| TUI AG (DE000TUAG505) | |||
7,71 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 15.05.25 07:03:08 | TUI AG (TUIFF) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid Easter Shift Challenges |  |
| Revenue: EUR 3.7 billion, an increase of 1.5%. Underlying EBIT: EUR 207 million, influenced by the Easter holiday shift into Q3. Bookings: Up 2% with an Average Selling Price (ASP) increase of 4%. Hotel Occupancy: Increased by 1% with a daily rate increase of 8%. Cruise Capacity: Increased by 23% with occupancy at the same level and a daily rate increase of 2%. Interest Expense: Improved to EUR 180 million from EUR 210 million the previous year. Net Debt: Slight improvement of EUR 0.1 billion. App Share: Increased by 40%, with the UK reaching 20%. Dynamic Packaging Growth: Significant increase, especially in the UK, driven by Ryanair and easyJet connections. Guidance: Reconfirmed 7% to 10% EBIT growth for the year. Warning! GuruFocus has detected 3 Warning Signs with TUIFF. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TUI AG (TUIFF) reported a strong set of numbers for Q2 2025, exceeding expectations. The company reconfirmed its guidance for 7% to 10% EBIT growth for the year. Revenue increased by 1.5% to EUR 3.7 billion, with a strong performance in Holiday Experiences. The TUI app saw significant growth, with app sales up 40% and a 10% share in the UK. TUI Cruises and Marella showed strong performance, with increased capacity and high occupancy rates. Negative Points The Q2 performance was impacted by the shift of Easter, affecting booking patterns and revenue timing. There were revaluation effects due to currency fluctuations, impacting hotel results. The company faces geopolitical and macroeconomic uncertainties, focusing on margin protection and cost reduction. Risk capacity bookings are slightly down year-on-year, with a focus on dynamic packaging to offset this. The company is cautious about the second half of the year due to higher uncertainty and cost inflation. Q & A Highlights Q: Can you comment on competition in Germany and how it impacts your summer bookings? Also, could you quantify the revaluation effects on Hotels and other segments? A: The booking pattern is later due to the Easter shift and proximity to Labor Day. The revaluation effects on Hotels were primarily due to currency translation, not operational performance. Without these effects, the operating result would have been higher than the previous year. Q: What are the dynamics in the German market following the disappearance of FTI, and how does dynamic packaging affect average selling price? A: FTI's insolvency was due to high losses, and we are cautious not to enter unprofitable segments. Dynamic packaging is growing, especially in the UK, and will become a significant part of our strategy, potentially increasing beyond 10% or 20% of our business. Story Continues Q: Is your risk capacity for summer bookings down year-on-year, and how does the later booking window affect ASP? A: We have slightly reduced risk capacity to focus on dynamic packaging. We aim to maintain the current ASP despite the later booking window, which is why we reduced risk capacity. Q: Can you explain the discrepancy in RIU occupancy and your expectations for the second half of the year? A: RIU occupancy was affected by keeping hotels open longer during low-demand periods. The ASP is strong, and the outlook for the second half is very positive. We do not anticipate a significant weakening in the Spanish market. Q: Why is the EBIT growth expectation lower in the second half compared to the first half, and what is the currency impact on EBIT? A: The first half was up like-for-like, and the second half will benefit from additional cruise capacity and other factors. The currency impact is primarily from translation effects, with a EUR 25 million impact if calculated at constant currency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 06.04.25 07:55:21 | Is TUI AG (ETR:TUI1) Potentially Undervalued? | |
| TUI AG (ETR:TUI1), is not the largest company out there, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €8.52 at one point, and dropping to the lows of €5.86. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether TUI's current trading price of €5.86 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at TUI’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Is TUI Still Cheap? Good news, investors! TUI is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that TUI’s ratio of 5.46x is below its peer average of 10.64x, which indicates the stock is trading at a lower price compared to the Hospitality industry. Although, there may be another chance to buy again in the future. This is because TUI’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Check out our latest analysis for TUI What kind of growth will TUI generate?XTRA:TUI1 Earnings and Revenue Growth April 6th 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 34% over the next couple of years, the future seems bright for TUI. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? Since TUI1 is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple. Story Continues Are you a potential investor? If you’ve been keeping an eye on TUI1 for a while, now might be the time to enter the stock. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TUI1. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that TUI has 1 warning sign and it would be unwise to ignore it. If you are no longer interested in TUI, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 27.03.25 13:33:59 | Travel firm reports spike in bookings by holidaymakers with access needs |  |
