company background image
HLO

Helloworld TravelASX:HLO Stock Report

Market Cap

AU$429.4m

7D

-4.2%

1Y

47.3%

Updated

21 Oct, 2021

Data

Company Financials +
HLO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

HLO Overview

Helloworld Travel Limited operates as a travel distribution company in Australia, New Zealand, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Helloworld Travel
Historical stock prices
Current Share PriceAU$2.77
52 Week HighAU$1.50
52 Week LowAU$3.36
Beta2.16
1 Month Change21.49%
3 Month Change70.99%
1 Year Change47.34%
3 Year Change-47.74%
5 Year Change-37.05%
Change since IPO-46.32%

Recent News & Updates

May 26
Does Helloworld Travel (ASX:HLO) Have A Healthy Balance Sheet?

Does Helloworld Travel (ASX:HLO) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

HLOAU HospitalityAU Market
7D-4.2%-1.1%0.7%
1Y47.3%38.2%21.4%

Return vs Industry: HLO exceeded the Australian Hospitality industry which returned 39.2% over the past year.

Return vs Market: HLO exceeded the Australian Market which returned 21.1% over the past year.

Price Volatility

Is HLO's price volatile compared to industry and market?
HLO volatility
HLO Beta2.16
Industry Beta1.23
Market Beta1

Stable Share Price: HLO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HLO's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000726Andrew Burneshttps://www.helloworldlimited.com.au

Helloworld Travel Limited operates as a travel distribution company in Australia, New Zealand, and internationally. The company provides international and domestic travel products and services, as well as operates a franchised network of travel agents. It operates retail travel brands, including Helloworld Travel–the Travel Professionals; and a network of retail outlets, such as Helloworld Travel Associate, Helloworld Business Travel, Magellan Travel, Mobile Travel Agent, My Travel Group, and The Travel Brokers.

Helloworld Travel Fundamentals Summary

How do Helloworld Travel's earnings and revenue compare to its market cap?
HLO fundamental statistics
Market CapAU$429.43m
Earnings (TTM)-AU$35.50m
Revenue (TTM)AU$68.11m

6.3x

P/S Ratio

-12.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLO income statement (TTM)
RevenueAU$68.11m
Cost of RevenueAU$9.85m
Gross ProfitAU$58.26m
ExpensesAU$93.76m
Earnings-AU$35.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.23
Gross Margin85.54%
Net Profit Margin-52.12%
Debt/Equity Ratio35.0%

How did HLO perform over the long term?

See historical performance and comparison

Valuation

Is Helloworld Travel 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: HLO (A$2.77) is trading below our estimate of fair value (A$9.11)

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


Price To Earnings Ratio

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

PE vs Market: HLO 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 HLO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HLO is good value based on its PB Ratio (1.9x) compared to the AU Hospitality industry average (3.8x).


Future Growth

How is Helloworld Travel forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

90.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: HLO's revenue (47.8% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: HLO's revenue (47.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLO's Return on Equity is forecast to be low in 3 years time (13.1%).


Past Performance

How has Helloworld Travel performed over the past 5 years?

-48.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLO is currently unprofitable.

Growing Profit Margin: HLO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HLO is unprofitable, and losses have increased over the past 5 years at a rate of 48.8% per year.

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

Earnings vs Industry: HLO is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (4.2%).


Return on Equity

High ROE: HLO has a negative Return on Equity (-15.57%), as it is currently unprofitable.


Financial Health

How is Helloworld Travel's financial position?


Financial Position Analysis

Short Term Liabilities: HLO's short term assets (A$177.0M) exceed its short term liabilities (A$158.6M).

Long Term Liabilities: HLO's short term assets (A$177.0M) exceed its long term liabilities (A$139.6M).


Debt to Equity History and Analysis

Debt Level: HLO's debt to equity ratio (35%) is considered satisfactory.

Reducing Debt: HLO's debt to equity ratio has increased from 19.4% to 35% 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: HLO has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Dividend

What is Helloworld Travel current dividend yield, its reliability and sustainability?

1.40%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HLO'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 HLO's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLO'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?

5.7yrs

Average management tenure


CEO

Andrew Burnes

5.67yrs

Tenure

AU$421,271

Compensation

Mr. Andrew James Burnes, AO, LLB, B Com, has been Chief Executive Officer and Managing Director at Helloworld Travel Limited since February 1, 2016. On November 1, 1987, Mr. Burnes founded The Australian O...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD315.49K) is below average for companies of similar size in the Australian market ($USD734.81K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HLO's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: HLO's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HLO insiders have only sold shares 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

Helloworld Travel Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Helloworld Travel Limited
  • Ticker: HLO
  • Exchange: ASX
  • Founded: 2000
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: AU$429.427m
  • Shares outstanding: 155.03m
  • Website: https://www.helloworldlimited.com.au

Number of Employees


Location

  • Helloworld Travel Limited
  • 179 Normanby Road
  • Melbourne
  • Victoria
  • 3205
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:08
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.