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Wizz Air Holdings (GB:WIZZ)
LSE:WIZZ

Wizz Air Holdings (WIZZ) AI Stock Analysis

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GB

Wizz Air Holdings

(LSE:WIZZ)

72Outperform
Wizz Air Holdings' overall stock score reflects a strong recovery in financial performance, particularly in income growth and margin improvement. However, high leverage and negative free cash flow present significant risks. The stock's technical indicators show upward momentum, supporting a positive outlook. The attractive valuation, with a low P/E ratio, suggests an undervalued opportunity in the airline industry. Positive corporate events, like passenger growth and sustainability initiatives, further enhance the growth potential, offsetting some financial risks.
Positive Factors
Market Focus
Wizz is focused on Eastern Europe, where GDP growth is expected to outperform relative to overall European trends.
Passenger Growth
April passenger growth increased by 10.8% to 5.4 million.
Stock Valuation
The stock has been upgraded to Buy with a new target price of 1,900p, implying approximately 50% upside.
Negative Factors
Load Factor
There was a small decline in load factor to 89.8%.
Operational Performance
A tough Q4 operationally is expected, with continued cost pressure impacting performance.
Yield Pressure
Medium term risks are anticipated as yields could be pressured by ASK growth and potential competitive pressure.

Wizz Air Holdings (WIZZ) vs. S&P 500 (SPY)

Wizz Air Holdings Business Overview & Revenue Model

Company DescriptionWizz Air Holdings Plc, together with its subsidiaries, provides passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes in Europe and the Middle East. As of June 08, 2022, it operated a fleet of 154 aircraft that offered services for approximately 1000 routes from 194 airports in 51 countries. The company provides its services under the Wizz Air brand. Wizz Air Holdings Plc was founded in 2003 and is based in Saint Helier, Jersey.
How the Company Makes MoneyWizz Air Holdings makes money through a combination of ticket sales and ancillary revenues. The primary revenue stream is the sale of airline tickets, which are offered at competitive prices to attract a wide customer base. In addition to ticket sales, the company generates substantial income from ancillary services, including baggage fees, seat selection, priority boarding, in-flight refreshments, and other add-ons. These ancillary services often contribute significantly to the company's profitability. Wizz Air also benefits from partnerships with various airports and service providers, enabling cost efficiencies and enhancing its competitive pricing strategy. The company's low-cost operational model, combined with strategic route selection and high aircraft utilization, further supports its revenue generation.

Wizz Air Holdings Financial Statement Overview

Summary
Wizz Air Holdings has shown strong revenue growth and improved margins, indicating a robust recovery in its income statement. However, its high leverage and low equity base on the balance sheet pose potential risks. Cash flow is improving but still impacted by high capital expenditures.
Income Statement
75
Positive
Wizz Air Holdings has shown a significant recovery in its income statement metrics. The revenue growth rate from 2023 to 2024 was an impressive 30.22%, reflecting a strong recovery. Gross profit margin improved to 23.94%, and the net profit margin returned to profitability at 7.42% in 2024. The EBIT margin and EBITDA margin were 8.63% and 25.50%, respectively, indicating improved operational efficiency. Despite previous years of losses, the company has shown resilience and a strong turnaround.
Balance Sheet
45
Neutral
The balance sheet shows some areas of concern. The debt-to-equity ratio is extremely high due to low stockholder equity, suggesting high leverage. However, return on equity (ROE) improved to 205.29% in 2024, indicating efficient use of equity, albeit from a low base. The equity ratio is quite low at 2.11%, which could pose risks during economic downturns. Overall, the high leverage and low equity base remain concerns despite the company's return to profitability.
Cash Flow
60
Neutral
Cash flow analysis shows mixed results. The operating cash flow to net income ratio is 1.80, indicating strong cash generation relative to net income. However, free cash flow remains negative, reflecting high capital expenditures. The free cash flow growth rate improved significantly from 2023 to 2024, indicating better cash management, but the company still needs to focus on generating positive free cash flow.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
5.07B3.90B1.66B739.00M2.76B
Gross Profit
1.21B-314.90M-368.60M-507.20M453.60M
EBIT
437.90M-466.80M-465.30M-528.10M338.30M
EBITDA
1.29B171.70M-105.70M-143.20M767.10M
Net Income Common Stockholders
376.60M-523.00M-631.80M-572.10M281.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.48B1.41B1.22B1.45B1.31B
Total Assets
8.69B7.03B5.36B4.72B4.36B
Total Debt
6.27B5.30B3.96B3.14B2.04B
Net Debt
5.54B3.89B3.20B2.04B728.90M
Total Liabilities
8.55B7.39B5.09B3.82B3.12B
Stockholders Equity
183.40M-331.00M279.30M907.80M1.23B
Cash FlowFree Cash Flow
-32.10M-218.00M-173.80M-639.80M319.70M
Operating Cash Flow
676.80M421.90M370.60M-224.60M771.90M
Investing Cash Flow
-360.00M532.90M-407.20M-146.50M-682.40M
Financing Cash Flow
-1.02B-311.20M-325.50M624.60M-93.60M

