Tui Ag EBITDA dropped on 20.1% and EBITDA Margin decreased slightly on 1.4 pp from 6.5% to 5.0%
11 Dec 2019 • About Tui Ag (
$TUI) • By InTwits
Tui Ag reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: 5.0% in FY2019 vs. 6.5% in FY2018 vs. 7.7% in FY2015
- Tui Ag has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%.
- The company has potentially unprofitable business model: ROIC is 6.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tui Ag's Revenue increased on 2.5%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 6.5% to 5.0% in FY2019. EBITDA Margin declined at -0.64 pp per annum in FY2015-FY2019.
Gross Margin decreased on 2.0 pp from 10.8% to 8.8% in FY2019. SG&A as a % of Revenue decreased slightly on 0.63 pp from 6.6% to 6.0% in FY2019. SG&A as a % of Revenue declined at -0.28 pp per annum in FY2015-FY2019.
Net Income margin decreased slightly on 1.7 pp from 3.9% to 2.2% in FY2019. The efficient tax rate was 27.7% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 Tui Ag had CAPEX/Revenue of 5.5%. The company's CAPEX/Revenue increased slightly on 1.1 pp from 4.4% in FY2016 to 5.5% in FY2019. Average CAPEX/Revenue for the last three years was 5.6%. Tui Ag investments to CAPEX were large: 109% of EBITDA.
Inventories as a % of Revenue showed almost no change at 0.61% in FY2019. Accounts payable as a % of Revenue showed almost no change in FY2019.
Tui Ag has spent €295m on M&A in FY2019 which accounts for 1.6% of revenue.
Return on investment
The company operates at low ROIC (6.2%) and ROE (11.7%). ROIC decreased on 5.9 pp from 12.1% to 6.2% in FY2019. ROE dropped on 10.5 pp from 22.2% to 11.7% in FY2019. ROIC stuck to a declining trend at -2.1 pp per annum in FY2015-FY2019. During the last 5 years ROE topped in FY2016 at 45.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 2.9x. Net Debt / EBITDA surged on 1.1x from 0.0022x to 1.1x in FY2019. Debt increased on 9.4% while cash dropped on 31.7%. During the last 5 years Net Debt/EBITDA bottomed in FY2017 at -0.5x and was growing since that time.
Tui Ag has good short term financial stability: Interest coverage ratio (ICR) is 3.3x. Tui Ag has no short term refinancing risk: cash is higher than short term debt (554.3%).
Average interest expence charged on company's debt was 4.8% in FY2019.
Valuation and dividends
The company's trades at EV/EBITDA 7.1x and P/E 13.8x.
The company paid 101.6% of Net Income as dividends in FY2019.
Management team
Friedrich Joussen "Fritz" is a Tui Ag's CEO. Friedrich Joussen "Fritz" has spent 4 years with the company. CEO total compensation was €1,134,800 in FY2019 which included €1,134,800 salary. The company's CFO is Birgit Conix. Birgit Conix has 1 year tenure at the company.
The company has 71,473 employees. The number of employees increased on 2.8%. Average revenue per employee in FY2019 was €264,829 and it showed almost no change in 2019.
Financial and operational results
FY ended 30 Sep 2019
Tui Ag ($TUI) key annual financial indicators| mln. € | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 17,516 | 17,185 | 18,535 | 18,469 | 18,928 | 2.5% |
| Gross Profit | 1,966 | 1,907 | 2,000 | 2,003 | 1,671 | -16.6% |
| SG&A | 1,274 | 1,154 | 1,163 | 1,216 | 1,127 | -7.3% |
| EBITDA | 1,351 | 1,297 | 1,272 | 1,196 | 955 | -20.1% |
| EBIT | | | | 755 | 446 | -41.0% |
| Interest expence | | | | 128 | 135 | 5.6% |
| Tax | | | | 191 | 160 | -16.4% |
| Net Income | 340 | 1,037 | 645 | 727 | 416 | -42.8% |
Balance Sheet
|
|---|
| Cash | 1,673 | 2,073 | 2,516 | 2,548 | 1,742 | -31.7% |
| Inventory | | | | 119 | 115 | -3.2% |
| Accounts Payable | | | | 2,693 | 2,874 | 6.7% |
| Short Term Debt | 233 | 538 | 172 | 286 | 314 | 10.1% |
| Long Term Debt | 1,653 | 1,503 | 1,761 | 2,265 | 2,476 | 9.3% |
Cash flow
|
|---|
| Capex | 851 | 755 | 1,106 | 997 | 1,036 | 4.0% |
| Dividends | | | | 382 | 423 | 10.7% |
