WSE:RBW

Stock Analysis Report

Executive Summary

Rainbow Tours S.A. operates as a tour operator and travel agent in Poland, the Czech Republic, Slovakia, and Lithuania.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.

Risks

  • Rainbow Tours has significant price volatility in the past 3 months.
  • Rainbow Tours is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.2%

WSE:RBW

0.4%

PL Hospitality

0.6%

PL Market


1 Year Return

-2.2%

WSE:RBW

-0.6%

PL Hospitality

-9.5%

PL Market

RBW underperformed the Hospitality industry which returned -0.8% over the past year.

RBW outperformed the Market in Poland which returned -8.7% over the past year.


Share holder returns

RBWIndustryMarket
7 Day-4.2%0.4%0.6%
30 Day-13.1%-0.7%-8.2%
90 Day4.1%7.7%-4.0%
1 Year-2.2%-2.2%-0.6%-0.6%-6.6%-9.5%
3 Year12.4%6.1%50.5%48.2%9.0%0.9%
5 Year85.0%61.5%276.5%258.5%-0.3%-13.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rainbow Tours's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rainbow Tours's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rainbow Tours is overvalued based on earnings compared to the PL Hospitality industry average.

Rainbow Tours is overvalued based on earnings compared to the Poland market.


Price Based on Expected Growth

Rainbow Tours is poor value based on expected growth next year.


Price Based on Value of Assets

Rainbow Tours is overvalued based on assets compared to the PL Hospitality industry average.


Next Steps

Future Growth

How is Rainbow Tours expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rainbow Tours's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Rainbow Tours's earnings are expected to grow significantly at over 20% yearly.

Rainbow Tours's revenue growth is expected to exceed the Poland market average.

Rainbow Tours's earnings growth is expected to exceed the Poland market average.

Rainbow Tours's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Rainbow Tours is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Rainbow Tours performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rainbow Tours's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Rainbow Tours's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Rainbow Tours's 1-year earnings growth is negative, it can't be compared to the PL Hospitality industry average.


Return on Equity

Rainbow Tours has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rainbow Tours used its assets less efficiently than the PL Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Rainbow Tours's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rainbow Tours's financial position?


Financial Position Analysis

Rainbow Tours is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rainbow Tours's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Rainbow Tours's level of debt (139%) compared to net worth is high (greater than 40%).

Unable to establish if Rainbow Tours's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

2.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Rainbow Tours's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.86%).

Rainbow Tours's dividend is below the markets top 25% of dividend payers in Poland (7.23%).

Whilst dividend payments have been stable, Rainbow Tours has been paying a dividend for less than 10 years.

Dividend payments have increased, but Rainbow Tours only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

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

16.6yrs

Average management tenure


CEO

Grzegorz Baszczynski (53yo)

16.6yrs

Tenure

zł474,432

Compensation

Mr. Grzegorz Baszczynski has been the President of the Management Board and a Member of the Management Board at Rainbow Tours Spolka Akcyjna since 2003. Mr. Baszczynski has been President of the Management ...


CEO Compensation Analysis

Grzegorz's remuneration is higher than average for companies of similar size in Poland.

Grzegorz's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

16.6yrs

Average Tenure

52yo

Average Age

The average tenure for the Rainbow Tours management team is over 5 years, this suggests they are a seasoned and experienced team.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Slawomir Wysmyk (72yo)

    Financial Manager

    • Tenure: 16.6yrs
    • Compensation: zł1.00k
  • Tomasz Czapla (51yo)

    Vice Chairman of the Management Board

    • Tenure: 16.6yrs
    • Compensation: zł422.77k
  • Remigiusz Talarek (52yo)

    Vice Chairman of the Management Board

    • Tenure: 16.6yrs
    • Compensation: zł422.77k
  • Grzegorz Baszczynski (53yo)

    President of the Management Board

    • Tenure: 16.6yrs
    • Compensation: zł474.43k
  • Pawel Niewiadomski (52yo)

    Vice - Chairman & Secretary of the Supervisory Board

    • Tenure: 0.0yrs
    • Compensation: zł24.00k
  • Piotr Burwicz

    Member of Management Board

    • Tenure: 0.0yrs
    • Compensation: zł844.59k

Board Members

  • Pawel Walczak

    Chairman of the Supervisory Board

    • Tenure: 0.0yrs
    • Compensation: zł108.00k
  • Pawel Niewiadomski (52yo)

    Vice - Chairman & Secretary of the Supervisory Board

    • Tenure: 0.0yrs
    • Compensation: zł24.00k
  • Grzegorz Kubica

    Member of Supervisory Board

    • Tenure: 0.0yrs
    • Compensation: zł24.00k
  • Pawel Pietras

    Member of Supervisory Board

    • Tenure: 0.0yrs
    • Compensation: zł24.00k
  • Joanna Stepien-Andrzejewska

    Member of Supervisory Board

    • Tenure: 0.0yrs
    • Compensation: zł24.00k

Company Information

Rainbow Tours S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rainbow Tours S.A.
  • Ticker: RBW
  • Exchange: WSE
  • Founded: 1990
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: zł328.875m
  • Shares outstanding: 14.55m
  • Website: https://www.r.pl

Location

  • Rainbow Tours S.A.
  • ul. Piotrkowska 270
  • Lódz
  • 90-361
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBWWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNNov 2007

Biography

Rainbow Tours S.A. operates as a tour operator and travel agent in Poland, the Czech Republic, Slovakia, and Lithuania. The company was founded in 1990 and is headquartered in Lódz, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 21:05
End of Day Share Price2019/08/22 00:00
Earnings2019/03/31
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.