With Donald Trump’s election as the next President of the United States of America and the ensuing market turmoil you can be forgiven if you missed the latest market update from Webjet Limited (ASX:WEB) .
Fortunately for investors the market also appears to missed the quality of the announcement with the price falling back to preannouncement levels so lets take a look at what it missed.
For a company which was already growing EBITA by over 30% in the FY2016 that is quite a step up.
So what’s the story? What is webjet doing so right. Firstly more travel booking is moving online, nothing surprising there but what is interesting is that Webjet is smashing market growth rates.
I know what you are thinking that is great but that wont account for such a huge rise in EBITA
Well here’s the kicker their new move in room booking B2C and B2B is also dwarfing industry growth rates.
Comments
Webjet continues to surprise me with its ability to grow profits and maintain margins. Personally when I book travel I rarely find webjet to be the cheapest but their market presence is currently dwarfing other players.
I believe its move into room booking will see the company continue to grow strongly over the next few years. Siting on a current PE of around 30 the price doesn’t look cheap but if you factor in the latest guidance figures the valuation becomes much more reasonable.
Disclosure:
Please Note: None of the above should be considered investment advice. These are my own opinions based on a number of years market experience. Please do your own research and consult a qualified financial advisor if you wish to invest.