Company Overview
Tallink Grupp is a leading European travel and transportation company that operates in the Baltic Sea region. With a strong presence in Estonia, Finland, Sweden, Latvia, Lithuania, and Russia, the company offers a range of leisure and business travel services, as well as sea transportation services. Tallink's mission is to be the market pioneer in Europe by providing excellence in customer satisfaction, profitability, and sustainable operations.
The company's core values include achieving the highest level of customer satisfaction, improving profitability, developing high-quality services, optimizing capacity, ensuring cost-efficient operations, maintaining an optimal debt level, and prioritizing sustainability and environmental standards. These values are reflected in Tallink's commitment to continuous improvement, innovation, and customer-centric approach.
Key Products/Services
Tallink offers a range of key products and services that cater to the needs of its customers, including:
- Cruise ferry services: offering a convenient and comfortable way to travel between Estonia, Finland, Sweden, Latvia, Lithuania, and Russia.
- Sea transportation services: providing a reliable and efficient way to transport goods and passengers between ports in the Baltic Sea region.
- Duty-free shopping: offering a wide range of products at competitive prices, making it an attractive option for travelers.
- F&B services: providing high-quality food and beverage options on board its vessels.
The benefits of Tallink's products and services include convenient travel options, comfortable accommodations, reliable transportation, and access to a wide range of products at competitive prices. By choosing Tallink, customers can enjoy a hassle-free travel experience that meets their needs and exceeds their expectations.
Investment Highlights
Tallink Grupp is an attractive investment opportunity due to its strong presence in the Baltic Sea region, diverse product portfolio, and commitment to sustainability and customer satisfaction. The company's focus on continuous improvement, innovation, and customer-centric approach ensures a solid foundation for long-term growth and profitability.
Key highlights of Tallink as an investment include:
- Strong presence in the Baltic Sea region with a diverse product portfolio.
- Commitment to sustainability and environmental standards.
- Customer-centric approach with a focus on continuous improvement and innovation.
- Attractive dividend yield and potential for long-term growth and profitability.
In conclusion, Tallink Grupp is a well-established company in the Baltic Sea region that offers a range of products and services that cater to the needs of its customers. With its strong presence, diverse product portfolio, commitment to sustainability, and customer-centric approach, Tallink presents an attractive investment opportunity for those looking to invest in the travel and transportation sector.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 743.6 | 743.6 | 743.6 | 743.6 | 743.6 | 743.6 | 743.6 |
