LSE:BOWL

Stock Analysis Report

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Executive Summary

Hollywood Bowl Group plc operates ten-pin bowling centers under the Hollywood Bowl and AMF brands in the United Kingdom.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Hollywood Bowl Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

17.8%

BOWL

11.0%

GB Hospitality

3.2%

GB Market


1 Year Return

-30.9%

BOWL

-26.4%

GB Hospitality

-11.7%

GB Market

Return vs Industry: BOWL matched the UK Hospitality industry which returned -30.1% over the past year.

Return vs Market: BOWL underperformed the UK Market which returned -14.4% over the past year.


Shareholder returns

BOWLIndustryMarket
7 Day17.8%11.0%3.2%
30 Day1.2%0.3%5.9%
90 Day-29.3%-23.1%-6.3%
1 Year-27.9%-30.9%-23.9%-26.4%-7.4%-11.7%
3 Year9.3%-4.4%-20.5%-29.2%-4.8%-16.5%
5 Yearn/a1.4%-16.6%13.4%-12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hollywood Bowl Group undervalued compared to its fair value and its price relative to the market?

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BOWL (£1.63) is trading below our estimate of fair value (£2.26)

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


Price To Earnings Ratio

PE vs Industry: BOWL is good value based on its PE Ratio (10.9x) compared to the Hospitality industry average (17.5x).

PE vs Market: BOWL is good value based on its PE Ratio (10.9x) compared to the UK market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: BOWL is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BOWL is overvalued based on its PB Ratio (2.4x) compared to the GB Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Hollywood Bowl Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOWL's forecast earnings growth (11.3% per year) is above the savings rate (1.2%).

Earnings vs Market: BOWL's earnings (11.3% per year) are forecast to grow slower than the UK market (20.1% per year).

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

Revenue vs Market: BOWL's revenue (6.7% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: BOWL's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BOWL's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Hollywood Bowl Group performed over the past 5 years?

33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOWL has high quality earnings.

Growing Profit Margin: BOWL's current net profit margins (17.2%) are higher than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: BOWL's earnings have grown significantly by 33.9% per year over the past 5 years.

Accelerating Growth: BOWL's earnings growth over the past year (18.6%) is below its 5-year average (33.9% per year).

Earnings vs Industry: BOWL earnings growth over the past year (18.6%) exceeded the Hospitality industry -10.9%.


Return on Equity

High ROE: BOWL's Return on Equity (21.9%) is considered high.


Next Steps

Financial Health

How is Hollywood Bowl Group's financial position?


Financial Position Analysis

Short Term Liabilities: BOWL's short term assets (£34.2M) exceed its short term liabilities (£22.4M).

Long Term Liabilities: BOWL's short term assets (£34.2M) do not cover its long term liabilities (£36.0M).


Debt to Equity History and Analysis

Debt Level: BOWL's debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: BOWL's debt to equity ratio has increased from 1.8% to 26.3% over the past 5 years.

Debt Coverage: BOWL's debt is well covered by operating cash flow (124.5%).

Interest Coverage: BOWL's interest payments on its debt are well covered by EBIT (35.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Hollywood Bowl Group's current dividend yield, its reliability and sustainability?

3.31%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: BOWL is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Steve Burns

6.33yrs

Tenure

UK£1,046,700

Compensation

Mr. Stephen Burns, also known as Steve, has been Chief Executive Officer of Hollywood Bowl Group Plc since 2014. Mr. Burns serves as Chief Executive Officer at the Original Bowling Company Limited. Mr. Bur ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.29M) is above average for companies of similar size in the UK market ($USD931.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Burns
CEO & Non-Independent Executive Director6.33yrsUK£1.05m2.13% £5.4m
Laurence Keen
CFO & Non-Independent Executive Director3.92yrsUK£690.80k0.99% £2.5m
Darryl Lewis
Operations Director0.42yrno data0.29% £750.6k
Mathew Hart
Chief Marketing & Technology Officer2.33yrsno data0.65% £1.7m
Melanie Dickinson
Talent Director7.58yrsno data0.43% £1.1m

4.3yrs

Average Tenure

Experienced Management: BOWL's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Burns
CEO & Non-Independent Executive Director6.33yrsUK£1.05m2.13% £5.4m
Laurence Keen
CFO & Non-Independent Executive Director3.92yrsUK£690.80k0.99% £2.5m
Nicholas Backhouse
Senior Independent Non-Executive Director3.92yrsUK£51.60k0.011% £28.2k
Claire Tiney
Independent Non-Executive Director3.92yrsUK£46.60k0.0031% £7.9k
Peter Boddy
Non-Executive Chairman6.33yrsUK£130.00k0.55% £1.4m
Ivan Schofield
Independent Non-Executive Director2.58yrsUK£45.80k0.089% £228.1k

3.9yrs

Average Tenure

55yo

Average Age

Experienced Board: BOWL's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BOWL 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 5%.


Top Shareholders

Company Information

Hollywood Bowl Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hollywood Bowl Group plc
  • Ticker: BOWL
  • Exchange: LSE
  • Founded:
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: UK£255.938m
  • Shares outstanding: 157.50m
  • Website: https://www.hollywoodbowlgroup.com

Number of Employees


Location

  • Hollywood Bowl Group plc
  • Focus 31
  • West Wing
  • Hemel Hempstead
  • Hertfordshire
  • HP2 7BW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2H4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2016
BOWLLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2016
BOWLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2016

Biography

Hollywood Bowl Group plc operates ten-pin bowling centers under the Hollywood Bowl and AMF brands in the United Kingdom. As of September 30, 2018, it operated approximately 50 Hollywood Bowl centers and 8 AMF centers. The company is headquartered in Hemel Hempstead, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 10:04
End of Day Share Price2020/05/26 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.