Ryanair Holdings plc
🇮🇪 RYA.IR · Dublin · IE00BYTBXV33
Industrials
EUR 24.44 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
11.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 24.44 ÷ 2.12 = 11.5
TTM period through: 2025-12-31
Forward P/E (estimated): 10.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.5
Yield (Fwd)
1.60%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.68%
Payout (Fwd)
18.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 21.5%
Cash Flow Payout (TTM): 11.9%
FCF Coverage (TTM): 4.43x
ROE
26.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
6.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
While Ryanair operates as Europe's dominant ultra-low-cost airline with an exceptional balance sheet, its highly cyclical nature creates a fundamental mismatch for conservative dividend investors. The attractive P/E of 11.5 driven by temporary fuel and supply chain headwinds presents a tempting value opportunity, but the low 1.68% yield and recent dividend policy changes make this unsuitable for a predictable income strategy. Not recommended for new positions in income-focused portfolios, as better opportunities exist in stable essential services.
Sector Context
Ryanair is Europe's largest ultra-low-cost carrier, generating revenue primarily through passenger ticket sales and ancillary services like baggage fees and priority boarding. For dividend investors, the airline sector is notoriously cyclical, capital-intensive, and highly sensitive to external shocks (fuel prices, geopolitical events), making it a poor fit for stable, predictable income strategies despite Ryanair's exceptional operational efficiency and fortress balance sheet.
Temporary Opportunity Identified
Facing temporary profitability pressures due to Boeing aircraft delivery delays, surging aviation fuel costs driven by geopolitical conflicts, and seasonal fare fluctuations.
📊 Strategy Analysis
- • Exceptional balance sheet with a Debt/Equity ratio of just 0.02 provides massive resilience against cyclical industry downturns.
- • Current valuation at a P/E of 11.53 offers an attractive entry point, largely driven by temporary headwinds such as Boeing delivery delays and geopolitical fuel spikes.
- • Strong fundamental profitability with an ROE of 26.44% and excellent Free Cash Flow covering the dividend 4.43 times over.
⚠ What to Watch
- • Current dividend yield of 1.68% falls significantly short of the 3% minimum requirement for income-focused portfolios.
- • Operates in a highly cyclical, capital-intensive airline sector that lacks the stable, predictable cash flows characteristic of essential service monopolies.
- • Acutely vulnerable to the current macroeconomic environment, specifically escalating Middle East tensions driving oil prices above $100 per barrel.
- • Management has proposed a 5.2% dividend cut for 2026, which, combined with the sector's volatility, diminishes the predictability of long-term income returns.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.