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 and fair value.

Risks

  • Experience Co has significant price volatility in the past 3 months.
  • Experience Co is covered by less than 3 analysts.

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

-2.5%

ASX:EXP

4.1%

AU Hospitality

1.9%

AU Market


1 Year Return

-59.4%

ASX:EXP

-12.5%

AU Hospitality

2.3%

AU Market

EXP underperformed the Hospitality industry which returned -12.6% over the past year.

EXP underperformed the Market in Australia which returned 2.2% over the past year.


Share holder returns

EXPIndustryMarket
7 Day-2.5%4.1%1.9%
30 Day-20.4%-3.6%-4.2%
90 Day-15.2%-2.3%1.2%
1 Year-58.3%-59.4%-9.3%-12.5%8.0%2.3%
3 Year-62.3%-65.8%17.0%4.2%32.9%15.6%
5 Yearn/a82.7%46.7%39.3%8.4%

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 based on future cash flows and its price relative to the stock market?

11.42x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Experience Co's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Experience Co's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Experience Co is good value based on earnings compared to the AU Hospitality industry average.

Experience Co is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Experience Co is poor value based on expected growth next year.


Price Based on Value of Assets

Experience Co is good value based on assets compared to the AU Hospitality industry average.


Next Steps

Future Growth

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

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Experience Co's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Experience Co's earnings are expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

Experience Co's revenue growth is positive but not above the Australia market average.

Experience Co's earnings growth is positive but not above the Australia market average.

Experience Co's earnings growth is positive but not above the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Experience Co is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Experience Co performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Experience Co has delivered over 20% year on year earnings growth in the past 5 years.

Experience Co's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Experience Co's 1-year earnings growth is negative, it can't be compared to the AU Hospitality industry average.


Return on Equity

Experience Co has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Experience Co used its assets less efficiently than the AU Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Experience Co's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Experience Co's financial position?


Financial Position Analysis

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

Experience Co's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Experience Co's level of debt (11%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Experience Co's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (125.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

5.13%

Current Dividend Yield


Dividend Yield and Payments Analysis

Experience Co's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.55%).

Experience Co's dividend is below the markets top 25% of dividend payers in Australia (5.77%).

Whilst dividend payments have been stable, Experience Co has been paying a dividend for less than 10 years.

Experience Co has only been paying a dividend for 4 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

No need to calculate the sustainability of Experience Co's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

John O’Sullivan 0

0.1yrs

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

0.5yrs

Average Tenure

The average tenure for the Experience Co management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

The average tenure for the Experience Co board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
Member of the Board of Directors
Independent Non-Executive Director
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$1,281,61019 Nov 18
River Capital Pty Ltd.
EntityCompany
Shares3,695,720
Max PriceAU$0.36
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
Shares300,000
Max PriceAU$0.29
BuyAU$29,91508 Nov 18
John Diddams
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
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
SellAU$5,899,97219 Oct 18
NovaPort Capital Pty Limited
EntityCompany
Shares15,104,078
Max PriceAU$0.59
BuyAU$934,23419 Oct 18
NovaPort Capital Pty Limited
EntityCompany
Shares1,931,865
Max PriceAU$0.62

Ownership Breakdown


Management Team

  • Courtney Butler

    Chief Operations Officer

    • Tenure: 3.5yrs
  • Owen Kemp

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Fiona van Wyk

    Company Secretary

    • Tenure: 0.9yrs
  • Steve O'Malley

    Group General Manager of (NQ) Commercial

    • Tenure: 0.0yrs
    • Compensation: AU$238.21k
  • Clark Scott

    General Manager of New Zealand

    • Tenure: 0.0yrs
    • Compensation: AU$336.53k
  • Ian Douglas

    General Manager of Corporate Development

    • Tenure: 0.4yrs
  • John O’Sullivan

    CEO & Director

    • Tenure: 0.1yrs

Board Members

  • John Diddams (69yo)

    Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: AU$161.00k
  • Bob East

    Non-Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: AU$25.00k
  • Bowie Boucaut

    Founder

    • Tenure: 0.0yrs
    • Compensation: AU$334.62k
  • Colin Hughes

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$120.00k
  • John O’Sullivan

    CEO & Director

    • Tenure: 0.1yrs

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: 1998
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: AU$108.383m
  • 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

Biography

Experience Co Limited, an adventure tourism and leisure company, provides tandem skydiving services in Australia and New Zealand. It also provides white water rafting, canyoning, helicopter and boat tours, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 10:37
End of Day Share Price2019/08/23 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.