BME:EDR

Stock Analysis Report

eDreams ODIGEO

Executive Summary

eDreams ODIGEO S.A., together with its subsidiaries, operates as an online travel company in Europe.

Rewards

Trading at 39.7% below its fair value

Earnings are forecast to grow 17.01% per year

Became profitable this year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EDR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

EDR

1.3%

ES Online Retail

-0.02%

ES Market


1 Year Return

82.1%

EDR

47.2%

ES Online Retail

8.3%

ES Market

Return vs Industry: EDR exceeded the Spanish Online Retail industry which returned 47.7% over the past year.

Return vs Market: EDR exceeded the Spanish Market which returned 8.5% over the past year.


Shareholder returns

EDRIndustryMarket
7 Day0.6%1.3%-0.02%
30 Day19.6%7.4%-0.2%
90 Day22.9%9.8%3.2%
1 Year82.1%82.1%48.0%47.2%12.2%8.3%
3 Year58.1%58.1%39.9%36.9%14.7%3.6%
5 Year105.9%105.9%83.0%76.4%10.5%-8.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDR (€4.92) is trading below our estimate of fair value (€8.16)

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


Price To Earnings Ratio

PE vs Industry: EDR is good value based on its PE Ratio (14.2x) compared to the Online Retail industry average (18.9x).

PE vs Market: EDR is good value based on its PE Ratio (14.2x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EDR is good value based on its PB Ratio (1.3x) compared to the XE Online Retail industry average (2.3x).


Next Steps

Future Growth

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

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDR's forecast earnings growth (17% per year) is above the savings rate (0.4%).

Earnings vs Market: EDR's earnings (17% per year) are forecast to grow faster than the Spanish market (9% per year).

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

Revenue vs Market: EDR's revenue (5.1% per year) is forecast to grow faster than the Spanish market (3.4% per year).

High Growth Revenue: EDR's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EDR's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has eDreams ODIGEO performed over the past 5 years?

62.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDR has high quality earnings.

Growing Profit Margin: EDR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EDR has become profitable over the past 5 years, growing earnings by 62.4% per year.

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

Earnings vs Industry: EDR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-6.1%).


Return on Equity

High ROE: EDR's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is eDreams ODIGEO's financial position?


Financial Position Analysis

Short Term Liabilities: EDR's short term assets (€174.3M) do not cover its short term liabilities (€321.6M).

Long Term Liabilities: EDR's short term assets (€174.3M) do not cover its long term liabilities (€476.5M).


Debt to Equity History and Analysis

Debt Level: EDR's debt to equity ratio (98.4%) is considered high.

Reducing Debt: EDR's debt to equity ratio has increased from 85.1% to 98.4% over the past 5 years.

Debt Coverage: EDR's debt is well covered by operating cash flow (23.9%).

Interest Coverage: EDR's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: EDR's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate EDR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EDR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EDR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EDR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Dana Dunne (56yo)

5yrs

Tenure

0

Mr. Dana Philip Dunne has been the Chief Executive Officer of eDreams ODIGEO, S.A. since January 26, 2015 and its Executive Director since January 23, 2015 and Daily Manager. Mr. Dunne is the Founder of Ph ...


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: EDR's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

54yo

Average Age

Experienced Board: EDR's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Javier Perez-Tenessa De Block (51yo)

    Founder and Honorary Chairman

    • Tenure: 5yrs
  • Dana Dunne (56yo)

    CEO & Executive Director

    • Tenure: 5yrs
  • David Corrales (46yo)

    CFO & Executive Director

    • Tenure: 4.5yrs
  • Gerrit Goedkoop

    COO & Chief Customer Service Officer

    • Tenure: 3.4yrs
  • Mario Gavira

    Head of Metasearch Revenue

    • Carsten Bernhard

      Chief Technology Officer

      • Tenure: 3.3yrs
    • Guillaume Teissonniere

      Group Legal Counsel & Secretary

      • Elena Koefman

        Chief People Officer

        • Tenure: 2.3yrs
      • David de Roz

        Director of Investor Relations

        • Frédéric Esclapez

          Chief Marketing Officer

          • Tenure: 1.1yrs

        Board Members

        • Javier Perez-Tenessa De Block (51yo)

          Founder and Honorary Chairman

          • Tenure: 5yrs
        • Lise Fauconnier (54yo)

          Director

          • Tenure: 5.8yrs
        • Amanda Wills (57yo)

          Independent Director

          • Tenure: 4.5yrs
          • Compensation: €28.00k
        • Benoit Vauchy (44yo)

          Director

          • Tenure: 5.8yrs
        • Dana Dunne (56yo)

          CEO & Executive Director

          • Tenure: 5yrs
        • Bob Gray (62yo)

          Independent Vice-Chairman

          • Tenure: 5.8yrs
          • Compensation: €70.00k
        • Daniel Setton

          Director

          • Tenure: 1.2yrs
        • Thomas Vollmoeller (59yo)

          Independent Chairman of the Board

          • David Corrales (46yo)

            CFO & Executive Director

            • Tenure: 4.5yrs
          • Pedro López Guzman (41yo)

            Director

            • Tenure: 2.5yrs

          Company Information

          eDreams ODIGEO S.A.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: eDreams ODIGEO S.A.
          • Ticker: EDR
          • Exchange: BME
          • Founded: 2000
          • Industry: Internet and Direct Marketing Retail
          • Sector: Retail
          • Market Cap: €538.862m
          • Shares outstanding: 110.42m
          • Website: https://www.edreamsodigeo.com

          Number of Employees


          Location

          • eDreams ODIGEO S.A.
          • 4, rue du Fort Wallis
          • Luxembourg City
          • 2714
          • Luxembourg

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          EDRBME (Bolsas y Mercados Espanoles)YesNew Ordinary SharesESEURApr 2014
          1EDDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURApr 2014
          EDREBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURApr 2014
          0QS9LSE (London Stock Exchange)YesNew Ordinary SharesGBEURApr 2014
          1EDBST (Boerse-Stuttgart)YesNew Ordinary SharesDEEURApr 2014
          EDDR.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDApr 2014

          Biography

          eDreams ODIGEO S.A., together with its subsidiaries, operates as an online travel company in Europe. The company offers its products and services under the eDreams, Go Voyages, Opodo, Travellink, and Liligo brands. Its customers access the deals in regular flights, low-cost airlines, hotels, cruises, car rental, dynamic packages, holiday packages, and travel insurance. eDreams ODIGEO S.A. was founded in 2000 and is based in Luxembourg City, Luxembourg. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/17 21:33
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          Annual Earnings2019/03/31


          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.