Investors Met With Slowing Returns on Capital At Whitbread (LON:WTB)
Jan 13
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U.K. (FTSE) Hospitality Industry Analysis
UpdatedJan 17, 2025
DataAggregated Company Financials
Companies37
- 7D-1.0%
- 3M0.8%
- 1Y8.4%
- YTD-2.2%
Over the last 7 days, the Hospitality industry has dropped 1.0%, driven by a pullback from Compass Group of 2.2%. This takes the industry's 12 month performance to a gain of 8.4%. Earnings are forecast to grow by 20% annually.
Industry Valuation and Performance
Has the U.K. Hospitality Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 17 Jan 2025 | UK£70.4b | UK£60.5b | UK£1.7b | 18.3x | 41.8x | 1.2x |
| Sun, 15 Dec 2024 | UK£72.7b | UK£59.5b | UK£1.7b | 19.8x | 43.9x | 1.2x |
| Tue, 12 Nov 2024 | UK£71.4b | UK£58.0b | UK£1.7b | 22.6x | 41.3x | 1.2x |
| Thu, 10 Oct 2024 | UK£68.6b | UK£57.5b | UK£1.8b | 21.7x | 38.9x | 1.2x |
| Sat, 07 Sep 2024 | UK£67.5b | UK£57.3b | UK£1.7b | 23.4x | 39.3x | 1.2x |
| Mon, 05 Aug 2024 | UK£64.7b | UK£58.0b | UK£1.2b | 22.2x | 53x | 1.1x |
| Wed, 03 Jul 2024 | UK£61.6b | UK£58.2b | UK£1.2b | 21.5x | 49.9x | 1.1x |
| Fri, 31 May 2024 | UK£89.4b | UK£67.6b | UK£215.9m | 22.2x | 414.2x | 1.3x |
| Sun, 28 Apr 2024 | UK£90.4b | UK£65.8b | UK£85.2m | 21.4x | 1060.9x | 1.4x |
| Tue, 26 Mar 2024 | UK£95.4b | UK£65.4b | UK£892.1m | 23x | 107x | 1.5x |
| Thu, 22 Feb 2024 | UK£94.0b | UK£65.1b | UK£1.1b | 21.3x | 84.5x | 1.4x |
| Sat, 20 Jan 2024 | UK£93.9b | UK£66.2b | UK£980.8m | 21.5x | 95.7x | 1.4x |
| Mon, 18 Dec 2023 | UK£88.3b | UK£66.2b | UK£982.3m | 22.2x | 89.9x | 1.3x |
| Wed, 15 Nov 2023 | UK£85.5b | UK£64.3b | UK£1.0b | 20.4x | 81.5x | 1.3x |
| Fri, 13 Oct 2023 | UK£87.5b | UK£64.0b | UK£988.5m | 22.1x | 88.6x | 1.4x |
| Sun, 10 Sep 2023 | UK£90.2b | UK£63.9b | UK£1.0b | 18x | 89.1x | 1.4x |
| Tue, 08 Aug 2023 | UK£93.3b | UK£61.9b | UK£1.2b | 25.9x | 77.6x | 1.5x |
| Thu, 06 Jul 2023 | UK£94.8b | UK£61.8b | UK£1.2b | 21.3x | 79.6x | 1.5x |
| Sat, 03 Jun 2023 | UK£97.6b | UK£61.7b | UK£1.2b | 23.2x | 81.5x | 1.6x |
| Mon, 01 May 2023 | UK£95.9b | UK£56.8b | UK£1.1b | 21.8x | 89x | 1.7x |
| Wed, 29 Mar 2023 | UK£87.7b | UK£55.4b | UK£1.2b | 17.6x | 70.4x | 1.6x |
| Fri, 24 Feb 2023 | UK£86.7b | UK£53.3b | UK£1.8b | 20.3x | 49x | 1.6x |
| Sun, 22 Jan 2023 | UK£84.8b | UK£53.1b | UK£2.1b | 12x | 40.3x | 1.6x |
| Tue, 20 Dec 2022 | UK£79.1b | UK£53.1b | UK£2.1b | 10.8x | 37.6x | 1.5x |
| Thu, 17 Nov 2022 | UK£78.0b | UK£47.5b | UK£1.4b | 11.3x | 53.9x | 1.6x |
| Sat, 15 Oct 2022 | UK£142.8b | UK£46.8b | UK£1.1b | 9.1x | 126x | 3.1x |
| Mon, 12 Sep 2022 | UK£77.3b | UK£45.7b | UK£1.2b | 13.3x | 62x | 1.7x |
| Wed, 10 Aug 2022 | UK£76.2b | UK£44.5b | UK£1.3b | 12x | 60.5x | 1.7x |
| Fri, 08 Jul 2022 | UK£71.0b | UK£44.2b | UK£1.2b | 13.7x | 58.3x | 1.6x |
| Sun, 05 Jun 2022 | UK£77.6b | UK£44.0b | UK£1.2b | 16.6x | 65.7x | 1.8x |
| Tue, 03 May 2022 | UK£75.2b | UK£38.7b | UK£97.2m | 27.1x | 774x | 1.9x |
| Thu, 31 Mar 2022 | UK£77.0b | UK£37.9b | -UK£231,809,400.00 | 20.1x | -332.2x | 2x |
| Sat, 26 Feb 2022 | UK£78.9b | UK£36.5b | -UK£410,753,213.00 | 29.8x | -192x | 2.2x |
| Mon, 24 Jan 2022 | UK£82.9b | UK£36.3b | -UK£542,015,663.00 | 45.9x | -153x | 2.3x |
Price to Earnings Ratio
-153x
Current Industry PE
- Investors are pessimistic on the British Hospitality industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 41.8x which is lower than its 3-year average PE of 95.6x.
- The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- Total earnings for the Hospitality industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 19% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.K. Consumer Discretionary industry?
| GB Market | 0.96% | |
| Consumer Discretionary | -0.51% | |
| Hospitality | -1.03% | |
| Hotels, Resorts and Cruise Lines | 0.43% | |
| Casinos and Gaming | 0.23% | |
| Leisure Facilities | -0.87% | |
| Restaurants | -1.39% | |
Industry PE
- Investors are most optimistic about the Restaurants industry which is trading above its 3-year average PE ratio of 23.1x.
- Analysts are expecting annual earnings growth of 15.7%, which is higher than its past year's earnings decline of 5.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Casinos and Gaming industry, expecting annual earnings growth of 61% over the next 5 years.
- This is better than its past earnings decline of 20% per year.
- In contrast, the Restaurants industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| IHG InterContinental Hotels Group | UK£103.65 | 3.4% +UK£536.8m | 39.7% | PE31.3x | |
| ENT Entain | UK£6.70 | 7.3% +UK£290.2m | -27.0% | PS0.9x | |
| GRG Greggs | UK£22.34 | 7.3% +UK£154.2m | -17.0% | PE16.5x | |
| ROO Deliveroo | UK£1.35 | 5.5% +UK£102.2m | 7.0% | PE40.5x | |
| WTB Whitbread | UK£29.18 | 2.0% +UK£98.3m | -17.8% | PE21.4x |
