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As Ryanair Holdings plc (ISE:RY4C) announced its earnings release on 31 March 2019, analysts seem cautiously bearish, with earnings expected to grow by 1.4% in the upcoming year against the higher past 5-year average growth rate of 9.5%. With trailing-twelve-month net income at current levels of €885m, we should see this rise to €898m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Ryanair Holdings
Can we expect Ryanair Holdings to keep growing?
The view from 22 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of RY4C's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, RY4C's earnings should reach €1.3b, from current levels of €885m, resulting in an annual growth rate of 14%. EPS reaches €1.1 in the final year of forecast compared to the current €0.77 EPS today. In 2022, RY4C's profit margin will have expanded from 11% to 13%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Ryanair Holdings, I've put together three essential factors you should further examine:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is Ryanair Holdings worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Ryanair Holdings is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ryanair Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.