DB:6GI

Stock Analysis Report

Executive Summary

GVC Holdings PLC, together with its subsidiaries, operates as an online gaming company in Germany, the United Kingdom, rest of Europe, and internationally.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has GVC Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

15.7%

6GI

14.0%

DE Hospitality

4.4%

DE Market


1 Year Return

-9.4%

6GI

-21.1%

DE Hospitality

1.6%

DE Market

Return vs Industry: 6GI exceeded the German Hospitality industry which returned -21.1% over the past year.

Return vs Market: 6GI underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

6GIIndustryMarket
7 Day15.7%14.0%4.4%
30 Day18.2%15.6%0.8%
90 Day45.9%27.9%2.3%
1 Year-3.7%-9.4%-15.7%-21.1%4.8%1.6%
3 Year39.2%20.1%13.6%-1.6%18.9%8.6%
5 Year109.5%64.5%34.5%7.8%43.7%24.1%

Price Volatility Vs. Market

How volatile is GVC Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GVC Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 6GI (€9.62) is trading below our estimate of fair value (€21.55)

Significantly Undervalued: 6GI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6GI is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 6GI is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 6GI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6GI is good value based on its PB Ratio (1.5x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is GVC Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

108.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6GI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 6GI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 6GI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 6GI's revenue (3.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 6GI's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6GI's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has GVC Holdings performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6GI is unprofitable, and losses have increased over the past 5 years at a rate of -30.4% per year.

Accelerating Growth: Unable to compare 6GI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6GI is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.4%).


Return on Equity

High ROE: 6GI has a negative Return on Equity (-5.18%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 6GI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 6GI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is GVC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6GI's short term assets (£924.6M) do not cover its short term liabilities (£1.3B)

Long Term Liabilities: 6GI's short term assets (924.6M) do not cover its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: 6GI's debt to equity ratio (68.8%) is considered high

Reducing Debt: 6GI's debt to equity ratio has increased from 5.6% to 68.8% over the past 5 years.

Debt Coverage: 6GI's debt is well covered by operating cash flow (20.2%).

Interest Coverage: 6GI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 6GI has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6GI's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is GVC Holdings's current dividend yield, its reliability and sustainability?

4.19%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.8%industryaverage6.1%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6GI's dividend (4.19%) is higher than the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: 6GI's dividend (4.19%) is in the top 25% of dividend payers in the German market (3.85%)

Stable Dividend: 6GI's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6GI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 6GI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 6GI's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

What is the CEO of GVC Holdings's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Kenny Alexander (50yo)

12.6yrs

Tenure

UK£20,662,000

Compensation

Mr. Kenneth Jack Alexander, also known as Kenny, has been the Chief Executive Officer of GVC Holdings PLC since joined in March 01, 2007 and its Director since February 2007. Mr. Alexander served as the Ma ...


CEO Compensation Analysis

Compensation vs. Market: Kenny's total compensation ($USD0.00) is too low to compare against companies of similar size in the German market ($USD3.62M).

Compensation vs Earnings: Kenny's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: 6GI's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 6GI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£114,56601 Apr 19
Pierre Bruno Bouchut
EntityIndividual
Role
Member of the Board of Directors
Independent Non-executive Director
Shares18,000
Max PriceUK£6.36
BuyUK£117,03529 Mar 19
Stephen Morana
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares19,425
Max PriceUK£6.02
BuyUK£116,43629 Mar 19
Peter Isola
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares19,335
Max PriceUK£6.02
BuyUK£44,31829 Mar 19
Virginia McDowell
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,000
Max PriceUK£6.33
BuyUK£814,98117 Dec 18
J. Paul Bowtell
EntityIndividual
Shares100,000
Max PriceUK£8.15
BuyUK£39,18131 Oct 18
Jane Anscombe
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,763
Max PriceUK£10.41

Ownership Breakdown


Management Team

  • Per Gustafsson

    Vice President of Business Development

    • Tenure: 0yrs
  • Robert Willis (49yo)

    Co-Founder

    • Tenure: 0yrs
  • Kenny Alexander (50yo)

    CEO & Executive Director

    • Tenure: 12.6yrs
    • Compensation: UK£20.66m
  • Jon Salmon

    Head of CasinoClub

    • Tenure: 9.7yrs
  • Nick Batram

    Director of Investor Relations & External Communications

    • Tenure: 0yrs
  • Shay Segev

    Chief Operating Officer

    • Tenure: 3.6yrs
  • Liron Snir

    Chief Product Officer

    • Tenure: 3.6yrs
  • Adam Lewis

    Chief Marketing Officer

    • Tenure: 6.6yrs
  • Paul Tymms

    Head of Investor Relations

    • Tenure: 0yrs
  • Rob Wood

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Lee Feldman (51yo)

    Non Executive Chairman

    • Tenure: 11.1yrs
    • Compensation: UK£10.08m
  • Virginia McDowell (61yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Pierre Bruno Bouchut (64yo)

    Independent Non-executive Director

    • Tenure: 1.1yrs
  • Kenny Alexander (50yo)

    CEO & Executive Director

    • Tenure: 12.6yrs
    • Compensation: UK£20.66m
  • Jane Anscombe

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£67.00k
  • Stephen Morana (48yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£95.00k
  • Peter Isola (60yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£100.00k

Company Information

GVC Holdings PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GVC Holdings PLC
  • Ticker: 6GI
  • Exchange: DB
  • Founded: 2004
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£4.892b
  • Listing Market Cap: UK£5.648b
  • Shares outstanding: 581.97m
  • Website: https://www.gvc-plc.com

Number of Employees


Location

  • GVC Holdings PLC
  • 32 Athol Street
  • Douglas
  • Isle of Man
  • IM1 1JB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6GIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
GMVH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
GVCLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2004
GVCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2004
GVCWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 2004

Biography

GVC Holdings PLC, together with its subsidiaries, operates as an online gaming company in Germany, the United Kingdom, rest of Europe, and internationally. It operates through Sports Labels, Games Labels,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:57
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.