Is it too late to buy Corporate Travel Management Ltd (ASX:CTD) shares?

The Corporate Travel Management Ltd (ASX: CTD) share price pushed higher again on Tuesday and finished the day up around 1% at $28.95.

At one stage its shares traded at an all-time high of $29.33, bringing its year-to-date price return to an impressive 38%.

Is it too late to buy Corporate Travel Management shares?

I don’t think it is. Although its shares trade at a premium to the market average at 38x estimated full-year earnings, I believe the company is more than capable of growing its earnings at a level that justifies this.

Especially after the recent acquisition of Hong Kong-based Lotus Travel Group for a base consideration of approximately $50 million.

Lotus Travel has been operating for over 60 years and is one of the largest travel companies in Greater China, generating total transaction value (TTV) of A$1 billion in 2017 from its 1,000 local and international clients.

Combined with the company’s Asia business, Corporate Travel Management will be the largest player in Hong Kong serving the Greater China market with a TTV approaching A$2.5 billion.

Management believes that this creates optimum scale which it can best leverage its technology, support costs and enhance its excellent supplier relationships across a wider base to best support long term sustainable growth.

But it isn’t just Asia which I expect to provide the company with meaningful growth in the future.

The North American market is a massive opportunity which the company has barely scratched at the surface of. At present Corporate Travel Management has TTV of $1.3 billion in the market, meaning it has only a tiny share of the US$350 billion market.

Overall, I think there’s still a long runway for growth ahead of the company that makes it a growth share that I want in my portfolio along with fellow travel shares Helloworld Travel Ltd (ASX: HLO) and Webjet Limited (ASX: WEB).

Looking for the next Corporate Travel Management? One of these top small caps could be the next growth star.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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