ASX:WEB

Stock Analysis Report

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Executive Summary

Webjet Limited provides online travel booking services in Australia, New Zealand, Dubai, the United Kingdom, and internationally.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WEB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

WEB

8.1%

AU Online Retail

0.2%

AU Market


1 Year Return

-76.6%

WEB

-10.1%

AU Online Retail

-7.8%

AU Market

Return vs Industry: WEB underperformed the Australian Online Retail industry which returned -10.1% over the past year.

Return vs Market: WEB underperformed the Australian Market which returned -7.8% over the past year.


Shareholder returns

WEBIndustryMarket
7 Day4.9%8.1%0.2%
30 Day-8.8%11.3%0.4%
90 Day2.7%85.3%13.3%
1 Year-75.8%-76.6%-7.3%-10.1%-4.1%-7.8%
3 Year-72.2%-74.1%15.8%8.4%17.3%1.8%
5 Year-16.4%-27.3%267.7%258.0%38.1%8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Webjet undervalued compared to its fair value and its price relative to the market?

9.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEB (A$3.01) is trading above our estimate of fair value (A$0.66)

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


Price To Earnings Ratio

PE vs Industry: WEB is good value based on its PE Ratio (9.3x) compared to the XX Online Retail industry average (28x).

PE vs Market: WEB is good value based on its PE Ratio (9.3x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: WEB is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: WEB is good value based on its PB Ratio (0.7x) compared to the AU Online Retail industry average (5.3x).


Next Steps

Future Growth

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

85.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEB's forecast earnings growth (85% per year) is above the savings rate (2.3%).

Earnings vs Market: WEB's earnings (85% per year) are forecast to grow faster than the Australian market (14.7% per year).

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

Revenue vs Market: WEB's revenue (5.8% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: WEB's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEB's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Webjet performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEB has a large one-off loss of A$41.9M impacting its December 31 2019 financial results.

Growing Profit Margin: WEB's current net profit margins (10.8%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: WEB's earnings have grown significantly by 21.2% per year over the past 5 years.

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

Earnings vs Industry: WEB had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Online Retail industry average (-8.5%).


Return on Equity

High ROE: WEB's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Webjet's financial position?


Financial Position Analysis

Short Term Liabilities: WEB's short term assets (A$487.9M) do not cover its short term liabilities (A$551.0M).

Long Term Liabilities: WEB's short term assets (A$487.9M) exceed its long term liabilities (A$245.1M).


Debt to Equity History and Analysis

Debt Level: WEB's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: WEB's debt to equity ratio has reduced from 37.3% to 30.6% over the past 5 years.

Debt Coverage: WEB's debt is well covered by operating cash flow (37%).

Interest Coverage: WEB's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Webjet current dividend yield, its reliability and sustainability?

7.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEB's dividend (7.48%) is higher than the bottom 25% of dividend payers in the Australian market (2.42%).

High Dividend: WEB's dividend (7.48%) is in the top 25% of dividend payers in the Australian market (6.56%)


Stability and Growth of Payments

Stable Dividend: WEB's dividends per share have been stable in the past 10 years.

Growing Dividend: WEB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.2%), WEB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WEB's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

  • Explore strong dividend paying companies in the Retail industry.

Management

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

3.9yrs

Average board tenure


CEO

John Guscic (56 yo)

9.5yrs

Tenure

AU$2,086,732

Compensation

Mr. John Guscic, Executive MBA, BEc, has been the Managing Director of Webjet Limited since February 01, 2011. Mr. Guscic serves as Managing Director of Pacific region for Travelport (formerly Cendant TDS) ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.49M) is above average for companies of similar size in the Australian market ($USD964.47K).

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


Board Members

NamePositionTenureCompensationOwnership
John Guscic
MD & Executive Director9.5yrsAU$2.09m3.06%
A$ 28.4m
Roger Sharp
Independent Non-Executive Chairman3.17yrsAU$230.00k0.090%
A$ 832.0k
Donald Clarke
Independent Deputy Chairman11yrsAU$140.00k0.022%
A$ 205.6k
Shelley Roberts
Independent Non-Executive Director4.33yrsAU$120.00k0.010%
A$ 92.9k
Antonia Korsanos
Independent Non-Executive Director2.17yrsAU$130.00k0.0029%
A$ 27.4k
Bradley Holman
Senior Independent Non-Executive Director3.5yrsAU$120.00k0.037%
A$ 345.9k

3.9yrs

Average Tenure

57yo

Average Age

Experienced Board: WEB's board of directors are considered experienced (3.9 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Webjet Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Webjet Limited
  • Ticker: WEB
  • Exchange: ASX
  • Founded: 1998
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: AU$928.867m
  • Shares outstanding: 339.00m
  • Website: https://www.webjetlimited.com

Number of Employees


Location

  • Webjet Limited
  • 509 St Kilda Road
  • Level 2
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1997
WEBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1997
WEBJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1997
WEBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1997
WEJT.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDJun 2019

Biography

Webjet Limited provides online travel booking services in Australia, New Zealand, Dubai, the United Kingdom, and internationally. It operates through Business to Consumer Travel and Business to Business Tr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 10:43
End of Day Share Price2020/08/06 00:00
Earnings2019/12/31
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.