NOT FOR DISTRIBUTION
Header cover image

Market Cap

AU$2.2b

Last Updated

2021/05/13 08:21 UTC

Data Sources

Company Financials +

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 poor track record.

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

-1.3%

SLK

0.1%

AU Hospitality

-0.7%

AU Market


1 Year Return

159.7%

SLK

57.3%

AU Hospitality

35.4%

AU Market

Return vs Industry: SLK exceeded the Australian Hospitality industry which returned 57.3% over the past year.

Return vs Market: SLK exceeded the Australian Market which returned 35.4% over the past year.


Shareholder returns

SLKIndustryMarket
7 Day-1.3%0.1%-0.7%
30 Day-3.5%0.6%0.8%
90 Day50.5%10.8%2.5%
1 Year164.1%159.7%58.8%57.3%39.6%35.4%
3 Year185.9%156.4%7.0%-4.4%30.2%14.8%
5 Year164.7%122.3%58.9%31.9%61.7%31.7%

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?

218.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLK (A$9.87) is trading above our estimate of fair value (A$9.43)

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


Price To Earnings Ratio

PE vs Industry: SLK is poor value based on its PE Ratio (218.9x) compared to the Australian Hospitality industry average (42.3x).

PE vs Market: SLK is poor value based on its PE Ratio (218.9x) compared to the Australian market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: SLK is poor value based on its PEG Ratio (8.2x)


Price to Book Ratio

PB vs Industry: SLK is overvalued based on its PB Ratio (3.5x) compared to the AU Hospitality industry average (2.5x).


Future Growth

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

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLK's forecast earnings growth (26.8% per year) is above the savings rate (1.9%).

Earnings vs Market: SLK's earnings (26.8% per year) are forecast to grow faster than the Australian market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SLK's revenue (10.4% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: SLK's revenue (10.4% 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 (13.3%).


Past Performance

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

-21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLK has high quality earnings.

Growing Profit Margin: SLK's current net profit margins (0.9%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: SLK's earnings have declined by 21.4% per year over the past 5 years.

Accelerating Growth: SLK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLK had negative earnings growth (-43.4%) over the past year, making it difficult to compare to the Hospitality industry average (-12.4%).


Return on Equity

High ROE: SLK's Return on Equity (1.6%) is considered low.


Financial Health

How is SeaLink Travel Group's financial position?


Financial Position Analysis

Short Term Liabilities: SLK's short term assets (A$230.1M) do not cover its short term liabilities (A$296.4M).

Long Term Liabilities: SLK's short term assets (A$230.1M) do not cover its long term liabilities (A$404.2M).


Debt to Equity History and Analysis

Debt Level: SLK's debt to equity ratio (50%) is considered high.

Reducing Debt: SLK's debt to equity ratio has increased from 49.9% to 50% over the past 5 years.

Debt Coverage: SLK's debt is well covered by operating cash flow (40.6%).

Interest Coverage: SLK's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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

1.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLK's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: SLK's dividend (1.17%) is low compared to the top 25% of dividend payers in the Australian market (5.19%).


Stability and Growth of Payments

Stable Dividend: SLK is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: SLK is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.7yrs

Average board tenure


CEO

Clinton Feuerherdt

1.33yrs

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 ($USD1.11M) is about average for companies of similar size in the Australian market ($USD1.29M).

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


Board Members

Experienced Board: SLK's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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$2.182b
  • 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


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 Analysis2021/05/13 08:21
End of Day Share Price2021/05/13 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.