company background image
SLK

SeaLink Travel GroupASX:SLK Stock Report

Market Cap

AU$1.6b

7D

-0.4%

1Y

29.4%

Updated

25 Oct, 2021

Data

Company Financials +
SLK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends1/6

SLK Overview

SeaLink Travel Group Limited provides land and marine tourism and public transport services in Australia, Singapore, and the United Kingdom.

Price History & Performance

Summary of all time highs, changes and price drops for SeaLink Travel Group
Historical stock prices
Current Share PriceAU$7.43
52 Week HighAU$5.67
52 Week LowAU$10.64
Beta1.16
1 Month Change-17.90%
3 Month Change-23.09%
1 Year Change29.44%
3 Year Change76.07%
5 Year Change75.24%
Change since IPO395.33%

Recent News & Updates

Aug 30
Estimating The Intrinsic Value Of SeaLink Travel Group Limited (ASX:SLK)

Estimating The Intrinsic Value Of SeaLink Travel Group Limited (ASX:SLK)

Does the August share price for SeaLink Travel Group Limited ( ASX:SLK ) reflect what it's really worth? Today, we will...

Jul 18
Should You Think About Buying SeaLink Travel Group Limited (ASX:SLK) Now?

Should You Think About Buying SeaLink Travel Group Limited (ASX:SLK) Now?

SeaLink Travel Group Limited ( ASX:SLK ), is not the largest company out there, but it saw significant share price...

Shareholder Returns

SLKAU TransportationAU Market
7D-0.4%-5.4%0.6%
1Y29.4%-2.9%21.3%

Return vs Industry: SLK exceeded the Australian Transportation industry which returned -2.9% over the past year.

Return vs Market: SLK exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is SLK's price volatile compared to industry and market?
SLK volatility
SLK Beta1.16
Industry Beta0.63
Market Beta1

Stable Share Price: SLK is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SLK's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989n/aClinton Feuerherdthttps://www.sealinktravelgroup.com.au

SeaLink Travel Group Limited provides land and marine tourism and public transport services in Australia, Singapore, and the United Kingdom. It operates through Marine & Tourism, Australian Bus, and International Bus segments. The Marine & Tourism segment operates vehicle and passenger ferry services, barging, coach tours and package holidays, lunch, dinner, charter cruises, and accommodation facilities.

SeaLink Travel Group Fundamentals Summary

How do SeaLink Travel Group's earnings and revenue compare to its market cap?
SLK fundamental statistics
Market CapAU$1.62b
Earnings (TTM)AU$37.80m
Revenue (TTM)AU$1.17b

42.9x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLK income statement (TTM)
RevenueAU$1.17b
Cost of RevenueAU$887.02m
Gross ProfitAU$286.06m
ExpensesAU$248.26m
EarningsAU$37.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin24.39%
Net Profit Margin3.22%
Debt/Equity Ratio50.6%

How did SLK perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

92%

Payout Ratio

Valuation

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

36.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLK (A$7.43) is trading below our estimate of fair value (A$11.76)

Significantly Below Fair Value: SLK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLK is poor value based on its PE Ratio (42.9x) compared to the Global Transportation industry average (16.4x).

PE vs Market: SLK is poor value based on its PE Ratio (42.9x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: SLK is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SLK's PB Ratio (2.7x) is in line with the AU Transportation industry average.


Future Growth

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

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLK's forecast earnings growth (29% per year) is above the savings rate (1.9%).

Earnings vs Market: SLK's earnings (29% per year) are forecast to grow faster than the Australian market (11.5% per year).

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

Revenue vs Market: SLK's revenue (6.9% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: SLK's revenue (6.9% 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 (14.8%).


Past Performance

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

-13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLK has a large one-off gain of A$30.4M impacting its June 30 2021 financial results.

Growing Profit Margin: SLK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SLK's earnings have declined by 13.8% per year over the past 5 years.

Accelerating Growth: SLK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SLK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Transportation industry (21%).


Return on Equity

High ROE: SLK's Return on Equity (6.2%) 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$226.9M) do not cover its short term liabilities (A$305.5M).

Long Term Liabilities: SLK's short term assets (A$226.9M) do not cover its long term liabilities (A$445.8M).


Debt to Equity History and Analysis

Debt Level: SLK's debt to equity ratio (50.6%) is considered high.

Reducing Debt: SLK's debt to equity ratio has increased from 47.1% to 50.6% over the past 5 years.

Debt Coverage: SLK's debt is well covered by operating cash flow (36.3%).

Interest Coverage: SLK's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

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

2.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLK's dividend (2.15%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: SLK's dividend (2.15%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.4%), SLK's dividend payments are not well covered by earnings.


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?

1.8yrs

Average management tenure


CEO

Clinton Feuerherdt

1.75yrs

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 ($USD1.07M) is about average for companies of similar size in the Australian market ($USD1.40M).

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


Leadership Team

Experienced Management: SLK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SLK's board of directors are considered experienced (5.1 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 employee growth, exchange listings and data sources


Key Information

  • Name: SeaLink Travel Group Limited
  • Ticker: SLK
  • Exchange: ASX
  • Founded: 1989
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: AU$1.623b
  • Shares outstanding: 218.40m
  • Website: https://www.sealinktravelgroup.com.au

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:55
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.