Wizz Air Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1727.00
Price Trends
50DMA
1582.88
Positive
100DMA
1503.17
Positive
200DMA
1439.96
Positive
Market Momentum
MACD
39.25
Negative
RSI
63.81
Neutral
STOCH
90.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WIZZ, the sentiment is Positive. The current price of 1727 is above the 20-day moving average (MA) of 1522.65, above the 50-day MA of 1582.88, and above the 200-day MA of 1439.96, indicating a bullish trend. The MACD of 39.25 indicates Negative momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 90.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WIZZ.

Wizz Air Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
£1.79B7.1488.27%5.20%13.48%
GBIAG
68
Neutral
£13.21B5.9258.10%0.73%6.07%0.66%
64
Neutral
$4.27B11.815.31%249.66%4.08%-8.61%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WIZZ
Wizz Air Holdings
1,727.00
-355.00
-17.05%
EJTTF
EasyJet
7.00
0.29
4.32%
GB:IAG
International Consolidated Airlines
279.00
103.55
59.02%

Wizz Air Holdings Earnings Call Summary

Earnings Call Date:Jan 30, 2025
(Q2-2025)
|
% Change Since: 25.87%|
Next Earnings Date:Jun 05, 2025
Earnings Call Sentiment Neutral
Wizz Air's earnings call highlighted a mixed performance with positive revenue developments and operational improvements, but significant challenges related to cost pressures, fleet groundings, and geopolitical issues. The company's strategic adjustments and strong cash position provide a degree of resilience, yet the Fitch downgrade and ongoing cost issues weigh on the outlook.
Q2-2025 Updates
Positive Updates
Positive Revenue Development
Wizz Air reported positive unit revenue development in the first half of the fiscal year, with expectations of continuation into the second half driven by strong booking trends and reshuffled network strategies.
Operational Improvements
The company achieved a slight improvement in fleet utilization and operational KPIs, including an increase in completion rate to 99.4%, targeting 99.5%.
Sustainability Recognition
Wizz Air received recognition from CAPA for being the most sustainable airline in Europe for the third consecutive time.
Increased Fleet Size
The fleet grew from 189 to 232 aircraft, despite challenges, and the company managed to phase out the expensive wet-leased aircraft by the end of October.
Strong Cash Position
Wizz Air reported a strong cash position with €1.9 billion at the end of September, highlighting robust cash generation capabilities.
Negative Updates
GTF Engine Groundings Impact
The grounding of 44 GTF aircraft significantly affected costs and operations, leading to substantial financial impacts and strategic adjustments.
Cost Pressures
Continued pressure on non-fuel costs, especially due to Pratt & Whitney-related disruptions, with high disruption and crew costs impacting profitability.
Flat Capacity and ASK Reduction
Capacity remained flat with a 1% decrease in Available Seat Kilometers (ASK), attributed to shorter stage lengths and inefficiencies.
Fitch Downgrade
Wizz Air was downgraded by Fitch from investment grade, primarily due to leverage issues resulting from the grounding of aircraft and high spare engine ratios.
Challenges in Geopolitical Markets
Operations in the Middle East faced challenges due to geopolitical tensions, leading to capacity reallocations and market performance issues.
Company Guidance
During Wizz Air's call, the company provided guidance for fiscal year '25, highlighting several key metrics. They reported positive unit revenue development in H1, with expectations for continued revenue strength into H2, driven by network restructuring and improved pricing strategies. Passenger numbers rose by nearly 1%, despite a slight decline in available seat kilometers (ASK) by 1%. The fleet expanded from 189 to 232 aircraft, including eight wet-leased planes, which were phased out by October, reducing costs. Wizz Air experienced operational improvements, with a completion rate of 99.4% and slightly better on-time performance. They forecast a 15%-20% growth in fiscal year '26, with a focus on mature market capacity, and anticipate a mid-single-digit revenue growth for the full year. Challenges included high ex-fuel costs due to groundings and wet leases, but the company expects cost reductions as grounded aircraft return to service. The company maintained its net profit guidance, citing a strong revenue environment and strategic cost management.

