LSE:888

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

3.3%

888

-0.03%

GB Hospitality

1.1%

GB Market


1 Year Return

-15.2%

888

14.7%

GB Hospitality

2.7%

GB Market

Return vs Industry: 888 underperformed the UK Hospitality industry which returned 14.7% over the past year.

Return vs Market: 888 underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

888IndustryMarket
7 Day3.3%-0.03%1.1%
30 Day4.4%0.7%-1.7%
90 Day-0.9%2.8%-2.7%
1 Year-10.5%-15.2%18.9%14.7%7.8%2.7%
3 Year-16.5%-28.7%29.3%15.7%19.3%4.7%
5 Year64.2%25.0%68.6%41.9%38.0%8.1%

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?

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 888 (£1.64) is trading below our estimate of fair value (£2.45)

Significantly Undervalued: 888 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 888 is good value based on its PE Ratio (12.7x) compared to the Hospitality industry average (24.1x).

PE vs Market: 888 is good value based on its PE Ratio (12.7x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 888 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 888 is overvalued based on its PB Ratio (4.9x) compared to the GB Hospitality industry average (1.3x).


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 888's forecast earnings growth (7.5% per year) is above the savings rate (1.2%).

Earnings vs Market: 888's earnings (7.5% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: 888's revenue (6.6% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 888's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 888's Return on Equity is forecast to be high in 3 years time (29.9%)


Next Steps

Past Performance

How has 888 Holdings performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History


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 (5.6%).


Return on Equity

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


Return on Assets

ROA vs Industry: 888 has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 888's Return on Capital Employed has declined over the past 3 years.


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) exceeds 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 4.719510x debt).


Next Steps

Dividend

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

4.38%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 888's dividend (4.38%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: 888's dividend (4.38%) is low compared to the top 25% of dividend payers in the UK market (5.44%).

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 (55.6% payout ratio).


Next Steps

Management

What is the CEO of 888 Holdings's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Itai Pazner (46yo)

0.8yrs

Tenure

0

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  ...


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: 888's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 888's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 888 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$46,20012 Sep 19
Mark Summerfield
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max PriceUS$1.54
SellUS$3,040,00016 Apr 19
Itai Frieberger
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000,000
Max PriceUS$1.52

Ownership Breakdown


Management Team

  • Aviad Kobrine (55yo)

    CFO & Director

    • Tenure: 14.2yrs
    • Compensation: US$1.53m
  • Ofer Siloni

    Vice President of Gaming

    • Tenure: 0yrs
  • Michael Alonso

    External Consultant

    • Tenure: 0yrs
  • Itai Pazner (46yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Naama Kushnir

    Chief Operating Officer

    • Tenure: 0.6yrs
  • Andrew Anthony

    Responsible Gaming Director

    • Tenure: 0yrs
  • Yuval Benyamini

    Vice President of Sport

    • Tenure: 0yrs
  • Yaniv Sherman

    Senior VP & Head of Commercial Development

    • Tenure: 0yrs
  • Guy Cohen

    Senior VP & Head of B2C

    • Tenure: 0yrs

Board Members

  • Anne de Kerckhove (46yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: US$120.00k
  • Brian Mattingley (67yo)

    Non-Executive Chairman

    • Tenure: 4.4yrs
    • Compensation: US$431.00k
  • Aviad Kobrine (55yo)

    CFO & Director

    • Tenure: 14.2yrs
    • Compensation: US$1.53m
  • Itai Frieberger (48yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$2.52m
  • Mark Summerfield

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Zvika Zivlin (53yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$134.00k
  • Itai Pazner (46yo)

    CEO & Director

    • Tenure: 0.8yrs

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£601.257m
  • Shares outstanding: 367.97m
  • 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 p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:51
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.