| Holiday bookings by people with accessibility needs have more than doubled in five years, a major travel company has reported. Tui, which released the figures, said it makes “a lot of commercial sense” to help customers with additional requirements. The firm said the level of demand from people with accessibility needs last year was 125% higher than in 2019, and up 14% from 2023. It partly attributed this to measures such as accessibility hotel guides, enhanced staff training and improvements to its booking systems. Tui’s accessibility manager Marina Snellenberg claimed travel companies have traditionally introduced measures to support people with access needs because of either regulatory requirements or the “moral argument” that it is “the right thing to do”. By contrast, Tui has focused its strategy on the “commercial argument”, she said. She went on: “Customers with access needs spend more, travel more often, stay longer, book earlier and they travel in larger groups than those without access needs. “So, having an accessible holiday strategy makes a lot of commercial sense.” Neil Swanson, Tui’s UK managing director, said: “I’m incredibly proud of what we’re doing in that area. “It’s the right thing to do. It’s commercially good for us as well. It’s an absolutely win-win situation.” Nearly a quarter (24%) of the UK population has “at least one disability or long-term health condition” and 80% of that group were not disabled when they were born, according to Tui. Ms Snellenberg said some people go on several Tui holidays when they are young with no access needs, but “life happens” – such as an accident, a health condition or ageing – and they require accessibility provisions to travel. “That’s where the accessible holiday strategy can make sure that we don’t lose those customers,” she said. “Those that have travelled with us before can still go on holiday with us.” Tui has accessibility guides available for people planning stays at 350 of the most popular hotels it offers. The company is introducing its first sensory rooms – which support neurodivergent guests – at two of its hotels in Cyprus and Ibiza this summer. It has made it easier for customers booking online to secure adaptive rooms, which include features such as wider doorways, showers designed for wheelchair users and grab rails. Other measures include special educational needs training for staff at hotel clubs for children – known as kids’ clubs – access to British Sign Language interpreters in stores, and a dedicated assisted travel team to manage customer inquiries. Story Continues Ms Snellenberg said Tui wants to ensure people planning a trip are given “as much information as possible” to enable them to make “an informed decision” whatever their visible or non-visible needs. The most recent airport accessibility performance report by regulator the Civil Aviation Authority found five UK airports were rated as “needs improvement” for the year to the end of March 2024. They consisted of Gatwick – the UK’s second busiest airport – Bristol, Cardiff, Liverpool and Norwich. View Comments |
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| 25.03.25 07:36:02 | TUI aims for 3% profit margin for its airline business in medium term | |
| By Joanna Plucinska and Ilona Wissenbach LONDON (Reuters) -Europe's largest tour operator TUI (TUI1.DE) aims to raise the profit margin for its markets and airline unit to more than 3% in the medium term, it said on Tuesday, compared to a margin of 1.5% in 2024. Last month, weak results and sluggish bookings data raised concerns about slowing European demand, knocking TUI shares. Since then, the company has been trying to expand its customer reach and boost growth. On Tuesday, TUI said it would sell more seat-only flights and offer more products targeting businesses to make its traditional holiday package business more flexible. "The goal is to...offer customers more products and significantly increase the number of customer contacts throughout the year," Chief Executive Sebastian Ebel said in a statement ahead of a capital markets day event in Madrid. He said the aim was to "up-sell and cross-sell" across products, for example, by persuading customers buying a hotel room to include other products as well, like a car rental or flight. Ebel told journalists in February that TUI wanted to expand beyond its packaged-holiday business, and include amusement and experience packages via an app. It plans to boost its offers to more international destinations and court non-European customers. TUI said on Tuesday it may renew some of its Marella cruise ship fleet to target the British market, and was in talks over building two new ships to be available by 2031. (Reporting by Joanna Plucinska and Ilona Wissenbach; Editing by Kirsten Donovan and Bernadette Baum) View Comments |
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| 10.03.25 07:06:13 | Shareholders in TUI (ETR:TUI1) are in the red if they invested five years ago | |
| The main aim of stock picking is to find the market-beating stocks. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in TUI AG (ETR:TUI1), since the last five years saw the share price fall 79%. Furthermore, it's down 15% in about a quarter. That's not much fun for holders. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. See our latest analysis for TUI To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). TUI became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move. In contrast to the share price, revenue has actually increased by 21% a year in the five year period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).XTRA:TUI1 Earnings and Revenue Growth March 10th 2025 TUI is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling TUI stock, you should check out this freereport showing analyst consensus estimates for future profits. What About The Total Shareholder Return (TSR)? We'd be remiss not to mention the difference between TUI's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that TUI's TSR, which was a 22% drop over the last 5 years, was not as bad as the share price return. A Different Perspective TUI shareholders are up 7.4% for the year. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 4% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand TUI better, we need to consider many other factors. For example, we've discovered 1 warning sign for TUI that you should be aware of before investing here. Story Continues Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 25.02.25 14:19:21 | TUI wants to attract Chinese, US holidaymakers as Europeans tighten budgets | |
