Helloworld: There is so much more to come

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

29 August 2023, 8:30 AM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

• After three profit upgrades, Helloworld's (ASX:HLO) FY23 result came in at the top end of guidance. The strength of its EBITDA margin was a highlight. Importantly, the company also produced better than expected cashflow. Given the company’s strong balance sheet, shareholders were rewarded with a larger than expected final dividend.
• HLO provided FY24 EBITDA guidance (45-63% growth on FY23), with the mid-point 7.2% ahead of consensus. Guidance could again prove to be conservative.
• Assuming a full recovery from COVID and reflecting recent acquisitions, we now value HLO at (login to view) per share (34% upside from here). We maintain an Add rating.

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