Hanatour Service Inc demonstrated fast growth over the last few years. Will the growth continue?
08 Feb 2016 • About Hanatour Service Inc (
$TOUR) • By InTwits
Hanatour Service Inc is a fast-growing stock in Travel & Leisure industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Hanatour Service Inc showed fast growth in the last financial year. Hanatour Service Inc's revenue surged on 19.2% in FY2015. At the same time Hanatour Service Inc well managed its profitability and also showed EBITDA growth of 13.2% for the same period.
In the longer period the company showed fast revenue growth of 14.3% from 2012 to 2015 annually. EBITDA surged on 5.47% from 2012 to 2015 annually.
Hanatour Service Inc ($TOUR) financials for the last 5 years
| mln. KRW | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 267,813 | 307,854 | 352,655 | 385,458 | 459,426 |
|---|
| Revenue growth, % | | 15.0% | 14.6% | 9.3% | 19.2% |
|---|
| SG&A, % | 88.5% | 85.1% | 87.0% | 87.5% | 88.1% |
|---|
| EBITDA | 30,039 | 45,857 | 45,529 | 47,533 | 53,802 |
|---|
| EBITDA growth, % | | 52.7% | -0.7% | 4.4% | 13.2% |
|---|
| EBITDA margin, % | 11.2% | 14.9% | 12.9% | 12.3% | 11.7% |
|---|
| Net Income | 21,051 | 35,307 | 33,957 | 33,438 | 31,741 |
|---|
| Net Income margin, % | 7.86% | 11.5% | 9.63% | 8.67% | 6.91% |
|---|
| |
| CAPEX | 1,033 | 4,017 | 7,728 | 10,317 | 16,414 |
|---|
| CAPEX/Revenue, % | 0.386% | 1.30% | 2.19% | 2.68% | 3.57% |
|---|
| Debt | 17,377 | 13,676 | 8,235 | 19,266 | 30,469 |
|---|
| Cash | 91,206 | 93,016 | 81,853 | 113,931 | 146,485 |
|---|
| Net Debt/EBITDA | -2.5x | -1.7x | -1.6x | -2.0x | -2.2x |
|---|
| |
| ROIC, % | 17.4% | 22.5% | 19.9% | 19.6% | 19.4% |
|---|
| ROE, % | 18.5% | 25.3% | 19.5% | 18.3% | 16.8% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 12.3% in FY2014 to 11.7% in FY2015. If we look for the longer period the company showed big decline in EBITDA margin of 3.20 pp from 14.9% in 2012 to 11.7% in 2015.
We call Hanatour Service Inc an attractive growth stock as together with the growth it delivers high ROIC at 19.4%. Three years ago it was a bit higher at 22.5%. Average ROIC for the last three years was 19.6%.
Net Income margin dropped on 1.80 pp from 8.70% to 6.90% in 2015. In the last 3 years Hanatour Service Inc's Net Income margin dropped on 4.60 pp from 11.5% in 2012 to 6.90% in 2015.
Hanatour Service Inc operates at ROE of 16.8%. Average ROE for the last three years was 18.2%.
Capital expenditures (CAPEX)
In FY2015 Hanatour Service Inc had CAPEX/Revenue of 3.57%. The company's CAPEX/Revenue surged on 2.27 pp from 1.30% in 2012 to 3.57% in 2015. It's average CAPEX/Revenue for the last three years was 2.81%.
Leverage (Debt)
Having such a fast growth profile Hanatour Service Inc keeps negative net debt at -2.2x Net Debt/EBITDA. In the last 3 years Hanatour Service Inc showed fast leverage growth of 0.43x from -1.73x in 2012 to -2.16x in 2015.
Peers in Travel & Leisure
Below we provide Hanatour Service Inc benchmarking against other companies in Travel & Leisure industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($MDOB) | 38.6% | 36.0% | 38.9% | 39.7% | |
| |
|---|
| Median (11 companies) | 20.4% | 23.0% | 22.6% | 20.7% | 19.4% |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Action Hotels ($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 ($TOUR) | 11.2% | 14.9% | 12.9% | 12.3% | 11.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Action Hotels ($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 ($TOUR) | 0.4% | 1.3% | 2.2% | 2.7% | 3.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Paddy Power ($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 ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | 19.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Marston'S ($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 |
