DB:PL8

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Executive Summary

Playtech Plc develops and sells software platforms and services for the online and land-based gambling industry worldwide.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PL8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

PL8

6.9%

DE Hospitality

2.8%

DE Market


1 Year Return

-32.2%

PL8

-36.2%

DE Hospitality

0.2%

DE Market

Return vs Industry: PL8 exceeded the German Hospitality industry which returned -36.2% over the past year.

Return vs Market: PL8 underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

PL8IndustryMarket
7 Day-0.7%6.9%2.8%
30 Day-9.1%-14.5%-1.6%
90 Day72.3%21.5%22.0%
1 Year-31.3%-32.2%-33.6%-36.2%2.3%0.2%
3 Yearn/a-47.9%-54.9%3.4%-5.0%
5 Year-64.9%-71.2%-47.1%-58.2%11.4%-3.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

75.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PL8 (€3.31) is trading above our estimate of fair value (€1.84)

Significantly Below Fair Value: PL8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PL8 is poor value based on its PE Ratio (75.5x) compared to the Hospitality industry average (20.9x).

PE vs Market: PL8 is poor value based on its PE Ratio (75.5x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: PL8 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PL8 is good value based on its PB Ratio (0.8x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Playtech forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PL8's forecast earnings growth (50.9% per year) is above the savings rate (0.2%).

Earnings vs Market: PL8's earnings (50.9% per year) are forecast to grow faster than the German market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PL8's revenue (0.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: PL8's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PL8's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Playtech performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PL8 has a large one-off loss of €28.9M impacting its December 31 2019 financial results.

Growing Profit Margin: PL8's current net profit margins (0.9%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: PL8's earnings have declined by -3.9% per year over the past 5 years.

Accelerating Growth: PL8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PL8 had negative earnings growth (-89.7%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: PL8's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Playtech's financial position?


Financial Position Analysis

Short Term Liabilities: PL8's short term assets (€1.0B) exceed its short term liabilities (€777.2M).

Long Term Liabilities: PL8's short term assets (€1.0B) do not cover its long term liabilities (€1.1B).


Debt to Equity History and Analysis

Debt Level: PL8's debt to equity ratio (76.6%) is considered high.

Reducing Debt: PL8's debt to equity ratio has increased from 28.2% to 76.6% over the past 5 years.

Debt Coverage: PL8's debt is well covered by operating cash flow (34.3%).

Interest Coverage: PL8's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Playtech current dividend yield, its reliability and sustainability?

2.07%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PL8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PL8's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PL8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PL8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PL8 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PL8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Mor Weizer (44yo)

13.17yrs

Tenure

€2,930,588

Compensation

Mr. Mor Weizer, also known as Mor, serves as the Chief Executive Officer of Playtech Inc. Mr. Weizer has been the Chief Executive Officer and Executive Director of Playtech plc since May 2, 2007. Mr. Weize ...


CEO Compensation Analysis

Compensation vs Market: Mor's total compensation ($USD3.29M) is above average for companies of similar size in the German market ($USD1.43M).

Compensation vs Earnings: Mor's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Moran Weizer
CEO & Executive Director13.17yrs€2.93m0.087% 851.1k
Andrew Smith
CFO & Executive Director3.5yrs€1.16m0.026% 258.8k
Shimon Akad
Chief Operating Officerno datano datano data
Chris McGinnis
Director of Investor Relations & Strategic Analysisno datano datano data
Ian Ince
Head of Regulatory Affairs & Complianceno datano datano data
Alex Latner
General Counselno datano datano data
James Newman
Director of Corporate Affairsno datano datano data
Francesco Rodano
Chief Policy Officer4.08yrsno datano data
Robert Penfold
Head of Internal Auditno datano datano data
Ron Hoffman
Chief Executive Officer of TradeTech Group3.5yrs€1.35m0.017% 165.5k

3.8yrs

Average Tenure

Experienced Management: PL8's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Moran Weizer
CEO & Executive Director13.17yrs€2.93m0.087% 851.1k
Andrew Smith
CFO & Executive Director3.5yrs€1.16m0.026% 258.8k
Ian Penrose
Independent Non-Executive Director1.83yrs€120.13k0.0059% 57.6k
John Jackson
Senior Independent Director1.17yrs€120.13k0.0017% 16.4k
John Krumins
Independent Non-Executive Director1.25yrs€89.72k0.0034% 32.9k
Anna Massion
Independent Non-Executive Director1.25yrs€89.72k0.0034% 32.9k
Claire Milne
Independent Group Interim Chairman0.17yr€120.13kno data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PL8's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PL8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Playtech plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Playtech plc
  • Ticker: PL8
  • Exchange: DB
  • Founded: 1999
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£881.939m
  • Listing Market Cap: UK£978.039m
  • Shares outstanding: 297.35m
  • Website: https://www.playtech.com

Number of Employees


Location

  • Playtech plc
  • St George’s Court
  • Ground Floor
  • Douglas
  • IM1 1EE
  • Isle of Man

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTECLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2006
PL8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2006
PYTC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2006
PTECLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2006
PYTC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDMay 2010

Biography

Playtech Plc develops and sells software platforms and services for the online and land-based gambling industry worldwide. The company operates through Gaming B2B, Gaming B2C, and Financial segments. It operates an online trading platform to retail customers, which enable them to trade contracts for differences on various instruments, such as foreign exchange, commodities, equities, and indices; provides B2B clearing and execution services for retail brokers and professional clients; and offers technology and risk management services for retail brokers. The company also offers online casino, sports betting, and casual gaming applications; bingo, live gaming, and land-based kiosk networks; and land-based sports and fixed-odds betting terminals. In addition, it owns the intellectual property rights and licenses the software; provides marketing and advertising, turnkey, and operational and hosting services; operates betting shops; and distributes lottery software. The company was founded in 1999 and is based in Douglas, the Isle of Man. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 21:36
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.