ASX:EXP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.4%

EXP

1.7%

AU Hospitality

0.4%

AU Market


1 Year Return

-34.3%

EXP

-1.8%

AU Hospitality

9.8%

AU Market

Return vs Industry: EXP underperformed the Australian Hospitality industry which returned -1.8% over the past year.

Return vs Market: EXP underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

EXPIndustryMarket
7 Day-6.4%1.7%0.4%
30 Day-21.4%1.7%-0.7%
90 Day-8.3%5.6%-0.6%
1 Year-34.3%-34.3%1.8%-1.8%16.1%9.8%
3 Year-63.1%-65.4%33.8%19.5%36.1%17.9%
5 Yearn/a93.7%55.8%49.4%15.8%

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?

0.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: EXP (A$0.22) is trading above our estimate of fair value (A$0.07)

Significantly Undervalued: EXP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXP is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (0.9x) compared to the AU Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Experience Co forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

71.7%

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 (2.3%).

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

High Growth Earnings: EXP's loss is forecast to worsen by 0% next year.

Revenue vs Market: EXP's revenue (2% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: EXP's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EXP's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Experience Co performed over the past 5 years?

-37.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EXP is unprofitable, and losses have increased over the past 5 years at a rate of -37.3% 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 (12.4%).


Return on Equity

High ROE: EXP has a negative Return on Equity (-36.45%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: EXP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: EXP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Experience Co's financial position?


Financial Position Analysis

Short Term Liabilities: EXP's short term assets (A$22.7M) exceeds its short term liabilities (A$17.4M)

Long Term Liabilities: EXP's short term assets (22.7M) do not cover its long term liabilities (32.3M)


Debt to Equity History and Analysis

Debt Level: EXP's debt to equity ratio (15.1%) is considered satisfactory

Reducing Debt: EXP's debt to equity ratio has reduced from 22.4% to 15.1% over the past 5 years.

Debt Coverage: EXP's debt is well covered by operating cash flow (92.6%).

Interest Coverage: EXP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: EXP has a high level of physical assets or inventory.

Debt Coverage by Assets: EXP's debt is covered by short term assets (assets are 1.135050x debt).


Next Steps

Dividend

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

2.27%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage3.2%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Experience Co's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

John O’Sullivan 0

0.3yrs

Tenure

0

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


Management Age and Tenure

0.7yrs

Average Tenure

Experienced Management: EXP's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: EXP's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellAU$67,38310 Oct 19
Skydive Perth Pty Ltd
EntityCompany
Shares254,957
Max PriceAU$0.26
BuyAU$10,00010 Oct 19
Anthony Boucaut
EntityIndividual
Role
Member of the Board of Directors
Founder & Non-Executive Director
Shares40,000
Max PriceAU$0.25
BuyAU$10,00008 Oct 19
Anthony Boucaut
EntityIndividual
Role
Member of the Board of Directors
Founder & Non-Executive Director
Shares40,000
Max PriceAU$0.25
BuyAU$11,00001 Oct 19
Anthony Boucaut
EntityIndividual
Role
Member of the Board of Directors
Founder & Non-Executive Director
Shares40,000
Max PriceAU$0.27
BuyAU$10,34010 Sep 19
Anthony Boucaut
EntityIndividual
Role
Member of the Board of Directors
Founder & Non-Executive Director
Shares40,000
Max PriceAU$0.26
SellAU$1,373,66911 Jun 19
NovaPort Capital Pty Limited
EntityCompany
Shares5,786,996
Max PriceAU$0.24
BuyAU$1,216,23311 Jun 19
NovaPort Capital Pty Limited
EntityCompany
Shares4,119,785
Max PriceAU$0.30
BuyAU$2,510,66230 May 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares10,503,172
Max PriceAU$0.24
BuyAU$115,50004 Mar 19
Kerry East
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares350,000
Max PriceAU$0.33
SellAU$12,00021 Feb 19
John Diddams
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares50,000
Max PriceAU$0.24
BuyAU$1,885,35228 Dec 18
Viburnum Funds Pty Ltd.
EntityCompany
Shares6,042,491
Max PriceAU$0.31
BuyAU$736,03314 Nov 18
NovaPort Capital Pty Limited
EntityCompany
Shares2,400,000
Max PriceAU$0.31
BuyAU$8,793,03414 Nov 18
Viburnum Funds Pty Ltd.
EntityCompany
Shares27,057,580
Max PriceAU$0.32
SellAU$11,224,21913 Nov 18
Bennelong Australian Equity Partners Pty Ltd
EntityCompany
Shares15,589,193
Max PriceAU$0.72
BuyAU$86,00013 Nov 18
Anthony Boucaut
EntityIndividual
Role
Member of the Board of Directors
Founder & Non-Executive Director
Shares300,000
Max PriceAU$0.29
BuyAU$29,91508 Nov 18
John Diddams
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares100,000
Max PriceAU$0.30
BuyAU$102,70008 Nov 18
Kerry East
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares350,000
Max PriceAU$0.29

Ownership Breakdown


Management Team

  • Courtney Butler

    Chief Operations Officer

    • Tenure: 3.7yrs
  • Owen Kemp

    Chief Financial Officer

    • Tenure: 0.7yrs
    • Compensation: AU$144.94k
  • Fiona van Wyk

    Company Secretary

    • Tenure: 1.1yrs
  • Ian Douglas

    General Manager of Corporate Development

    • Tenure: 0.6yrs
    • Compensation: AU$101.27k
  • John O’Sullivan

    CEO & Director

    • Tenure: 0.3yrs

Board Members

  • Neil Cathie (63yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • John Diddams (69yo)

    Deputy Chairman

    • Tenure: 0yrs
    • Compensation: AU$161.00k
  • Bob East

    Non-Executive Chairman

    • Tenure: 1yrs
    • Compensation: AU$200.00k
  • Bowie Boucaut

    Founder & Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$408.57k
  • Colin Hughes

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$120.00k
  • John O’Sullivan

    CEO & Director

    • Tenure: 0.3yrs

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$122.279m
  • Shares outstanding: 555.81m
  • Website: https://www.experienceco.com

Number of Employees


Location

  • Experience Co Limited
  • 51 Montague Street
  • Level 1
  • North Wollongong
  • New South Wales
  • 2500
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2015
EXPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2015

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 Analysis2019/10/19 10:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.