LSE:888

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has 888 Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 888's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

41.0%

888

11.1%

GB Hospitality

5.9%

GB Market


1 Year Return

-26.9%

888

-26.0%

GB Hospitality

-22.7%

GB Market

Return vs Industry: 888 underperformed the UK Hospitality industry which returned -22.2% over the past year.

Return vs Market: 888 underperformed the UK Market which returned -18.8% over the past year.


Shareholder returns

888IndustryMarket
7 Day41.0%11.1%5.9%
30 Day-2.5%-31.3%-23.1%
90 Day-31.2%-34.6%-28.1%
1 Year-25.8%-26.9%-23.9%-26.0%-18.6%-22.7%
3 Year-50.0%-57.3%-16.1%-24.6%-13.4%-24.7%
5 Year-1.5%-25.0%-3.6%-18.7%1.3%-22.0%

Price Volatility Vs. Market

How volatile is 888 Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 888 (£1.14) is trading below our estimate of fair value (£2.12)

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 PE Ratio (8.7x) compared to the Hospitality industry average (17.7x).

PE vs Market: 888 is good value based on its PE Ratio (8.7x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: 888 is poor value based on its PEG Ratio (342.3x)


Price to Book Ratio

PB vs Industry: 888 is overvalued based on its PB Ratio (3.4x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is 888 Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

0.03%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 888's forecast earnings growth (0.03% per year) is below the savings rate (0.5%).

Earnings vs Market: 888's earnings (0.03% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 888's earnings are forecast to grow, but not significantly.

Revenue vs Market: 888's revenue (3.9% per year) is forecast to grow faster than the UK market (2.7% per year).

High Growth Revenue: 888's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 888's Return on Equity is forecast to be high in 3 years time (26.2%)


Next Steps

Past Performance

How has 888 Holdings performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 888 has high quality earnings.

Growing Profit Margin: 888's current net profit margins (11.1%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: 888's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: 888's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 888 had negative earnings growth (-31.2%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).


Return on Equity

High ROE: 888's Return on Equity (38.8%) is considered high.


Next Steps

Financial Health

How is 888 Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 888's short term assets ($154.8M) do not cover its short term liabilities ($265.9M).

Long Term Liabilities: 888's short term assets ($154.8M) exceed its long term liabilities ($21.6M).


Debt to Equity History and Analysis

Debt Level: 888's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 888's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 888's debt is well covered by operating cash flow (212.5%).

Interest Coverage: 888's interest payments on its debt are well covered by EBIT (111.5x coverage).


Balance Sheet

Inventory Level: 888 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 888's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

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

6.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 888's dividend (6.36%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: 888's dividend (6.36%) is low compared to the top 25% of dividend payers in the UK market (7.27%).


Stability and Growth of Payments

Stable Dividend: 888's dividend payments have been volatile in the past 10 years.

Growing Dividend: 888's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.5%), 888's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 888's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Itai Pazner (46yo)

1.17s

Tenure

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 a Director  ...


Leadership Team

NamePositionTenureCompensationOwnership
Aviad Kobrine
CFO & Director14.58yrsUS$1.53mno data
Itai Pazner
CEO & Director1.17yrsno datano data
Naama Kushnir
Chief Operating Officer1yrno datano data
Yaniv Sherman
Senior VP & Head of Commercial Developmentno datano datano data
Guy Cohen
Senior VP & Head of B2Cno datano datano data
Michael Alonso
External Consultantno datano datano data
Andrew Anthony
Responsible Gaming Directorno datano datano data
Yuval Benyamini
Vice President of Sportno datano datano data
Ofer Siloni
Vice President of Gamingno datano datano data

1.2yrs

Average Tenure

Experienced Management: 888's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Aviad Kobrine
CFO & Director14.58yrsUS$1.53mno data
Itai Pazner
CEO & Director1.17yrsno datano data
Anne de Kerckhove
Independent Non-Executive Director2.33yrsUS$120.00kno data
Brian Mattingley
Non-Executive Chairman4.83yrsUS$431.00k0.039% $162.9k
Mark Summerfield
Independent Non-Executive Director0.50yrno data0.0083% $34.7k
Zvika Zivlin
Independent Non-Executive Director2.83yrsUS$134.00kno data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Board: 888's board of directors are not considered experienced ( 2.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: 888 Holdings plc
  • Ticker: 888
  • Exchange: LSE
  • Founded: 1997
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£419.531m
  • Shares outstanding: 368.01m
  • Website: https://corporate.888.com

Number of Employees


Location

  • 888 Holdings plc
  • Europort
  • Suite 601/701
  • Gibraltar
  • Gibraltar

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
888LSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2005
C8VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2005
EIHD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2005
888LBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2005

Biography

888 Holdings plc, together with its subsidiaries, provides online gaming entertainment 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 and games, poker, bingo, sport, and Mytopia social games to the end users and business partners. It also provides payment services, customer support, and online advertising services, as well as licenses its brand on third party platforms. The company serves clients in the United Kingdom, rest of Europe, the Americas, and internationally. 888 Holdings plc was founded in 1997 and is headquartered in Gibraltar. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:25
End of Day Share Price2020/03/27 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.