DB:ID9

Stock Analysis Report

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Executive Summary

Helloworld Travel Limited operates as a travel distribution company in Australia, New Zealand, and internationally.


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ID9's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.1%

ID9

-3.0%

DE Hospitality

0.05%

DE Market


1 Year Return

-61.6%

ID9

-38.5%

DE Hospitality

3.4%

DE Market

Return vs Industry: ID9 underperformed the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: ID9 underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

ID9IndustryMarket
7 Day-13.1%-3.0%0.05%
30 Day-29.4%-11.5%5.5%
90 Day49.7%13.3%19.9%
1 Year-59.2%-61.6%-35.9%-38.5%5.7%3.4%
3 Year-54.2%-59.8%-51.0%-57.7%3.4%-4.7%
5 Year2.0%-12.4%-52.1%-62.2%10.4%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ID9 (€1.13) is trading above our estimate of fair value (€0.6)

Significantly Below Fair Value: ID9 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ID9 is good value based on its PE Ratio (5.7x) compared to the DE Hospitality industry average (20.2x).

PE vs Market: ID9 is good value based on its PE Ratio (5.7x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: ID9 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ID9 is good value based on its PB Ratio (0.7x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Helloworld Travel forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ID9's forecast earnings growth (11% per year) is above the savings rate (0.2%).

Earnings vs Market: ID9's earnings (11% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: ID9's earnings are forecast to grow, but not significantly.

Revenue vs Market: ID9's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: ID9's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ID9's Return on Equity is forecast to be low in 3 years time (2.8%).


Next Steps

Past Performance

How has Helloworld Travel performed over the past 5 years?

70.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ID9 has high quality earnings.

Growing Profit Margin: ID9's current net profit margins (10.3%) are higher than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: ID9 has become profitable over the past 5 years, growing earnings by 70.5% per year.

Accelerating Growth: ID9's earnings growth over the past year (22.1%) is below its 5-year average (70.5% per year).

Earnings vs Industry: ID9 earnings growth over the past year (22.1%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: ID9's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Helloworld Travel's financial position?


Financial Position Analysis

Short Term Liabilities: ID9's short term assets (A$318.6M) exceed its short term liabilities (A$264.5M).

Long Term Liabilities: ID9's short term assets (A$318.6M) exceed its long term liabilities (A$164.0M).


Debt to Equity History and Analysis

Debt Level: ID9's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: ID9's debt to equity ratio has increased from 6.5% to 28.1% over the past 5 years.

Debt Coverage: ID9's debt is well covered by operating cash flow (49.8%).

Interest Coverage: ID9's interest payments on its debt are well covered by EBIT (18.8x coverage).


Balance Sheet


Next Steps

Dividend

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

11.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ID9's dividend (11.94%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: ID9's dividend (11.94%) is in the top 25% of dividend payers in the German market (3.77%)


Stability and Growth of Payments

Stable Dividend: ID9 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ID9's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.8%), ID9's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ID9's dividends in 3 years are forecast to be covered by earnings (69.5% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Andrew Burnes

4.42yrs

Tenure

AU$603,324

Compensation

Mr. Andrew James Burnes, LLB, B Com, has been Chief Executive Officer and Managing Director at Helloworld Travel Limited since February 1, 2016. On November 1, 1987, Mr. Burnes founded The Australian Outba ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD420.14K) is below average for companies of similar size in the German market ($USD756.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Burnes
CEO, MD & Director4.42yrsAU$603.32k8.42% A$11.6m
Cinzia Burnes
Group GM of Wholesale & Inbound and Executive Director4.42yrsAU$603.32k8.13% A$11.1m
Simon McKearney
Group General Manager of New Zealand4yrsAU$399.88k0.12% A$165.0k
John Constable
Group General Manager of Retail & Commercial2.42yrsAU$1.26m0.40% A$549.9k
Nick Sutherland
Group General Manager of Corporateno dataAU$490.87k0.16% A$220.0k
David Hall
CFO & Company Secretaryno datano datano data
Trudi Sheppard
Director of Communicationsno datano datano data
Michael Thompson
Head of Strategic Partnerships7.5yrsAU$447.63kno data
Julie Primmer
Head of Branded Network6.92yrsno datano data
David Padman
Head of Corporate6.92yrsno datano data
Stan Scott
Head of Commercial6.42yrsno datano data
Desmond Fielding
Chief Financial Officer of AOT Groupno datano datano data

5.4yrs

Average Tenure

Experienced Management: ID9's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Burnes
CEO, MD & Director4.42yrsAU$603.32k8.42% A$11.6m
Cinzia Burnes
Group GM of Wholesale & Inbound and Executive Director4.42yrsAU$603.32k8.13% A$11.1m
Garry Hounsell
Independent Chairman of the Board3.75yrsAU$191.63k0.11% A$152.3k
Andrew Finch
Non-Executive Director3.5yrsno datano data
Michael Ferraro
Independent Non-Executive Director3.5yrsAU$136.88k0.014% A$19.3k

3.8yrs

Average Tenure

Experienced Board: ID9's board of directors are considered experienced (3.8 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

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


Key Information

  • Name: Helloworld Travel Limited
  • Ticker: ID9
  • Exchange: DB
  • Founded: 2000
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: AU$224.498m
  • Listing Market Cap: AU$137.169m
  • Shares outstanding: 124.72m
  • Website: https://www.helloworldlimited.com.au

Number of Employees


Location

  • Helloworld Travel Limited
  • 179 Normanby Road
  • South Melbourne
  • Victoria
  • 3205
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLOASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDOct 2010
ID9DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEUROct 2010
HLOCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDOct 2010

Biography

Helloworld Travel Limited operates as a travel distribution company in Australia, New Zealand, and internationally. It provides international and domestic travel products and services, as well as operates a franchised network of travel agents. The company operates retail travel brands, including Helloworld Travel–the Travel Professionals; and a network of retail outlets, such as Helloworld Associates, Helloworld Business Travel, Magellan Travel, The Travel Brokers, Mobile Travel Agent, and the My Travel Group. It also provides air, cruise, and land products through retail travel agency networks and other third party retailers, as well as inbound travel services under the Qantas Holidays, Viva Holidays, Sunlover Holidays, Ready Rooms, The Cruise Team, Seven Oceans, and Territory Discoveries brands. In addition, the company offers travel management services, such as booking flights and accommodation, through the QBT, AOT Hotels, and Show Group businesses. Further, it provides access to a database of various ocean and river cruise products, including itineraries, cruise lines, ocean and river cruise vessels, and information on various ports. The company was formerly known as Helloworld Limited and changed its name to Helloworld Travel Limited in April 2017. Helloworld Travel Limited was incorporated in 2000 and is based in South Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:52
End of Day Share Price2020/07/14 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.