TUI: Very Strong Quarterly Figures

Last Updated: 6. Dezember 2023By

Today, TUI presented its numbers. The travel company apparently convinced the stock markets, as the share marched upwards by more than 10% in the first hours of trading. It is worth taking a closer look at the paper.

TUI: That looks much better The figures apparently went down so well that the analysts quickly commented on the numbers. The facts are actually surprisingly good. The company has announced its plans for the 2024 fiscal year. The operating result – or the company’s goal – is 7% higher than what the analysts had previously assumed.

This value doesn’t sound incredibly surprising, but TUI is not to be compared to smaller growth companies. Profit jumps – here before taking into account interest, taxes and depreciation – of 7% (compared to the estimates) are immense. In addition, the company has highlighted two special balance sheet positions.

The cash balance, an important current and future size for many value investors, is growing faster than expected. In addition, debt has fallen quite significantly. As a result, TUI can expect a P/E ratio of between 8.5 and 6.5 for the current fiscal year and the following year. These are values that are almost surprisingly good.

TUI: The estimates are interesting anyway TUI can be pleased that travel demand is again greater than in the Corona phase. This is surprising in so far as the inflation rate over a longer period and the subdued economic outlook seem to play a lesser role with customers than expected. This helps the company and its stock.

Overall, analysts are confirming their medium-term target prices. After all, the company can point to the fact that the average target price is around โ‚ฌ9.79. This would be more than 55% potential compared to today’s prices (up to noon). The great risk of such estimates is that the magnitude „price development“ and the economy will continue to have a decisive influence.

In the short term, however, the share seems to be in the best condition after the figures for the 4th quarter. The prices have been running well for weeks anyway. Within one month it has now gone up by more than 30%. That is why I am still on the sidelines despite the favorable estimates of the analysts: You have to expect that after breakouts like around 10%, profit taking can always occur. The share is still very interesting.