ASX:CTD

Stock Analysis Report

Corporate Travel Management

Executive Summary

Corporate Travel Management Limited, a travel management solutions company, manages the purchase and delivery of travel services for the corporate market worldwide.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.

Share Price & News

How has Corporate Travel Management's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.9%

ASX:CTD

-2.1%

AU Hospitality

-2.5%

AU Market


1 Year Return

-32.0%

ASX:CTD

-14.0%

AU Hospitality

-0.6%

AU Market

CTD underperformed the Hospitality industry which returned -13.7% over the past year.

CTD underperformed the Market in Australia which returned -0.7% over the past year.


Share holder returns

CTDIndustryMarket
7 Day-5.9%-2.1%-2.5%
30 Day-6.3%-5.5%-3.7%
90 Day-19.3%-4.2%0.5%
1 Year-31.1%-32.0%-11.6%-14.0%5.1%-0.6%
3 Year31.1%25.1%11.6%0.2%30.2%13.1%
5 Year223.2%186.4%81.2%46.5%36.5%5.9%

Price Volatility Vs. Market

How volatile is Corporate Travel Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corporate Travel Management undervalued based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Corporate Travel Management's share price is below the future cash flow value, and at a moderate discount (> 20%).

Corporate Travel Management's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Corporate Travel Management is overvalued based on earnings compared to the AU Hospitality industry average.

Corporate Travel Management is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Corporate Travel Management is poor value based on expected growth next year.


Price Based on Value of Assets

Corporate Travel Management is overvalued based on assets compared to the AU Hospitality industry average.


Next Steps

Future Growth

How is Corporate Travel Management expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Corporate Travel Management's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Corporate Travel Management's earnings are expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).

Corporate Travel Management's revenue growth is expected to exceed the Australia market average.

Corporate Travel Management's earnings growth is expected to exceed the Australia market average.

Corporate Travel Management's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Corporate Travel Management is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Corporate Travel Management performed over the past 5 years?

34.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Corporate Travel Management has delivered over 20% year on year earnings growth in the past 5 years.

Corporate Travel Management's 1-year earnings growth exceeds its 5-year average (34.8% vs 34.1%)

Corporate Travel Management's earnings growth has exceeded the AU Hospitality industry average in the past year (34.8% vs 25.9%).


Return on Equity

Corporate Travel Management has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Corporate Travel Management used its assets more efficiently than the AU Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Corporate Travel Management has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Corporate Travel Management's financial position?


Financial Position Analysis

Corporate Travel Management is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Corporate Travel Management's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Corporate Travel Management's level of debt (10.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.5% vs 10.9% today).

Debt is well covered by operating cash flow (135.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 42.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 5.6x debt.


Next Steps

Dividend

What is Corporate Travel Management's current dividend yield, its reliability and sustainability?

2.79%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Corporate Travel Management's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.66%).

Corporate Travel Management's dividend is below the markets top 25% of dividend payers in Australia (5.9%).

Whilst dividend payments have been stable, Corporate Travel Management has been paying a dividend for less than 10 years.

Dividend payments have increased, but Corporate Travel Management only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Corporate Travel Management's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jamie Pherous

AU$735,156

Compensation

Mr. Jamie Pherous, BCom, CA, founded Corporate Travel Management Limited (CTM) in Brisbane in 1994 and has built its Group from its headquarters in Brisbane to become the one of the world’s largest travel  ...


CEO Compensation Analysis

Jamie's remuneration is lower than average for companies of similar size in Australia.

Jamie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

The average tenure for the Corporate Travel Management management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

63yo

Average Age

The tenure for the Corporate Travel Management board of directors is about average.


Insider Trading

More shares have been bought than sold by Corporate Travel Management individual insiders in the past 3 months.


