HOSTELWORLD GROUP PLC (HSW.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:HSW - GB00BYYN4225 - Common Stock
1.37 EUR
-0.01 (-0.72%)
HSW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Hotels, Restaurants & Leisure industry. HSW has an average financial health and profitability rating. HSW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- HSW had positive earnings in the past year.
- In the past year HSW had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: HSW reported negative net income in multiple years.
- The reported operating cash flow has been mixed in the past 5 years: HSW reported negative operating cash flow in multiple years.
1.2 Ratios
- With a decent Return On Assets value of 8.23%, HSW is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- HSW has a Return On Equity of 10.86%. This is in the better half of the industry: HSW outperforms 70.00% of its industry peers.
- The Return On Invested Capital of HSW (13.07%) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 10.86% | ||
| ROIC | 13.07% |
ROA(3y)-0.25%
ROA(5y)-14.43%
ROE(3y)-3.79%
ROE(5y)-23%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of HSW (8.32%) is better than 63.33% of its industry peers.
- HSW's Profit Margin has been stable in the last couple of years.
- HSW's Operating Margin of 11.80% is in line compared to the rest of the industry. HSW outperforms 58.33% of its industry peers.
- In the last couple of years the Operating Margin of HSW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.8% | ||
| PM (TTM) | 8.32% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y11.26%
PM growth 3YN/A
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HSW is still creating some value.
- Compared to 1 year ago, HSW has more shares outstanding
- The number of shares outstanding for HSW has been increased compared to 5 years ago.
- Compared to 1 year ago, HSW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.69 indicates that HSW is not in any danger for bankruptcy at the moment.
- HSW has a Altman-Z score of 6.69. This is amongst the best in the industry. HSW outperforms 95.00% of its industry peers.
- HSW has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
- HSW's Debt to FCF ratio of 0.46 is amongst the best of the industry. HSW outperforms 93.33% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that HSW is not too dependend on debt financing.
- HSW has a better Debt to Equity ratio (0.03) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 6.69 |
ROIC/WACC1.73
WACC7.56%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that HSW may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.84, HSW is in line with its industry, outperforming 48.33% of the companies in the same industry.
- HSW has a Quick Ratio of 0.84. This is a bad value and indicates that HSW is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.84, HSW perfoms like the industry average, outperforming 48.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The earnings per share for HSW have decreased strongly by -50.60% in the last year.
- The Earnings Per Share has been decreasing by -4.08% on average over the past years.
- HSW shows a decrease in Revenue. In the last year, the revenue decreased by -1.70%.
- HSW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)-50.6%
EPS 3YN/A
EPS 5Y-4.08%
EPS Q2Q%-58.62%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y75.91%
Revenue growth 5Y2.66%
Sales Q2Q%0.57%
3.2 Future
- Based on estimates for the next years, HSW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.40% on average per year.
- The Revenue is expected to grow by 8.82% on average over the next years. This is quite good.
EPS Next Y-3.61%
EPS Next 2Y8.29%
EPS Next 3Y12.4%
EPS Next 5YN/A
Revenue Next Year3.16%
Revenue Next 2Y7.37%
Revenue Next 3Y8.82%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.83, HSW is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of HSW indicates a somewhat cheap valuation: HSW is cheaper than 70.00% of the companies listed in the same industry.
- HSW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.01, which indicates a very decent valuation of HSW.
- Based on the Price/Forward Earnings ratio, HSW is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. HSW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HSW is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
- HSW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSW is cheaper than 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
- HSW's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.29%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
- HSW has a yearly dividend return of 0.61%, which is pretty low.
- HSW's Dividend Yield is comparable with the industry average which is at 1.20.
- Compared to an average S&P500 Dividend Yield of 1.81, HSW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y8.29%
EPS Next 3Y12.4%
HOSTELWORLD GROUP PLC / HSW.I FAQ
What is the ChartMill fundamental rating of HOSTELWORLD GROUP PLC (HSW.I) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HSW.I.
What is the valuation status of HOSTELWORLD GROUP PLC (HSW.I) stock?
ChartMill assigns a valuation rating of 5 / 10 to HOSTELWORLD GROUP PLC (HSW.I). This can be considered as Fairly Valued.
What is the profitability of HSW stock?
HOSTELWORLD GROUP PLC (HSW.I) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for HSW stock?
The Price/Earnings (PE) ratio for HOSTELWORLD GROUP PLC (HSW.I) is 22.83 and the Price/Book (PB) ratio is 2.41.
How sustainable is the dividend of HOSTELWORLD GROUP PLC (HSW.I) stock?
The dividend rating of HOSTELWORLD GROUP PLC (HSW.I) is 1 / 10 and the dividend payout ratio is 0%.