Belmond Ltd. (BEL)

(20 October 2016)

BEL Business Summary

Belmond Ltd., together with its subsidiaries, engages in hotel and travel businesses. As of December 31, 2015, the company owned, invested in, or managed 34 deluxe hotels and resorts in the United States, Mexico, Caribbean, Europe, Southern Africa, South America, and Southeast Asia; 1 stand-alone restaurant in New York; 6 tourist trains in Europe, Southeast Asia, and Peru; 2 river cruises in Myanmar, Burma; and 1 canal boat in France. Its portfolio of hotels includes 3,010 individual guest rooms and multiple-room suites. The company was formerly known as Orient-Express Hotels Ltd. and changed its name to Belmond Ltd. in June 2014. Belmond Ltd. was founded in 1971 and is based in Hamilton, Bermuda.

BEL Fundamentals

  • Price to Earnings: 75.42
  • Earnings Per Share: $0.18
  • Market Cap: 1.3B
  • Current Ratio: 1.61
  • Return on Equity: 2.75%
  • Dividend Yield: 0%
  • Debt to Capital %: 46.7%

Income Statement ($ in Thousands)

  • Revenues decreased $8,403.
  • Income from Operations decreased $14,563.
  • Net Income increased $924.
  • Comprehensive Income attributable to Belmond, Ltd increased $45,390.

Cash Flow Statement ($ in Thousands)

  • Net Cash Flow Provided by Operating Activity decreased $18,274.
  • Net Cash Used in Investment Activity increased $31,800.
  • Net Cash provided by Financing Activities increased $32,643.
  • Cash and Cash Equivalents at end of Period decreased $12,157.

Balance Sheet ($ in Thousands)

  • Total Current Assets increased $19,084.
  • Total Assets increased by $36,703.
  • Total Current Liabilities decreased $18,394.
  • Total Stockholder’s Equity increased $12,290.

Highlights from Report

  • Total owned Hotels decreased by 3.
  • Total trains and cruises increased by 3.
  • Average daily rate (in $) declined for all sections of the world.

Entry and Exit Points

  • Entry
    • $8
  • Exit
    • $14

Final Thoughts & Comments

  • Due to balance sheet and income statement, this company has more room to decline.
  • Looking at the charts, its getting close to testing it’s resistance at $13 from June 2015. If it breaks past the $13 point, I wouldn’t be surprised to see it test $14 – $15.
  • However, if it fails to break $13, the share price will fall back into the low $10s and hopefully, the $8 range, at which I would buy given strong support at the $8 price level.
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