ASX:EXP

Stock Analysis Report

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Market Cap

AU$161.2m

Last Updated

2021/07/25 08:27 UTC

Data Sources

Company Financials +

Executive Summary

Experience Co Limited, an adventure tourism and leisure company, provides tandem skydiving services in Australia and New Zealand. More Details

Rewards

Trading at 74.2% below our estimate of its fair value

Earnings are forecast to grow 82.84% per year

Risk Analysis

No risks detected for EXP from our risk checks.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Experience Co's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXP is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EXP's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0%

EXP

-0.8%

AU Hospitality

0.5%

AU Market


1 Year Return

141.7%

EXP

50.4%

AU Hospitality

26.1%

AU Market

Return vs Industry: EXP exceeded the Australian Hospitality industry which returned 50.4% over the past year.

Return vs Market: EXP exceeded the Australian Market which returned 26.1% over the past year.


Shareholder returns

EXPIndustryMarket
7 Day0%-0.8%0.5%
30 Day-1.7%-4.0%2.0%
90 Day3.6%2.7%4.4%
1 Year141.7%141.7%52.2%50.4%30.7%26.1%
3 Year-45.8%-47.3%4.0%-6.7%32.9%16.7%
5 Year-36.7%-42.6%48.2%23.7%64.4%32.4%

Long-Term Price Volatility Vs. Market

How volatile is Experience Co's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Experience Co undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXP (A$0.29) is trading below our estimate of fair value (A$1.12)

Significantly Below Fair Value: EXP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EXP is unprofitable, so we can't compare its PE Ratio to the Australian Hospitality industry average.

PE vs Market: EXP is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EXP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXP is good value based on its PB Ratio (2x) compared to the AU Hospitality industry average (2.5x).


Future Growth

How is Experience Co forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

82.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: EXP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EXP's is expected to become profitable in the next 3 years.

Revenue vs Market: EXP's revenue (34.1% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: EXP's revenue (34.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXP's Return on Equity is forecast to be low in 3 years time (5.4%).


Past Performance

How has Experience Co performed over the past 5 years?

-64.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXP is currently unprofitable.

Growing Profit Margin: EXP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EXP is unprofitable, and losses have increased over the past 5 years at a rate of 64.6% per year.

Accelerating Growth: Unable to compare EXP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EXP is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (2.1%).


Return on Equity

High ROE: EXP has a negative Return on Equity (-52.25%), as it is currently unprofitable.


Financial Health

How is Experience Co's financial position?


Financial Position Analysis

Short Term Liabilities: EXP's short term assets (A$30.7M) exceed its short term liabilities (A$17.7M).

Long Term Liabilities: EXP's short term assets (A$30.7M) exceed its long term liabilities (A$25.9M).


Debt to Equity History and Analysis

Debt Level: EXP's debt to equity ratio (11.1%) is considered satisfactory.

Reducing Debt: EXP's debt to equity ratio has increased from 5.3% to 11.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EXP has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EXP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Experience Co current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EXP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EXP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EXP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EXP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EXP is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EXP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

John O’Sullivan

2yrs

Tenure

AU$529,468

Compensation

Mr. John O’Sullivan has been Chief Executive Officer and Executive Director of Experience Co Limited since July 29, 2019. Mr. O’Sullivan is a highly regarded and well respected industry leader with over 25...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD390.23K) is above average for companies of similar size in the Australian market ($USD271.21K).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

Experienced Management: EXP's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: EXP's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EXP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Experience Co Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Experience Co Limited
  • Ticker: EXP
  • Exchange: ASX
  • Founded: 1999
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: AU$161.185m
  • Shares outstanding: 555.81m
  • Website: https://www.experienceco.com

Number of Employees


Location

  • Experience Co Limited
  • 17 Castlereagh Street
  • Level 1
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Biography

Experience Co Limited, an adventure tourism and leisure company, provides tandem skydiving services in Australia and New Zealand. The company operates through Skydiving and Adventure Experiences segments. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 08:27
End of Day Share Price2021/07/23 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.