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Helloworld Travel Ltd (AU:HLO)
ASX:HLO

Helloworld Travel Ltd (HLO) AI Stock Analysis

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AU

Helloworld Travel Ltd

(Sydney:HLO)

Rating:71Outperform
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 (HLO) vs. iShares MSCI Australia ETF (EWA)

Helloworld Travel Ltd Business Overview & Revenue Model

Company DescriptionHelloworld 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 MoneyHelloworld 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
72
Positive
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
65
Positive
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
78
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
208.70M216.86M160.88M63.53M39.66M278.00M
Gross Profit
93.75M100.47M61.00M-19.10M-49.29M81.50M
EBIT
40.08M30.41M16.03M-39.17M-58.49M1.98M
EBITDA
45.04M55.95M-85.21M-10.56M-24.14M-32.04M
Net Income Common Stockholders
25.44M30.60M17.38M90.53M-35.50M-69.87M
Balance SheetCash, Cash Equivalents and Short-Term Investments
108.76M161.88M160.89M122.52M131.02M131.86M
Total Assets
552.60M614.05M544.90M526.96M528.07M596.09M
Total Debt
18.94M22.20M22.14M21.08M111.70M130.28M
Net Debt
-89.82M-139.56M-124.74M-101.45M-19.32M-1.58M
Total Liabilities
220.03M285.70M241.88M221.70M297.58M379.41M
Stockholders Equity
332.57M327.77M302.57M303.96M229.51M215.31M
Cash FlowFree Cash Flow
9.66M63.49M22.21M5.55M-22.21M-60.84M
Operating Cash Flow
11.38M63.48M25.65M9.42M-13.54M-41.37M
Investing Cash Flow
-54.83M-35.47M28.57M95.03M-11.11M-42.34M
Financing Cash Flow
-24.03M-24.01M-23.74M-87.23M21.74M11.37M

Helloworld Travel Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.46
Price Trends
50DMA
1.48
Negative
100DMA
1.62
Negative
200DMA
1.73
Negative
Market Momentum
MACD
-0.01
Positive
RSI
43.95
Neutral
STOCH
56.14
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUHLO
71
Outperform
€238.46M9.037.99%10.96%5.53%-20.97%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
$1.33B30.915.40%0.89%
$1.90B25.349.61%1.02%
$1.17B2.761.65%
DERFD
€139.23M36.423.33%1.98%
DE6MM
€84.52M-71.41%5.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HLO
Helloworld Travel Ltd
1.46
-0.48
-24.73%
CTMLF
Corporate Travel Management Limited
9.15
0.56
6.52%
FGETF
Flight Centre Travel Group Limited
8.68
-3.81
-30.50%
WEBJF
WEB Travel Group
0.93
-3.47
-78.86%
DE:RFD
Reject Shop Limited
3.70
1.84
98.92%
DE:6MM
Southern Cross Media Group Limited
0.34
-0.08
-19.05%

Helloworld Travel Ltd Corporate Events

Helloworld Travel Director Increases Shareholding
May 29, 2025

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
May 22, 2025

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
May 8, 2025

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
May 7, 2025

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
Apr 10, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.