||EPS - Basic
||Market Cap (m)
|Travel & Leisure
Real-Time news about Tui Travel (London Stock Exchange): 0 recent articles
|grindertrader: Excellent results of TUI and beating forecasts this only goes to show how strong TUI is compared to TCG.
Revenue was down slightly by 2% but pre-tax profits up 114.2%. Remarkable achievement giving current climate
The company has a net cash position £371.00 m
the company has free Cash Flow Per Share of 22.75p (using basic FCFPS calc). Well over EPS (Diluted) so another positive.
Taken out intangibles and TT. still have positive equity on the balance sheet
ROCE I have as 13.64 and a good quality indicator. It has the competitive advantage over TCG.
Operating margin around 5% again beating TCG
Diluted earnings per share is now 16.30 again a significant increase from 2013 of 4.4p which gives a current PE of around 27.49 moving onto a rolling 12 month PE of 12.8
the Historic PEG calculated on current PE by future growth rate I have as 0.20 and on a rolling 12 month basis 1.46
This would be expected giving the substantial increase in EPS, and questions to whether this can be achieved for the following year.
Outlook - Positive
We are pleased with the progress in Winter 2014/15 trading and the strong start to Summer 2015 trading in the UK continues. The combination of our market leadership position, scale, focus on unique holidays distributed increasingly online and our relationship with the customer throughout their whole holiday experience continues to provide a strong basis for sustainable, profitable growth. The merger with TUI AG will strengthen and future-proof our combined Group. It will also enhance the certainty of long-term unique holiday growth and reinforce our clear competitive advantage through further control over the end-to-end customer experience. This will mark the start of an exciting new phase of growth, delivering significant opportunities and value to customers, employees and shareholders.
Share price currently priced in but the strength of this company is there to see.
18 months ago a couple posters on TCG got hugely hammered for saying this company would give better returns for shareholder value than TCG. TT. has a positive outlook, reasonable value but still great quality for a travel firm compared to the weakness of TCG and its balance sheet and outlook
The strength of the TUI merger will add to this and the future of TT. i see as positive. This has much less risk than TCG and also pays out dividends which again increased|
|rathlindri: cheers zulu, perhaps share price a recovery to previous levels?|
|grindertrader: TUI is high in many of the 'value' ranking. Value is calculated using many factors like Price to Free Cash Flow, Price to Sales and EV to EBITDA. TUI is pretty much beating both the industry and sector in this regards.
Quality valuation. Although Return on Capital is 8%, which could reasonable seen as low, when double digits is healthy. The ROC and Operating Margins are stable past 2 - 3 years and looking onwards.
Momentum which is really TA based- EPS Estimate upgrades, 1 year relative strengths vs the markets at 25%, 3 month 6% and 1m 10% is clear to see momentum is there. 50d MA 6% and 200d MA 13.3%.
Future Growth - Rolling 12 month PE at 12% is cheaper than the rivals. It has a ruling PEG of 0.65 and a EPS Growth rate of 24%, meaning there is still room for growth and for price to cath up with earnings. This compares with all value figures.
many people will simply look at either a value strategy, or quality strategy. TA uses momentum strategies. But I learned to combine Value/Momentum, Value/Quality or even Quality/Momentum to find great good value/quality shares that are now in a growth stage.
TUI fits all this perfectly.
Does this mean TU will outperform TCG, EZJ etc in terms of share price growth... No idea. But giving the above factors.. TUI has less risk.
|miata: Mike van Dulken, Head of Research at Accendo Markets.
"While Fredriksen still sees a merger of the two as an option (a long-running, fruitless, but share price moving saga), the TT shares have gapped down like they did on Jan 23 when TUI AG said it would not make an offer to buy out the subsidiary (not beneficial to shareholders at current exchange ratio).
"With Fredriksen gaining more influence in the parent, is this another effort to talk down TT shares to a better exchange ratio for a nil-premium all-share merger? The subsidiary was +37% YTD before today's news, now down to +30% compared to the parent's +36%? Prepare for a continually rocky transfer to the final destination."
We would see any resulting dip in the TUI Travel share price as a buying opportunity. On the other hand and contrary to Mr. Fredriksen, we believe that "TUI Travel to TUI AG" is an expensive switch here, and that forfeiting the TT/ dividend is not fully compensated by the SOP upside in TUI1.
TUI Travel (OW, PT 410p) in our view will increasingly appear as the Holiday blue chip and yields a secure 3.7% yield. Today we published a separate report on Thomas Cook Group which we believe offers favourable read-across for TT/. While we see a risk of margin dilution in the accelerated online growth targeted by both players, TUI Travel in our view benefits from higher selling prices and higher attractiveness in the affiliate channel, which we see as critical to cushioning potential online marketing investments (key charts reproduced overleaf). We also note that TUI Travel should receive disposal proceeds of 38m from the sale of its stake in NATS in Q114e, which will cover 26% of our projected 2014e dividend outflow. Although management has no history of special dividends and has voiced opposition to buybacks, we believe that this brings strong support to the stock's industry-leading dividend yield of 3.7% (4.0% at the placing price of 366p).
TUI AG (N, PT 11) has significant SOP upside potential, but we do not expect signs of cash generation before H214. We mark to market our TUI AG SOP and move our Nov-14 Price Target to 11 (was 10 to Sept-14). TUI AG is trading at a 33% discount to its SOP value. New CEO Friedrich Joussen, in our view, has the right strategy to precipitate a narrowing of this discount over time. While we recognize that Mr. Fredriksen might have another shot at securing a board seat at TUI AG as early as the next AGM in February 2014 and shaking up governance, we believe that the bulk of the fundamental changes initiated by Mr Joussen will take at least until H214e to materialize, starting with dividend upstreaming from the unlisted assets. Only then do we believe that TUI AG shareholders could reconsider a merger with TUI Travel. By 2015e, TUI AG could also be in a position to resume dividend payments, but on no more than a c. 2.2% yield on the current share price.|
TUI Travel share price data is direct from the London Stock Exchange