Wizz Air Holdings Plc (WIZZ.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Wizz 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.

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1.b. Last Insights on WIZZ

Wizz Air Holdings Plc's recent performance was driven by robust revenue and profit increases, as reported in its half-year earnings call. The company's operating profit jumped over 25% to $512 million, beating analyst expectations. A strong first-half performance and a new approach to address inefficiencies and strategic adjustments have boosted investor sentiment. Additionally, the company's plan to train 1,200 new pilots by 2028 and a delivery of three Airbus A321neo aircraft have contributed to its growth. Institutional investors' significant stake in the company has also piqued interest.

1.c. Company Highlights

Last Price	1320
Change Percentage	0.84%
Open	1316
Previous Close	1309
Market Cap ( Millions)	1365
Volume	575022
Year High	1818
Year Low	968.5
M A 50	1320.5
M A 200	1238.15

FCF Yield	24.57%
Dividend Yield	0.00%
ROE	60.17%
Debt / Equity	961.67%
Net Debt / EBIDTA	454.79%
Price To Book	2.23
Price Earnings Ratio	5.93
Price To FCF	4.07
Price To sales	0.23
EV / EBITDA	5.78

2. Transcript Summary

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3. NewsRoom

Auto & Transport Roundup: Market Talk

Jan -29

Source:

Wizz Air Rallies on Hope, not Profits

Jan -29

Source:

Wizz Air Holdings PLC (WZZAF) Q3 2026 Earnings Call Highlights: Navigating Growth Amidst Challenges

Jan -29

Source:

EasyJet says summer bookings rising after wider quarterly loss

Jan -29

Source:

Wizz Air Q3 Earnings Call Highlights

Jan -29

Source:

With 43% ownership, Wizz Air Holdings Plc (LON:WIZZ) has piqued the interest of institutional investors

Dec -30

Source:

EasyJet and Wizz Air confirm flights continued as normal despite software fix

Dec -01

Source:

Market Chatter: Most Airbus A320 Updated After Global Safety Fix

Dec -01

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.38%)

6. Segments

Passenger Ticket

Expected Growth: 10.33%

Wizz Air's 10.33% passenger ticket growth driven by increasing demand for low-cost travel, expansion into new markets, and improved operational efficiency. Strong brand recognition, competitive pricing, and strategic route network expansion also contribute to growth. Additionally, the airline's focus on digitalization and customer experience enhancements support revenue growth.

Ancillary

Expected Growth: 10.43%

Wizz Air's ancillary revenue growth of 10.43% is driven by increasing demand for travel extras, successful implementation of dynamic pricing, and expansion of services such as baggage fees, food, and seat selection. Additionally, the airline's growing passenger base and improved online booking platform contribute to the rise in ancillary revenue.

7. Detailed Products

Air Tickets

Wizz Air offers affordable air tickets to various destinations across Europe and beyond.

Checked Baggage

Wizz Air provides an option to purchase checked baggage allowance for passengers with more luggage.

Priority Boarding

Wizz Air offers priority boarding for passengers who want to secure their seat and stow their carry-on luggage.

Seat Selection

Wizz Air allows passengers to select their seat on the plane, including extra legroom seats.

In-Flight Meals

Wizz Air offers a range of snacks and drinks on board, including hot meals on select flights.

Travel Insurance

Wizz Air partners with insurance providers to offer travel insurance to passengers.

WIZZ Discount Club

Wizz Air's discount club offers members exclusive discounts and benefits.

8. Wizz Air Holdings Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Wizz Air's low-cost carrier model and strong brand recognition reduce the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative airlines, Wizz Air's low fares and strong route network limit their negotiating power.

Bargaining Power Of Suppliers

Wizz Air's large scale of operations and strong relationships with suppliers reduce their bargaining power.

Threat Of New Entrants

The high barriers to entry in the airline industry, including significant capital requirements and regulatory hurdles, reduce the threat of new entrants.

Intensity Of Rivalry

The European low-cost carrier market is highly competitive, with multiple players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	96.83%
Debt Cost	3.95%
Equity Weight	3.17%
Equity Cost	15.42%
WACC	4.31%
Leverage	3057.14%

11. Quality Control: Wizz Air Holdings Plc passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Lufthansa

A-Score: 5.3/10

Value: 8.3

Growth: 4.7

Quality: 3.3

Yield: 3.1

Momentum: 7.5

Volatility: 4.7

1-Year Total Return ->

Fraport

A-Score: 5.2/10

Value: 6.3

Growth: 6.3

Quality: 3.3

Yield: 0.0

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

easyJet

A-Score: 4.9/10

Value: 8.5

Growth: 6.7

Quality: 4.2

Yield: 1.9

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Copenhagen Airports

A-Score: 4.5/10

Value: 0.2

Growth: 5.3

Quality: 5.2

Yield: 0.6

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

Air France-KLM

A-Score: 4.1/10

Value: 9.8

Growth: 2.8

Quality: 3.6

Yield: 0.0

Momentum: 7.0

Volatility: 1.3

1-Year Total Return ->

Wizz Air

A-Score: 3.5/10

Value: 8.2

Growth: 6.3

Quality: 2.7

Yield: 0.0

Momentum: 2.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-7.31%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.31%

Wizz Air Holdings Plc - JE00BN574F90

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WIZZ

1.c. Company Highlights

Lower Quality

More Volatile

Lower Yield

Earnings Beats

Higher Growth

Revenues Miss

Earnings Miss

Stable Momentum

Weak Momentum

Revenues Beats

Cheaper

Average Quality

Fairly Valued

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.38%)

6. Segments

Passenger Ticket

Expected Growth: 10.33%

Ancillary

Expected Growth: 10.43%

7. Detailed Products

Air Tickets

Checked Baggage

Priority Boarding

Seat Selection

In-Flight Meals

Travel Insurance

WIZZ Discount Club

8. Wizz Air Holdings Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Wizz Air Holdings Plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.2$

Current Price

13.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA