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Stock Analysis & Valuationlastminute.com N.V. (0QT0.L)

Professional Stock Screener
Previous Close
£14.05
Sector Valuation Confidence Level
Moderate
Valuation methodValue, £Upside, %
Artificial intelligence (AI)315.302144
Intrinsic value (DCF)315.382145
Graham-Dodd Methodn/a
Graham Formula8.80-37

Strategic Investment Analysis

Company Overview

lastminute.com N.V. is a leading player in the online travel industry, operating across Europe and internationally through its well-known brands such as lastminute.com, weg.de, Jetcost, and Rumbo. The company specializes in offering a comprehensive range of travel services, including flights, hotel bookings, vacation packages, car rentals, and cruises, via its multilingual platforms available in 17 languages and 40 countries. Headquartered in Amsterdam, the Netherlands, lastminute.com N.V. operates through multiple segments: Online Travel Agency (OTA), Meta-search, Media, and Other. The company not only facilitates direct bookings but also generates revenue through advertising and media content placements on its platforms and third-party sites. With a strong digital presence and a portfolio of recognized travel brands, lastminute.com N.V. caters to both leisure and business travelers, positioning itself as a versatile and competitive player in the dynamic online travel market.

Investment Summary

lastminute.com N.V. presents a mixed investment profile. On the positive side, the company operates in the resilient and growing online travel sector, supported by its diversified brand portfolio and multi-segment revenue streams. The company reported a net income of CHF 6.96 million in FY 2023, with diluted EPS of CHF 0.65, indicating profitability. However, the negative operating cash flow of CHF -15.35 million raises concerns about short-term liquidity, despite a solid cash position of CHF 100 million. The high beta of 1.717 suggests significant volatility, likely tied to the cyclical nature of the travel industry. Investors should weigh the company’s established market presence against macroeconomic risks, including fluctuating travel demand and competitive pressures from larger OTAs.

Competitive Analysis

lastminute.com N.V. competes in a highly fragmented and competitive online travel market dominated by global giants and regional specialists. The company’s competitive advantage lies in its strong brand recognition across Europe, particularly in Italy, Spain, and Germany, where its localized platforms (e.g., Rumbo, Volagratis) resonate with regional travelers. Its multi-brand strategy allows it to target different customer segments, from budget-conscious travelers (Jetcost) to premium vacation seekers (Crocierissime). However, lastminute.com lacks the scale of global OTAs like Booking Holdings or Expedia, which benefit from superior technology, broader inventory, and stronger bargaining power with suppliers. The company’s meta-search and media segments provide ancillary revenue but face stiff competition from dedicated players like Skyscanner and Kayak. While lastminute.com’s asset-light model offers flexibility, its reliance on third-party suppliers limits margin control. The company’s ability to innovate in personalized travel recommendations and mobile-first experiences could be a differentiator, but sustained investment in technology is critical to remain competitive.

Major Competitors

  • Booking Holdings Inc. (BKNG): Booking Holdings is the global leader in online travel, with brands like Booking.com, Priceline, and Kayak. Its vast inventory, strong supplier relationships, and technological edge give it superior pricing power and customer reach compared to lastminute.com. However, its focus on global markets may leave room for lastminute.com to exploit regional niches in Europe.
  • Expedia Group Inc. (EXPE): Expedia operates a diversified portfolio including Expedia.com, Vrbo, and Hotels.com. Its scale and integrated loyalty programs (Expedia Rewards) pose a significant challenge to lastminute.com. However, Expedia’s heavier reliance on the North American market contrasts with lastminute.com’s European stronghold.
  • Tripadvisor Inc. (TRIP): Tripadvisor excels in user-generated travel content and reviews, complementing its booking platform. While it lacks lastminute.com’s multi-brand OTA focus, its meta-search and review dominance drive high traffic. Tripadvisor’s weaker presence in package tours and cruises is an area where lastminute.com competes more effectively.
  • TUI AG (TUI1.DE): TUI is a vertically integrated travel giant with its own airlines, hotels, and tour operators. Its bundled vacation packages compete directly with lastminute.com’s offerings, but TUI’s asset-heavy model exposes it to higher fixed costs. lastminute.com’s agility in digital pricing and promotions gives it an edge in last-minute deals.
  • eDreams Odigeo SA (EDR.L): eDreams Odigeo, like lastminute.com, is a Europe-focused OTA with brands like eDreams and Opodo. Its subscription-based Prime program drives recurring revenue, a model lastminute.com lacks. However, lastminute.com’s broader brand portfolio and meta-search capabilities provide more diversified revenue streams.
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