RYAAYRyanair Holdings plc
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.4×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 23% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RYAAY?
Ryanair Holdings plc earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Airlines median 7.9% · fiscal year to FY2025
- Cash conversion
- 2.43×
Cash conversion · 1.70× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | −51% |
| FY2022 | −7.1% |
| FY2023 | 13% |
| FY2024 | 15% |
| FY2025 | 11% |
Details›
- Operating marginfiscal year to FY2025
- 11%
- Net marginfiscal year to FY2025
- 12%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $13.9B
- Free cash flow, trailing twelve months
- $1.86B
- Net income, trailing twelve months
- $1.61B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.