Helloworld Travel Ltd (HLO) AI Stock Analysis

• Market Cap: €224.69M
• Dividend Yield: 12.11%
• Average Volume (3M): 244.60K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.23
• Revenue Growth: 5.53%
• EPS Growth: -20.97%
• Country: AU
• Employees: 600
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Hotels, Lodging & Leisure
• EPS (TTM): 0.16
• Shares Outstanding: 162,817,630
• 10 Day Avg. Volume: 204,459
• 30 Day Avg. Volume: 244,604
• PEG Ratio: 0.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.26
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €2.43
• Price Target Upside: 68.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Helloworld Travel Ltd demonstrates strong financial performance with significant improvements in revenue and profitability, supported by a solid balance sheet. The valuation is attractive due to a low P/E ratio and high dividend yield, making the stock appealing for value investors. However, technical indicators suggest caution with downward trends and potential oversold conditions, which weigh negatively on the overall score.

Helloworld Travel Ltd Business Overview & Revenue Model

Company Description

Helloworld Travel Ltd (HLO) is a leading Australian-based travel agency network, providing a broad range of travel services including domestic and international travel packages, flight bookings, hotel reservations, and travel insurance. The company operates through a network of retail travel agents and an online platform, offering comprehensive travel solutions tailored to both leisure and business travelers across the Asia-Pacific region.

How the Company Makes Money

Helloworld Travel Ltd generates revenue through a combination of service fees, commissions, and other travel-related services. The company earns commissions from airlines, hotels, and other travel service providers for booking their services. Additionally, HLO charges service fees to customers for its travel consultancy and booking services. Partnerships with airlines, hotels, and tour operators enhance their service offerings and provide competitive pricing, contributing significantly to the company's earnings. The expansion of its online booking platform also plays a crucial role in driving sales and increasing market reach.

Helloworld Travel Ltd Financial Statement Overview

Summary

Helloworld Travel Ltd has shown a remarkable turnaround in revenue and profitability. The Gross Profit Margin improved significantly from negative values in prior years to 46.33% in 2024. The Net Profit Margin for 2024 reached 14.11%, indicating strong profitability. The Revenue Growth Rate from 2023 to 2024 was 34.80%, showcasing robust top-line growth. EBIT and EBITDA margins also improved considerably, reflecting efficient operations. However, the company has experienced volatility in past years, which suggests potential risks in maintaining consistent performance.

Income Statement

Helloworld Travel Ltd has shown a remarkable turnaround in revenue and profitability. The Gross Profit Margin improved significantly from negative values in prior years to 46.33% in 2024. The Net Profit Margin for 2024 reached 14.11%, indicating strong profitability. The Revenue Growth Rate from 2023 to 2024 was 34.80%, showcasing robust top-line growth. EBIT and EBITDA margins also improved considerably, reflecting efficient operations. However, the company has experienced volatility in past years, which suggests potential risks in maintaining consistent performance.

Balance Sheet

The company maintains a conservative balance sheet with a Debt-to-Equity Ratio of 0.07, indicating low leverage and financial stability. The Return on Equity (ROE) improved to 9.34% in 2024, showcasing effective equity utilization. The Equity Ratio stands at 53.37%, highlighting a strong equity base relative to total assets. While these are positive indicators, the company's past financial instability poses a risk that requires careful monitoring.

Cash Flow

Helloworld Travel Ltd demonstrated strong cash flow performance with a substantial Free Cash Flow in 2024 of $63.49 million, up from $22.21 million in 2023, indicating a Free Cash Flow Growth Rate of 185.95%. The Operating Cash Flow to Net Income Ratio is 2.07, and the Free Cash Flow to Net Income Ratio is 2.07, both suggesting a healthy conversion of earnings into cash flow, which supports sustainable growth and flexibility. Despite historical volatility, the current cash flow outlook is positive.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
208.70M	216.86M	160.88M	63.53M	39.66M	278.00M
	Gross Profit
142.92M	100.47M	61.00M	-19.10M	-49.29M	81.50M
	EBIT
40.08M	30.41M	16.03M	-39.17M	-58.49M	1.98M
	EBITDA
45.04M	55.95M	-85.21M	-10.56M	-24.14M	-32.04M
	Net Income Common Stockholders
25.44M	30.60M	17.38M	90.53M	-35.50M	-69.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
168.71M	161.88M	160.89M	122.52M	131.02M	131.86M
	Total Assets
731.37M	614.05M	544.90M	526.96M	528.07M	596.09M
	Total Debt
0.00	22.20M	22.14M	21.08M	111.70M	130.28M
	Net Debt
-168.71M	-139.56M	-124.74M	-101.45M	-19.32M	-1.58M
	Total Liabilities
298.14M	285.70M	241.88M	221.70M	297.58M	379.41M
	Stockholders Equity
432.03M	327.77M	302.57M	303.96M	229.51M	215.31M
Cash Flow		Free Cash Flow
9.66M	63.49M	22.21M	5.55M	-22.21M	-60.84M
	Operating Cash Flow
11.38M	63.48M	25.65M	9.42M	-13.54M	-41.37M
	Investing Cash Flow
-54.83M	-35.47M	28.57M	95.03M	-11.11M	-42.34M
	Financing Cash Flow
-24.03M	-24.01M	-23.74M	-87.23M	21.74M	11.37M