| Target Valuation (MEur) | 637.7 | 1078.4 | 948.0 | 680.5 | 631.4 | 453.6 | 453.6 |
| Targer Price | 0.86 | 1.45 | 1.27 | 0.92 | 0.85 | 0.61 | 0.61 |
| Potential, % | 70.5 | 116.5 | 121.3 | 56.7 | 38.7 | -0.3 | -0.3 |
| Recommendation | Buy | Buy | Buy | Buy | Buy | Hold | Hold |
| MCAP (MEur) | 374.0 | 498.2 | 428.3 | 434.2 | 455.1 | 455.1 | 455.1 |
| Price | 0.5 | 0.67 | 0.58 | 0.58 | 0.61 | 0.61 | 0.61 |
| EV | 994.0 | 1106.0 | 966.0 | 867.0 | 781.0 | 626.0 | 523.0 |
| P/S | 0.48 | 0.6 | 0.55 | 0.57 | 0.57 | 0.55 | 0.55 |
| EV/S | 1.29 | 1.32 | 1.23 | 1.13 | 0.99 | 0.76 | 0.63 |
| EV/EBIT | 26.4 | 9.76 | 12.48 | 17.23 | 11.32 | 6.15 | 9.35 |
| P/E | 26.84 | 6.32 | 10.63 | 25.15 | 9.67 | 5.59 | 10.18 |
| P/B | 0.53 | 0.63 | 0.55 | 0.58 | 0.57 | 0.52 | 0.49 |
| P/OCF | 2.59 | 2.45 | 2.71 | 3.42 | 3.2 | 2.57 | 3.61 |
| EV/OCF | 6.89 | 5.43 | 6.1 | 6.82 | 5.5 | 3.54 | 4.15 |
| P/FCF | -6.67 | 2.81 | 2.65 | 2.51 | 4.09 | 2.94 | 4.39 |
| EV/FCF | -17.74 | 6.24 | 5.98 | 5.0 | 7.02 | 4.04 | 5.04 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 771.4 | 835.3 | 785.8 | 765.3 | 791.8 | 823.7 | 831.7 |
| Rev. Growth, % | 61.8 | 8.3 | -5.9 | -2.6 | 3.5 | 4.0 | 1.0 |
| Ebit | 37.7 | 113.3 | 77.4 | 50.3 | 69.0 | 101.8 | 55.9 |
| Ebit Growth, % | 201.9 | 200.5 | -31.7 | -35.0 | 37.2 | 47.5 | -45.1 |
| Ebit, % | 4.9 | 13.6 | 9.8 | 6.6 | 8.7 | 12.4 | 6.7 |
| Profit | 13.9 | 78.9 | 40.3 | 17.3 | 47.0 | 81.5 | 44.7 |
| EPS | 0.02 | 0.11 | 0.05 | 0.02 | 0.06 | 0.11 | 0.06 |
| Profit Growth, % | 124.6 | 467.6 | -48.9 | -57.1 | 171.7 | 73.4 | -45.2 |
| Profit, % | 1.8 | 9.4 | 5.1 | 2.3 | 5.9 | 9.9 | 5.4 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 40.0 | 41.4 | 48.1 | 45.8 | 46.3 | 47.8 | 48.8 |
| Acc. Receivable | 31.4 | 31.8 | 25.3 | 36.8 | 31.8 | 33.0 | 31.8 |
| Cash | 114.9 | 41.9 | 18.7 | 13.5 | 123.1 | 278.1 | 381.9 |
| Equity | 706.9 | 785.8 | 782.3 | 750.1 | 797.4 | 878.9 | 923.6 |
| ROE, % | 2.0 | 10.0 | 5.2 | 2.3 | 5.9 | 9.3 | 4.8 |
| ROCE, % | 2.6 | 7.9 | 5.8 | 4.2 | 5.5 | 7.7 | 4.1 |
| Net Debt | 620.4 | 607.3 | 537.7 | 432.4 | 326.4 | 171.3 | 67.6 |
| Gearing, % | 87.8 | 77.3 | 68.7 | 57.7 | 40.9 | 19.5 | 7.3 |
| Equity ratio, % | 41.8 | 50.5 | 53.4 | 56.4 | 65.6 | 78.2 | 90.2 |
| Acc. Payable | 86.9 | 85.4 | 95.1 | 97.3 | 102.6 | 99.5 | 108.8 |
| Total Assets | 1691.6 | 1555.2 | 1463.9 | 1330.8 | 1216.2 | 1124.5 | 1024.3 |
| ROA, % | 0.8 | 5.1 | 2.8 | 1.3 | 3.9 | 7.2 | 4.4 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 144.3 | 203.4 | 158.3 | 127.1 | 142.1 | 177.2 | 125.9 |
| Investment Cash Flow | -200.3 | -26.2 | 3.2 | 46.1 | -30.7 | -22.1 | -22.1 |
| Free Cash Flow | -56.0 | 177.3 | 161.6 | 173.3 | 111.3 | 155.0 | 103.8 |
| OCF/CAPEX | 0.72 | 7.77 | 0.0 | 0.0 | 4.62 | 8.0 | 5.69 |
| Financial Cash Flow | 43.4 | -250.3 | -184.8 | -178.4 | -1.8 | 0.0 | 0.0 |
Disclaimer
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Before deciding to trade in financial instrument you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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