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Solid Liquidity Boosts Ryanair (RYAAY) Amid High Expenses
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We have recently updated a report on Ryanair Holdings plc (RYAAY - Free Report) .
Ryanair has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of growth.
Improvement in Ryanair’s traffic from the pandemic-led slump is encouraging. The carrier’s January traffic surged more than 400% year over year. Ryanair’s traffic in February 2022 increased more than 100% year over year to 8.7 million. Traffic has been consistently improving on a year-over-year basis in the past several months. The carrier raised its five-year traffic growth forecast to 50% from 33% expected earlier. Ryanair now expects traffic to grow to more than 225 million guests per year by March 2026 compared with the 200 million predicted earlier.
Ryanair’s liquidity position is encouraging. At the end of the third quarter of fiscal 2022, the company’s cash and cash equivalents stood at $3,924 million, higher than the current debt of $434 million. This indicates that the company has sufficient cash to meet its current debt obligations.
With ramp up in operations, Ryanair’s operating expenses are escalating primarily due to an increase in fuel and oil costs and airport and handling charges. In the first nine months of fiscal 2022, the carrier’s operating expenses surged 87% year over year to €3,792 million. High operating costs have the potential to hurt the carrier’s bottom line.
Zacks Rank & Stocks to Consider
Ryanair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited
Expeditors has an earnings surprise of 34.2%, having surpassed the Zacks Consensus Estimate in all of the past four quarters. Expeditors is being aided by the uptick in airfreight revenues. We are optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
The long-term expected EPS (three to five years) growth rate for Old Dominion is pegged at 16%. Old Dominion is benefiting from strong performance in the LTL segment, owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has increased 35% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third, the fourth of 2020 as well as in each of the four quarters of 2021.
Driven by the tailwinds, the stock has increased 13.1% in the past year. TRTN currently carries a Zacks Rank #2.
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Solid Liquidity Boosts Ryanair (RYAAY) Amid High Expenses
We have recently updated a report on Ryanair Holdings plc (RYAAY - Free Report) .
Ryanair has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of growth.
Improvement in Ryanair’s traffic from the pandemic-led slump is encouraging. The carrier’s January traffic surged more than 400% year over year. Ryanair’s traffic in February 2022 increased more than 100% year over year to 8.7 million. Traffic has been consistently improving on a year-over-year basis in the past several months. The carrier raised its five-year traffic growth forecast to 50% from 33% expected earlier. Ryanair now expects traffic to grow to more than 225 million guests per year by March 2026 compared with the 200 million predicted earlier.
Ryanair’s liquidity position is encouraging. At the end of the third quarter of fiscal 2022, the company’s cash and cash equivalents stood at $3,924 million, higher than the current debt of $434 million. This indicates that the company has sufficient cash to meet its current debt obligations.
With ramp up in operations, Ryanair’s operating expenses are escalating primarily due to an increase in fuel and oil costs and airport and handling charges. In the first nine months of fiscal 2022, the carrier’s operating expenses surged 87% year over year to €3,792 million. High operating costs have the potential to hurt the carrier’s bottom line.
Zacks Rank & Stocks to Consider
Ryanair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited
Expeditors has an earnings surprise of 34.2%, having surpassed the Zacks Consensus Estimate in all of the past four quarters. Expeditors is being aided by the uptick in airfreight revenues. We are optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected EPS (three to five years) growth rate for Old Dominion is pegged at 16%. Old Dominion is benefiting from strong performance in the LTL segment, owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has increased 35% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third, the fourth of 2020 as well as in each of the four quarters of 2021.
Driven by the tailwinds, the stock has increased 13.1% in the past year. TRTN currently carries a Zacks Rank #2.