LSE:TUI

Stock Analysis Report

Executive Summary

TUI AG, together with its subsidiaries, provides tourism services worldwide.


Snowflake Analysis

Very undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

TUI

0.7%

GB Hospitality

1.7%

GB Market


1 Year Return

-48.6%

TUI

-23.0%

GB Hospitality

-21.8%

GB Market

Return vs Industry: TUI underperformed the UK Hospitality industry which returned -26.7% over the past year.

Return vs Market: TUI underperformed the UK Market which returned -23.6% over the past year.


Shareholder returns

TUIIndustryMarket
7 Day1.4%0.7%1.7%
30 Day-31.0%-18.5%-12.0%
90 Day-60.3%-32.2%-25.3%
1 Year-46.1%-48.6%-21.0%-23.0%-17.9%-21.8%
3 Year-60.6%-66.4%-14.3%-22.8%-11.8%-22.8%
5 Year-62.0%-70.3%-1.6%-16.8%0.1%-22.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TUI (£3.68) is trading below our estimate of fair value (£11.03)

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


Price To Earnings Ratio

PE vs Industry: TUI is good value based on its PE Ratio (5.8x) compared to the Hospitality industry average (18.1x).

PE vs Market: TUI is good value based on its PE Ratio (5.8x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: TUI is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: TUI is good value based on its PB Ratio (0.8x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is TUI forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TUI's forecast earnings growth (23.4% per year) is above the savings rate (0.5%).

Earnings vs Market: TUI's earnings (23.4% per year) are forecast to grow faster than the UK market (15.5% per year).

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

Revenue vs Market: TUI's revenue (4% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: TUI's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TUI's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has TUI performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TUI has high quality earnings.

Growing Profit Margin: TUI's current net profit margins (2.2%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: TUI's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: TUI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TUI had negative earnings growth (-35.2%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).


Return on Equity

High ROE: TUI's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is TUI's financial position?


Financial Position Analysis

Short Term Liabilities: TUI's short term assets (€3.4B) do not cover its short term liabilities (€7.0B).

Long Term Liabilities: TUI's short term assets (€3.4B) do not cover its long term liabilities (€7.0B).


Debt to Equity History and Analysis

Debt Level: TUI's debt to equity ratio (52.2%) is considered high.

Reducing Debt: TUI's debt to equity ratio has reduced from 114.4% to 52.2% over the past 5 years.

Debt Coverage: TUI's debt is well covered by operating cash flow (64.5%).

Interest Coverage: TUI's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

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

12.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TUI's dividend (12.91%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: TUI's dividend (12.91%) is in the top 25% of dividend payers in the UK market (7.08%)


Stability and Growth of Payments

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

Growing Dividend: TUI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.5%), TUI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TUI's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Fritz Joussen (56yo)

4.17s

Tenure

€5,181,300

Compensation

Mr. Friedrich Joussen, also known as Fritz, has been the Chief Executive Officer of TUI AG since February 2016 and also served as its Joint Chief Executive since December 2014. Mr. Joussen has been the Cha ...


CEO Compensation Analysis

Compensation vs Market: Fritz's total compensation ($USD5.60M) is above average for companies of similar size in the UK market ($USD2.44M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Friedrich Joussen
Chairman of Executive Board & CEO4.17yrs€5.18m0.14% 2.7m
Birgit Conix
CFO & Member of the Executive Board1.5yrs€2.55mno data
Sebastian Ebel
Member of the Executive Board and CEO of Hotels & Resorts5.33yrs€2.55m0.0022% 42.7k
David Burling
Member of the Executive Board and CEO of Markets & Airlines4.83yrs€2.50m0.0028% 54.7k
Elke Eller
HR & Labour Director and Member of the Executive Board4.5yrs€2.65m0.0038% 75.7k
Frank Rosenberger
CIO, Future Markets & Member of Executive Board3.25yrs€2.46m0.00085% 16.8k
Wolfgang Flintermann
Group Director of Financial Accounting & Reporting and Member of Supervisory Board3.83yrs€100.00k0.00043% 8.5k
Hilka Schneider
Group Director of Legal6.08yrsno datano data
Michael Röll
Head of Group Communicationsno datano datano data
Erik Friemuth
Group Chief Marketing Officerno datano datano data

4.7yrs

Average Tenure

54yo

Average Age

Experienced Management: TUI's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wolfgang Flintermann
Group Director of Financial Accounting & Reporting and Member of Supervisory Board3.83yrs€100.00k0.00043% 8.5k
Dieter Zetsche
Chairman of Supervisory Board0.92yr€227.60k0.018% 352.2k
Peter Long
Second Deputy Chairman of Supervisory Board2.17yrs€332.00k0.0018% 34.6k
Edgar Ernst
Member of Supervisory Board9.17yrs€285.90kno data
Ortwin Strubelt
Member of Supervisory Board11yrs€212.10k0.00050% 9.9k
Andreas Barczewski
Member of Supervisory Board13.92yrs€185.90kno data
Frank Jakobi
Deputy Chairman of Supervisory Board5.92yrs€288.00k0.00020% 4.0k
Anette Strempel
Member of Supervisory Board11.25yrs€164.10k0.00036% 7.1k
Angelika Gifford
Member of Supervisory Board8.08yrs€166.00k0.00070% 13.8k
Michael Pönipp
Member of Supervisory Board7yrs€182.90k0.00013% 2.6k

7.5yrs

Average Tenure

56yo

Average Age

Experienced Board: TUI's board of directors are considered experienced (7.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

TUI AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TUI AG
  • Ticker: TUI
  • Exchange: LSE
  • Founded:
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: €2.244b
  • Listing Market Cap: €1.975b
  • Shares outstanding: 589.02m
  • Website: https://www.tuigroup.com/de-de

Number of Employees


Location

  • TUI AG
  • Karl-Wiechert-Allee 4
  • Hanover
  • Lower Saxony
  • 30625
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TUIF.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1980
TUI1DB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1980
TUILSE (London Stock Exchange)YesRegistered SharesGBGBPJan 1980
TUI1XTRA (XETRA Trading Platform)YesRegistered SharesDEEURJan 1980
TUI1DBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJan 1980
TUI1SWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1980
TUILBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBGBPJan 1980
TUI NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJan 1980
TUI1ETLX (Eurotlx)YesRegistered SharesITEURJan 1980
TUIF.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.50 ORDUSUSDOct 2008
TUI2BST (Boerse-Stuttgart)UNSP ADR EACH REPR 0.50 ORDDEEUROct 2008

Biography

TUI AG, together with its subsidiaries, provides tourism services worldwide. It operates hotels and resorts under the Robinson, Riu, TUI Blue, Blue Diamond, and TUI Magic Life brands. The company is also involved in the tour operation and airlines businesses. In addition, it operates cruise liners; and provides incoming agency services. The company operates a fleet of 1,600 travel agencies and online portals; 6 airlines with approximately 150 aircrafts; and 16 cruise liners, as well as approximately 380 hotels. The company was formerly known as Preussag AG and changed its name to TUI AG in June 2002. TUI AG is headquartered in Hanover, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 21:24
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.