Latest news with #KelsianGroup
Yahoo
19-05-2025
- Business
- Yahoo
Kelsian Group Limited (ASX:KLS) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Most readers would already be aware that Kelsian Group's (ASX:KLS) stock increased significantly by 27% over the past month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Kelsian Group's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kelsian Group is: 5.2% = AU$50m ÷ AU$958m (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. That means that for every A$1 worth of shareholders' equity, the company generated A$0.05 in profit. See our latest analysis for Kelsian Group So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. On the face of it, Kelsian Group's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 9.1% either. However, we we're pleasantly surprised to see that Kelsian Group grew its net income at a significant rate of 29% in the last five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. As a next step, we compared Kelsian Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 22%. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Kelsian Group is trading on a high P/E or a low P/E, relative to its industry. Kelsian Group has a significant three-year median payout ratio of 97%, meaning the company only retains 3.0% of its income. This implies that the company has been able to achieve high earnings growth despite returning most of its profits to shareholders. Moreover, Kelsian Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 68% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 7.7%, over the same period. In total, we're a bit ambivalent about Kelsian Group's performance. Although the company has shown a pretty impressive growth in earnings, yet the low ROE and the low rate of reinvestment makes us skeptical about the continuity of that growth, especially when or if the business comes to face any threats. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Kelsian Group Limited (ASX:KLS) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?
Most readers would already be aware that Kelsian Group's (ASX:KLS) stock increased significantly by 27% over the past month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to Kelsian Group's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kelsian Group is: 5.2% = AU$50m ÷ AU$958m (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. That means that for every A$1 worth of shareholders' equity, the company generated A$0.05 in profit. See our latest analysis for Kelsian Group So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. On the face of it, Kelsian Group's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 9.1% either. However, we we're pleasantly surprised to see that Kelsian Group grew its net income at a significant rate of 29% in the last five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. As a next step, we compared Kelsian Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 22%. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Kelsian Group is trading on a high P/E or a low P/E, relative to its industry. Kelsian Group has a significant three-year median payout ratio of 97%, meaning the company only retains 3.0% of its income. This implies that the company has been able to achieve high earnings growth despite returning most of its profits to shareholders. Moreover, Kelsian Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 68% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 7.7%, over the same period. In total, we're a bit ambivalent about Kelsian Group's performance. Although the company has shown a pretty impressive growth in earnings, yet the low ROE and the low rate of reinvestment makes us skeptical about the continuity of that growth, especially when or if the business comes to face any threats. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
News.com.au
16-05-2025
- Business
- News.com.au
Criterion: As the travel sector loses altitude, acquirers fly in for the kill
Recent sector downgrades highlight consumer concerns about tariffs and cost of living pressures Webjet Group's depressed valuation has attracted a private equity bidder with a lowball offer Despite the pressures, the key travel stocks are better placed financially than in previous downturns Like a rapidly fading post-holiday suntan, the post-pandemic travel boom has been abruptly curtailed. Tariff and cost-of-living concerns have crimped travel budgets, while there's evidence that haphazard US customs policies are deterring visitors there. As sure as night follows day – although not necessarily on an overseas flight – acquirers are sniffing out unloved stocks. This week, private equity group BGH lobbed a non-binding for flight booking portal Webjet Group (ASX:WJL) which demerged from its business-to-business hotel arm Web Travel Group (ASX:WEB) last October. BGH's offer came after the group built a 10.76% relevant stake in Webjet. On a nostalgic note, that was with the help of 1980s corporate raiders Ariadne Australia and Gary Weiss. Adding to the intrigue, Helloworld Travel (ASX:HLO) has accrued a surprise 5% Webjet Group stake. In the meantime, the out-of-sorts Kelsian Group (ASX:KLS) is in the process of selling its legacy Kangaroo Island ferry business and other tourism assets, in favour of focusing on commuter transport. Losing altitude The corporate manoeverings come amid earnings downgrades from the key operators. Early this month, Flight Centre cited 'short term results volatility brought about by uncertain (cyclical) trading conditions, including the recent changes to US trade and entry policies.' Things were going OK until March, when US 'policy changes' started to impact both corporate and leisure sales. Corporate Travel Management (ASX:CTD) then said full year revenue was likely to be 4% softer than forecast, with underlying earnings likely to be down $30 million relative to expectations at the half year results. The company cites 'broad economic and tariff uncertainty in North America and Asiahas led to reductions in client activity resulting in slower growth than expected during what is traditionally the