Stock of the Day

April 16, 2021

Ryanair (RYAAY)

$66.63
+$0.79 (+1.2%)
Market Cap: $35.33B

About Ryanair

Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, Italy, Spain, and internationally. It is also involved in the provision of various ancillary services, such as non-flight scheduled and Internet-related services, as well as in-flight sale of beverages, food, duty-free, and merchandise; and markets car hire, travel insurance, and accommodation services through its website and mobile app. In addition, the company offers aircraft and passenger handling, ticketing, and maintenance and repair services; and markets car parking, fast-track, airport transfers, attractions, and activities on its website and mobile app, as well as sells gift vouchers. Ryanair Holdings plc was incorporated in 1996 and is headquartered in Swords, Ireland.

Ryanair Bull Case

Here are some ways that investors could benefit from investing in Ryanair Holdings plc:

  • The current stock price is around $63.80, which reflects a strong performance compared to its 12-month high of $64.06, indicating potential for further growth.
  • Ryanair Holdings plc recently reported earnings per share (EPS) of $1.74, exceeding analysts' expectations, which demonstrates strong financial performance and profitability.
  • The company has a solid return on equity of 27.91%, suggesting effective management and a strong ability to generate profits from shareholders' equity.
  • Ryanair has a low debt-to-equity ratio of 0.02, indicating a strong balance sheet with minimal reliance on debt, which can be attractive to risk-averse investors.
  • Recent upgrades from multiple analysts, including a shift to a "strong-buy" rating, suggest positive market sentiment and confidence in the company's future performance.

Ryanair Bear Case

Investors should be bearish about investing in Ryanair Holdings plc for these reasons:

  • The company has a relatively low current ratio of 0.66, which may indicate potential liquidity issues in meeting short-term obligations.
  • Despite recent positive earnings, the airline industry remains volatile and sensitive to economic fluctuations, which could impact future performance.
  • Ryanair's dividend yield of 1.2% may not be attractive to income-focused investors compared to other investment opportunities.
  • With a beta of 1.36, Ryanair's stock is more volatile than the market, which could pose higher risks for investors looking for stable investments.
  • Recent trading volumes have been lower than average, which may indicate reduced investor interest or confidence in the stock at this time.

Recent News