Wizz Air Holdings Plc
Wizz Air Holdings Plc Fundamental Analysis
Wizz Air Holdings Plc (WZZAF) shows moderate financial fundamentals with a PE ratio of 5.57, profit margin of 3.81%, and ROE of 60.19%. The company generates $6.9B in annual revenue with moderate year-over-year growth of 3.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WZZAF's fundamental strength across five key dimensions:
Efficiency Score
WeakWZZAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateWZZAF shows balanced valuation metrics.
Growth Score
WeakWZZAF faces weak or negative growth trends.
Financial Health Score
WeakWZZAF carries high financial risk with limited liquidity.
Profitability Score
ModerateWZZAF maintains healthy but balanced margins.
Key Financial Metrics
Is WZZAF Expensive or Cheap?
P/E Ratio
WZZAF trades at 5.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WZZAF's PEG of 4.13 indicates potential overvaluation.
Price to Book
The market values Wizz Air Holdings Plc at 2.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.39 times EBITDA. This is generally considered low.
How Well Does WZZAF Make Money?
Net Profit Margin
For every $100 in sales, Wizz Air Holdings Plc keeps $3.81 as profit after all expenses.
Operating Margin
Core operations generate 7.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $60.19 in profit for every $100 of shareholder equity.
ROA
Wizz Air Holdings Plc generates $2.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wizz Air Holdings Plc generates limited operating cash flow of $622.62M, signaling weaker underlying cash strength.
Free Cash Flow
Wizz Air Holdings Plc produces free cash flow of $383.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.71 in free cash annually.
FCF Yield
WZZAF converts 26.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.60
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How WZZAF Stacks Against Its Sector Peers
| Metric | WZZAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.57 | 26.71 | Better (Cheaper) |
| ROE | 60.19% | 1311.00% | Weak |
| Net Margin | 3.81% | -29317.00% (disorted) | Weak |
| Debt/Equity | 9.62 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.80 | 10.53 | Weak Liquidity |
| ROA | 2.60% | -1537638.00% (disorted) | Weak |
WZZAF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wizz Air Holdings Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.12%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-38.47%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
463.40%
Industry Style: Cyclical, Value, Infrastructure
High Growth