Hanatour Service Inc reports 19.2% revenue growth in 2015 and 0.62 pp EBITDA Margin decline from 12.3% to 11.7%
01 Feb 2016 • About Hanatour Service Inc (
$TOUR) • By InTwits
Hanatour Service Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hanatour Service Inc is a fast growth stock: 2015 revenue growth was 19.2%, 5 year revenue CAGR was 15.4% at 2015 ROIC 19.4%
- Hanatour Service Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 4.8%.
- CAPEX is quite volatile: 16,414 in 2015, 10,317 in 2014, 7,728 in 2013, 4,017 in 2012, 1,033 in 2011
- The company has highly profitable business model: ROIC is at 19.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hanatour Service Inc ($TOUR) key annual financial indicators
| mln. KRW | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 267,813 | 307,854 | 352,655 | 385,458 | 459,426 | 19.2% |
| SG&A | 237,102 | 261,835 | 306,671 | 337,089 | 404,925 | 20.1% |
| EBITDA | 30,039 | 45,857 | 45,529 | 47,533 | 53,802 | 13.2% |
| Net Income | 21,051 | 35,307 | 33,957 | 33,438 | 31,741 | -5.1% |
Balance Sheet
|
|---|
| Cash | 91,206 | 93,016 | 81,853 | 113,931 | 146,485 | 28.6% |
| Short Term Debt | 14,904 | 12,028 | 7,256 | 15,447 | 22,275 | 44.2% |
| Long Term Debt | 2,474 | 1,648 | 980 | 3,819 | 8,194 | 114.6% |
Cash flow
|
|---|
| Capex | 1,033 | 4,017 | 7,728 | 10,317 | 16,414 | 59.1% |
Ratios
|
|---|
| Revenue growth | 19.1% | 15.0% | 14.6% | 9.3% | 19.2% | |
| EBITDA growth | -4.5% | 52.7% | -0.7% | 4.4% | 13.2% | |
| EBITDA Margin | 11.2% | 14.9% | 12.9% | 12.3% | 11.7% | -0.6% |
| Net Income Margin | 7.9% | 11.5% | 9.6% | 8.7% | 6.9% | -1.8% |
| SG&A, % of revenue | 88.5% | 85.1% | 87.0% | 87.5% | 88.1% | 0.7% |
| CAPEX, % of revenue | 0.4% | 1.3% | 2.2% | 2.7% | 3.6% | 0.9% |
| ROIC | 17.4% | 22.5% | 19.9% | 19.6% | 19.4% | -0.1% |
| ROE | 18.5% | 25.3% | 19.5% | 18.3% | 16.8% | -1.4% |
| Net Debt/EBITDA | -2.5x | -1.7x | -1.6x | -2.0x | -2.2x | -0.2x |
Revenue and profitability
The company's Revenue surged on 19.2% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.62 pp from 12.3% to 11.7% in 2015.
SG&A as a % of Revenue increased slightly on 0.69 pp from 87.5% to 88.1% in 2015.
Net Income marign decreased slightly on 1.8 pp from 8.7% to 6.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.6%. CAPEX/Revenue increased on 2.3 pp from 1.3% in 2012 to 3.6% in 2015. It's average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at good ROIC (19.43%) and ROE (16.83%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.4 pp from 18.3% to 16.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.2x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.2x from -2.0x to -2.2x in 2015. Debt surged on 58.1% in 2015 while cash jumped on 28.6% in 2015.