Helloworld Travel Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HLO, the sentiment is Negative. The current price of 1.44 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.62, and below the 200-day MA of 1.84, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 30.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HLO.

Helloworld Travel Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRS	73 Outperform	AU$242.50M	39.19	3.33%	1.54%	3.37%	-25.24%
WEB	69 Neutral	AU$1.44B	6.29	7.70%	―	-8.24%	332.82%
CTD	68 Neutral	$1.76B	27.31	5.40%	1.88%	-4.98%	-42.11%
HLO	64 Neutral	€224.69M	8.53	7.99%	12.11%	5.53%	-20.97%
FLT	61 Neutral	$2.61B	22.70	9.61%	3.57%	7.22%	-28.93%
Sector *	60 Neutral	$6.55B	11.40	3.24%	4.25%	2.38%	-21.28%
SXL	53 Neutral	€159.53M	―	-71.41%	1.66%	-7.85%	-3088.82%

Helloworld Travel Ltd Corporate Events

Helloworld Travel Acquires Barlow Travel Group to Boost New Zealand Operations

Helloworld Travel Limited has announced its acquisition of the Wellington-based Barlow Travel Group, trading as BCD Travel in New Zealand. This acquisition, funded from Helloworld’s existing cash reserves, is expected to be earnings accretive from FY25 onwards. The acquisition strengthens Helloworld’s position in the corporate and event travel sector in New Zealand, with Barlow Travel Group’s founders remaining as Executive Directors. The transaction, set to complete in mid-April 2025, is anticipated to enhance technology access, content, and service delivery for the combined entity.

Helloworld Travel Ltd Confirms Earnings Align with Market Expectations

Helloworld Travel Ltd responded to an ASX inquiry regarding its earnings for the half year ended 31 December 2024, stating that its earnings did not materially differ from market expectations. The company clarified that it had not published earnings guidance for the period and did not rely on sell-side analyst forecasts, as none were available for the first half of FY25. Helloworld determined that its earnings were in line with the prior corresponding period and did not anticipate any significant impact on its share price or value.

Helloworld Travel Ltd Declares AUD 0.08 Dividend

Helloworld Travel Ltd has announced a new dividend distribution of AUD 0.08 per share for its ordinary fully paid securities. This dividend relates to the six-month period ending on December 31, 2024, with the ex-date set for March 11, 2025, and the payment date on March 26, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Helloworld Travel Limited Reports Key Financial Metrics for 1H FY25

Helloworld Travel Limited’s recent investor presentation for the first half of fiscal year 2025 highlights key financial metrics and performance measures. The company emphasizes its Total Transaction Value (TTV) as a significant indicator of its business volume, although it does not equate to revenue under Australian Accounting Standards. The presentation also outlines the company’s use of non-statutory financial metrics like EBITDA and Underlying EBITDA to assess financial performance, providing insights into its operational efficiency and profitability. These metrics are crucial for stakeholders to understand the company’s financial health and strategic positioning in the travel industry.

Helloworld Travel Faces Challenges Amidst Fiscal Pressures, Maintains Strong Liquidity

Helloworld Travel Ltd reported a challenging first half of the fiscal year 2025, with declines in key financial metrics such as Total Transactional Value, revenue, and net profit after tax. Despite these setbacks, the company maintained a strong liquidity position with no bank debt and increased its interim dividend to 8 cents per share. CEO Andrew Burnes highlighted the impact of cost of living increases on leisure travel demand and reductions in airfares. However, he expressed optimism about the company’s long-term growth prospects, citing strong forward bookings and continued investments in technology and product offerings.

Helloworld Travel Reports Decline in Half-Year Financials but Increases Dividend

Helloworld Travel Limited announced its financial results for the half year ended 31 December 2024, showing a decline in key financial metrics compared to the previous year. Despite a decrease in total transaction value, revenue, and profit, the company declared an interim dividend of 8.0 cents per share, reflecting a 60% increase from the prior interim dividend, indicating a commitment to returning value to shareholders.