Ryanair Holdings plc (ADR) (NASDAQ:RYAAY)

CAPS Rating: 2 out of 5

The Company operates a low-fares scheduled passenger airline serving short-haul, point-to-point routes between Ireland, the U.K., Continental Europe and Morocco.

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Member Avatar XMFChaodan (71.06) Submitted: 7/2/2013 11:13:09 AM : Outperform Start Price: $40.60 RYAAY Score: +59.61


Business in One Sentence
Ryanair provides ultra-low cost flights throughout Europe, and engages in the in-flight sale of beverages, food, merchandise, and the sale of bus and rail tickets in-flight as well as online.

Value Proposition
Ryanair is Europe’s only ultra-low cost airline, which operates within a market with higher barriers to entry, with an unblemished 29-year safety record in a niche market that is increasingly expanding.

Company Strategy and Advantage
• Has a low-cost business model
o Owns its own planes
o Has very little debt
? Translation: Can finance its business at lower rates than its competitors—especially important since the credit crunch began (many companies have to pay more to access capital)
• Has a young and un-unionized workforce
o Translation: cheaper human capital
• Europe’s only ultra-low cost airline
• Perceived as having safe flights
• Convenient
o Provides passengers with the option of taking care of on-land transportation while still in the air
• High barriers to entry—starting an airline requires intensive capital.

• Specialization in a niche—gaining market share
o Short-haul leisure flights
? Traditional flag carriers, like British Airways, are withdrawing from this market as fuel prices continue to increase in price. Instead, they’re shifting focus to more lucrative long-haul and business flights—further clearing up space for Ryanair to really grow
• Expansion of fleet of aircrafts, and subsequently traffic
• Expansion to more airports throughout Europe
o Significant opportunities are opening up in Germany, Scandinavia, and central Europe in particular, where SAS, LOT, and Air Berlin are continuing to restructure

Other Business Details
• Despite of the unhappy conditions in many European countries in the past year and the rising fuel costs, Ryanair managed to announce a record annual profit of 569m Euros, up 13% on the previous year.
• Traffic grew 5%
• Established 7 new bases, 217 new routes in 2012
• Significantly higher margins than industry
o ~25% gross; ~21% EBITDA compared to ~12-13% in industry

• Failure to acquire a spot at airports would impede its expansionary plans
• Increases in airport fees and fuel expenses
• Accidents will blemish Ryanair’s reputation

Big Few
1. What’s preventing traditional flag carriers from entering the market? Looking at what’s currently happening with the widespread restructurings, it is obviously easier to restructure and get out of short-haul flights than to somehow continue these flights. But why is that exactly?
2. What is the process like for getting access to land in airports? How long before these contracts have to be renewed?
3. How difficult is it for European workers to unionize?
4. Management’s plans for maintaining low debt?


Member Avatar dhyder (41.14) Submitted: 6/29/2011 6:07:44 PM : Underperform Start Price: $26.78 RYAAY Score: -118.40

Irish Airline.


Member Avatar mechming (< 20) Submitted: 11/26/2010 8:27:34 AM : Outperform Start Price: $27.49 RYAAY Score: +99.64



Member Avatar Tatibelle (54.67) Submitted: 3/10/2009 5:13:11 PM : Outperform Start Price: $18.82 RYAAY Score: +104.45

This is the only stock I own that weathered the down turn in the economy and stayed positive.


Member Avatar jvdauron7 (99.68) Submitted: 1/27/2009 8:00:24 AM : Outperform Start Price: $21.33 RYAAY Score: +102.98

they are profitable and expanding into the US market.


Member Avatar JaneHayden (< 20) Submitted: 10/20/2008 8:36:22 AM : Outperform Start Price: $15.97 RYAAY Score: +244.32

Europe needs some airlines but not as many as they have. Lots of poorly performing airlines will go to the wall before Christmas and only the strong will survive.

Ryanair have a lots of cash in the bank and the lowest operating costs of any European airline. So they will be able to survive in this downturn, even picking up additional travelers who are attracted by the lower fares. Then they will make a killing by buying up distressed compeditors' slots, staff and planes ready for the upswing.

You always know when a trough in the airline industry has arrived as Michael O'L starts buying planes and enormous discounts!


Member Avatar fedja2 (94.56) Submitted: 10/6/2008 7:08:38 AM : Outperform Start Price: $14.85 RYAAY Score: +301.98

Let us BUY now. I shall look at its behavior, but I think the nearest target is 25$, the next is 30-35$. I shall SELL somewhere there.


Member Avatar zacery (< 20) Submitted: 10/3/2008 4:46:03 PM : Outperform Start Price: $14.85 RYAAY Score: +301.98

Oil is doing for the Airline Industry - what the Credit Crunch did for Banks.

The weak players are going under, leaving the companies with sound business models to take the pickings.

The price of oil might give Ryanair a cold - break even or reduced profits - but it isn't fatal. The weaker airlines are dropping - Alitalia, XL, Futura all gone.

Ryanair's Michael O'Leary is comfortable with $135 dollar a barrel. Give up 08 profits to wipe out the competition? Absolutely! A bargain in the medium term.


Member Avatar acedomaine1 (< 20) Submitted: 8/29/2008 2:00:20 PM : Outperform Start Price: $18.64 RYAAY Score: +233.71

one of a kind franchise. Great investment for value investors looking for a cheap stock with strong management, lots of cash, beating off competition and good balance sheet. It's in a cycle of being coupled inversely to the price of a barrel of oil, namely, fuel costs. As the world's thirst for oil diminishes due to over supply the costs will tumble to $70 to $80 a barrel and the difference will be reflected in a strong bias to the upside. After all, in Europe people do still go on vacations to Spain, the still do business in Paris, and they fly executivesGermany, while tourists take in a week or a weekend in Italy, Dalmation coast and the Alps. A great business plan implemented by a gung-ho team of hands-on folks. This is your classic buy to hold.


