Shares of Wizz Air Holdings PLC (WIZZ.L) are moving on volatility today -1.39% or -40.00 from the open. The LSE listed company saw a recent bid of 2848.00 and 95394 shares have traded hands in the session.
Following all the day to day information regarding publically traded companies can be challenging. There is rarely any shortage of data that investors can examine when attempting to research specific stocks. One of the greatest challenges for the investor is determining which data to focus on and which data to set aside. Investors will often need to stay aware of happenings in the overall economic environment, and pay attention to global factors that may have a widespread impact on markets. Being aware of the macroeconomic picture can greatly help the investor when making important portfolio decisions.
Now let’s take a look at how the fundamentals are stacking up for Wizz Air Holdings PLC (WIZZ.L). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. Wizz Air Holdings PLC currently has a yearly EPS of 519.20. This number is derived from the total net income divided by shares outstanding. In other words, EPS reveals how profitable a company is on a share owner basis.
Turning to Return on Assets or ROA, Wizz Air Holdings PLC (WIZZ.L) has a current ROA of 16.52. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets. A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.
Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Wizz Air Holdings PLC (WIZZ.L) currently has Return on Equity of 30.75. ROE is a ratio that measures profits generated from the investments received from shareholders. In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.
Another ratio we can look at is the Return on Invested Capital or more commonly referred to as ROIC. Wizz Air Holdings PLC (WIZZ.L) has a current ROIC of 29.29. ROIC is calculated by dividing Net Income – Dividends by Total Capital Invested.
Similar to ROE, ROIC measures how effectively company management is using invested capital to generate company income. A high ROIC number typically reflects positively on company management while a low number typically reflects the opposite.
Investors have various approaches they can take when deciding what stocks to stuff the portfolio with. Some investors may choose to use fundamental analysis, and some may choose to use technical analysis. Others may employ a combination of the two approaches to make sure no stone is left unturned. Investors looking for bargains in the market may be on the lookout for the stock that offers the best value. This may involve finding stocks that have fallen out of favor with the overall investing community but still have low PE ratios and higher dividend yields. Whatever approach is used, investors may benefit greatly from making sure that all the homework is done, and all of the angles have been examined properly.