Helloworld: Highly accretive acquisition

About the author:

Belinda Moore
Author name:
By Belinda Moore
Job title:
Senior Analyst
Date posted:
14 August 2023, 7:00 AM
Sectors Covered:
Agriculture, Food & Beverage, Travel and Chemicals

  • Helloworld (ASX:HLO) has acquired Express Travel Group (ETG) for ~A$70m. Given their similar business models, this acquisition makes strategic sense. The price paid is attractive, there are material synergies on offer, it is highly EPS accretive (~30% upgrades) and significantly scales HLO’s ANZ business. Post transaction, HLO’s balance sheet remains strong.
  • Despite the sale of Corporate, earnings will be higher in the future given recent acquisitions and structural improvements made to the business during COVID.
  • Following this acquisition and assuming a full recovery from COVID, we now value HLO at (login to view) per share. We maintain an Add rating.

Find out more

Download full research note

You can find further detailed analysis of company results this reporting season by browsing our reporting season tag, and view a full list of upcoming results on our Reporting Season Calendar.

If you would like more information, please contact your adviser or nearest Morgans office.

Request a call Find local branch

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

  • Print this page
  • Copy Link