DB:WHI

Stock Analysis Report

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Executive Summary

William Hill plc provides sports betting and gaming services in the United Kingdom, the United States, and internationally.


Snowflake Analysis

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.0%

WHI

0.9%

DE Hospitality

1.6%

DE Market


1 Year Return

-26.7%

WHI

-34.9%

DE Hospitality

2.5%

DE Market

Return vs Industry: WHI exceeded the German Hospitality industry which returned -34.9% over the past year.

Return vs Market: WHI underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

WHIIndustryMarket
7 Day5.0%0.9%1.6%
30 Day-22.0%-19.3%-1.4%
90 Day7.5%3.3%16.4%
1 Year-25.7%-26.7%-32.2%-34.9%4.8%2.5%
3 Year-47.4%-53.9%-49.3%-56.3%1.2%-7.1%
5 Year-71.9%-77.3%-49.6%-60.2%9.4%-5.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

16.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WHI (€1.29) is trading below our estimate of fair value (€1.55)

Significantly Below Fair Value: WHI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WHI is overvalued based on its PB Ratio (3.2x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is William Hill forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

64.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: WHI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WHI's is expected to become profitable in the next 3 years.

Revenue vs Market: WHI's revenue (4.1% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: WHI's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHI's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has William Hill performed over the past 5 years?

-51.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHI is currently unprofitable.

Growing Profit Margin: WHI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WHI is unprofitable, and losses have increased over the past 5 years at a rate of -51% per year.

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

Earnings vs Industry: WHI is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: WHI has a negative Return on Equity (-8.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is William Hill's financial position?


Financial Position Analysis

Short Term Liabilities: WHI's short term assets (£516.9M) do not cover its short term liabilities (£782.2M).

Long Term Liabilities: WHI's short term assets (£516.9M) do not cover its long term liabilities (£902.1M).


Debt to Equity History and Analysis

Debt Level: WHI's debt to equity ratio (280%) is considered high.

Reducing Debt: WHI's debt to equity ratio has increased from 61.7% to 280% over the past 5 years.

Debt Coverage: WHI's debt is well covered by operating cash flow (20.4%).

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


Balance Sheet


Next Steps

Dividend

What is William Hill current dividend yield, its reliability and sustainability?

3.33%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate WHI'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 WHI's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WHI'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?

1.2yrs

Average management tenure


CEO

Ulrik Bengtsson (48yo)

0.83

Tenure

UK£868,819

Compensation

Mr. Ulrik Bengtsson has ben Chief Executive Officer of William Hill plc since September 30, 2019. Mr. Bengtsson serves as Director of William Hill plc since September 5, 2019. Mr. Bengtsson was the Group a ...


CEO Compensation Analysis

Compensation vs Market: Ulrik's total compensation ($USD1.09M) is about average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Insufficient data to compare Ulrik's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ulrik Bengtsson
CEO & Executive Director0.83yrUK£868.82k0.012% £164.9k
Matthew Ashley
CFO & Executive Director0.25yrno data0.029% £387.8k
Phillip Feuvre
Interim Chief Operating Officer1.5yrsno datano data
Satty Bhens
Chief Product & Technology Officer0.67yrno datano data
Louise Turner-Smith
Director of Investor Relationsno datano datano data
Simon Callander
General Counsel & Company Secretaryno datano datano data
Alison Cole
Director of Corporate Communicationsno datano datano data
Crispin Nieboer
Group Corporate Development Director2.5yrsno datano data
Karen Myers
Chief Human Resources Officer5.25yrsno datano data
Nicola Frampton
Managing Director of UK Retailno datano datano data

1.2yrs

Average Tenure

Experienced Management: WHI's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ulrik Bengtsson
CEO & Executive Director0.83yrUK£868.82k0.012% £164.9k
Matthew Ashley
CFO & Executive Director0.25yrno data0.029% £387.8k
Roger Devlin
Chairman2.25yrsUK£297.96k0.0091% £121.1k
Gordon Wilson
Independent Non-Executive Director1.5yrsUK£55.00k0.0040% £53.2k
Robin Terrell
Independent Non-Executive Director3.5yrsUK£71.44k0.0014% £18.8k
Mark David Brooker
Senior Independent Non-Executive Director1.67yrsUK£88.00k0.0014% £18.1k
Jane Hanson
Independent Non-Executive Director1yrUK£27.50kno data
Lynne Weedall
Independent Non-Executive Director1yrUK£31.61k0.0011% £15.2k

1.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: WHI'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: WHI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: William Hill plc
  • Ticker: WHI
  • Exchange: DB
  • Founded: 1934
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£1.197b
  • Listing Market Cap: UK£1.331b
  • Shares outstanding: 1.05b
  • Website: https://www.williamhillplc.com

Number of Employees


Location

  • William Hill plc
  • 1 Bedford Avenue
  • London
  • Greater London
  • WC1B 3AU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2002
WMHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2002
WIMH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2002
WMHLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2002
WIMH.YOTCPK (Pink Sheets LLC)ADR-ORD SHSUSUSDJul 2008

Biography

William Hill plc provides sports betting and gaming services in the United Kingdom, the United States, and internationally. It operates through Retail, Online, US Existing, US Expansion, and Other segments. The company operates licensed betting offices (LBOs) that offer sports betting services on football, horseracing, and other sports, as well as gaming machines. It also operates online betting and gaming business that provides in-play and pre-match sports betting services and a range of gaming products; and offers casino, poker, and other gaming products, as well as telephone betting services. In addition, the company is involved in on-course betting operations. As at December 31, 2019, it operated 1,568 LBOs. William Hill plc was founded in 1934 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:28
End of Day Share Price2020/07/09 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.