Ryanair Hldgs Net Income jumped on 65.8% in 2015 and EBITDA Margin increased on 5.1 pp from 20.1% to 25.1%
26 May 2015 • About Ryanair Hldgs (
$RYA) • By InTwits
Ryanair Hldgs reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ryanair Hldgs is a growth stock: FY2015 revenue growth was 12.3%, 5 year revenue CAGR was 13.6% at FY2015 ROIC 13.3%
- Ryanair Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.5%. At the same time it's in pair with industry average of 12.2%.
- CAPEX is quite volatile: 789 in FY2015, 506 in FY2014, 311 in FY2013, 318 in FY2012, 897 in FY2011
- The company has highly profitable business model: ROIC is at 13.3%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ryanair Hldgs ($RYA) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,630 | 4,390 | 4,884 | 5,037 | 5,654 | 12.3% |
| SG&A | 152 | 180 | 198 | 193 | 234 | 21.3% |
| EBITDA | 766 | 992 | 1,048 | 1,010 | 1,421 | 40.6% |
| Net Income | 375 | 560 | 569 | 523 | 867 | 65.8% |
Balance Sheet
|
|---|
| Cash | 2,028 | 2,708 | 1,241 | 1,730 | 1,185 | -31.5% |
| Short Term Debt | 337 | 368 | 400 | 468 | 400 | -14.6% |
| Long Term Debt | 3,313 | 3,257 | 3,098 | 2,616 | 4,032 | 54.1% |
Cash flow
|
|---|
| Capex | 897 | 318 | 311 | 506 | 789 | 55.9% |
Ratios
|
|---|
| Revenue growth | 21.5% | 21.0% | 11.2% | 3.1% | 12.3% | |
| EBITDA growth | 20.1% | 29.6% | 5.6% | -3.6% | 40.6% | |
| EBITDA Margin | 21.1% | 22.6% | 21.5% | 20.1% | 25.1% | 5.1% |
| Net Income Margin | 10.3% | 12.8% | 11.7% | 10.4% | 15.3% | 4.9% |
| SG&A, % of revenue | 4.2% | 4.1% | 4.1% | 3.8% | 4.1% | 0.3% |
| CAPEX, % of revenue | 24.7% | 7.2% | 6.4% | 10.0% | 13.9% | 3.9% |
| ROIC | 7.6% | 9.7% | 10.0% | 9.5% | 13.3% | 3.8% |
| ROE | 12.9% | 17.9% | 17.3% | 15.9% | 23.7% | 7.7% |
| Net Debt/EBITDA | 2.1x | 0.9x | 2.2x | 1.3x | 2.3x | 0.9x |
Revenue and profitability
Ryanair Hldgs's Revenue jumped on 12.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.1 pp from 20.1% to 25.1% in FY2015.
SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 4.9 pp from 10.4% to 15.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 13.9% in FY2015. Ryanair Hldgs's CAPEX/Revenue increased on 6.7 pp from 7.2% in FY2012 to 13.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 10.1%.To deliver this fast growth the company invested a large share of EBITDA (55.5%) to CAPEX.
Return on investment
The company operates at high and attractive ROE (23.68%) while ROIC is a bit lower (13.31%). ROIC increased on 3.8 pp from 9.5% to 13.3% in FY2015. ROE increased on 7.7 pp from 15.9% to 23.7% in FY2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 1.3x to 2.3x in FY2015. Debt surged on 43.7% in FY2015 while cash dropped on 31.5% in FY2015.