Recent Insider Transactions

SellAU$19,599,32508 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares855,643
Max PriceAU$22.91
BuyAU$13,642,37706 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares591,998
Max PriceAU$23.04
BuyAU$2,766,59806 Aug 19
Realindex Investments Pty Limited
EntityCompany
Shares126,996
Max PriceAU$21.78
SellAU$37,658,52917 Jul 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,662,277
Max PriceAU$22.66
BuyAU$36,732,71817 Jul 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,638,439
Max PriceAU$22.56
BuyAU$55,09907 Jun 19
Ewen Graham Crouch
EntityIndividual
Role
Chairman of the Board
Shares2,500
Max PriceAU$22.04
BuyAU$29,872,19104 Jun 19
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares1,142,340
Max PriceAU$26.15
SellAU$150,45629 May 19
ASB Group Investments Ltd.
EntityCompany
Shares5,707
Max PriceAU$26.36
BuyAU$33,138,13129 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,260,287
Max PriceAU$26.60
SellAU$108,54629 May 19
Realindex Investments Pty Limited
EntityCompany
Shares4,328
Max PriceAU$25.08
SellAU$4,769,40929 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares188,238
Max PriceAU$25.40
BuyAU$677,86029 May 19
Realindex Investments Pty Limited
EntityCompany
Shares27,067
Max PriceAU$25.04
BuyAU$88,03029 May 19
ASB Group Investments Ltd.
EntityCompany
Shares3,529
Max PriceAU$24.94
BuyAU$60,97526 Mar 19
Ewen Graham Crouch
EntityIndividual
Role
Chairman of the Board
Shares2,500
Max PriceAU$24.39
BuyAU$33,933,25222 Mar 19
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares1,335,429
Max PriceAU$25.41
SellAU$4,500,00013 Mar 19
Anthony Bellas
EntityIndividual
Shares180,836
Max PriceAU$24.88
BuyAU$75,608,29619 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,179,464
Max PriceAU$23.97
BuyAU$893,54719 Feb 19
Realindex Investments Pty Limited
EntityCompany
Shares36,843
Max PriceAU$24.25
SellAU$7,785,85602 Dec 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares349,435
Max PriceAU$22.85
BuyAU$7,239,07102 Dec 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares325,411
Max PriceAU$23.37
BuyAU$902,66030 Nov 18
Jamie Pherous
EntityIndividual
Role
Global CEO
Member of the Board of Directors
Shares40,000
Max PriceAU$22.57
BuyAU$649,98025 Nov 18
Jamie Pherous
EntityIndividual
Role
Global CEO
Member of the Board of Directors
Shares30,000
Max PriceAU$21.67
BuyAU$1,562,14514 Nov 18
Jamie Pherous
EntityIndividual
Role
Global CEO
Member of the Board of Directors
Shares70,000
Max PriceAU$22.32
BuyAU$73,525,03012 Nov 18
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares2,212,610
Max PriceAU$33.23
BuyAU$269,88409 Nov 18
Robert Natter
EntityIndividual
Role
Member of the Board of Directors
Shares12,000
Max PriceAU$22.49
BuyAU$2,430,92709 Nov 18
Jamie Pherous
EntityIndividual
Role
Global CEO
Member of the Board of Directors
Shares115,000
Max PriceAU$21.14

Ownership Breakdown


Management Team

  • Larry Lo (48yo)

    Chief Executive Officer of Asia

    • Compensation: A$813.32k
  • Andrea Joseph

    Chief People Works Officer

    • Tenure: 3.3yrs
  • Jamie Pherous

    Global CEO

    • Compensation: A$735.16k
  • Chris Thelen

    Chief Executive Officer of North America

    • Compensation: A$802.30k
  • Neale O’Connell

    Chief Financial Officer

    • Tenure: 0.1yrs
  • Peter Wiseman

    General Manager of Sales

    • Tenure: 6.6yrs
  • Steve Fleming

    Chief Financial Officer of Europe

    • Tenure: 0.1yrs
    • Compensation: A$839.50k
  • Laura Ruffles

    Global COO & Executive Director

    • Compensation: A$1.54m
  • Timmo Rol

    Chief Technology Officer of Australia & New Zealand

    • Tenure: 0.6yrs
  • Debbie Carling

    Chief Executive Officer of UK/Europe

    • Tenure: 3.1yrs
    • Compensation: A$552.95k

Board Members

  • Stephen Lonie (67yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: A$117.54k
  • Robert Natter

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: A$131.80k
  • Ewen Graham Crouch (63yo)

    Chairman

    • Tenure: 0.4yrs
  • Greg Moynihan (62yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: A$117.54k
  • Jamie Pherous

    Global CEO

    • Compensation: A$735.16k
  • Laura Ruffles

    Global COO & Executive Director

    • Tenure: 3.7yrs
    • Compensation: A$1.54m

Company Information

Corporate Travel Management Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Corporate Travel Management Limited
  • Ticker: CTD
  • Exchange: ASX
  • Founded: 1994
  • Industry: hotels, resorts and cruise lines
  • Sector: consumer services
  • Market Cap: AU$2.200b
  • Shares outstanding: 108.49m
  • Website: Click here

Number of Employees


Location

  • Corporate Travel Management Limited
  • 307 Queen Street
  • Level 24
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2010
1C6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
CTDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2010
CTML.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2010

Biography

Corporate Travel Management Limited, a travel management solutions company, manages the purchase and delivery of travel services for the corporate market worldwide. It operates in four segments: Travel Ser ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 10:32
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.