888 Holdings (LSE:888) - Share price, News & Analysis

888 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

888 Stock Overview

888 Holdings plc, together with its subsidiaries, provides online betting and gaming products and solutions.

Rewards

Trading at 64.1% below our estimate of its fair value

Earnings are forecast to grow 24.12% per year

Earnings grew by 509.7% over the past year

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year

888 Holdings Competitors

Flutter Entertainment

LSE:FLTR

UK£16.5b

Entain

LSE:ENT

UK£8.3b

Playtech

LSE:PTEC

UK£1.7b

Rank Group

LSE:RNK

UK£491.9m

Price History & Performance

Summary of all time highs, changes and price drops for 888 Holdings
Historical stock prices
Current Share Price	UK£2.02
52 Week High	UK£4.94
52 Week Low	UK£1.76
Beta	0.54
1 Month Change	8.60%
3 Month Change	-14.84%
1 Year Change	-51.04%
3 Year Change	51.09%
5 Year Change	-26.94%
Change since IPO	18.82%

Shareholder Returns

	888	GB Hospitality	GB Market
7D	8.3%	1.4%	1.0%
1Y	-51.0%	-15.3%	-2.8%

Return vs Industry: 888 underperformed the UK Hospitality industry which returned -15.3% over the past year.

Return vs Market: 888 underperformed the UK Market which returned -2.8% over the past year.

Price Volatility

Is 888's price volatile compared to industry and market?
888 volatility
888 Average Weekly Movement	8.2%
Hospitality Industry Average Movement	5.9%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.4%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: 888 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 888's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	1,746	Itai Pazner	https://corporate.888.com

888 Holdings plc, together with its subsidiaries, provides online betting and gaming products and solutions. It operates through Business to Customer and Business to Business segments. The company owns proprietary software solutions that provide a range of virtual online gaming services over the internet, including casino, poker, sport, and bingo games.

888 Holdings Fundamentals Summary

How do 888 Holdings's earnings and revenue compare to its market cap?
888 fundamental statistics
Market Cap	US$1.13b
Earnings (TTM)	US$68.90m
Revenue (TTM)	US$980.10m

16.5x

P/E Ratio

1.2x

P/S Ratio

Is 888 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
888 income statement (TTM)
Revenue	US$980.10m
Cost of Revenue	US$158.40m
Gross Profit	US$821.70m
Other Expenses	US$752.80m
Earnings	US$68.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.15
Gross Margin	83.84%
Net Profit Margin	7.03%
Debt/Equity Ratio	0%

How did 888 perform over the long term?

See historical performance and comparison

Valuation

Is 888 Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 888 (£2.02) is trading below our estimate of fair value (£5.62)

Significantly Below Fair Value: 888 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 888 is good value based on its Price-To-Earnings Ratio (16.5x) compared to the UK Hospitality industry average (24.7x).

PE vs Market: 888 is poor value based on its Price-To-Earnings Ratio (16.5x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: 888 is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: 888 is overvalued based on its Price-To-Book Ratio (6.8x) compared to the GB Hospitality industry average (1.8x).

Future Growth

How is 888 Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 888's forecast earnings growth (24.1% per year) is above the savings rate (0.9%).

Earnings vs Market: 888's earnings (24.1% per year) are forecast to grow faster than the UK market (11.1% per year).

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

Revenue vs Market: 888's revenue (4.7% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: 888's revenue (4.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 888's Return on Equity is forecast to be high in 3 years time

Past Performance

How has 888 Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 888 has a large one-off loss of $24.0M impacting its December 31 2021 financial results.

Growing Profit Margin: 888's current net profit margins (7%) are higher than last year (1.3%).

Past Earnings Growth Analysis

Earnings Trend: 888's earnings have declined by 0.5% per year over the past 5 years.

Accelerating Growth: 888's earnings growth over the past year (509.7%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: 888 earnings growth over the past year (509.7%) exceeded the Hospitality industry 105.7%.

Return on Equity

High ROE: 888's Return on Equity (41%) is considered outstanding.

Financial Health

How is 888 Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 888's short term assets ($324.1M) do not cover its short term liabilities ($340.1M).

Long Term Liabilities: 888's short term assets ($324.1M) exceed its long term liabilities ($32.0M).

Debt to Equity History and Analysis

Debt Level: 888 is debt free.

Reducing Debt: 888 had no debt 5 years ago.

Debt Coverage: 888 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 888 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is 888 Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.23%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 888's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 888'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 888's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 888's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 888 is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 888 has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure

CEO

Itai Pazner (48 yo)

3.33yrs

Tenure

US$5,251,000

Compensation

Mr. Itai Pazner has been Chief Executive Officer of 888 Holdings plc since January 24, 2019 and served its Chief Operating Officer since October 2017 until January 24, 2019. Mr. Pazner has been an Executiv...

CEO Compensation Analysis

Compensation vs Market: Itai's total compensation ($USD5.25M) is above average for companies of similar size in the UK market ($USD1.39M).

Compensation vs Earnings: Itai's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 888's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: 888's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if 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 19.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31