ASX:WEB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


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

2.1%

WEB

-1.1%

AU Online Retail

1.0%

AU Market


1 Year Return

-23.3%

WEB

-11.4%

AU Online Retail

11.7%

AU Market

Return vs Industry: WEB underperformed the Australian Online Retail industry which returned -11.4% over the past year.

Return vs Market: WEB underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

WEBIndustryMarket
7 Day2.1%-1.1%1.0%
30 Day-13.6%-6.9%-0.2%
90 Day-19.9%-2.7%0.3%
1 Year-21.6%-23.3%-9.8%-11.4%18.1%11.7%
3 Year-3.9%-10.0%18.0%10.4%37.4%19.0%
5 Year274.5%228.5%11.3%5.0%51.7%17.6%

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?

22.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WEB (A$10.38) is trading above our estimate of fair value (A$9.49)

Significantly Undervalued: 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 (22.1x) compared to the Online Retail industry average (27x).

PE vs Market: WEB is poor value based on its PE Ratio (22.1x) compared to the Australian market (17.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: WEB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: WEB is good value based on its PB Ratio (2.2x) compared to the AU Online Retail industry average (4.7x).


Next Steps

Future Growth

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

27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEB's forecast earnings growth (27.2% per year) is above the savings rate (2.3%).

Earnings vs Market: WEB's earnings (27.2% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: WEB's revenue (11.5% per year) is forecast to grow faster than the Australian market (3.5% per year).

High Growth Revenue: WEB's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WEB's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Webjet performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WEB's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: WEB's earnings growth over the past year (45.3%) exceeds its 5-year average (24.3% per year).

Earnings vs Industry: WEB earnings growth over the past year (45.3%) exceeded the Online Retail industry -6.6%.


Return on Equity

High ROE: WEB's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: WEB's Return on Assets is below or equal to the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: WEB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Webjet's financial position?


Financial Position Analysis

Short Term Liabilities: WEB's short term assets (A$579.5M) do not cover its short term liabilities (A$616.7M)

Long Term Liabilities: WEB's short term assets (579.5M) exceeds its long term liabilities (260.8M)


Debt to Equity History and Analysis

Debt Level: WEB's debt to equity ratio (34.1%) is considered satisfactory

Reducing Debt: WEB's debt to equity ratio has increased from 0.4% to 34.1% over the past 5 years.

Debt Coverage: WEB's debt is well covered by operating cash flow (20.8%).

Interest Coverage: WEB's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

Inventory Level: WEB has a low level of unsold assets or inventory.

Debt Coverage by Assets: WEB's debt is covered by short term assets (assets are 2.637680x debt).


Next Steps

Dividend

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

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.5%markettop25%5.6%industryaverage1.0%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WEB's dividend (2.12%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: WEB's dividend (2.12%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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 reasonably low payout ratio (46.8%), WEB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEB's dividends in 3 years are forecast to be well covered by earnings (36.1% payout ratio).


Next Steps

Management

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

3.1yrs

Average board tenure


CEO

John Guscic (55yo)

8.7yrs

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 ($USD1.42M) is about average for companies of similar size in the Australian market ($USD991.55K).

