ASX:WEB

Stock Analysis Report

Executive Summary

Webjet Limited provides online travel booking services in Australia, New Zealand, Europe, and internationally.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet and pays a dividend.

Risks

  • Webjet has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.2%

ASX:WEB

-1.7%

AU Online Retail

-0.08%

AU Market


1 Year Return

-1.6%

ASX:WEB

-11.3%

AU Online Retail

5.2%

AU Market

WEB outperformed the Online Retail industry which returned -11.3% over the past year.

WEB underperformed the Market in Australia which returned 5.2% over the past year.


Share holder returns

WEBIndustryMarket
7 Day-3.2%-1.7%-0.08%
30 Day-14.2%-7.1%2.4%
90 Day-21.3%-16.2%6.5%
1 Year0.1%-1.6%-10.0%-11.3%11.3%5.2%
3 Year88.3%77.1%32.8%23.4%37.6%19.8%
5 Year409.4%341.4%9.4%5.9%43.9%11.8%

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

32.43x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Webjet is overvalued based on earnings compared to the Global Online Retail industry average.

Webjet is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Webjet is good value based on expected growth next year.


Price Based on Value of Assets

Webjet is good value based on assets compared to the AU Online Retail industry average.


Next Steps

Future Growth

How is Webjet expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

38.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Webjet's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

Webjet's earnings are expected to grow significantly at over 20% yearly.

Webjet's revenue growth is expected to exceed the Australia market average.

Webjet's earnings growth is expected to exceed the Australia market average.

Webjet's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Webjet performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Webjet's 1-year earnings growth exceeds its 5-year average (36.6% vs 25.8%)

Webjet's earnings growth has exceeded the Global Online Retail industry average in the past year (36.6% vs 10.9%).


Return on Equity

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


Return on Assets

Webjet used its assets less efficiently than the Global Online Retail industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Webjet's financial position?


Financial Position Analysis

Webjet's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Webjet's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Webjet's level of debt (34.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 34.8% today).

Debt is well covered by operating cash flow (48.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.5x debt.


Next Steps

Dividend

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

3.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Webjet's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.51%).

Webjet's dividend is below the markets top 25% of dividend payers in Australia (5.74%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

2.8yrs

Average board tenure


CEO

John Guscic (55yo)

8.4yrs

Tenure

AU$2,226,727

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

John's remuneration is about average for companies of similar size in Australia.

John's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Board Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

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


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellAU$3,621,88126 Jun 19
Challenger Limited
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Max PriceAU$14.52
BuyAU$10,255,37719 Jun 19
Challenger Limited
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Shares647,749
Max PriceAU$15.99
SellAU$9,095,29619 Jun 19
Challenger Limited
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Shares556,863
Max PriceAU$16.33
SellAU$497,79814 May 19
UBS Asset Management
EntityCompany
Shares29,900
Max PriceAU$16.65
BuyAU$737,50114 May 19
UBS Asset Management
EntityCompany
Shares44,260
Max PriceAU$16.66
SellAU$6,981,49304 Mar 19
Challenger Limited
EntityCompany
Shares470,631
Max PriceAU$14.83
BuyAU$6,853,84904 Mar 19
Challenger Limited
EntityCompany
Shares588,651
Max PriceAU$11.64
SellAU$832,13614 Dec 18
Challenger Limited
EntityCompany
Shares64,300
Max PriceAU$12.94
BuyAU$2,386,72114 Dec 18
Challenger Limited
EntityCompany
Shares184,139
Max PriceAU$12.96
BuyAU$100,65810 Dec 18
Shelley Roberts
EntityIndividual
Role
Member of the Board of Directors
Shares8,700
Max PriceAU$11.57
SellAU$1,439,59204 Dec 18
Wasatch Advisors Inc.
EntityCompany
Shares120,000
Max PriceAU$12.00
BuyAU$155,64104 Dec 18
Roger Sharp
EntityIndividual
Role
Chairman of the Board
Shares13,534
Max PriceAU$11.50
BuyAU$50,61204 Dec 18
Bradley Holman
EntityIndividual
Role
Lead Director
Shares4,401
Max PriceAU$11.50
BuyAU$39,69804 Dec 18
Donald Clarke
EntityIndividual
Role
Vice Chairman
Shares3,452
Max PriceAU$11.50
BuyAU$9,48804 Dec 18
Shelley Roberts
EntityIndividual
Role
Member of the Board of Directors
Shares825
Max PriceAU$11.50
BuyAU$59,08726 Nov 18
Antonia Korsanos
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceAU$11.82
BuyAU$249,60026 Nov 18
Roger Sharp
EntityIndividual
Role
Chairman of the Board
Shares21,253
Max PriceAU$11.74
BuyAU$2,939,61826 Nov 18
John Guscic
EntityIndividual
Role
MD & Executive Director
Member of the Board of Directors
Shares255,619
Max PriceAU$11.50
SellAU$20,711,80719 Oct 18
Challenger Limited
EntityCompany
Shares1,469,942
Max PriceAU$14.09
BuyAU$10,085,86419 Oct 18
Challenger Limited
EntityCompany
Shares827,006
Max PriceAU$12.20
BuyAU$26,968,26114 Sep 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,050,083
Max PriceAU$13.73
SellAU$36,156,71914 Sep 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,620,385
Max PriceAU$13.82
BuyAU$614,36114 Sep 18
Realindex Investments Pty Limited
EntityCompany
Shares48,635
Max PriceAU$12.63
SellAU$962,41514 Sep 18
Realindex Investments Pty Limited
EntityCompany
Shares81,964
Max PriceAU$11.74

Ownership Breakdown


Management Team

  • Mathias Friess

    Chief Executive Officer of Flyus Marketing LLC

    • Compensation: A$355.58k
  • Shelley Beasley

    Group Chief Commercial Officer

    • Compensation: A$820.56k
  • Alex Orlov

    Chief Technology Officer

    • Compensation: A$218.46k
  • Graham Anderson

    Chief Information Officer

    • Compensation: A$621.88k
  • Dave Galt

    Chief Executive Officer of Webjet OTA

    • Compensation: A$333.63k
  • Lynne Oldfield

    Director of Corporate Development

  • Ossama Wagdi

    Chief Executive Officer of WebBeds - Americas

  • David Turner

    Investor Relations Manager

  • Tony Ristevski

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: A$439.69k
  • John Guscic (55yo)

    MD & Executive Director

    • Tenure: 8.4yrs
    • Compensation: A$2.23m

Board Members

  • Roger Sharp (58yo)

    Independent Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: A$200.00k
  • Don Clarke (65yo)

    Deputy Chairman

    • Tenure: 9.9yrs
    • Compensation: A$95.00k
  • John Guscic (55yo)

    MD & Executive Director

    • Tenure: 13.5yrs
    • Compensation: A$2.23m
  • Shelley Roberts (44yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: A$85.00k
  • Toni Korsanos (50yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
  • Brad Holman (57yo)

    Senior Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: A$90.00k

Company Information

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


Key Information

  • Name: Webjet Limited
  • Ticker: WEB
  • Exchange: ASX
  • Founded:
  • Industry: internet and direct marketing retail
  • Sector: retail
  • Market Cap: AU$1.768b
  • Shares outstanding: 135.60m
  • Website: Click here

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, Europe, and internationally. It operates through Business to Consumer Travel and Business to Business Travel segments. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/18 10:32
End of Day Share Price2019/07/18 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.