We initiate coverage on Ryanair with a no-moat rating and a fair value estimate of EUR 20, with valuation driven by controlled growth coupled with sectorwide capacity constraints.
The group’s solid balance sheet and liquidity headroom will allow it to be opportunistic and capture greater market share from weak and failing peers.
Despite good cost controls, overcapacity and low demand levels could result in prolonged depressed market pricing, which could be a margin headwind.
|
Metric
|
RYA
|
EZJ
|
LHA
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.97 | 9.27 | 6.58 |
Price/Book Value | 2.43 | 1.63 | 0.79 |
Price/Sales | 1.44 | 0.45 | 0.21 |
Price/Cash Flow | 6.96 | 3.25 | 2.57 |
|
Metric
|
RYA
|
EZJ
|
LHA
|
|---|---|---|---|
Quick Ratio | 0.65 | 0.80 | 0.59 |
Current Ratio | 0.93 | 1.03 | 0.75 |
Interest Coverage | — | 3.53 | 2.83 |
|
Metric
|
RYA
|
EZJ
|
LHA
|
|---|---|---|---|
Return on Assets (Normalized) | 9.48% | 3.71% | 2.85% |
Return on Equity (Normalized) | 20.03% | 16.30% | 13.99% |
Return on Invested Capital (Normalized) | 14.23% | 6.96% | 6.72% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Delta Air Lines Inc
DAL
| Njnzgwmt | Rnwdl | $31.5 Bil | |||
| Ryanair Holdings PLC ADR
RYAAY
| — | Yxmynq | $20.7 Bil | |||
| Ryanair Holdings PLC
RYAOF
| — | Cgyjshc | $20.7 Bil | |||
| United Airlines Holdings Inc
UAL
| Bknjvlg | Pkf | $17.8 Bil | |||
| Southwest Airlines Co
LUV
| Ytdlvggl | Ffyn | $17.0 Bil | |||
| Singapore Airlines Ltd
SINGF
| — | Qxbt | $15.2 Bil | |||
| Singapore Airlines Ltd ADR
SINGY
| — | Ctkj | $15.2 Bil | |||
| International Consolidated Airlines Group SA
BABWF
| — | Dcy | $13.5 Bil | |||
| International Consolidated Airlines Group SA ADR
ICAGY
| — | Tyg | $13.5 Bil | |||
| American Airlines Group Inc
AAL
| Nwynpqsb | Mtbf | $7.2 Bil |
United States