Is it time to buy Ryanair shares?

• Stock Name:  Ryanair
• Ryanair share price today (at time of publishing) :  €17.40

• Ryanair share price prediction:  €24 
• Upside potential:  38%
• Analyst Target Price: €24
• Dividend Yield:  2.3%
• Stock Exchange:  European Stock Exchanges 
• Market Cap:   €20 billion
• Beta:   1.4
• Our View: Buy 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.

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• Sales Growth: Sales have grown 39% in the past 5 years which is remarkable given the Covid Pandemic. Pr Covid Revenue was €8.49 billion which has risen to €10.78 Billion in the most recent financial year. 
• Earnings per Share Growth: EPS growth rising from €0.95 Pre Covid to €1.25 post Covid. Again a remarkable achievement given the Covid Pandemic. 
• Dividend Growth: There is no significant Dividend History. However, this year Ryanair has announced a dividend plan which will amount to circa 2.3% per annum going forward. 
• Operating Margins: Operating Margins are improving from pre Covid levels. 
• Debt to Equity: Debt to equity has reduced considerably and is now in better shape than pre Covid Levels. 
• Average PE: This is difficult to get an accurate comparison as the Covid Pandemic played havoc with EPS. A conservative PE multiple of 12 is appropriate to err on the side of caution. 
• Average P/S: Price to Sales ratio of 1.8 is appropriate for Ryanair. 
• Shares Outstanding: Stable – impressive given the company didn’t increase their shares outstanding during the Covid pandemic. 

• Revenue Estimate 2025: €14.39B. This is an average of 19 analyst estimates. Lowest estimate is €8.15B and the highest estimate is €15.35B. 
• EPS Estimate 2025: €2.06. This is an average of 18 analyst estimates. Lowest estimate is €1.59 and the highest estimate is €2.58. 
• Forecasted Share Price 2025 based on P/S: €23. 
• Forecasted Share Price 2025 based on EPS: €24
• Analyst 12 month Target Price: €24. This is based on an estimate of 20 analysts. Lowest estimate €21. Highest estimate was €27. 
• Average of all three estimates above: €24 
• Upside Potential: 38% 

• Traditional Support & Resistance: A common area of support in the past 12 months has been €14 (20% below current price). A common area of resistance has been €17.40 which is where we are now. If we break above €17.40 next resistance is €18.40 (5.7% higher).
• Moving Averages: The 50 and 200 day simple moving averages are currently acting as support and congregating around the €16. 
• Fibonacci: Next fibonacci resistance is at previous high at €18.40. 
• Short Term trend: Short term trend is up. 
• Medium term Trend: Medium Term Trend is sideways. 

• Earnings: https://finance.yahoo.com/news/1-ryanair-sees-record-annual-071501490.html
• Share Dividend: Regular Dividend announced. 

As with any stock investment, there are no guarantees. Circumstances and fundamental outlook can change for the better and also for the worse. A smart investor will allocate less than 5% of their portfolio in this stock. For example, if we have €10K in our portfolio. We will invest no more than €500 in this stock. 

We like Ryanair. The company has navigated the Covid storm with excellent efficiency. All financial metrics are moving in the right direction and the announcement of a regular dividend should support the stock. We see significant upside to the stock price and the dividend yield also makes it attractive. We would be buyers of the stock at these levels (Nov 29th 2023).

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• Email: info@sharenavigator.ie 

Disclaimer

This report does not constitute financial advice. This report is to be used in the context of education and training in the stock market. The purpose of the report is to highlight the evaluation process when investigating a stock. Members of Share Navigator can then use their personal Simulated Trading Account to practice buying and selling shares. 

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