Wizz Air Holdings Corporate Events

Regulatory Filings and Compliance
Wizz Air Updates Share Capital Details
Neutral
May 2, 2025

Wizz Air Holdings PLC announced that as of April 30, 2025, it has 103,396,198 ordinary shares in issue, with no shares held in treasury. This update is crucial for shareholders and stakeholders as it affects voting rights and shareholding calculations. The company also provided a theoretical fully diluted share capital figure, which includes potential shares from convertible notes and employee share options, indicating potential future changes in share capital structure.

Spark’s Take on GB:WIZZ Stock

According to Spark, TipRanks’ AI Analyst, GB:WIZZ is a Neutral.

Wizz Air Holdings demonstrates a strong recovery in income and strategic corporate developments, positively impacting growth potential. However, high leverage and negative free cash flow remain significant risks. The stock is technically weak but attractively valued, offering a mixed investment outlook.

To see Spark’s full report on GB:WIZZ stock, click here.

Business Operations and StrategyFinancial Disclosures
Wizz Air Sees April Passenger Growth and Advances Sustainability Efforts
Positive
May 2, 2025

Wizz Air reported a strong performance in April 2025, with a 10.8% increase in passenger numbers compared to the previous year, attributed to the favorable timing of Easter. Despite a slight dip in load factor, the airline launched its ‘Flying Towards Net Zero’ carbon roadmap, aiming for a 25% reduction in emissions by 2030, reinforcing its position as one of the lowest emission airlines.

Spark’s Take on GB:WIZZ Stock

According to Spark, TipRanks’ AI Analyst, GB:WIZZ is a Neutral.

Wizz Air Holdings demonstrates a strong recovery in income and strategic corporate developments, positively impacting growth potential. However, high leverage and negative free cash flow remain significant risks. The stock is technically weak but attractively valued, offering a mixed investment outlook.

To see Spark’s full report on GB:WIZZ stock, click here.

Executive/Board ChangesRegulatory Filings and Compliance
Wizz Air Aligns Board Interests with Share-Based Director Fees
Positive
Apr 16, 2025

Wizz Air Holdings Plc announced the partial payment of director fees in the form of shares to several non-executive board members over the past year, with a delay in reporting due to an administrative error. This move, in accordance with EU Market Abuse Regulation, reflects the company’s commitment to aligning board members’ interests with its financial performance, potentially impacting stakeholder perceptions positively.

Spark’s Take on GB:WIZZ Stock

According to Spark, TipRanks’ AI Analyst, GB:WIZZ is a Neutral.

Wizz Air Holdings shows a strong income recovery and strategic corporate developments, enhancing growth potential. However, high leverage and negative free cash flow present significant risks. The stock is technically weak but attractively valued, offering a mixed investment outlook.

To see Spark’s full report on GB:WIZZ stock, click here.

Regulatory Filings and Compliance
Wizz Air Announces Share Capital and Voting Rights Update
Neutral
Apr 2, 2025

Wizz Air Holdings PLC announced its share capital details as of 31 March 2025, revealing a total of 103,396,078 ordinary shares in issue, each carrying one voting right, with no shares held in treasury. The company also provided a theoretical fully diluted share capital figure of 127,733,907, which includes potential shares from convertible notes and employee share options, impacting stakeholders’ calculations for notification obligations under the Financial Conduct Authority’s rules.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Passenger Growth and CO2 Emission Reductions in March 2025
Positive
Apr 2, 2025

Wizz Air Holdings reported a 6.4% increase in passenger numbers for March 2025, with a slight decrease in load factor compared to the previous year. The airline also achieved a 1.0% reduction in CO2 emissions per RPK, reinforcing its commitment to sustainability. The company anticipates a strong start to Q1 F26, with higher April fares due to Easter and promising summer bookings, indicating a positive outlook for future operations.

