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

Saga Plc

Trainline Plc

Hostelworld Group Plc

Malvern International Plc

On The Beach Group 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 0.68 times

Poor long term growth as Net Sales has grown by an annual rate of 42.78% and Operating profit at 18.55% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.68 times
The company has been able to generate a Return on Equity (avg) of 5.81% signifying low profitability per unit of shareholders funds

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at GBP 33.22 MM
RAW MATERIAL COST(Y) Fallen by -2.12% (YoY)
CASH AND EQV(HY) Highest at GBP 10.65 MM

With ROE of 11.28%, it has a very expensive valuation with a 2.16 Price to Book Value

Over the past year, while the stock has generated a return of -6.30%, its profits have fallen by -16%

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 17.87% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.30% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hostelworld Group Plc should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hostelworld Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hostelworld Group Plc

-6.3%

-0.89

32.14%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

42.78%

EBIT Growth (5y)

18.55%

EBIT to Interest (avg)

-6.89

Debt to EBITDA (avg)

2.42

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.89

Tax Ratio

16.74%

Dividend Payout Ratio

43.59%

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

2.16

EV to EBIT

13.84

EV to EBITDA

7.67

EV to Capital Employed

2.13

EV to Sales

1.74

PEG Ratio

Dividend Yield

74.75%

ROCE (Latest)

15.40%

ROE (Latest)

11.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 33.22 MM

RAW MATERIAL COST(Y)

Fallen by -2.12% (YoY

CASH AND EQV(HY)

Highest at GBP 10.65 MM

NET SALES(Q)

Highest at GBP 41.02 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Hostelworld Group Plc

Operating Cash Flow

Highest at GBP 33.22 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)

Net Sales

Highest at GBP 41.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Cash and Eqv

Highest at GBP 10.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.12% (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