Corporate Travel Management Ltd. (Australia) – Value Analysis (ASX:CTD) : October 5, 2017

Capitalcube gives Corporate Travel Management Ltd. (Australia) a score of 68.

Our analysis is based on comparing Corporate Travel Management Ltd. (Australia) with the following peers – Flight Centre Travel Group Limited, Hanatour Service, Inc. and Thomas Cook (India) Limited (FLT-AU, 039130-KR and 500413-IN).

Investment Outlook

Corporate Travel Management Ltd. (Australia) has a fundamental score of 68 and has a relative valuation of OVERVALUED.

Fundamental Score

Access our research and ratings on Corporate Travel Management Ltd. (Australia)

Company Overview

  • Compared to peers, relative underperformance last month is down from a median performance last year.
  • It’s current Price/Book of 5.81 is about median in its peer group.
  • We classify CTD-AU as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • CTD-AU‘s relatively high profit margins are burdened by relative asset inefficiency.
  • Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
  • Over the last five years, CTD-AU‘s return on assets has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • While CTD-AU‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company is likely overinvesting in a business with only median returns.
  • CTD-AU has the financial and operating capacity to borrow quickly.

Access our research and ratings on Corporate Travel Management Ltd. (Australia)

Leverage & Liquidity

CTD-AU has the financial and operating capacity to borrow quickly.

  • With debt at a relatively low 1.90% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 3.12%), and a well-cushioned interest coverage level of 23.25x, CTD-AU can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
  • All 3 peers for the company have an outstanding debt balance.

CTD-AU has maintained its Quick & Able profile from the prior year-end.

  • CTD-AU‘s interest coverage is its lowest over the last four years and compares to a high of 34.77x in 2015.
  • The decrease in its interest coverage to 23.25x from 30.83x (in 2016) was also accompanied by a decrease in its peer median during this period to 20.97x from 25.19x.
  • Interest coverage fell 3.35 points relative to peers.
  • CTD-AU‘s debt-EV has declined 0.87 percentage points from last year’s high and is now close to its four-year average debt-EV.
  • Like the interest coverage trend, the decrease in its debt-EV (to 1.90% from 2.77%) was also accompanied by a decrease in its peer median during this period (to 3.12% from 4.07%).

Access the detailed analysis for Corporate Travel Management Ltd. (Australia)

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Flight Centre Travel Group Limited 2.26 1.43 18.68 401.29
Hanatour Service, Inc. 3.97 1.14 37.73 164.49
Thomas Cook (India) Limited 16.1 1.06 1.55 15.03
Corporate Travel Management Limited 1.9 1.04 23.25 185.57
Peer Median 3.12 1.1 20.97 175.03
Best In Class 1.9 1.43 37.73 401.29

Looking for more metrics and analysis for Corporate Travel Management Ltd. (Australia)?

Company Profile

Corporate Travel Management Ltd. provides travel management services to the corporate market. It offers business travel advisory services, bookings, ticketing, diagnostics and recommendations, ancillary services and also provides networking tools. The company was founded by James Michael Pherous in 1994 and is headquartered in Brisbane, Australia.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website