| By Joanna Plucinska LONDON (Reuters) - TUI wants to attract holidaymakers from China and the United States to its new hotels in Asia and is offering cheaper destinations in eastern Europe as budget-conscious Europeans spend less and book shorter vacations, its top executive said. The plan is part of an expansion already underway for the German group whose all-inclusive package holidays have for decades been popular with Germans and Britons seeking sun and sea in southern Europe, Turkey and Egypt. Europe's largest tour operator has grown beyond its home turf in recent years with packages to more far-flung locations like Zanizibar, tapping a boom in high-end travel after the COVID-19 pandemic. Now, it wants to lure Americans and Chinese travellers to hotels it is building in China and South East Asia, as well as to hot spots, such as Tenerife, CEO Sebastian Ebel told Reuters. The group, which last year switched its listing from London to Frankfurt, plans to open 22 new hotels in China and South East Asia in the next three years, catering to Chinese travellers, who have avoided travelling to Europe since COVID. "For us, it's important that we are in more and more markets, also to balance out risk overall," said Ebel. Earlier this month, weak results and sluggish bookings data from TUI and its smaller UK rival Jet2 raised concerns about slowing European demand, knocking their shares. Inflation has hiked up costs in previously popular destinations, such as Turkey. While demand has remained strong, tourists from key European markets, such as Britain and Germany, are spending less on their holidays and are booking shorter and more affordable stays, according to tourism associations and company data. Traditional travel operators like TUI are also facing competition from relatively new entrants, such as airlines easyJet and IAG-owned BA which have launched package holiday businesses in recent years and from Airbnb and other home-share platforms. "Value-for-money remains a key consideration for tourists, with implications for destination choices, length of stay and in-destination spend," the European Travel Commission (ETC) said in its annual report published last week. Last year, the average length of holiday fell compared with 2023. The German and British economies underperformed last year as worries about high inflation worsen and companies struggle with high costs and competition from China. The majority of TUI's 20 million customers globally come from Germany and central Europe, as well as the United Kingdom and Ireland. Story Continues SHIFTING TRAVEL In recent years, TUI has also invested in marketing campaigns, improving its app and building or investing in new hotels outside of its traditional European destinations and offering holidays outside of the high summer season, the company has highlighted when presenting its earnings. Britons in particular are shifting their travel dates to either side of the traditional peak summer travel months, data from British travel association ABTA shows, in an effort to find cheaper deals and avoid crowds. TUI has also touted planned investments in the Polish market, citing affordable spa and hotel options, as well as growing spending power of the country's population of nearly 37 million. It has also launched plans for expansion into Czechia. This week, it launched an "Experiences for Locals" programme in Britain and Germany, looking to lure people to pay for activities like cooking classes, painting workshops and walking tours at home. TUI is also offering more "dynamic" packages which allow travellers to pick flights, hotels and car rentals separately and shop around for flights. (Reporting by Joanna Plucinska; Editing by Josephine Mason and Tomasz Janowski) |
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| 17.02.25 05:16:59 | TUI's (ETR:TUI1) Strong Earnings Are Of Good Quality | |
| TUI AG's (ETR:TUI1) earnings announcement last week was disappointing for investors, despite the decent profit numbers. We did some digging and actually think they are being unnecessarily pessimistic. See our latest analysis for TUI XTRA:TUI1 Earnings and Revenue History February 17th 2025 A Closer Look At TUI's Earnings In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". Over the twelve months to December 2024, TUI recorded an accrual ratio of -0.18. Therefore, its statutory earnings were very significantly less than its free cashflow. To wit, it produced free cash flow of €1.1b during the period, dwarfing its reported profit of €544.3m. TUI's year-on-year free cash flow was as flat as two-day-old fizzy drink. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On TUI's Profit Performance Happily for shareholders, TUI produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that TUI's statutory profit actually understates its earnings potential! And on top of that, its earnings per share increased by 14% in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into TUI, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 1 warning sign for TUI and you'll want to know about it. Today we've zoomed in on a single data point to better understand the nature of TUI's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 13.02.25 04:02:49 | TUI First Quarter 2025 Earnings: Revenues Beat Expectations | |
| TUI (ETR:TUI1) First Quarter 2025 Results Key Financial Results Revenue: €4.87b (up 13% from 1Q 2024). Net loss: €85.4m (loss narrowed by 30% from 1Q 2024).XTRA:TUI1 Earnings and Revenue Growth February 13th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period TUI Revenues Beat Expectations Revenue exceeded analyst estimates by 7.5%. Looking ahead, revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Hospitality industry in Germany. Performance of the German Hospitality industry. The company's shares are down 10% from a week ago. Risk Analysis It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with TUI, and understanding this should be part of your investment process. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 12.02.25 07:02:29 | TUI AG (TUIFF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges | |
