OTCPK:WEBJ.F

Stock Analysis Report

Executive Summary

Webjet Limited provides online travel booking services in Australia, New Zealand, Dubai, the United Kingdom, and internationally.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WEBJ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WEBJ.F

6.8%

US Online Retail

9.4%

US Market


1 Year Return

n/a

WEBJ.F

5.7%

US Online Retail

-6.8%

US Market

Return vs Industry: Insufficient data to determine how WEBJ.F performed against the US Online Retail industry.

Return vs Market: Insufficient data to determine how WEBJ.F performed against the US Market.


Shareholder returns

WEBJ.FIndustryMarket
7 Day0%6.8%9.4%
30 Day0%3.3%-3.9%
90 Day0%-2.3%-16.5%
1 Yearn/a5.8%5.7%-4.8%-6.8%
3 Year-3.1%-3.1%82.7%82.4%23.4%15.2%
5 Yearn/a187.4%175.4%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEBJ.F ($8.01) is trading below our estimate of fair value ($8.79)

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


Price To Earnings Ratio

PE vs Industry: WEBJ.F is good value based on its PE Ratio (25x) compared to the Online Retail industry average (29x).

PE vs Market: WEBJ.F is poor value based on its PE Ratio (25x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: WEBJ.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WEBJ.F is good value based on its PB Ratio (1.8x) compared to the US Online Retail industry average (2.9x).


Next Steps

Future Growth

How is Webjet forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEBJ.F's forecast earnings growth (36.5% per year) is above the savings rate (1.7%).

Earnings vs Market: WEBJ.F's earnings (36.5% per year) are forecast to grow faster than the US market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WEBJ.F's revenue (7.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: WEBJ.F's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEBJ.F's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Webjet performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEBJ.F has a large one-off loss of A$41.9M impacting its December 31 2019 financial results.

Growing Profit Margin: WEBJ.F's current net profit margins (10.8%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: WEBJ.F's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: WEBJ.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WEBJ.F had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Online Retail industry average (12.4%).


Return on Equity

High ROE: WEBJ.F's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Webjet's financial position?


Financial Position Analysis

Short Term Liabilities: WEBJ.F's short term assets (A$487.9M) do not cover its short term liabilities (A$551.0M).

Long Term Liabilities: WEBJ.F's short term assets (A$487.9M) exceed its long term liabilities (A$245.1M).


Debt to Equity History and Analysis

Debt Level: WEBJ.F's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: WEBJ.F's debt to equity ratio has reduced from 37.3% to 30.6% over the past 5 years.

Debt Coverage: WEBJ.F's debt is well covered by operating cash flow (37%).

Interest Coverage: WEBJ.F's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEBJ.F's dividend (2.76%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: WEBJ.F's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (4.27%).


Stability and Growth of Payments

Stable Dividend: WEBJ.F's dividends per share have been stable in the past 10 years.

Growing Dividend: WEBJ.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.2%), WEBJ.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEBJ.F's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average board tenure


CEO

John Guscic (55yo)

9.08s

Tenure

AU$2,086,732

Compensation

Mr. John Guscic, Executive MBA, BEc, has been the Managing Director of Webjet Limited since February 01, 2011. Mr. Guscic serves as Managing Director of Pacific region for Travelport (formerly Cendant TDS) ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.38M) is below average for companies of similar size in the US market ($USD2.68M).

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


Board Members

NamePositionTenureCompensationOwnership
John Guscic
MD & Executive Director9.08yrsAU$2.09m5.21% A$38.1m
Roger Sharp
Independent Non-Executive Chairman2.75yrsAU$230.00k0.12% A$845.8k
Donald Clarke
Deputy Chairman10.58yrsAU$140.00k0.028% A$202.7k
Shelley Roberts
Independent Non-Executive Director3.92yrsAU$120.00k0.012% A$91.5k
Antonia Korsanos
Independent Non-Executive Director1.75yrsAU$130.00k0.0037% A$27.0k
Bradley Holman
Senior Independent Non-Executive Director3.08yrsAU$120.00k0.047% A$341.0k

3.5yrs

Average Tenure

56yo

Average Age

Experienced Board: WEBJ.F's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 12.8%.


Top Shareholders

Company Information

Webjet Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Webjet Limited
  • Ticker: WEBJ.F
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: AU$1.104b
  • Listing Market Cap: AU$732.443m
  • Shares outstanding: 135.60m
  • Website: https://www.webjetlimited.com

Number of Employees


Location

  • Webjet Limited
  • 509 St Kilda Road
  • Level 2
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1997
WEBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1997
WEBJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1997
WEBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1997
WEJT.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDJun 2019

Biography

Webjet Limited provides online travel booking services in Australia, New Zealand, Dubai, the United Kingdom, and internationally. It operates through Business to Consumer Travel and Business to Business Travel segments. The company enables its customers to compare, combine, and book domestic and international air travel, hotel accommodations, holiday packages, travel insurances, rental cars, motorhomes, and cruises. Its brands include Webjet, Online Republic, JacTravel, Sunhotels, Lots of Hotels, FIT Ruums, and Totalstay. The company serves retail and corporate travel agents, online travel agencies, wholesalers, and tour operators. Webjet Limited was founded in 1998 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/09 00:21
End of Day Share Price2019/12/10 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.