Appendix 1: Peers in Travel & Leisure
Below you can find Hanatour Service Inc benchmarking vs. other companies in Travel & Leisure industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 19.5% | 12.3% | 5.4% | 26.2% | |
| Everyman Media Group ($EMAN) | 23.0% | 23.4% | 26.5% | 22.4% | |
| Paddy Power ($PAP) | 17.0% | 30.9% | 14.0% | 18.3% | |
| Eclectic Bar Grp ($BAR) | | 27.6% | 3.8% | 10.5% | -1.9% |
| Richoux Group ($RIC) | 54.2% | 9.4% | 16.5% | 10.4% | |
| |
|---|
| Median (22 companies) | 19.4% | 9.0% | 7.8% | 5.1% | 7.6% |
|---|
| Hanatour Service Inc ($TOUR) | | 15.0% | 14.6% | 9.3% | 19.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 91.2% | 84.7% | 82.8% | 81.0% | |
| Eclectic Bar Grp ($BAR) | 80.1% | 79.1% | 78.9% | 79.0% | 79.4% |
| Action Hotels ($AHCG) | 73.2% | 75.1% | 75.0% | 73.3% | |
| Everyman Media Group ($EMAN) | 59.9% | 57.6% | 59.2% | 58.9% | |
| Mandarin Oriental International ($MDOB) | 38.6% | 36.0% | 38.9% | 39.7% | |
| |
|---|
| Median (11 companies) | 20.4% | 23.0% | 22.6% | 20.7% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 24.0% | 31.0% | 27.9% | 28.6% | |
| Irish Continental Group ($ICGC) | 18.9% | 17.1% | 18.6% | 27.3% | |
| Paddy Power ($PAP) | 33.8% | 25.7% | 23.7% | 24.0% | |
| Mandarin Oriental International ($MDOB) | 20.9% | 19.5% | 22.4% | 24.0% | |
| Young & Co'S Brewery ($YNGN) | 22.3% | 21.2% | 21.8% | 21.7% | 22.9% |
| |
|---|
| Median (22 companies) | 14.0% | 13.0% | 15.7% | 12.7% | 13.1% |
|---|
| Hanatour Service Inc ($TOUR) | 11.2% | 14.9% | 12.9% | 12.3% | 11.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 47.8% | 21.0% | 25.6% | 90.0% | |
| Everyman Media Group ($EMAN) | 0.0% | 0.0% | 36.4% | 25.9% | |
| Air China ($AIRC) | 23.9% | 16.8% | 19.1% | 18.7% | |
| Marston'S ($MARS) | | 18.0% | 19.3% | 17.5% | 16.2% |
| Richoux Group ($RIC) | 38.6% | 7.0% | 17.3% | 14.3% | |
| |
|---|
| Median (22 companies) | 8.4% | 5.0% | 5.1% | 4.6% | 8.7% |
|---|
| Hanatour Service Inc ($TOUR) | 0.4% | 1.3% | 2.2% | 2.7% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 58.5% | 53.4% | 47.2% | 47.6% | |
| Irish Continental Group ($ICGC) | 14.3% | 14.6% | 18.9% | 40.0% | |
| Air Partner ($AIP) | 51.1% | 34.8% | 27.5% | 21.2% | 20.0% |
| Netplay Tv ($NPT) | | | 26.3% | 10.2% | |
| Ryanair Hldgs ($RYA) | 7.6% | 9.7% | 10.0% | 9.5% | 13.3% |
| |
|---|
| Median (23 companies) | 7.5% | 6.4% | 6.9% | 4.2% | 5.0% |
|---|
| Hanatour Service Inc ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | 19.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marston'S ($MARS) | | | 6.5x | 14.0x | 8.2x |
| Meikles Ltd ($MIK) | | | 5.1x | 10.7x | 73.1x |
| Action Hotels ($AHCG) | 14.1x | 11.2x | 7.8x | 9.6x | |
| Peel Hotels ($PHO) | 5.8x | 8.2x | 7.3x | 5.9x | 4.4x |
| Air China ($AIRC) | 4.7x | 4.7x | 6.4x | 5.6x | |
| |
|---|
| Median (20 companies) | 1.8x | 1.8x | 2.5x | 1.9x | 2.8x |
|---|
| Hanatour Service Inc ($TOUR) | -2.5x | -1.7x | -1.6x | -2.0x | -2.2x |