| Revenue: Up 13% driven by holiday experiences, market, and airlines. Underlying EBIT: Increased by 51%, marking the 10th consecutive quarter of growth. Hotel and Resorts Performance: Up EUR60 million; Bed Nights up 3%, Occupancy up 2%, Daily Rate up 5%. Cruise Segment: Up EUR14 million; Capacity up 10%, Rates up 4%. TUI Musement: Increased by EUR9 million with experiences growth of 12%. Market and Airlines: Down by EUR30 million, primarily due to investments in the Nordic market. Net Debt: Remained flat compared to last year. Interest Expense: Improved versus prior year, with a focus on refinancing. Booking Trends: Winter bookings up 2%, Summer ASP up 4%. Guidance: Reaffirmed full-year underlying EBIT increase of 7% to 10%. Warning! GuruFocus has detected 4 Warning Signs with TUIFF. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TUI AG (TUIFF) reported its 10th consecutive quarter of underlying EBIT growth, supported by strong performance in hotel, cruise, and TUI Musement segments. Revenues increased by 13%, driven by holiday experiences and market and airlines, with a positive outlook for the upcoming summer season. The company achieved a BB rating from Fitch, reflecting improved financial discipline and structure, returning to pre-pandemic levels. TUI AG (TUIFF) is benefiting from a global customer base, with increased demand from regions such as the Caribbean and Spain, contributing to higher occupancy and rates. The company is making significant strides in sustainability, with new ships ready for green methanol and LNG, aligning with its long-term sustainability goals. Negative Points Market and airlines segment reported a decline of EUR30 million, primarily due to investments in the Nordic and Northern European markets. There is a concern about volume slowdown in Germany and negative bookings in the UK, which could impact future growth. Despite a strong start, the company faces challenges in maintaining cruise occupancy rates, which are down compared to pre-pandemic levels. The company is cautious about adding fixed capacity, relying on dynamic packaging for growth, which may not yield immediate profitability. TUI AG (TUIFF) faces competitive pressure in the UK market, with competitors increasing their capacity significantly, which could affect market share. Q & A Highlights Q: Are you concerned about the volume slowdown in Germany compared to the figures you gave in December? And why are the hotel ADR figures accelerating in Q2 and the second half of the year compared to Q1? A: We are benefiting from our global portfolio and increased global travel, especially in regions like the Caribbean and Spain, where demand is strong from outside Europe. Regarding Germany, we are focusing on margin protection and managing volume strategically. We do not expect the market to weaken significantly. Story Continues Q: How should we think about any benefit to the EUR400 million P&L interest expense over the next year or two, particularly in the context of the RCF refinancing? A: The RCF is linked to our rating category and is up for renewal before summer. The biggest cost is the commitment fee, as it is not heavily drawn. We expect more savings from the rating improvement, particularly in the lease and asset financing portfolio. Q: Can you help quantify the FDI benefits you've seen so far and how you're thinking about that in your guidance for the year? A: We have seen some impact from FDI last year, and there might be a small positive impact this year. However, it's difficult to quantify precisely as the market risk was known last year. We expect a modest growth in holiday experiences for the rest of the year. Q: With Ryanair included, are you taking other capacity out to match that? And do you make any profit on a Ryanair trip? A: The risk capacity remains flat, and growth is expected from dynamic content like Ryanair. We don't disclose profit numbers on partners, but any incremental business is positive for profitability. The strong distribution network helps secure occupancies and load factors. Q: Are you concerned about negative bookings in the UK, and what gives you confidence in improving this? A: We feel comfortable with the current booking status. Bookings seem to be slightly later, but the market is in good condition, and what we see for summer supports our guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 30.09.24 05:34:26 | Does TUI (ETR:TUI1) Deserve A Spot On Your Watchlist? | |
| Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in TUI (ETR:TUI1). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide TUI with the means to add long-term value to shareholders. See our latest analysis for TUI TUI's Improving Profits Over the last three years, TUI has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. As a result, we'll zoom in on growth over the last year, instead. Impressively, TUI's EPS catapulted from €0.49 to €1.06, over the last year. It's not often a company can achieve year-on-year growth of 119%. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. TUI shareholders can take confidence from the fact that EBIT margins are up from 2.0% to 4.1%, and revenue is growing. That's great to see, on both counts. In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. earnings-and-revenue-history In investing, as in life, the future matters more than the past. So why not check out this freeinteractive visualization of TUI's forecast profits? Are TUI Insiders Aligned With All Shareholders? It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Shareholders will be pleased by the fact that insiders own TUI shares worth a considerable sum. Notably, they have an enviable stake in the company, worth €390m. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock. Story continues Should You Add TUI To Your Watchlist? TUI's earnings per share growth have been climbing higher at an appreciable rate. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So based on this quick analysis, we do think it's worth considering TUI for a spot on your watchlist. Now, you could try to make up your mind on TUI by focusing on just these factors, oryou could also consider how its price-to-earnings ratio compares to other companies in its industry. Although TUI certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of German companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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