Webjet (ASX:WEB) recently reported a robust 1H24 result that surpassed expectations. In this analysis, we delve into the highlights of the report, including the exceptional performance of WebBeds, industry-leading margins, and strong operating cash flow.
Performance Highlights
The standout performer in the 1H24 result was WebBeds, which achieved record bookings, surpassing pre-COVID levels by 50%. Additionally, the company showcased industry-leading margins and demonstrated strong operating cash flow, indicating a healthy financial position.
Outlook Commentary
While the outlook commentary was upbeat, recent geopolitical events have impacted bookings over the last six weeks. Despite this, FY24 EBITDA guidance aligns with our forecasts. However, if the impact from the ongoing events is short-lived, it could potentially prove conservative.
Investment Insights
With significant market share still up for grabs, we maintain an Add rating on Webjet, considering it a high-quality growth stock. Based on our forecasts, WEB is currently trading at a FY25F PE of 15.8x, which is notably lower than its five-year average PE (pre-COVID) of 20.6x.
