# Hostelworld Group plc (HSW.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price 113p, market value 139 millionp.

## Valuation
- **P/E (trailing): 28.1×** (5-yr avg 2528.1×, 3-yr avg 2528.1×). Hostelworld Group plc trades at 28.1× trailing earnings, well below its own five-year average of 2528.1×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 8.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.2×**. Enterprise value is 4.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 20.7%** (5-yr avg 0.0%). Free cash flow equals 20.7% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.6%**. The inverse of the P/E: 3.6% of the price is earned each year.

## Profitability
- **Gross margin: 76.9%**. Hostelworld Group plc keeps 76.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 12.3%**. 12.3% of revenue is left after running the business.
- **Net margin: 7.5%**. 7.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.6%**. 9.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 24.2%**. Return on all capital, debt included, is 24.2%: comfortably above what that capital costs.
- **Return on assets: 15.6%**. Each dollar of assets produces 15.6% of profit.

## Growth
- **Revenue growth (1 yr): 2.0%** (3-yr 10.4%/yr, 5-yr 43.6%/yr). Revenue grew 2.0% over the last year, against 43.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -22.4%**. Earnings per share fell 22.4%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.20**. Debt is 0.20 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.1×**. It would take 0.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 16.3×**. Operating profit covers interest 16.3× over, a safe margin.
- **Current ratio: 0.91** (quick 0.91). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 5.16**. A Z-score of 5.16 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.96%** (0p per share, trailing). Hostelworld Group plc yields 1.96%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 14%** (3% of free cash flow). 14% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 4.8%**. Dividends plus net buybacks return 4.8% of the market value a year.

## Price and momentum
- **Total return (1 yr): -0.4%** (YTD -6.8%, 3-mo 6.4%). The shares are down 0.4% over twelve months including dividends.
- **From 52-week high: -20.5%** (20.0% above the low). Trading 20% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): 0.38** (volatility 35%). Beta of 0.38 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HSW.L · Page: https://foliofundamentals.com/stocks/hsw.l

Not investment advice.