Helloworld Travel Ltd (HLO) AI Stock Analysis

• Market Cap: €238.46M
• Dividend Yield: 10.96%
• Average Volume (3M): 237.61K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.24
• Revenue Growth: 5.53%
• EPS Growth: -20.97%
• Country: AU
• Employees: 652
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Travel Services
• EPS (TTM): 0.07
• Shares Outstanding: 163,326,520
• 10 Day Avg. Volume: 223,923
• 30 Day Avg. Volume: 237,606
• PEG Ratio: 1.07
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €2.39
• Price Target Upside: 64.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: AU$1.50 ▲(2.74%Upside)

Helloworld Travel Ltd scores well due to strong financial performance and attractive valuation metrics. However, technical analysis indicates potential short-term weaknesses, which slightly temper the overall outlook.

Helloworld Travel Ltd Business Overview & Revenue Model

Company Description

Helloworld Travel Limited operates as a travel distribution company in Australia, New Zealand, and internationally. The company provides international and domestic travel products and services, as well as operates a franchised network of travel agents. It also operates retail travel brands, including Helloworld Travel–the Travel Professionals; and a network of retail outlets, such as Helloworld Travel Associate, Helloworld Business Travel, Magellan Travel, Mobile Travel Agent, My Travel Group, and The Travel Brokers; and distributes travel products and provides services under the Viva Holidays, Sunlover Holidays, Territory Discoveries, Asia Escape Holidays, Skiddoo, GO Holidays, Ready Rooms, Seven Oceans Cruises, and Williments Travel brands, as well as operates needitnow.com.au. In addition, the company provides inbound travel management services through AOT Inbound, AOT NZ, ATS Pacific, and Experience Tours Australia brands; and international airfare distribution and ticketing services through Air Tickets brand, and travel consultant services through SmartTickets technology platform. Further, it offers access to a database of various ocean and river cruise products, including itineraries, cruise lines, ocean and river cruise vessels, and information on various ports, as well as cruise packaging and services. The company was formerly known as Helloworld Limited and changed its name to Helloworld Travel Limited in April 2017. Helloworld Travel Limited was incorporated in 2000 and is based in Melbourne, Australia.

How the Company Makes Money

Helloworld Travel Ltd generates revenue through a combination of service fees, commissions, and other travel-related services. The company earns commissions from airlines, hotels, and other travel service providers for booking their services. Additionally, HLO charges service fees to customers for its travel consultancy and booking services. Partnerships with airlines, hotels, and tour operators enhance their service offerings and provide competitive pricing, contributing significantly to the company's earnings. The expansion of its online booking platform also plays a crucial role in driving sales and increasing market reach.

Helloworld Travel Ltd Financial Statement Overview

Summary

Helloworld Travel Ltd has shown significant improvements in revenue growth, profitability, and cash flow generation, maintaining a conservative balance sheet. However, past financial volatility suggests potential risk in sustaining these gains.

Income Statement

Helloworld Travel Ltd has shown a remarkable turnaround in revenue and profitability. The Gross Profit Margin improved significantly from negative values in prior years to 46.33% in 2024. The Net Profit Margin for 2024 reached 14.11%, indicating strong profitability. The Revenue Growth Rate from 2023 to 2024 was 34.80%, showcasing robust top-line growth. EBIT and EBITDA margins also improved considerably, reflecting efficient operations. However, the company has experienced volatility in past years, which suggests potential risks in maintaining consistent performance.

Balance Sheet

The company maintains a conservative balance sheet with a Debt-to-Equity Ratio of 0.07, indicating low leverage and financial stability. The Return on Equity (ROE) improved to 9.34% in 2024, showcasing effective equity utilization. The Equity Ratio stands at 53.37%, highlighting a strong equity base relative to total assets. While these are positive indicators, the company's past financial instability poses a risk that requires careful monitoring.

