LSE:WIZZ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£5.1b

Last Updated

2021/08/02 17:51 UTC

Data Sources

Company Financials +

Executive Summary

Wizz Air Holdings Plc, together with its subsidiaries, provides passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes across Europe and the Middle East. More Details


Snowflake Analysis

Exceptional growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Wizz Air Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WIZZ is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WIZZ's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

9.8%

WIZZ

6.6%

GB Airlines

0.3%

GB Market


1 Year Return

59.8%

WIZZ

63.0%

GB Airlines

22.5%

GB Market

Return vs Industry: WIZZ underperformed the UK Airlines industry which returned 63% over the past year.

Return vs Market: WIZZ exceeded the UK Market which returned 22.5% over the past year.


Shareholder returns

WIZZIndustryMarket
7 Day9.8%6.6%0.3%
30 Day5.2%-2.6%-0.8%
90 Day5.4%-11.4%1.5%
1 Year59.8%59.8%63.0%63.0%27.8%22.5%
3 Year50.6%50.6%-16.3%-20.4%13.3%0.9%
5 Year225.0%225.0%44.3%27.4%39.6%13.2%

Long-Term Price Volatility Vs. Market

How volatile is Wizz Air Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wizz Air Holdings undervalued compared to its fair value and its price relative to the market?

5.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WIZZ (£50.74) is trading above our estimate of fair value (£23.75)

Significantly Below Fair Value: WIZZ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WIZZ is unprofitable, so we can't compare its PE Ratio to the Global Airlines industry average.

PE vs Market: WIZZ is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WIZZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WIZZ is overvalued based on its PB Ratio (5.6x) compared to the GB Airlines industry average (2.4x).


Future Growth

How is Wizz Air Holdings forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

55.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIZZ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: WIZZ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WIZZ's is expected to become profitable in the next 3 years.

Revenue vs Market: WIZZ's revenue (29.1% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: WIZZ's revenue (29.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WIZZ's Return on Equity is forecast to be very high in 3 years time (41.8%).


Past Performance

How has Wizz Air Holdings performed over the past 5 years?

-42.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WIZZ is currently unprofitable.

Growing Profit Margin: WIZZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WIZZ is unprofitable, and losses have increased over the past 5 years at a rate of 42.8% per year.

Accelerating Growth: Unable to compare WIZZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WIZZ is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (2.5%).


Return on Equity

High ROE: WIZZ has a negative Return on Equity (-64.45%), as it is currently unprofitable.


Financial Health

How is Wizz Air Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WIZZ's short term assets (€1.7B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: WIZZ's short term assets (€1.7B) do not cover its long term liabilities (€2.5B).


Debt to Equity History and Analysis

Debt Level: WIZZ's debt to equity ratio (98.4%) is considered high.

Reducing Debt: WIZZ's debt to equity ratio has increased from 3.9% to 98.4% over the past 5 years.

Debt Coverage: WIZZ's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if WIZZ's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Wizz Air Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WIZZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WIZZ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WIZZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WIZZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WIZZ's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

József Váradi

no data

Tenure

€1,620,409

Compensation

Mr. József Váradi serves as the Chief Executive Officer at Wizz Air Holdings Plc and Wizz Air Hungary Kft. Mr. Váradi served as the Chief Compliance Officer of Malév Hungarian Airlines and served as its Ch...


CEO Compensation Analysis

Compensation vs Market: József's total compensation ($USD1.93M) is about average for companies of similar size in the UK market ($USD2.22M).

Compensation vs Earnings: József's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WIZZ's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: WIZZ's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.6%.


Top Shareholders

Company Information

Wizz Air Holdings Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wizz Air Holdings Plc
  • Ticker: WIZZ
  • Exchange: LSE
  • Founded: 2003
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£5.101b
  • Shares outstanding: 103.04m
  • Website: https://wizzair.com

Number of Employees


Location

  • Wizz Air Holdings Plc
  • Ogier House
  • 44 The Esplanade
  • Saint Helier
  • JE4 9WG
  • Jersey

Listings


Biography

Wizz Air Holdings Plc, together with its subsidiaries, provides passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes across Europe and the Middle East. As of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 17:51
End of Day Share Price2021/08/02 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.