Member Avatar cyncoot (< 20) Submitted: 7/30/2008 4:17:34 PM : Underperform Start Price: $20.52 RYAAY Score: -195.47

Unjustified valuation, negative cash flow. Fuel costs are a killer.


Member Avatar JohnnyiPhone (< 20) Submitted: 6/11/2008 2:59:35 PM : Underperform Start Price: $23.06 RYAAY Score: -164.16

Surging fuel prices kill airline industry. No brainer.


Member Avatar Utopius (< 20) Submitted: 6/4/2008 2:06:13 AM : Outperform Start Price: $22.70 RYAAY Score: +172.81

Stock going to $100 in less than 5 years, trading at less than 2 times normalized 2012 earnings.


Member Avatar Leaps1000 (< 20) Submitted: 4/23/2008 8:04:13 PM : Underperform Start Price: $19.80 RYAAY Score: -218.97

Airlines are having problems and so is ryanair holdings 6 mnths ago this was at 47.50 and now it is at 25. and there is no sign that the problems with the industry have bottomed out


Member Avatar SolidSnakeXC (70.90) Submitted: 3/21/2008 3:45:51 PM : Outperform Start Price: $22.63 RYAAY Score: +168.75

High P/B makes me uneasy along with the trend to this point this year. But I see this airline making a recovery, maybe not this year but over a longer period of time. The small aircrafts that it owns means that it will be a much lower cost for fuel.


Member Avatar XMFIphone (97.37) Submitted: 12/7/2007 10:48:33 AM : Outperform Start Price: $31.75 RYAAY Score: +92.53

-The business model of this company is very unique and while controversial throughout the E.U., it is changing the airline industry there. The company provides a no frills service in order to cut costs from every corner and charges for basically everything but the actual seat itself. (though customers typically spend around $50 per trip).

The company’s unique strategies:
-By using a single model aircraft, training the staff is much more efficient. Additionally, new aircraft lack seat back recliners, window shades, and seat back pockets which save hundreds of thousands of dollars per aircraft when purchased and even more due to the reduction of weight when flying
-Planes fly into second tier airports where there are low or no landing fees and service is much more efficient since it is less crowded – Ryanair usually gets paid by these airports for brining in passengers to their terminals.
-customers pay for food/beverage and management is hoping to eventually charge for cell phone usage and in flight gambling entertainment
-companies purchase the ability to repaint the exterior of each airplane in, basically turning them into giant billboards
-Its website is Europe’s most popular travel site so Ryanair receives a cut of sales when customers purchase hotels, rental cars, ect on the site.
-Even though the company slashes most of its costs, it actually pays its pilots/stewardess’s higher than industry average salaries

Ryanair outperforms all of its peers by far; producing profit margins of 19.4% compared to the industry average of 3.37% and has the strongest financials in the European airline industry. Some complaints can be found from customers concerning the poor service they received, but what can you expect when you are flying virtually for free. It’s kind of like the Walmart of the airline industry. You aren’t there for the experience; you are there to get a significantly discounted flight. Ryanair’s performance is solid so far and its business structure is revolutionizing the entire industry.


Member Avatar morningstarboy (43.78) Submitted: 12/5/2007 1:03:04 PM : Underperform Start Price: $31.75 RYAAY Score: -90.35

As of close of business on 12/04/2007, this was a 1-star Morningstar stock that was trading at more than double it's Morningstar fair value.


Member Avatar NeroSagetrade (84.56) Submitted: 10/3/2007 12:16:54 AM : Outperform Start Price: $34.95 RYAAY Score: +74.20

Ryanair Holdings is one of the very few airlines that I find attractive, and mainly so because they are located outside the United States. They have staved off rising fuel costs and provide an interesting alternative niche to expensive air travel. Margins are considerably lower here than most airlines but efficiency is much higher. This leads to one interesting and very important side effect, RYAAY has more cash than debt, something basically no other major airlines can boast about. Earnings are growing solidly, and revenue should be up over 30% this year. I do expect the growth to normalize, but fundamentally this looks fine. Technically I see a cupping base which should send this over $50 within 6 months.




Member Avatar athenamike (74.35) Submitted: 9/20/2007 1:44:03 PM : Outperform Start Price: $32.92 RYAAY Score: +85.50

This low-cost European airline has no significant rivals, and should be able to grow their top line by 15%, on average, over the next 5 years. In a commodity business, it pays to be the lowest cost provider, and Ryanair is just this. Europe's tough summer for airlines is but a short term concern.


Member Avatar Styex (< 20) Submitted: 7/30/2007 12:07:02 PM : Outperform Start Price: $29.73 RYAAY Score: +102.82

Cheap flights. Unless you start seeing these planes start falling from the sky, I dont see how they will not continue to gain market share, especially with what they have planned for the future...

"The Ryanair boss, Michael O'Leary, is planning to launch a transatlantic airline offering fares to the US from as little as $12 (£6.10), it emerged today." (http://www.guardian.co.uk/airlines/story/0,,2055608,00.html)


Member Avatar PotatoCapital (69.23) Submitted: 7/17/2007 3:59:37 AM : Outperform Start Price: $31.64 RYAAY Score: +96.35

We may have a runner!

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