LSE:HSW

Stock Analysis Report

Executive Summary

Hostelworld Group plc operates an online hostel-booking platform worldwide.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

HSW

2.6%

GB Online Retail

2.0%

GB Market


1 Year Return

-42.9%

HSW

8.4%

GB Online Retail

3.3%

GB Market

Return vs Industry: HSW underperformed the UK Online Retail industry which returned 8.4% over the past year.

Return vs Market: HSW underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

HSWIndustryMarket
7 Day-0.9%2.6%2.0%
30 Day-14.6%-3.2%-1.0%
90 Day-35.9%6.7%-1.7%
1 Year-39.3%-42.9%9.0%8.4%8.3%3.3%
3 Year-40.1%-49.5%45.2%42.4%19.0%4.5%
5 Yearn/a148.2%137.6%38.4%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hostelworld Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HSW (£1.12) is trading below our estimate of fair value (£2.28)

Significantly Undervalued: HSW is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: HSW is good value based on its PE Ratio (12.1x) compared to the Online Retail industry average (23.1x).

PE vs Market: HSW is good value based on its PE Ratio (12.1x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: HSW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: HSW is good value based on its PB Ratio (0.9x) compared to the GB Online Retail industry average (3.5x).


Next Steps

Future Growth

How is Hostelworld Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-67.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HSW's earnings are forecast to decline over the next 3 years (-67.8% per year).

Earnings vs Market: HSW's earnings are forecast to decline over the next 3 years (-67.8% per year).

High Growth Earnings: HSW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HSW's revenue (3.5% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: HSW's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if HSW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hostelworld Group performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HSW has become profitable over the past 5 years, growing earnings by 22.3% per year.

Accelerating Growth: HSW's earnings growth over the past year (14.2%) is below its 5-year average (22.3% per year).

Earnings vs Industry: HSW earnings growth over the past year (14.2%) underperformed the Online Retail industry 21.4%.


Return on Equity

High ROE: HSW's Return on Equity (7.6%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Hostelworld Group's financial position?


Financial Position Analysis

Short Term Liabilities: HSW's short term assets (€30.7M) exceeds its short term liabilities (€18.8M)

Long Term Liabilities: HSW's short term assets (30.7M) exceeds its long term liabilities (4.0M)


Debt to Equity History and Analysis

Debt Level: HSW is debt free.

Reducing Debt: HSW currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: HSW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HSW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: HSW's debt is covered by short term assets (assets are 34568504839788899.111400x debt).


Next Steps

Dividend

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

9.15%

Expected Dividend Yield


Dividend Yield vs Market

company10.7%marketbottom25%2.0%markettop25%5.4%industryaverage5.1%forecastin3Years9.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HSW's dividend (10.73%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: HSW's dividend (10.73%) is in the top 25% of dividend payers in the UK market (5.42%)

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

Growing Dividend: HSW's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.1%), HSW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSW's dividends in 3 years are forecast to be covered by earnings (76.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Gary Morrison (51yo)

1.3yrs

Tenure

€492

Compensation

Mr. Gary Morrison serves as CEO & Director at Hostelworld Group Plc since June 11, 2018. He serves as Vice President and General Manager, EMEA and Senior Vice President and Head of Retail Expedia Worldwide ...


CEO Compensation Analysis

Compensation vs. Market: Gary's total compensation ($USD543.65) is too low to compare against companies of similar size in the UK market ($USD317.09K).

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


Management Age and Tenure

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: HSW's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

51yo

Average Age

Experienced Board: HSW's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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


Management Team

  • Paul Halpenny

    Chief Revenue Officer

    • Tenure: 1.7yrs
  • Stuart Priday (57yo)

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Gary Morrison (51yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: €492.00
  • Breffni Horgan

    Chief Product Officer

    • Tenure: 1.2yrs
  • Noel Maher

    Chief Technology Officer

    • Tenure: 1.2yrs
  • TJ Kelly (44yo)

    CFO & Director

    • Tenure: 0.9yrs
    • Compensation: €297.00
  • John Duggan

    Company Secretary

    • Tenure: 1.3yrs

Board Members

  • Carl Shepherd (66yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: €60.00
  • Michael Cawley (65yo)

    Independent Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: €145.00
  • Evan Cohen

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Gary Morrison (51yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: €492.00
  • Eimear Moloney (48yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: €67.00
  • TJ Kelly (44yo)

    CFO & Director

    • Tenure: 0.9yrs
    • Compensation: €297.00

Company Information

Hostelworld Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hostelworld Group plc
  • Ticker: HSW
  • Exchange: LSE
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£107.039m
  • Shares outstanding: 95.57m
  • Website: https://www.hostelworldgroup.com

Number of Employees


Location

  • Hostelworld Group plc
  • One Central Park
  • Leopardstown
  • Dublin
  • 18
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSWLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2015
HSWISE (Irish Stock Exchange)YesOrdinary SharesIEEUROct 2015
HSWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2015
HSWL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2015

Biography

Hostelworld Group plc operates an online hostel-booking platform worldwide. The company provides software and data processing services that facilitate hostel, B&B, hotel, and other accommodation bookings.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 23:46
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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