Hanatour Service Inc EBITDA dropped on 25.8% while Revenue jumped on 21.4%
01 Feb 2019 • About Hanatour Service Inc (
$TOUR) • By InTwits
Hanatour Service Inc reported 2018 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: 2018 revenue growth was 21.4%, 5 year revenue CAGR was 18.6% at 2018 ROIC 7.6%
- EBITDA Margin is quite volatile: 5.4% in 2018, 8.8% in 2017, 6.3% in 2016, 11.7% in 2015, 12.3% in 2014
- Hanatour Service Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 6.3%
- CAPEX is quite volatile: 12,883 KRWm in 2018, 21,410 KRWm in 2017, 48,029 KRWm in 2016, 16,414 KRWm in 2015, 10,317 KRWm in 2014
- The company has business model with low profitability: ROIC is 7.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Hanatour Service Inc's Revenue jumped on 21.4%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 8.8% to 5.4% in 2018.
SG&A as a % of Revenue increased on 3.6 pp from 90.6% to 94.2% in 2018.
Net Income margin decreased slightly on 0.84 pp from 1.9% to 1.1% in 2018. Net Income margin followed a declining trend at -2.0 pp per annum in the last 5 years. The efficient tax rate was 57.3% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 1.6%. The company showed decline in CAPEX/Revenue of 2.0 pp from 3.6% in 2015 to 1.6% in 2018. Average CAPEX/Revenue for the last three years was 4.3%. During 2014-2018 CAPEX as a % of Revenue topped in 2016 at 8.1% and was declining since that time.
Return on investment
The company operates at low ROIC (7.6%) and ROE (4.3%). ROIC decreased on 8.1 pp from 15.7% to 7.6% in 2018. ROE decreased on 2.3 pp from 6.6% to 4.3% in 2018. ROE declined at -3.8 pp per annum in 2014-2018.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 2.7x Debt / EBITDA. Debt surged on 381% while cash dropped on 31.0%.
Hanatour Service Inc has good short term financial stability: Interest coverage ratio (ICR) is 19.8x. Hanatour Service Inc has no short term refinancing risk: cash is higher than short term debt (211.2%).
Average interest expence paid by the company was 1.0% in 2018.
The company paid 207.5% of Net Income as dividends in 2018.
Management team
Park Sang-Hwan is a Hanatour Service Inc's CEO. Park Sang-Hwan has spent 12 years with the company.
Financial and operational results
FY ended 31 Dec 2018
Hanatour Service Inc ($TOUR) key annual financial indicators| mln. KRW | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 385,458 | 459,426 | 595,539 | 682,307 | 828,274 | 21.4% |
| SG&A | 337,089 | 404,925 | 555,012 | 617,870 | 780,171 | 26.3% |
| EBITDA | 47,533 | 53,802 | 37,482 | 60,205 | 44,655 | -25.8% |
| EBIT | | | | | 24,869 | |
| Interest expence | | | | | 1,258 | |
| Tax | | | | | 11,750 | |
| Net Income | 33,438 | 31,741 | 8,036 | 12,965 | 8,749 | -32.5% |
| Stock Based Compensation | | | | | 23 | |
Balance Sheet
|
|---|
| Cash | 113,931 | 146,485 | 156,047 | 228,390 | 157,700 | -31.0% |
| Inventory | | | | | 53,075 | |
| Accounts Payable | | | | | 99,719 | |
| Short Term Debt | 15,447 | 22,275 | 7,324 | 17,052 | 74,682 | 338.0% |
| Long Term Debt | 3,819 | 8,194 | 12,903 | 8,406 | 47,739 | 467.9% |
Cash flow
|
|---|
| Capex | 10,317 | 16,414 | 48,029 | 21,410 | 12,883 | -39.8% |
| Dividends | | | | | 18,151 | |
Ratios
|
|---|
| Revenue growth | 9.3% | 19.2% | 29.6% | 14.6% | 21.4% | |
| EBITDA growth | 4.4% | 13.2% | -30.3% | 60.6% | -25.8% | |
|
|---|
| EBITDA Margin | 12.3% | 11.7% | 6.3% | 8.8% | 5.4% | -3.4% |
| EBIT Margin | | | | | 3.0% |
| SG&A, % of revenue | 87.5% | 88.1% | 93.2% | 90.6% | 94.2% | 3.6% |
| SBC, % of revenue | | | | | 0.0% |
| Net Income Margin | 8.7% | 6.9% | 1.3% | 1.9% | 1.1% | -0.8% |
| CAPEX, % of revenue | 2.7% | 3.6% | 8.1% | 3.1% | 1.6% | -1.6% |
|
|---|
| ROIC | 19.6% | 19.4% | 8.6% | 15.7% | 7.6% | -8.1% |
| ROE | 18.3% | 16.8% | 4.2% | 6.6% | 4.3% | -2.3% |
| Net Debt/EBITDA | -2.0x | -2.2x | -3.6x | -3.4x | -0.8x | 2.6x |
| Interest expence / Average debt | | | | | 1.0% | |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nektan ($NKTN) | | -71.7% | 995.3% | 129.1% | 50.1% |
| Celtic ($CCP) | | -21.1% | 1.8% | 74.3% | 12.1% |
| Webis Holdings ($WEB) | | 29.7% | 45.3% | 65.8% | 24.0% |
| Easyhotel ($EZH) | | 56.4% | 8.7% | 39.7% | 33.7% |
| Eclectic Bar Grp ($BAR) | | -1.9% | 1.4% | 38.6% | 1.2% |
| |
|---|
| Median (26 companies) | 9.1% | 7.0% | 8.3% | 7.3% | 7.8% |
|---|
| Hanatour Service Inc ($TOUR) | | 19.2% | 29.6% | 14.6% | 21.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | 82.9% |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Action Hotels ($AHCG) | 73.3% | 74.0% | 70.7% | 69.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | 62.2% |
| |
|---|
| Median (18 companies) | 48.1% | 40.4% | 42.7% | 38.1% | 41.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (26 companies) | 12.7% | 12.9% | 17.0% | 17.6% | 15.7% |
|---|
| Hanatour Service Inc ($TOUR) | 12.3% | 11.7% | 6.3% | 8.8% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | 412.1% |
| Action Hotels ($AHCG) | 90.0% | 172.4% | 120.1% | 139.5% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Richoux Group ($RIC) | 14.3% | 10.0% | 17.0% | 34.3% | |
| |
|---|
| Median (26 companies) | 5.4% | 7.2% | 14.1% | 7.4% | 8.7% |
|---|
| Hanatour Service Inc ($TOUR) | 2.7% | 3.6% | 8.1% | 3.1% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | 34.6% |
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
| Tui Ag ($TUI) | 16.1% | 15.0% | 15.5% | 14.4% | 12.1% |
| |
|---|
| Median (27 companies) | 4.8% | 5.9% | 5.3% | 6.5% | 8.1% |
|---|
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | 7.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Action Hotels ($AHCG) | 9.6x | 12.3x | 14.4x | 23.9x | |
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| |
|---|
| Median (23 companies) | 1.3x | 1.5x | 2.3x | 2.0x | 1.7x |
|---|
| Hanatour Service Inc ($TOUR) | -2.0x | -2.2x | -3.6x | -3.4x | -0.8x |
