Ryanair Holdings plc
Ryanair Holdings plc Fundamental Analysis
Ryanair Holdings plc (RYAOF) shows moderate financial fundamentals with a PE ratio of 15.11, profit margin of 14.62%, and ROE of 27.85%. The company generates $15.3B in annual revenue with moderate year-over-year growth of 3.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RYAOF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRYAOF demonstrates superior asset utilization.
Valuation Score
ExcellentRYAOF trades at attractive valuation levels.
Growth Score
WeakRYAOF faces weak or negative growth trends.
Financial Health Score
ModerateRYAOF shows balanced financial health with some risks.
Profitability Score
ModerateRYAOF maintains healthy but balanced margins.
Key Financial Metrics
Is RYAOF Expensive or Cheap?
P/E Ratio
RYAOF trades at 15.11 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RYAOF's PEG of -3.60 indicates potential undervaluation.
Price to Book
The market values Ryanair Holdings plc at 3.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.64 times EBITDA. This is generally considered low.
How Well Does RYAOF Make Money?
Net Profit Margin
For every $100 in sales, Ryanair Holdings plc keeps $14.62 as profit after all expenses.
Operating Margin
Core operations generate 16.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.85 in profit for every $100 of shareholder equity.
ROA
Ryanair Holdings plc generates $13.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ryanair Holdings plc generates strong operating cash flow of $4.02B, reflecting robust business health.
Free Cash Flow
Ryanair Holdings plc generates strong free cash flow of $2.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.02 in free cash annually.
FCF Yield
RYAOF converts 6.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How RYAOF Stacks Against Its Sector Peers
| Metric | RYAOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.11 | 26.71 | Better (Cheaper) |
| ROE | 27.85% | 1311.00% | Weak |
| Net Margin | 14.62% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 0.67 | 10.53 | Weak Liquidity |
| ROA | 13.97% | -1537638.00% (disorted) | Strong |
RYAOF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ryanair Holdings plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
151.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
67.30%
Industry Style: Cyclical, Value, Infrastructure
High Growth