ASX:SLK

Stock Analysis Report

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Executive Summary

SeaLink Travel Group Limited operates as a tourism and transport company in Australia, Singapore, and the United Kingdom. More Details


Snowflake Analysis

Reasonable growth potential with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

8.9%

SLK

1.0%

AU Hospitality

2.3%

AU Market


1 Year Return

43.9%

SLK

-9.7%

AU Hospitality

-0.3%

AU Market

Return vs Industry: SLK exceeded the Australian Hospitality industry which returned -9.7% over the past year.

Return vs Market: SLK exceeded the Australian Market which returned -0.3% over the past year.


Shareholder returns

SLKIndustryMarket
7 Day8.9%1.0%2.3%
30 Day21.2%7.0%7.2%
90 Day56.6%14.4%8.7%
1 Year47.2%43.9%-6.6%-9.7%3.1%-0.3%
3 Year98.6%76.6%-7.5%-15.5%24.2%8.8%
5 Year129.1%91.9%23.1%22.8%55.4%24.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SeaLink Travel Group undervalued compared to its fair value and its price relative to the market?

2.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SLK (A$7.08) is trading above our estimate of fair value (A$5.57)

Significantly Below Fair Value: SLK is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SLK is overvalued based on its PB Ratio (2.6x) compared to the AU Hospitality industry average (2.1x).


Next Steps

Future Growth

How is SeaLink Travel Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

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

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

Revenue vs Market: SLK's revenue (18.5% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: SLK's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLK's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has SeaLink Travel Group performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLK is currently unprofitable.

Growing Profit Margin: SLK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SLK is unprofitable, and losses have increased over the past 5 years at a rate of 9.3% per year.

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

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


Return on Equity

High ROE: SLK has a negative Return on Equity (-2.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is SeaLink Travel Group's financial position?


Financial Position Analysis

Short Term Liabilities: SLK's short term assets (A$228.8M) do not cover its short term liabilities (A$306.2M).

Long Term Liabilities: SLK's short term assets (A$228.8M) do not cover its long term liabilities (A$483.4M).


Debt to Equity History and Analysis

Debt Level: SLK's debt to equity ratio (52.6%) is considered high.

Reducing Debt: SLK's debt to equity ratio has increased from 10% to 52.6% over the past 5 years.

Debt Coverage: SLK's debt is well covered by operating cash flow (28.5%).

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


Balance Sheet


Next Steps

Dividend

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

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLK's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: SLK's dividend (1.55%) is low compared to the top 25% of dividend payers in the Australian market (5%).


Stability and Growth of Payments

Stable Dividend: SLK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SLK's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: SLK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SLK's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).


Next Steps

Management

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

4.2yrs

Average board tenure


CEO

Clinton Feuerherdt

0.83

Tenure

AU$1,432,426

Compensation

Mr. Clinton Feuerherdt, B.Com (Hons), serves as Chief Executive Officer of Transit Systems Pty Ltd. Mr. Feuerherdt has been Group Chief Executive Officer at SeaLink Travel Group Limited since January 16, 2...


CEO Compensation Analysis

Compensation vs Market: Clinton's total compensation ($USD1.05M) is about average for companies of similar size in the Australian market ($USD926.71K).

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


Board Members

NamePositionTenureCompensationOwnership
Lance Hockridge
Independent Non-Executive Director0.33yrno data0.023%
A$ 360.4k
Christopher Smerdon
Non-Executive Director18.83yrsAU$83.56k2.92%
A$ 46.0m
Andrea Joy Staines
Non-Executive Independent Director4.75yrsAU$83.56kno data
Jeffrey Ellison
Acting Chairman0.33yrAU$1.28m2.63%
A$ 41.5m
Terry Dodd
Non-Executive Director9.67yrsAU$83.56k2.65%
A$ 41.7m
Fiona Hele
Non-Executive Independent Director4.17yrsAU$83.56k0.013%
A$ 203.1k
Neil Smith
Non-Executive Director0.83yrAU$45.39k15.31%
A$ 241.1m

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: SLK's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 50.1%.


Top Shareholders

Company Information

SeaLink Travel Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SeaLink Travel Group Limited
  • Ticker: SLK
  • Exchange: ASX
  • Founded: 1989
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: AU$1.575b
  • Shares outstanding: 218.40m
  • Website: https://www.sealinktravelgroup.com.au

Number of Employees


Location

  • SeaLink Travel Group Limited
  • 26 Flinders Street
  • Level 3
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2013
SLKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2013

Biography

SeaLink Travel Group Limited operates as a tourism and transport company in Australia, Singapore, and the United Kingdom. It operates through Marine & Tourism, Australian Bus, and International Bus segment...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:40
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
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.