busiest period of the year.' Helloworld last week trimmed its full year guidance to underlying earnings of $52-56 million, down from the previously indicated $56-62 million. Helloworld's outbound US bookings are only marginally down, while there's strong demand for premium seats across the board. Not everyone is sharing the cost-of-living pain, evidently. Tapering airfares tell the story According to UBS, as of March domestic airfares had fallen an average 9%, reversing the momentum of 2024. International fares fell an average 4%, or 11% in the case of Virgin. At face value, cheaper airfares are positive for demand, but not if folk are unwilling to travel because of geopolitical and economies uncertainties. The trends suggest that travellers are eschewing long-haul trips, in favour of destinations such as Bali, Fiji, Hawaii and Japan. This is consistent with cost-of-living pressures as well as reports of chronic overtourism in favourite European spots. Merger mania If last year's Webjet bifurcation was aimed at making the businesses easier to take over, it has succeeded in its objective. While BGH's 80-cents-per-share tilt was at a 40% premium to Webjet's 'undisturbed' share price, the stock has traded above that level. RBC Capital markets notes Webjet has $100 million of net cash worth 26.7 cents a share – one-third of BGH's offer price of 80 cents per share. The firm opines that even without a takeover premium, Webjet shares are worth $1.05 to $1.30 a share. With a suitable control premium, the board would start talking turkey at $1.26 to $1.50 a share. Not even close! Don't panic, we're not going down The downturn doesn't mean that that travel stocks should be avoided. On the contrary, they tend to overreact to both good and bad conditions. Insofar as Australians are more likely to take a domestic break, the conditions are amenable to local plays such as Experience Co (ASX:EXP), which runs skydiving venues and tree walks. Experience Co this week reported soggy trading because of soggy weather, but notes an 'opportunity to capitalise on sentiment generated by recent US tariff changes'. Helloworld benefits from the enduring strength of cruising, with bookings expected to be 40% higher this year. Like a tired hotel room, there's room for a lick of paint. As part of a much-needed 'brand refresh', Webjet Group plans to double its ticket turnover to $3.2 billion by 2030, including a push into hotel and package offerings. The players are more resilient financially than during the 2007 GFC, or pandemic. In the early days of the plague, Flight Centre executed a $700 million emergency capital raising. Now the company is buying back $200 million of its own shares. There's no need to assume the brace position - but expect some more turbulence and keep the seat belt buckled just in case.
Yahoo
14-04-2025
- Business
- Yahoo
Kelsian Group (ASX:KLS) shareholders have endured a 63% loss from investing in the stock three years ago
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the last three years have been particularly tough on longer term Kelsian Group Limited (ASX:KLS) shareholders. So they might be feeling emotional about the 67% share price collapse, in that time. The more recent news is of little comfort, with the share price down 54% in a year. Shareholders have had an even rougher run lately, with the share price down 26% in the last 90 days. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the unfortunate three years of share price decline, Kelsian Group actually saw its earnings per share (EPS) improve by 14% per year. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics. Given the healthiness of the dividend payments, we doubt that they've concerned the market. We like that Kelsian Group has actually grown its revenue over the last three years. But it's not clear to us why the share price is down. It might be worth diving deeper into the fundamentals, lest an opportunity goes begging. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Kelsian Group When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Kelsian Group the TSR over the last 3 years was -63%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. Investors in Kelsian Group had a tough year, with a total loss of 52% (including dividends), against a market gain of about 0.4%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 2% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 2 warning signs we've spotted with Kelsian Group . If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
31-03-2025
- Business
- Yahoo
When Should You Buy Kelsian Group Limited (ASX:KLS)?
While Kelsian Group Limited (ASX:KLS) might not have the largest market cap around , it saw significant share price movement during recent months on the ASX, rising to highs of AU$3.82 and falling to the lows of AU$2.68. 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 Kelsian Group's current trading price of AU$2.70 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Kelsian Group's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. The stock is currently trading at AU$2.70 on the share market, which means it is overvalued by 23% compared to our intrinsic value of A$2.20. This means that the opportunity to buy Kelsian Group at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Kelsian Group's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. View our latest analysis for Kelsian Group 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 52% over the next couple of years, the future seems bright for Kelsian Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? KLS's optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe KLS should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on KLS for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the optimistic prospect is encouraging for KLS, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - Kelsian Group has 2 warning signs we think you should be aware of. If you are no longer interested in Kelsian Group, 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) 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. Sign in to access your portfolio
