Wizz Air Holdings (LON:WIZZ) Aims to Reverse Its Return Trends
Wizz Air Holdings' ROCE Analysis: Wizz Air Holdings has a low return on capital employed (ROCE) of 2.4%, significantly underperforming the airline industry average of 13%. This indicates that the company is not effectively utilizing its capital to generate profits.
Declining ROCE Trend: The company's ROCE has decreased from 6.1% over the past five years, suggesting that despite increased capital investment, there has been little improvement in sales or earnings.
Investor Sentiment and Stock Performance: The declining returns have contributed to a 78% drop in Wizz Air Holdings' stock price over the last five years, reflecting investor skepticism about the company's future performance.
Comparison with Other Companies: While Wizz Air Holdings struggles with low returns, there are other companies in the market that currently achieve over 25% return on equity, indicating potentially better investment opportunities elsewhere.
About the author









