Analysis as per FY23 Financial Report
Corporate Travel Management (ASX: CTD) is a travel management company that provides travel solutions for corporate clients. The company offers a range of services such as travel planning, bookings, and management of travel expenses. Corporate Travel Management operates in over 70 countries and has offices across the globe, including in Australia, the Americas, Asia, Europe, and the Middle East.
The company’s clients include both large and small businesses, government agencies, and educational institutions. Corporate Travel Management uses technology and automation to provide its clients with cost-effective and efficient travel solutions.
In recent years, Corporate Travel Management has experienced significant growth, with its revenue increasing each year. The company has also expanded through acquisitions, which has helped it to enter new markets and expand its service offerings. Overall, Corporate Travel Management is considered a leading player in the corporate travel management industry.
Corporate Travel Management has expanded its global reach through a series of strategic acquisitions. The company’s subsidiaries include Chambers Travel Group, Diplomat Travel, and Lotus Travel Group. These acquisitions have helped Corporate Travel Management to enter new markets and expand its product offerings, positioning the company as a major player in the corporate travel management industry.
✅ Revenue Growth of 70% YoY to $660.1m
✅ Generating fast growing PBT and NPAT up 367%, up to $92.5m.
✅ Excellent management, arguably better than its peers, as the company invested in people to ensure service excellence, to stay ahead of recovery with experienced and trusted leadership team – 30 years+ travel experience, across MD, global COO, all regional CEO’s.
✅ No debt, cash balance of $151m in 30 June 2023.
✅ 22c declared dividend.
✅ EBITDA group showing remarkable grow YoY with Record growth of 179% YoY to $167.1m
✅ Solid growth in all key markets in FY23 with Europe expecting another strong year of growth in FY24, ANZ modest growth, and Asia with record profit in FY24.
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✅ The company is also investing in AI (Artificial Intelligence and Robotic Process Automation (RPA) with focus in CTM AI:
Agents:
- Designed to specifically assist CTM agents to increase efficiency
- Freeing up staff for highly complex, high-value transactions and urgent client issues
Clients:
- Enabling seamless interactive experience for customers (chat, voice, email)
- Providing superior self-service capability at any time of the day.
✅ Very Positive Outlook for FY24 due the strong momentum and significant new clients transacting, activity recovery of existing clients.
Guidance for FY24
✅ Growth in Revenue in between 17%-29%
✅ EBITDA growth of 44%-68%
✅ PBTa growth of 55%-87%
Technical Analysis
Despite the impressive performance of Corporate Travel Management (ASX: CTD) compared to other travel stocks like (ASX: FLT) and (ASX: WEB), investors who bought CTD stock as an investment 52 weeks ago would be down by 9%. This decline is partly due to investors taking profits as CTD recovered faster than its peers, but it’s also because of rising interest rates and the possibility of a recession leading to reduced discretionary spending and travel in 2022, totalling a fall of 46% from its all times high and the bottom of the cycle. Although recession remains a concern in 2024, the recent drop in CTD’s stock price, shows that the stock is currently sitting under the SMA250 and the SMA40.
(ASX: CTD) is a stock that we have been trading with our VIP Members and we believe the company is well place to continue recover.
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