Inversiones en Turismo (BVL:INVERTC1) - Share price, News & Analysis

Q: What is the Fair Price of INVERTC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

INVERTC1 (PEN0.43) is trading below our estimate of [[fair value]] (PEN18.05)

INVERTC1 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	3/6

INVERTC1 Stock Overview

Inversiones en Turismo S.A. operates hotels under the Las Dunas name.

Rewards

Trading at 97.6% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 28.2% per year over past 5 years

Does not have a meaningful market cap (PEN9M)

Dividend of 51.54% is not well covered by earnings

Inversiones en Turismo Competitors

Reliable Ventures India

BSE:532124

₹140.9m

Trans Oceans Tours

CASE:TRTO

US$3.8m

H S India

BSE:532145

₹141.9m

Ikeja Hotel

NGSE:IKEJAHOTEL

₦2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Inversiones en Turismo
Historical stock prices
Current Share Price	S/0.43
52 Week High	S/0
52 Week Low	S/0
Beta	0.23
1 Month Change	0%
3 Month Change	0%
1 Year Change	-34.00%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-35.02%

Shareholder Returns

	INVERTC1	PE Hospitality	PE Market
7D	0%	3.0%	1.9%
1Y	-34.0%	-27.2%	19.6%

Return vs Industry: INVERTC1 underperformed the PE Hospitality industry which returned -27.2% over the past year.

Return vs Market: INVERTC1 underperformed the PE Market which returned 19.6% over the past year.

Price Volatility

Is INVERTC1's price volatile compared to industry and market?
INVERTC1 volatility
INVERTC1 Average Weekly Movement	0%
Hospitality Industry Average Movement	7.4%
Market Average Movement	4.6%
10% most volatile stocks in PE Market	9.0%
10% least volatile stocks in PE Market	1.8%

Stable Share Price: INVERTC1 is less volatile than 75% of PE stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: INVERTC1's weekly volatility (0%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1974	232	Liliana Rosa Victoria Picasso Salinas	https://www.lasdunashotel.com

Inversiones en Turismo S.A. operates hotels under the Las Dunas name. It operates 150 rooms. The company was founded in 1974 and is based in Ica, Peru.

Inversiones en Turismo Fundamentals Summary

How do Inversiones en Turismo's earnings and revenue compare to its market cap?
INVERTC1 fundamental statistics
Market Cap	S/8.79m
Earnings (TTM)	S/3.56m
Revenue (TTM)	S/26.91m

2.5x

P/E Ratio

0.3x

P/S Ratio

Is INVERTC1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INVERTC1 income statement (TTM)
Revenue	S/26.91m
Cost of Revenue	S/5.56m
Gross Profit	S/21.36m
Other Expenses	S/17.79m
Earnings	S/3.56m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.17
Gross Margin	79.36%
Net Profit Margin	13.24%
Debt/Equity Ratio	21.9%

How did INVERTC1 perform over the long term?

See historical performance and comparison

Dividends

51.5%

Current Dividend Yield

127%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is INVERTC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INVERTC1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for INVERTC1. This is calculated by dividing INVERTC1's market cap by their current preferred multiple.
What is INVERTC1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/8.79m

INVERTC1 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/Revenue	0.4x
Enterprise Value/EBITDA	1.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does INVERTC1's PE Ratio compare to its peers?

INVERTC1 PE Ratio vs Peers

The above table shows the PE ratio for INVERTC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.8x
532124 Reliable Ventures India	6.6x	n/a	₹140.9m
TRTO Trans Oceans Tours	60.4x	n/a	US$3.8m
532145 H S India	6.4x	n/a	₹141.9m
IKEJAHOTEL Ikeja Hotel	7.6x	n/a	₦2.0b
INVERTC1 Inversiones en Turismo	2.5x	n/a	S/8.8m

Price-To-Earnings vs Peers: INVERTC1 is good value based on its Price-To-Earnings Ratio (2.5x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does INVERTC1's PE Ratio compare vs other companies in the Global Hospitality Industry?

Price-To-Earnings vs Industry: INVERTC1 is good value based on its Price-To-Earnings Ratio (2.5x) compared to the South American Hospitality industry average (14.8x)

Price to Earnings Ratio vs Fair Ratio

What is INVERTC1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INVERTC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate INVERTC1's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of INVERTC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INVERTC1 (PEN0.43) is trading below our estimate of fair value (PEN18.05)

Significantly Below Fair Value: INVERTC1 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Inversiones en Turismo forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

57.7%

Forecasted Consumer Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Inversiones en Turismo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Inversiones en Turismo is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Inversiones en Turismo performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-28.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INVERTC1 has high quality earnings.

Growing Profit Margin: INVERTC1 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: INVERTC1's earnings have declined by 28.2% per year over the past 5 years.

Accelerating Growth: INVERTC1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: INVERTC1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (39.3%).

Return on Equity

High ROE: INVERTC1's Return on Equity (11.6%) is considered low.

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Financial Health

How is Inversiones en Turismo's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: INVERTC1's short term assets (PEN12.5M) exceed its short term liabilities (PEN7.3M).

Long Term Liabilities: INVERTC1's short term assets (PEN12.5M) exceed its long term liabilities (PEN11.4M).

Debt to Equity History and Analysis

Debt Level: INVERTC1 has more cash than its total debt.

Reducing Debt: INVERTC1's debt to equity ratio has increased from 4.2% to 21.9% over the past 5 years.

Debt Coverage: INVERTC1's debt is well covered by operating cash flow (110.5%).

Interest Coverage: INVERTC1's interest payments on its debt are well covered by EBIT (7.6x coverage).

Balance Sheet

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Dividend

What is Inversiones en Turismo current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

51.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: INVERTC1's dividend (51.54%) is higher than the bottom 25% of dividend payers in the PE market (6.69%).

High Dividend: INVERTC1's dividend (51.54%) is in the top 25% of dividend payers in the PE market (26.67%)

Stability and Growth of Payments

Stable Dividend: INVERTC1 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: INVERTC1's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (127.1%), INVERTC1's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (65.7%), INVERTC1's dividend payments are covered by cash flows.

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Management

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

21.4yrs

Average management tenure

CEO

Liliana Rosa Victoria Picasso Salinas

29.33yrs

Tenure

Ms. Liliana Rosa Victoria Catalina Picasso Salinas has been a General Manager of Inversiones en Turismo S.A. - INVERTUR since January 1, 2000. She has been Managing Director and Director of Inversiones en...

Leadership Team

Experienced Management: INVERTC1's management team is seasoned and experienced (21.4 years average tenure).

Board Members

Experienced Board: INVERTC1's board of directors are seasoned and experienced ( 27.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31