Tourism Holdings Ltd

Tourism Holdings has a market price of 2.01 NZD, with a market cap of 444.61 million NZD. The company's price-to-book ratio is 0.77, and its enterprise value to EBITDA is 27.66, indicating a relatively high valuation compared to earnings. The company's debt-to-equity ratio is 1.31, suggesting a moderate level of leverage. The current ratio of 1.08 indicates that the company has just enough current assets to cover its current liabilities. Profitability metrics show a return on equity of -4.46% and a return on assets of -1.64%, both below the industry median for the "Passenger Transportation, Ground & Sea" sector. The company reported a net loss of 25.77 million NZD, despite a gross profit of 570.63 million NZD, indicating high operating expenses. The operating margin is 4.45%, which is below the industry median of 6.2%. The company's revenue is concentrated in New Zealand and Australia, with significant exposure to the RV rental and tourism segments. The North American segment is also a key contributor, but the company's geographic diversification is limited. The company's exposure to the tourism industry makes it vulnerable to economic downturns and travel restrictions. Looking ahead, the company is expected to see a revenue increase of 12% in the current fiscal year and 15% in the next fiscal year. However, the net income is expected to remain negative, with a projected net loss of 18.5 million NZD in the current fiscal year. The company's capital expenditure is expected to increase by 10% in the next fiscal year, driven by expansion in the North American market. The company faces several risk factors, including liquidity constraints and the potential for dilution. The company's net cash is negative after subtracting total debt, indicating a liquidity risk. The dilution risk is currently low, but the company has a history of issuing shares to raise capital, which could increase dilution pressure in the future. Recent events include the company's 2023 annual report, which highlighted the impact of the global pandemic on its operations. The company also announced plans to expand its North American operations through the acquisition of additional RV rental brands. Analysts have provided a mean price target of 3.27 NZD, with a median price target of 3.29 NZD, indicating a positive outlook.