Hanatour Service Inc reports 193% CAPEX growth and 29.6% Revenue growth
01 Feb 2017 • About Hanatour Service Inc (
$TOUR) • By InTwits
Hanatour Service Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 6.3% in 2016 vs. 11.7% in 2015 vs. 14.9% in 2012
- Hanatour Service Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 20.4%.
- CAPEX is quite volatile: 48,029 in 2016, 16,414 in 2015, 10,317 in 2014, 7,728 in 2013, 4,017 in 2012
- The company has business model with low profitability: ROIC is at 8.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hanatour Service Inc ($TOUR) key annual financial indicators
| mln. KRW | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 307,854 | 352,655 | 385,458 | 459,426 | 595,539 | 29.6% |
| SG&A | 261,835 | 306,671 | 337,089 | 404,925 | 555,012 | 37.1% |
| EBITDA | 45,857 | 45,529 | 47,533 | 53,802 | 37,482 | -30.3% |
| Net Income | 35,307 | 33,957 | 33,438 | 31,741 | 8,036 | -74.7% |
Balance Sheet
|
|---|
| Cash | 93,016 | 81,853 | 113,931 | 146,485 | 156,047 | 6.5% |
| Short Term Debt | 12,028 | 7,256 | 15,447 | 22,275 | 7,324 | -67.1% |
| Long Term Debt | 1,648 | 980 | 3,819 | 8,194 | 12,903 | 57.5% |
Cash flow
|
|---|
| Capex | 4,017 | 7,728 | 10,317 | 16,414 | 48,029 | 192.6% |
Ratios
|
|---|
| Revenue growth | 15.0% | 14.6% | 9.3% | 19.2% | 29.6% | |
| EBITDA growth | 52.7% | -0.7% | 4.4% | 13.2% | -30.3% | |
| EBITDA Margin | 14.9% | 12.9% | 12.3% | 11.7% | 6.3% | -5.4% |
| Net Income Margin | 11.5% | 9.6% | 8.7% | 6.9% | 1.3% | -5.6% |
| SG&A, % of revenue | 85.1% | 87.0% | 87.5% | 88.1% | 93.2% | 5.1% |
| CAPEX, % of revenue | 1.3% | 2.2% | 2.7% | 3.6% | 8.1% | 4.5% |
| ROIC | 22.5% | 19.9% | 19.6% | 19.4% | 8.6% | -10.8% |
| ROE | 25.3% | 19.5% | 18.3% | 16.8% | 4.2% | -12.7% |
| Net Debt/EBITDA | -1.7x | -1.6x | -2.0x | -2.2x | -3.6x | -1.5x |
Revenue and profitability
Hanatour Service Inc's Revenue surged on 29.6% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from 8.6% to 9.6% in 2016.
SG&A as a % of Revenue increased on 5.1 pp from 88.1% to 93.2% in 2016.
Net Income marign decreased on 5.6 pp from 6.9% to 1.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
Hanatour Service Inc's CAPEX/Revenue was 8.1% in 2016. Hanatour Service Inc's CAPEX/Revenue increased on 5.9 pp from 2.2% in 2013 to 8.1% in 2016. It's average CAPEX/Revenue for the last three years was 4.8%.Hanatour Service Inc has spent a lot to CAPEX (128% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (8.59%) and ROE (4.16%). ROIC dropped on 10.8 pp from 19.4% to 8.6% in 2016. ROE dropped on 12.7 pp from 16.8% to 4.2% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.6x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 1.5x from -2.2x to -3.6x in 2016. Debt dropped on 33.6% in 2016 while cash increased on 6.5% in 2016.
Appendix 1: 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dalata Hotel Group ($DAL) | 55.4% | 12.0% | 30.4% | 185.4% | |
| Everyman Media Group ($EMAN) | 23.4% | 26.5% | 22.4% | 44.1% | |
| Webis Holdings ($WEB) | | 46.3% | -55.0% | 29.7% | 45.3% |
| Paddy Power ($PAP) | 30.9% | 14.0% | 18.3% | 24.1% | |
| Action Hotels ($AHCG) | 12.3% | 5.4% | 26.2% | 15.7% | |
| |
|---|
| Median (23 companies) | 12.3% | 8.2% | 6.1% | 7.6% | 8.3% |
|---|
| Hanatour Service Inc ($TOUR) | | 14.6% | 9.3% | 19.2% | 29.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Eclectic Bar Grp ($BAR) | 79.1% | 78.9% | 79.0% | 79.4% | 80.7% |
| Paddy Power ($PAP) | 84.7% | 82.8% | 81.0% | 74.7% | |
| Action Hotels ($AHCG) | 75.1% | 75.0% | 73.3% | 74.0% | |
| Dalata Hotel Group ($DAL) | 61.2% | 62.0% | 62.8% | 61.5% | |
| Everyman Media Group ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| |
|---|
| Median (12 companies) | 29.5% | 30.8% | 30.2% | 31.2% | 19.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 31.0% | 27.9% | 28.6% | 34.3% | |
| Air China ($AIRC) | 19.7% | 16.0% | 18.4% | 27.3% | |
| Mandarin Oriental International ($MDOB) | 19.5% | 22.4% | 24.0% | 26.2% | |
| Ryanair Hldgs ($RYA) | 22.6% | 21.5% | 20.1% | 25.1% | 28.9% |
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | |
| |
|---|
| Median (24 companies) | 12.8% | 15.4% | 12.7% | 12.9% | 15.5% |
|---|
| Hanatour Service Inc ($TOUR) | 14.9% | 12.9% | 12.3% | 11.7% | 6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 21.0% | 25.6% | 90.0% | 172.4% | |
| Everyman Media Group ($EMAN) | 0.0% | 36.4% | 25.9% | 56.4% | |
| Marston'S ($MARS) | 18.0% | 19.3% | 17.5% | 16.2% | 15.3% |
| Young & Co'S Brewery ($YNGN) | 14.3% | 8.7% | 10.8% | 14.3% | 16.9% |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| |
|---|
| Median (24 companies) | 4.4% | 5.4% | 4.6% | 8.5% | 9.8% |
|---|
| Hanatour Service Inc ($TOUR) | 1.3% | 2.2% | 2.7% | 3.6% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($PAP) | 53.4% | 47.2% | 47.6% | 53.2% | |
| Irish Continental Group ($ICGC) | 14.6% | 18.9% | 40.0% | 33.9% | |
| Aer Lingus Group ($AERL) | 3.0% | 3.3% | -11.9% | 31.7% | |
| Air Partner ($AIP) | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% |
| Ryanair Hldgs ($RYA) | 9.7% | 10.0% | 9.5% | 13.3% | 17.2% |
| |
|---|
| Median (24 companies) | 6.4% | 6.9% | 4.2% | 5.9% | 6.7% |
|---|
| Hanatour Service Inc ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($MIK) | | 5.1x | 10.7x | 73.1x | |
| Action Hotels ($AHCG) | 11.2x | 7.8x | 9.6x | 12.3x | |
| Marston'S ($MARS) | | 6.5x | 14.0x | 8.2x | 6.2x |
| Peel Hotels ($PHO) | 8.2x | 7.3x | 5.9x | 4.4x | 3.9x |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| |
|---|
| Median (21 companies) | 1.4x | 2.3x | 1.3x | 2.3x | 2.3x |
|---|
| Hanatour Service Inc ($TOUR) | -1.7x | -1.6x | -2.0x | -2.2x | -3.6x |
