.1%
Revenue Next 3Y6.49%
Revenue Next 5Y5.18%
EBIT growth 1Y-24.39%
EBIT growth 3YN/A
EBIT growth 5Y6.68%
EBIT Next Year107.14%
EBIT Next 3Y35.42%
EBIT Next 5Y22.6%
FCF growth 1Y143.24%
FCF growth 3Y34.9%
FCF growth 5Y20.02%
OCF growth 1Y8.16%
OCF growth 3Y20.74%
OCF growth 5Y20.81%