Helloworld Travel Ltd (HLO) AI Stock Analysis

• Market Cap: €284.19M
• Dividend Yield: 8%
• Average Volume (3M): 346.02K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.18
• Revenue Growth: 5.53%
• EPS Growth: -20.97%
• Country: AU
• Employees: 652
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Travel Services
• EPS (TTM): 0.07
• Shares Outstanding: 163,326,520
• 10 Day Avg. Volume: 275,947
• 30 Day Avg. Volume: 346,021
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2.23
• Price Target Upside: 31.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: AU$2.00 ▲(17.65% Upside)

Helloworld Travel Ltd has a strong overall stock score driven primarily by its robust financial performance and attractive valuation. The company has shown significant revenue growth and profitability improvements, supported by a solid balance sheet. Although technical indicators suggest potential overbought conditions, the valuation remains compelling with a low P/E ratio and high dividend yield. The absence of notable earnings call insights or corporate events means the focus remains on financial health and technical trends.

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 diversified model primarily based on commissions and fees from travel bookings. The company earns commissions on the sale of travel products such as airline tickets, hotel reservations, and cruise bookings, which are facilitated through their network of franchisees and agents. Additionally, revenue is derived from service fees charged to customers for the arrangement of travel itineraries and related services. Helloworld Travel also benefits from strategic partnerships with airlines, hotels, and travel service providers, which can offer preferential rates and access to exclusive deals, enhancing their competitive edge and profitability in the travel market.

Helloworld Travel Ltd Financial Statement Overview

Summary

Helloworld Travel Ltd has improved significantly in revenue, profitability, and cash flow generation. The company has a robust Gross Profit Margin of 46.33% and a Net Profit Margin of 14.11% for 2024. The financial stability is supported by a conservative balance sheet with a low Debt-to-Equity Ratio of 0.07. However, past volatility in financial performance suggests potential risks.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	216.86M	160.88M	63.53M	39.66M	278.00M
Gross Profit	100.47M	61.00M	-19.10M	-49.29M	81.50M
EBITDA	55.95M	-85.21M	-10.56M	-24.14M	-32.04M
Net Income	30.60M	17.38M	90.53M	-35.50M	-69.87M
Balance Sheet
Total Assets	614.05M	544.90M	526.96M	528.07M	596.09M
Cash, Cash Equivalents and Short-Term Investments	161.88M	160.89M	122.52M	131.02M	131.86M
Total Debt	22.20M	22.14M	21.08M	111.70M	130.28M
Total Liabilities	285.70M	241.88M	221.70M	297.58M	379.41M
Stockholders Equity	327.77M	302.57M	303.96M	229.51M	215.31M
Cash Flow
Free Cash Flow	63.49M	22.21M	5.55M	-22.21M	-60.84M
Operating Cash Flow	63.48M	25.65M	9.42M	-13.54M	-41.37M
Investing Cash Flow	-35.47M	28.57M	95.03M	-11.11M	-42.34M
Financing Cash Flow	-24.01M	-23.74M	-87.23M	21.74M	11.37M

Helloworld Travel Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.7 is below the 20-day moving average (MA) of 1.71, above the 50-day MA of 1.56, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	€284.19M	10.76	7.99%	8.00%	5.53%	-20.97%
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
CTMLF	―	$1.53B	36.56	5.40%	1.64%	―	―
FGETF	―	$1.84B	23.74	9.61%	3.25%	―	―
WEBJF	―	$1.04B	2.76	1.65%	―	―	―
SDR	54 Neutral	AU$1.48B	―	-36.77%	―	18.68%	38.29%
JAY	40 Underperform	AU$9.96M	―		―	-19.57%	63.87%

Helloworld Travel Ltd Corporate Events

Helloworld Travel Updates FY25 Guidance Amid Strong Cruise Sales and Network Retention

Helloworld Travel Limited has updated its FY25 guidance, now expecting an Underlying EBITDA between $58 million and $62 million, an increase from the previous range of $52 million to $56 million. Despite a decline in passenger TTV due to lower customer numbers and changes in destination preferences, the company has managed costs effectively, improved margins, and benefited from a revaluation gain on its Webjet Group shareholding. Cruise sales and the Ready Rooms business have shown strong growth, and forward bookings remain robust. The company has also successfully retained over 96% of its network agents, indicating strong demand for travel services in Australia and New Zealand.

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 to Release Shares from Voluntary Escrow

Helloworld Travel Limited announced the release of 100,000 fully paid ordinary shares from voluntary escrow, effective 15 July 2025. These shares were initially issued to an employee under an agreement and were held in escrow for ten months. This release is in line with ASX Listing Rule 3.10A and may impact the company’s stock liquidity and employee shareholding structure.

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 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.