Ryanair Hldgs reports 10.2% Net Income growth in 2018 and 7.6% Revenue growth
21 May 2018 • About Ryanair Hldgs (
$RYA) • By InTwits
Ryanair Hldgs reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ryanair Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.0%. At the same time it's in pair with industry average of 22.4%
- CAPEX is quite volatile: €1,471m in FY2018, €1,450m in FY2017, €1,218m in FY2016, €789m in FY2015, €506m in FY2014
- The company has highly profitable business model: ROIC is 18.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is -2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 7.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 14.9% to 12.5% in FY2018. EBITDA Margin stuck to a growing trend at 2.8 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 20.6%. The company's CAPEX/Revenue increased on 6.6 pp from 13.9% in FY2015 to 20.6% in FY2018. It's average level of CAPEX/Revenue for the last three years was 20.3%. The company maintained rich investment policy and has spent a big chunk of EBITDA (66.0%) to CAPEX. CAPEX as a % of Revenue grew at 2.9 pp per annum in FY2014-FY2018.
Return on investment
The company operates at high and attractive ROE (32.6%) while ROIC is a bit lower (18.4%). ROIC increased slightly on 0.67 pp from 17.7% to 18.4% in FY2018. ROE showed almost no change in FY2018. ROIC stuck to a growing trend at 2.2 pp per annum in FY2014-FY2018. During FY2014-FY2018 ROE topped in FY2016 at 40.9% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.8x. Net Debt / EBITDA dropped on 0.5x from 1.6x to 1.1x in FY2018. Debt decreased on 9.6% while cash surged on 23.8%.
Ryanair Hldgs has no short term refinancing risk: cash is higher than short term debt (348.6%).
Financial and operational results
FY ended 31 Mar 2018
Ryanair Hldgs ($RYA) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 5,037 | 5,654 | 6,536 | 6,648 | 7,151 | 7.6% |
| SG&A | 193 | 234 | 293 | | | |
| EBITDA | 1,010 | 1,421 | 1,887 | 2,032 | 2,228 | 9.7% |
| Net Income | 523 | 867 | 1,559 | 1,316 | 1,450 | 10.2% |
Balance Sheet
|
|---|
| Cash | 1,730 | 1,185 | 1,259 | 1,224 | 1,515 | 23.8% |
| Short Term Debt | 468 | 400 | 450 | 456 | 435 | -4.7% |
| Long Term Debt | 2,616 | 4,032 | 3,573 | 3,929 | 3,528 | -10.2% |
Cash flow
|
|---|
| Capex | 506 | 789 | 1,218 | 1,450 | 1,471 | 1.4% |
Ratios
|
|---|
| Revenue growth | 3.1% | 12.3% | 15.6% | 1.7% | 7.6% | |
| EBITDA growth | -3.6% | 40.6% | 32.9% | 7.6% | 9.7% | |
|
|---|
| EBITDA Margin | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% | 0.6% |
| SG&A, % of revenue | 3.8% | 4.1% | 4.5% | | | |
| Net Income Margin | 10.4% | 15.3% | 23.9% | 19.8% | 20.3% | 0.5% |
| CAPEX, % of revenue | 10.0% | 13.9% | 18.6% | 21.8% | 20.6% | -1.2% |
|
|---|
| ROIC | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% | 0.7% |
| ROE | 15.9% | 23.7% | 40.9% | 32.8% | 32.6% | -0.2% |
| Net Debt/EBITDA | 1.3x | 2.3x | 1.5x | 1.6x | 1.1x | -0.5x |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nektan ($NKTN) | 75.8% | -71.7% | 995.3% | 129.1% | |
| Celtic ($CCP) | -14.6% | -21.1% | 1.8% | 74.3% | |
| Webis Holdings ($WEB) | -55.0% | 29.7% | 45.3% | 65.8% | |
| Easyhotel ($EZH) | 34.1% | 56.4% | 8.7% | 39.7% | |
| Eclectic Bar Grp ($BAR) | 10.5% | -1.9% | 1.4% | 38.6% | |
| |
|---|
| Median (23 companies) | 2.8% | 7.0% | 8.3% | 7.9% | 11.7% |
|---|
| Ryanair Hldgs ($RYA) | | 12.3% | 15.6% | 1.7% | 7.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| Dalata Hotel Group ($DAL) | 62.8% | 61.5% | 62.2% | 63.2% | |
| |
|---|
| Median (16 companies) | 48.1% | 40.4% | 42.7% | 38.1% | 12.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| Carnival ($CCL) | 21.5% | 26.7% | 29.3% | 26.6% | |
| |
|---|
| Median (23 companies) | 12.3% | 12.5% | 15.9% | 17.2% | 16.2% |
|---|
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Marston'S ($MARS) | 17.5% | 16.2% | 15.3% | 19.4% | 14.3% |
| Carnival ($CCL) | 16.3% | 14.6% | 18.7% | 16.8% | |
| |
|---|
| Median (23 companies) | 5.1% | 5.7% | 8.1% | 5.4% | 13.5% |
|---|
| Ryanair Hldgs ($RYA) | 10.0% | 13.9% | 18.6% | 21.8% | 20.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | |
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| Tui Ag ($TUI) | 16.1% | 15.0% | 15.5% | 14.4% | |
| |
|---|
| Median (24 companies) | 4.8% | 5.9% | 5.3% | 7.7% | 6.7% |
|---|
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| Mandarin Oriental International ($MDOB) | 2.5x | 0.8x | 2.3x | 2.6x | |
| |
|---|
| Median (22 companies) | 1.1x | 0.8x | 2.3x | 1.9x | 3.0x |
|---|
| Ryanair Hldgs ($RYA) | 1.3x | 2.3x | 1.5x | 1.6x | 1.1x |
