ISE:HSW

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Hostelworld Group

Executive Summary

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


Snowflake Analysis

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

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


Market Performance


7 Day Return

10.1%

HSW

1.2%

IE Online Retail

7.3%

IE Market


1 Year Return

-64.4%

HSW

60.3%

IE Online Retail

5.9%

IE Market

Return vs Industry: HSW underperformed the Irish Online Retail industry which returned 60.9% over the past year.

Return vs Market: HSW underperformed the Irish Market which returned 5.3% over the past year.


Shareholder returns

HSWIndustryMarket
7 Day10.1%1.2%7.3%
30 Day-3.3%8.6%18.8%
90 Day-9.1%28.3%3.5%
1 Year-63.4%-64.4%61.2%60.3%7.2%5.9%
3 Year-75.4%-78.3%49.4%45.1%10.9%5.8%
5 Yearn/a106.6%97.7%40.8%30.4%

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

No news available

Valuation

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

37.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSW (€0.88) is trading below our estimate of fair value (€1.41)

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


Price To Earnings Ratio

PE vs Industry: HSW is good value based on its PE Ratio (10.9x) compared to the Online Retail industry average (16.6x).

PE vs Market: HSW is good value based on its PE Ratio (10.9x) compared to the Irish market (14.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HSW is good value based on its PB Ratio (0.7x) compared to the XE Online Retail industry average (2.6x).


Next Steps

Future Growth

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

-58.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSW's earnings are forecast to decline over the next 3 years (-58% per year).

Earnings vs Market: HSW's earnings are forecast to decline over the next 3 years (-58% per year).

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

Revenue vs Market: HSW's revenue (3% per year) is forecast to grow slower than the Irish market (6.3% per year).

High Growth Revenue: HSW's revenue (3% per year) is forecast to grow slower 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 (11.3%).


Next Steps

Past Performance

How has Hostelworld Group performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSW has a large one-off loss of €3.1M impacting its December 31 2019 financial results.

Growing Profit Margin: HSW's current net profit margins (10.4%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: HSW has become profitable over the past 5 years, growing earnings by 17.7% per year.

Accelerating Growth: HSW's earnings growth over the past year (47.5%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: HSW earnings growth over the past year (47.5%) exceeded the Online Retail industry -3.4%.


Return on Equity

High ROE: HSW's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Hostelworld Group's financial position?


Financial Position Analysis

Short Term Liabilities: HSW's short term assets (€24.3M) exceed its short term liabilities (€12.1M).

Long Term Liabilities: HSW's short term assets (€24.3M) exceed its long term liabilities (€4.4M).


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


Next Steps

Dividend

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

8.86%

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.


Current Payout to Shareholders

Dividend Coverage: HSW is not paying a notable dividend for the Irish market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Gary Morrison (51yo)

2yrs

Tenure

€485,800

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 ($USD549.80K) is above average for companies of similar size in the Irish market ($USD325.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Morrison
CEO & Executive Director2yrs€485.80kno data
T. Kelly
CFO & Executive Director1.58yrs€316.30kno data
Noel Maher
Chief Technology Officer1.83yrsno datano data
Yale Varty
Chief Marketing Officer0.83yrno datano data
Jody Jordan
Chief Human Resources Officer0.58yrno datano data
Paul Halpenny
Chief Revenue Officer2.33yrsno datano data
Breffni Horgan
Chief Product Officer1.83yrsno datano data
Catriona Flood
Chief of Analytics & Insights1.83yrsno datano data
Fabrizio Giulio
Chief Supply Officer1.17yrsno datano data
Johnny Quach
Chief Product Officer0.33yrno datano data

1.7yrs

Average Tenure

Experienced Management: HSW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gary Morrison
CEO & Executive Director2yrs€485.80kno data
T. Kelly
CFO & Executive Director1.58yrs€316.30kno data
Carl Shepherd
Independent Non-Executive Director2.67yrs€68.20k0.021% 19.1k
Michael Cawley
Independent Chairman of the Board2.5yrs€145.00k0.13% 120.4k
Evan Cohen
Independent Non-Executive Director0.83yr€21.70k0.016% 14.3k
Eimear Moloney
Independent Non-Executive Director2.58yrs€67.00k0.042% 38.2k

2.3yrs

Average Tenure

49.5yo

Average Age

Experienced Board: HSW's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HSW 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hostelworld Group plc
  • Ticker: HSW
  • Exchange: ISE
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£81.235m
  • Listing Market Cap: UK£91.293m
  • Shares outstanding: 95.57m
  • Website: https://www.hostelworldgroup.com

Number of Employees


Location

  • Hostelworld Group plc
  • One Central Park
  • Leopardstown
  • Dublin
  • Co. 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 offers software and data processing services that facilitate hostel, B&B, hotel, and other accommodation bookings. It operates through its Hostelworld brand, as well as under the Hostelbookers and Hostels.com brands. Hostelworld Group Plc was founded in 1999 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:21
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.