Shareholder MeetingsBusiness Operations and Strategy
Wizz Air Implements AGM-Approved Resolutions Following Shareholder Consultations
Neutral
Mar 31, 2025

Wizz Air Holdings PLC announced the results of its 2024 Annual General Meeting, where all proposed resolutions, including the Directors’ Remuneration Policy and amendments to the Wizz Air Omnibus Plan, were approved by shareholders, albeit with less than the desired percentage of votes. Following shareholder consultations, the company has decided to implement the approved resolutions, confident that the remuneration adjustments align management’s interests with those of shareholders, and will continue engaging on remuneration matters.

Business Operations and StrategyRegulatory Filings and Compliance
Wizz Air Announces Managerial Share Transaction
Neutral
Mar 31, 2025

Wizz Air Holdings Plc announced a managerial transaction involving the transfer of 444,472 ordinary shares to a new security account held by Vaxco Trust Limited Liability Company. This transaction, which does not alter the beneficiary or ownership, reflects internal adjustments in share custody, potentially impacting the company’s operational transparency and governance.

Executive/Board Changes
Wizz Air Announces Key Board Committee Changes
Neutral
Mar 14, 2025

Wizz Air Holdings PLC, a prominent player in the airline industry, has announced significant changes in its board committees following the return of Barry Eccleston from a temporary leave of absence. Eccleston is now the Chair of the Remuneration Committee and a member of the Nomination and Governance Committee. Other key appointments include Enrique Dupuy de Lome Chavarri and Charlotte Pedersen taking on permanent roles in their respective committees, which could impact the company’s governance and strategic direction.

Regulatory Filings and Compliance
Wizz Air Announces Share Capital Details for February 2025
Neutral
Mar 4, 2025

Wizz Air Holdings Plc announced its share capital details as of February 28, 2025, with 103,392,447 ordinary shares in issue, each carrying one voting right. The announcement provides shareholders with important information for calculating their interests in the company, highlighting the potential for changes in share capital due to convertible notes and employee share options.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Passenger Growth and Emission Reductions for February 2025
Positive
Mar 4, 2025

Wizz Air reported a 5.1% increase in passengers for February 2025, with a load factor of 91.8%, indicating improved operational efficiency. The airline also achieved a 2.2% reduction in CO2 emissions per RPK, reinforcing its commitment to sustainability and enhancing its competitive position in the market.

Product-Related AnnouncementsBusiness Operations and Strategy
Wizz Air Marks 10 Years on LSE with New Route to Medina
Positive
Feb 25, 2025

Wizz Air celebrates its 10th anniversary on the London Stock Exchange by announcing a new direct flight route from London Gatwick to Medina, Saudi Arabia, using the Airbus XLR aircraft. This expansion is part of Wizz Air’s strategy to grow its network in the Middle East and enhance its market presence. The airline aims for a 15-20% annual passenger growth, supported by fleet expansion and sustainability initiatives, including a target to power 10% of flights with sustainable aviation fuel by 2030. With a disciplined cost structure and strong liquidity, Wizz Air is well-positioned for future growth and shareholder value.

Executive/Board ChangesBusiness Operations and Strategy
Wizz Air Grants Omnibus Plan Awards to Key Executive
Positive
Feb 6, 2025

Wizz Air Holdings Plc announced the grant of options under its Omnibus Share Plan to Krzysztof Krolak, the Central Operations Officer. This move, approved by the company’s remuneration committee, involves the allocation of 4,752 ordinary shares, emphasizing Wizz Air’s commitment to rewarding its management and potentially enhancing its operational leadership.

Financial DisclosuresRegulatory Filings and Compliance
Wizz Air Updates Share Capital and Voting Rights Information
Neutral
Feb 4, 2025

Wizz Air Holdings PLC announced its current share capital details as of 31 January 2025, noting the issuance of 103,391,947 ordinary shares. These shares carry voting rights, subject to certain restrictions for Non-Qualifying Nationals. The company’s theoretical fully diluted share capital is calculated at 127,733,907 shares, including potential shares from convertible notes and employee share options. This information is vital for shareholders and stakeholders to assess their interests and obligations under financial regulations.

Business Operations and StrategyFinancial Disclosures
Wizz Air Reports Positive Traffic and Emission Trends for January 2025
Positive
Feb 4, 2025

In January 2025, Wizz Air reported a 4% increase in passengers compared to the previous year, despite a slight decrease in seat capacity. The airline also achieved a load factor of 86%, indicating improved efficiency. Additionally, Wizz Air continues to lead in low emissions per passenger, with a 3.4% year-on-year reduction in CO2 emissions per RPK, highlighting its commitment to sustainability.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.