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


Board Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: WEB's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$283,25304 Oct 19
John Guscic
EntityIndividual
Role
Chief Executive Officer
MD & Executive Director
Shares26,500
Max PriceAU$10.69
BuyAU$34,23030 Sep 19
Donald Clarke
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares3,000
Max PriceAU$11.41
BuyAU$396,63525 Sep 19
John Guscic
EntityIndividual
Role
Chief Executive Officer
MD & Executive Director
Shares35,000
Max PriceAU$11.35
BuyAU$97,44018 Sep 19
Bradley Holman
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares8,000
Max PriceAU$12.18
SellAU$42,432,40402 Sep 19
UBS Asset Management
EntityCompany
Shares3,414,250
Max PriceAU$12.43
BuyAU$24,636,96102 Sep 19
UBS Asset Management
EntityCompany
Shares1,960,928
Max PriceAU$12.56
SellAU$29,388,28429 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,274,159
Max PriceAU$12.92
BuyAU$15,898,18329 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,242,371
Max PriceAU$12.80
SellAU$5,686,80522 Aug 19
UBS Asset Management
EntityCompany
Shares433,872
Max PriceAU$13.11
BuyAU$6,370,71822 Aug 19
UBS Asset Management
EntityCompany
Shares487,980
Max PriceAU$13.06
BuyAU$15,618,42906 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,013,148
Max PriceAU$15.42
SellAU$3,621,88126 Jun 19
Challenger Limited
EntityCompany
Shares259,218
Max PriceAU$14.52
SellAU$9,095,29619 Jun 19
Challenger Limited
EntityCompany
Shares556,863
Max PriceAU$16.33
BuyAU$10,255,37719 Jun 19
Challenger Limited
EntityCompany
Shares647,749
Max PriceAU$15.99
BuyAU$737,50114 May 19
UBS Asset Management
EntityCompany
Shares44,260
Max PriceAU$16.66
SellAU$497,79814 May 19
UBS Asset Management
EntityCompany
Shares29,900
Max PriceAU$16.65
BuyAU$6,853,84904 Mar 19
Challenger Limited
EntityCompany
Shares588,651
Max PriceAU$11.64
SellAU$6,981,49304 Mar 19
Challenger Limited
EntityCompany
Shares470,631
Max PriceAU$14.83
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
Independent Non-Executive Director
Shares8,700
Max PriceAU$11.57
SellAU$1,439,59204 Dec 18
Wasatch Advisors Inc.
EntityCompany
Shares120,000
Max PriceAU$12.00
BuyAU$39,69804 Dec 18
Donald Clarke
EntityIndividual
Role
Vice Chairman
Deputy Chairman
Shares3,452
Max PriceAU$11.50
BuyAU$155,64104 Dec 18
Roger Sharp
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares13,534
Max PriceAU$11.50
BuyAU$50,61204 Dec 18
Bradley Holman
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares4,401
Max PriceAU$11.50
BuyAU$9,48804 Dec 18
Shelley Roberts
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares825
Max PriceAU$11.50
BuyAU$249,60026 Nov 18
Roger Sharp
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares21,253
Max PriceAU$11.74
BuyAU$2,939,61826 Nov 18
John Guscic
EntityIndividual
Role
Chief Executive Officer
MD & Executive Director
Shares255,619
Max PriceAU$11.50
BuyAU$59,08726 Nov 18
Antonia Korsanos
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceAU$11.82
SellAU$20,711,80719 Oct 18
Challenger Limited
EntityCompany
Shares1,469,942
Max PriceAU$14.09

Ownership Breakdown


Management Team

  • John Guscic (55yo)

    MD & Executive Director

    • Tenure: 8.7yrs
    • Compensation: AU$2.09m
  • Mathias Friess

    Chief Executive Officer of Flyus Marketing LLC

    • Tenure: 0yrs
    • Compensation: AU$320.41k
  • Alex Orlov

    Chief Technology Officer

    • Tenure: 0yrs
    • Compensation: AU$166.02k
  • Shelley Beasley

    Group Chief Commercial Officer

    • Tenure: 0yrs
    • Compensation: AU$950.88k
  • Dave Galt

    Chief Executive Officer of Webjet OTA

    • Tenure: 0yrs
    • Compensation: AU$112.77k
  • Tony Ristevski

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: AU$799.29k
  • David Turner

    Investor Relations Manager

    • Tenure: 0yrs
  • Ossama Wagdi

    Chief Executive Officer of WebBeds - Americas

    • Tenure: 0yrs
  • Lynne Oldfield

    Director of Corporate Development

    • Tenure: 0yrs
  • Graham Anderson

    Chief Information Officer

    • Tenure: 0yrs
    • Compensation: AU$788.48k

Board Members

  • Roger Sharp (58yo)

    Independent Non-Executive Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$230.00k
  • Don Clarke (65yo)

    Deputy Chairman

    • Tenure: 10.2yrs
    • Compensation: AU$140.00k
  • John Guscic (55yo)

    MD & Executive Director

    • Tenure: 8.7yrs
    • Compensation: AU$2.09m
  • Shelley Roberts (44yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: AU$120.00k
  • Toni Korsanos (50yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$130.00k
  • Brad Holman (57yo)

    Senior Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$120.00k

Company Information

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


Key Information

  • Name: Webjet Limited
  • Ticker: WEB
  • Exchange: ASX
  • Founded: 1998
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: AU$1.363b
  • Shares outstanding: 135.60m
  • 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 Analysis2019/10/14 10:32
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.