| Acquisitions | | | | 136 | 295 | 117.3% |
Ratios
|
|---|
| Revenue growth | -5.5% | -1.9% | 7.9% | -0.4% | 2.5% | |
| EBITDA growth | 19.1% | -4.0% | -1.9% | -6.0% | -20.1% | |
|
|---|
| Gross Margin | 11.2% | 11.1% | 10.8% | 10.8% | 8.8% | -2.0% |
| EBITDA Margin | 7.7% | 7.5% | 6.9% | 6.5% | 5.0% | -1.4% |
| EBIT Margin | | | | 4.1% | 2.4% | -1.7% |
| SG&A, % of revenue | 7.3% | 6.7% | 6.3% | 6.6% | 6.0% | -0.6% |
| Net Income Margin | 1.9% | 6.0% | 3.5% | 3.9% | 2.2% | -1.7% |
| CAPEX, % of revenue | 4.9% | 4.4% | 6.0% | 5.4% | 5.5% | 0.1% |
|
|---|
| ROIC | 15.0% | 15.5% | 14.4% | 12.1% | 6.2% | -5.9% |
| ROE | 15.7% | 45.2% | 23.1% | 22.2% | 11.7% | -10.5% |
| Net Debt/EBITDA | 0.2x | -0.0x | -0.5x | 0.0x | 1.1x | 1.1x |
| Interest coverage ratio (ICR) | | | | 5.9x | 3.3x | -2.6x |
| Interest expence / Average debt | | | | 5.7% | 4.8% | -0.9% |
People
|
|---|
| Employees | | | | 69,546 | 71,473 | 2.8% |
| Revenue/Employee, th. € | | | | 266 | 265 | -0.3% |
Peers in Travel & Leisure
Below you can find Tui Ag 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Nektan ($NKTN) | -71.7% | 995.3% | 129.1% | 50.1% | |
| Easyhotel ($EZH) | 56.4% | 8.7% | 39.7% | 33.7% | |
| Webis Holdings ($WEB) | 29.7% | 45.3% | 65.8% | 24.0% | |
| Hanatour Service Inc ($TOUR) | 19.2% | 29.6% | 14.6% | 21.4% | |
| Meikles Ltd ($MIK) | 7.6% | 9.7% | 0.9% | 16.9% | |
| |
|---|
| Median (17 companies) | 7.6% | 8.7% | 7.4% | 7.8% | |
|---|
| Tui Ag ($TUI) | | -1.9% | 7.9% | -0.4% | 2.5% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Intercontinental Hotels Group ($IHG) | 64.5% | 86.0% | 86.0% | 83.7% | |
| Eclectic Bar Grp ($BAR) | 79.4% | 80.7% | 82.3% | 82.9% | |
| Air Partner ($AIP) | 11.5% | 12.9% | 14.7% | 74.4% | |
| Nektan ($NKTN) | 42.6% | 67.9% | 64.1% | 62.2% | |
| Easyhotel ($EZH) | 68.8% | 64.3% | 61.3% | 53.5% | |
| |
|---|
| Median (9 companies) | 41.5% | 50.7% | 40.0% | 53.5% | |
|---|
| Tui Ag ($TUI) | 11.2% | 11.1% | 10.8% | 10.8% | 8.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Ryanair Hldgs ($RYA) | 25.1% | 28.9% | 30.6% | 31.2% | |
| Celtic ($CCP) | -1.3% | 14.6% | 18.5% | 28.4% | |
| Carnival ($CCL) | 26.7% | 29.3% | 26.6% | 28.3% | |
| Heavitree Brewery ($HVT) | 23.7% | 25.0% | 27.8% | 24.5% | |
| Young & Co'S Brewery ($YNGN) | 22.9% | 22.6% | 23.5% | 23.4% | |
| |
|---|
| Median (16 companies) | 12.9% | 17.0% | 17.6% | 15.7% | |
|---|
| Tui Ag ($TUI) | 7.7% | 7.5% | 6.9% | 6.5% | 5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Easyhotel ($EZH) | 46.8% | 153.2% | 269.8% | 412.1% | |
| Ryanair Hldgs ($RYA) | 13.9% | 18.6% | 21.8% | 20.6% | |
| Carnival ($CCL) | 14.6% | 18.7% | 16.8% | 19.9% | |
| Marston'S ($MARS) | 16.2% | 15.3% | 19.4% | 14.3% | |
| Ana Hldgs Inc ($ANA) | 14.1% | 14.1% | 12.7% | 13.5% | |
| |
|---|
| Median (16 companies) | 7.2% | 14.1% | 7.2% | 8.5% | |
|---|
| Tui Ag ($TUI) | 4.9% | 4.4% | 6.0% | 5.4% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Intercontinental Hotels Group ($IHG) | 96.6% | 51.2% | 92.2% | 45.0% | |
| Air Partner ($AIP) | 20.0% | 20.4% | 24.6% | 34.6% | |
| Celtic ($CCP) | -14.7% | 1.5% | 11.6% | 23.7% | |
| Ryanair Hldgs ($RYA) | 13.3% | 17.2% | 17.7% | 18.4% | |
| Meikles Ltd ($MIK) | -3.5% | 1.0% | 6.1% | 12.2% | |
| |
|---|
| Median (20 companies) | 5.9% | 5.3% | 6.5% | 8.1% | |
|---|
| Tui Ag ($TUI) | 15.0% | 15.5% | 14.4% | 12.1% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Marston'S ($MARS) | 8.2x | 6.2x | 6.9x | 8.7x | |
| Peel Hotels ($PHO) | 4.4x | 3.9x | 0.4x | 4.3x | |
| Heavitree Brewery ($HVT) | 4.6x | 4.1x | 3.7x | 3.7x | |
| Eclectic Bar Grp ($BAR) | 1.5x | 6.8x | 2.1x | 3.4x | |
| Intercontinental Hotels Group ($IHG) | 0.3x | 1.9x | 2.3x | 3.1x | |
| |
|---|
| Median (15 companies) | 1.5x | 2.3x | 2.0x | 2.2x | |
|---|
| Tui Ag ($TUI) | 0.2x | -0.0x | -0.5x | 0.0x | 1.1x |
