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HSW

Hostelworld Group LSE:HSW Stock Report

Last Price

UK£0.93

Market Cap

UK£109.3m

7D

-1.0%

1Y

-16.2%

Updated

03 Jul, 2022

Data

Company Financials +
HSW fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

HSW Stock Overview

Hostelworld Group plc operates an online booking platform worldwide.

Hostelworld Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hostelworld Group
Historical stock prices
Current Share PriceUK£0.93
52 Week HighUK£1.14
52 Week LowUK£0.57
Beta2.01
1 Month Change-10.92%
3 Month Change17.28%
1 Year Change-16.22%
3 Year Change-47.60%
5 Year Change-71.59%
Change since IPO-52.30%

Recent News & Updates

Jun 24
Estimating The Intrinsic Value Of Hostelworld Group plc (LON:HSW)

Estimating The Intrinsic Value Of Hostelworld Group plc (LON:HSW)

In this article we are going to estimate the intrinsic value of Hostelworld Group plc ( LON:HSW ) by projecting its...

May 20
Industry Analysts Just Upgraded Their Hostelworld Group plc (LON:HSW) Revenue Forecasts By 12%

Industry Analysts Just Upgraded Their Hostelworld Group plc (LON:HSW) Revenue Forecasts By 12%

Celebrations may be in order for Hostelworld Group plc ( LON:HSW ) shareholders, with the analysts delivering a...

Apr 02
Would Hostelworld Group (LON:HSW) Be Better Off With Less Debt?

Would Hostelworld Group (LON:HSW) Be Better Off With Less Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

HSWGB Online RetailGB Market
7D-1.0%-0.9%-1.1%
1Y-16.2%-76.5%-9.7%

Return vs Industry: HSW exceeded the UK Online Retail industry which returned -76.5% over the past year.

Return vs Market: HSW underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is HSW's price volatile compared to industry and market?
HSW volatility
HSW Average Weekly Movement5.8%
Online Retail Industry Average Movement9.5%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: HSW is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HSW's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999215Gary Morrisonhttps://www.hostelworldgroup.com

Hostelworld Group plc operates an online booking platform worldwide. The company offers software and data processing services that facilitate hostel, B&B, hotel, and other accommodation bookings. The company also provides business information consulting and marketing planning services; and marketing, and research and development services.

Hostelworld Group Fundamentals Summary

How do Hostelworld Group's earnings and revenue compare to its market cap?
HSW fundamental statistics
Market Cap€126.39m
Earnings (TTM)-€36.02m
Revenue (TTM)€16.90m

7.5x

P/S Ratio

-3.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSW income statement (TTM)
Revenue€16.90m
Cost of Revenue€15.55m
Gross Profit€1.36m
Other Expenses€37.37m
Earnings-€36.02m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)-0.31
Gross Margin8.02%
Net Profit Margin-213.10%
Debt/Equity Ratio42.0%

How did HSW perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is HSW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HSW?

Other financial metrics that can be useful for relative valuation.

HSW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.7x
Enterprise Value/EBITDA-4.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does HSW's PS Ratio compare to its peers?

HSW PS Ratio vs Peers
The above table shows the PS ratio for HSW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
BWNG N Brown Group
0.1x2.6%UK£104.7m
MRK Marks Electrical Group
1.1x17.1%UK£88.2m
SMV Smoove
1.9xn/aUK£38.1m
VIC Victorian Plumbing Group
0.7x8.7%UK£175.2m
HSW Hostelworld Group
7.5x40.6%UK£109.3m

Price-To-Sales vs Peers: HSW is expensive based on its Price-To-Sales Ratio (7.5x) compared to the peer average (0.9x).


Price to Earnings Ratio vs Industry

How does HSW's PE Ratio compare vs other companies in the GB Online Retail Industry?

Price-To-Sales vs Industry: HSW is expensive based on its Price-To-Sales Ratio (7.5x) compared to the UK Online Retail industry average (0.6x)


Price to Sales Ratio vs Fair Ratio

What is HSW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HSW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.5x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: HSW is expensive based on its Price-To-Sales Ratio (7.5x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


Share Price vs Fair Value

What is the Fair Price of HSW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HSW (£0.93) is trading below our estimate of fair value (£1.15)

Significantly Below Fair Value: HSW is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HSW's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


40.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HSW's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if HSW's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if HSW's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HSW's revenue (40.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: HSW's revenue (40.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSW's Return on Equity is forecast to be low in 3 years time (2.9%).


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Past Performance

How has Hostelworld Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-68.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSW is currently unprofitable.

Growing Profit Margin: HSW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HSW is unprofitable, and losses have increased over the past 5 years at a rate of 68.1% per year.

Accelerating Growth: Unable to compare HSW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HSW is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-14.5%).


Return on Equity

High ROE: HSW has a negative Return on Equity (-53.67%), as it is currently unprofitable.


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Financial Health

How is Hostelworld Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HSW's short term assets (€27.3M) exceed its short term liabilities (€13.1M).

Long Term Liabilities: HSW's short term assets (€27.3M) do not cover its long term liabilities (€36.3M).


Debt to Equity History and Analysis

Debt Level: HSW's net debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HSW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HSW's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if HSW's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.24%

Forecast Dividend Yield

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: HSW is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HSW has not reported any payouts.


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Management

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

3.9yrs

Average management tenure


CEO

Gary Morrison (54 yo)

4.08yrs

Tenure

€995,700

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 ($USD1.04M) is above average for companies of similar size in the UK market ($USD344.95K).

Compensation vs Earnings: Gary's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: HSW's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: HSW's board of directors are considered experienced (4.4 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

Hostelworld Group plc's 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
  • Implied Market Cap: UK£109.280m
  • Shares outstanding: 117.51m
  • Website: https://www.hostelworldgroup.com

Number of Employees


Location

  • Hostelworld Group plc
  • Charlemont Exchange
  • Floor 3
  • Dublin
  • Co. Dublin
  • D02 VN88
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.