Cash Flow

Helloworld Travel Ltd demonstrated strong cash flow performance with a substantial Free Cash Flow in 2024 of $63.49 million, up from $22.21 million in 2023, indicating a Free Cash Flow Growth Rate of 185.95%. The Operating Cash Flow to Net Income Ratio is 2.07, and the Free Cash Flow to Net Income Ratio is 2.07, both suggesting a healthy conversion of earnings into cash flow, which supports sustainable growth and flexibility. Despite historical volatility, the current cash flow outlook is positive.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
208.70M	216.86M	160.88M	63.53M	39.66M	278.00M
	Gross Profit
93.75M	100.47M	61.00M	-19.10M	-49.29M	81.50M
	EBIT
40.08M	30.41M	16.03M	-39.17M	-58.49M	1.98M
	EBITDA
45.04M	55.95M	-85.21M	-10.56M	-24.14M	-32.04M
	Net Income Common Stockholders
25.44M	30.60M	17.38M	90.53M	-35.50M	-69.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.76M	161.88M	160.89M	122.52M	131.02M	131.86M
	Total Assets
552.60M	614.05M	544.90M	526.96M	528.07M	596.09M
	Total Debt
18.94M	22.20M	22.14M	21.08M	111.70M	130.28M
	Net Debt
-89.82M	-139.56M	-124.74M	-101.45M	-19.32M	-1.58M
	Total Liabilities
220.03M	285.70M	241.88M	221.70M	297.58M	379.41M
	Stockholders Equity
332.57M	327.77M	302.57M	303.96M	229.51M	215.31M
Cash Flow		Free Cash Flow
9.66M	63.49M	22.21M	5.55M	-22.21M	-60.84M
	Operating Cash Flow
11.38M	63.48M	25.65M	9.42M	-13.54M	-41.37M
	Investing Cash Flow
-54.83M	-35.47M	28.57M	95.03M	-11.11M	-42.34M
	Financing Cash Flow
-24.03M	-24.01M	-23.74M	-87.23M	21.74M	11.37M

Helloworld Travel Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HLO, the sentiment is Negative. The current price of 1.46 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.48, and below the 200-day MA of 1.73, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HLO.

Helloworld Travel Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLO	71 Outperform	€238.46M	9.03	7.99%	10.96%	5.53%	-20.97%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
CTMLF		$1.33B	30.91	5.40%	0.89%	―	―
FGETF		$1.90B	25.34	9.61%	1.02%	―	―
WEBJF		$1.17B	2.76	1.65%	―	―	―
RFD		€139.23M	36.42	3.33%	1.98%	―	―
6MM		€84.52M	―	-71.41%	5.44%	―	―

Helloworld Travel Ltd Corporate Events

Helloworld Travel Director Increases Shareholding

Helloworld Travel Limited announced a change in the director’s interest, with Andrew Burnes acquiring an additional 50,000 shares, bringing his direct holdings to 10,745,531 shares. This acquisition, conducted on-market, reflects an increased personal investment in the company, potentially signaling confidence in its future performance and stability.

The most recent analyst rating on (AU:HLO) stock is a Buy with a A$3.30 price target. To see the full list of analyst forecasts on Helloworld Travel Ltd stock, see the AU:HLO Stock Forecast page.

Helloworld Travel Appoints KPMG as New External Auditor

Helloworld Travel Limited has appointed KPMG as its new external auditor following a tender process, replacing Ernst & Young. This change is effective immediately, with KPMG set to hold the position until the company’s 2025 Annual General Meeting, where shareholders will vote on their reappointment. This strategic move could impact Helloworld’s financial oversight and stakeholder confidence, reflecting a shift in the company’s operational management.

The most recent analyst rating on (AU:HLO) stock is a Buy with a A$3.30 price target. To see the full list of analyst forecasts on Helloworld Travel Ltd stock, see the AU:HLO Stock Forecast page.

Helloworld Travel Ltd Updates FY25 Guidance Amid Market Volatility

Helloworld Travel Ltd has updated its FY25 guidance, adjusting its Underlying EBITDA expectations to between $52 million and $56 million due to market volatility and economic uncertainty. Despite these challenges, the company reports strong forward bookings for FY26 and continues to invest in technology and network expansion. The company is experiencing growth in outbound travel to the United States and Asia-Pacific regions, with cruise sales showing significant increases. Domestically, premium cabin sales have risen, and the wholesale business in Australia and New Zealand is expanding. Helloworld maintains a strong financial position with no bank debt, supporting future growth and shareholder returns.

Helloworld Travel Ltd Announces Quotation of New Securities

Helloworld Travel Ltd announced the quotation of 508,906 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code HLO. This move is part of previously announced transactions, potentially impacting the company’s market presence and offering stakeholders an opportunity to engage with its financial activities.

Helloworld Travel Acquires Barlow Travel Group to Boost New Zealand Operations

Helloworld Travel Limited has announced its acquisition of the Wellington-based Barlow Travel Group, trading as BCD Travel in New Zealand. This acquisition, funded from Helloworld’s existing cash reserves, is expected to be earnings accretive from FY25 onwards. The acquisition strengthens Helloworld’s position in the corporate and event travel sector in New Zealand, with Barlow Travel Group’s founders remaining as Executive Directors. The transaction, set to complete in mid-April 2025, is anticipated to enhance technology access, content, and service delivery for the combined entity.