Hostelworld Group Plc (HSW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Gym Group Plc

Jet2 Plc

On The Beach Group Plc

Trainline Plc

Malvern International Plc

Hostelworld Group Plc

Saga Plc

TUI AG

Why is Hostelworld Group Plc ?

Poor Management Efficiency with a low ROCE of 6.76%

The company has been able to generate a Return on Capital Employed (avg) of 6.76% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.23 times

Poor long term growth as Net Sales has grown by an annual rate of 10.34% and Operating profit at 25.57% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.23 times
The company has been able to generate a Return on Equity (avg) of 5.81% signifying low profitability per unit of shareholders funds

With ROE of 12.12%, it has a very expensive valuation with a 2.17 Price to Book Value

Over the past year, while the stock has generated a return of -16.32%, its profits have fallen by -44.5%

Below par performance in long term as well as near term

Along with generating -16.32% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hostelworld Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hostelworld Group Plc

-16.32%

-0.87

41.43%

FTSE 100

21.23%

1.65

12.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.34%

EBIT Growth (5y)

25.57%

EBIT to Interest (avg)

-6.89

Debt to EBITDA (avg)

2.42

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.80

Tax Ratio

16.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.76%

ROE (avg)

5.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.17

EV to EBIT

11.40

EV to EBITDA

6.83

EV to Capital Employed

2.28

EV to Sales

1.63

PEG Ratio

Dividend Yield

77.07%

ROCE (Latest)

19.99%

ROE (Latest)

12.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 29.79 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 95.7%

RAW MATERIAL COST(Y)

Fallen by -9,015% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -8.49 %

DIVIDEND PER SHARE(HY)

Highest at GBP 16.25

-7What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP 1.43 MM has Fallen at -51.99%

NET PROFIT(Q)

At GBP 0.93 MM has Fallen at -57.05%

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.25 times

Here's what is working for Hostelworld Group Plc

Operating Cash Flow

Highest at GBP 29.79 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Debt-Equity Ratio

Lowest at -8.49 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at GBP 16.25

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 95.7%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -9,015% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hostelworld Group Plc

Pre-Tax Profit

At GBP 1.43 MM has Fallen at -51.99%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 0.93 MM has Fallen at -57.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Debtors Turnover Ratio

Lowest at 16.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio