Thinking to embrace more of RYANAIR HLDGS?
 | By Rifka Kats | Macroaxis Story |
In spite of rather sound fundamental drivers, RYANAIR HLDGS is not utilizing all of its potentials. The late stock price tumult, may contribute to shorter-term losses for the shareholders. We consider RYANAIR HLDGS moderately volatile. RYANAIR HLDGS PLC retains Efficiency (Sharpe Ratio) of 0.0087 which implies the corporation had 0.0087% of return per unit of risk over the last 1 month. Our philosophy in forecasting volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for RYANAIR HLDGS which you can use to evaluate future volatility of the company. Please check RYANAIR HLDGS PLC EO 006 Semi Deviation of 2.14 and Market Risk Adjusted Performance of 0.1158 to confirm if risk estimate we provide are consistent with the epected return of 0.019%.
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Reviewed by Michael Smolkin
RYANAIR HLDGS has accumulated 4.54B in total debt with debt to equity ratio (D/E) of 85.8 indicating the firm may have difficulties to generate enough cash to satisfy its financial obligations. This firm has Current Ratio of 1.06 suggesting that it may have difficulties to pay its financial obligations in time and when they become due. The firm dividends can provide a clue to current valuation of the stock. The entity is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Now, lets check RYANAIR HLDGS Earnings Per Share. According to company disclosure RYANAIR HLDGS PLC EO 006 has Earnings Per Share of 0.71 times. This is 69.26% lower than that of the Industrials sector, and 79.12% lower than that of Airlines industry, The Earnings Per Share for all stocks is 77.24% higher than RYANAIR HLDGS.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Ryanair Holdings income statement, its balance sheet, and the statement of cash flows. Potential Ryanair Holdings investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Ryanair Holdings investors may use each financial statement separately, they are all related. The changes in Ryanair Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ryanair Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Ryanair Holdings fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Ryanair Holdings performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Ryanair Holdings shares is the value that is considered the true value of the share. If the intrinsic value of Ryanair is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Ryanair Holdings. Please read more on our fundamental analysis page. How important is Ryanair Holdings's Liquidity
Ryanair Holdings financial leverage refers to using borrowed capital as a funding source to finance Ryanair Holdings plc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ryanair Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ryanair Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ryanair Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Ryanair Holdings's total debt and its cash.
Breaking down Ryanair Holdings Indicators
The company has beta of 0.54. As returns on market increase, RYANAIR HLDGS returns are expected to increase less than the market. However during bear market, the loss on holding RYANAIR HLDGS will be expected to be smaller as well. The current investor indifference towards the small price fluctuations of RYANAIR HLDGS PLC EO 006 has created some momentum for investors as it was traded today as low as 10.0 and as high as 10.18 per share. The company directors and management did not add any value to RYANAIR HLDGS PLC investors in August. However, most investors can still diversify their portfolios with RYANAIR HLDGS PLC EO 006 to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.1908. The current volatility is consistent with the ongoing market swings in August 2019 as well as with RYANAIR HLDGS PLC unsystematic, company specific events. RYANAIR HLDGS is selling for under 10.00. That is 1.57 percent decrease. Day Low was 10.0. On the whole, our analysis show that RYANAIR HLDGS Barely shadows market. The firm is overvalued and projects probability of financial unrest quite high for the next 2 years. Our immediate Buy/Hold/Sell recommendation on the firm is Strong Sell.
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