Appendix 1: Peers in Travel & Leisure
Below you can find Ryanair Hldgs benchmarking vs. other companies in Travel & Leisure industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 19.5% | 12.3% | 5.4% | 26.2% | |
| Everyman Media Group ($EMAN) | 23.0% | 23.4% | 26.5% | 22.4% | |
| Paddy Power ($PAP) | 17.0% | 30.9% | 14.0% | 18.3% | |
| Richoux Group ($RIC) | 54.2% | 9.4% | 16.5% | 10.4% | |
| Irish Continental Group ($ICGC) | -4.0% | 1.7% | 3.4% | 9.6% | |
| |
|---|
| Median (20 companies) | 19.1% | 8.7% | 7.8% | 6.6% | 7.4% |
|---|
| Ryanair Hldgs ($RYA) | | 21.0% | 11.2% | 3.1% | 12.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 91.2% | 84.7% | 82.8% | 81.0% | |
| Action Hotels ($AHCG) | 73.2% | 75.1% | 75.0% | 73.3% | |
| Everyman Media Group ($EMAN) | 59.9% | 57.6% | 59.2% | 58.9% | |
| Mandarin Oriental International ($MDOB) | 38.6% | 36.0% | 38.9% | 39.7% | |
| Ana Hldgs Inc ($ANA) | 21.1% | 23.0% | 22.6% | 20.7% | 22.1% |
| |
|---|
| Median (10 companies) | 19.6% | 19.7% | 19.8% | 19.2% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 24.0% | 31.0% | 27.9% | 28.6% | |
| Irish Continental Group ($ICGC) | 18.9% | 17.1% | 18.6% | 27.3% | |
| Paddy Power ($PAP) | 33.8% | 25.7% | 23.7% | 24.0% | |
| Mandarin Oriental International ($MDOB) | 20.9% | 19.5% | 22.4% | 24.0% | |
| Young & Co'S Brewery ($YNGN) | 22.3% | 21.2% | 21.8% | 21.7% | 22.9% |
| |
|---|
| Median (20 companies) | 13.4% | 13.0% | 15.7% | 12.7% | 16.1% |
|---|
| Ryanair Hldgs ($RYA) | 21.1% | 22.6% | 21.5% | 20.1% | 25.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 47.8% | 21.0% | 25.6% | 90.0% | |
| Everyman Media Group ($EMAN) | 0.0% | 0.0% | 36.4% | 25.9% | |
| Air China ($AIRC) | 23.9% | 16.8% | 19.1% | 18.7% | |
| Marston'S ($MARS) | | 18.0% | 19.3% | 17.5% | 16.2% |
| Richoux Group ($RIC) | 38.6% | 7.0% | 17.3% | 14.3% | |
| |
|---|
| Median (20 companies) | 3.4% | 3.9% | 5.1% | 4.4% | 11.9% |
|---|
| Ryanair Hldgs ($RYA) | 24.7% | 7.2% | 6.4% | 10.0% | 13.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 58.5% | 53.4% | 47.2% | 47.6% | |
| Irish Continental Group ($ICGC) | 14.3% | 14.6% | 18.9% | 40.0% | |
| Air Partner ($AIP) | 51.1% | 34.8% | 27.5% | 21.2% | 20.0% |
| Hanatour Service Inc ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | |
| Netplay Tv ($NPT) | | | 26.3% | 10.2% | |
| |
|---|
| Median (21 companies) | 7.5% | 6.4% | 6.9% | 4.2% | 6.2% |
|---|
| Ryanair Hldgs ($RYA) | 7.6% | 9.7% | 10.0% | 9.5% | 13.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marston'S ($MARS) | | | 6.5x | 14.0x | 8.2x |
| Action Hotels ($AHCG) | 14.1x | 11.2x | 7.8x | 9.6x | |
| Peel Hotels ($PHO) | 5.8x | 8.2x | 7.3x | 5.9x | 4.4x |
| Air China ($AIRC) | 4.7x | 4.7x | 6.4x | 5.6x | |
| Ana Hldgs Inc ($ANA) | 4.8x | 4.3x | 3.6x | 4.0x | 3.5x |
| |
|---|
| Median (18 companies) | 0.5x | 1.4x | 2.1x | 1.6x | 3.2x |
|---|
| Ryanair Hldgs ($RYA) | 2.1x | 0.9x | 2.2x | 1.3x | 2.3x |
