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Hollywood Bowl Group

LSE:BOWL
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BOWL
LSE
£356M
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Hollywood Bowl Group plc operates ten-pin bowling centers under the Hollywood Bowl and AMF brands in the United Kingdom. The last earnings update was 141 days ago. More info.


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BOWL Share Price and Events
7 Day Returns
1.5%
LSE:BOWL
0.3%
GB Hospitality
0.5%
GB Market
1 Year Returns
1.1%
LSE:BOWL
-8.7%
GB Hospitality
-5.4%
GB Market
BOWL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hollywood Bowl Group (BOWL) 1.5% -1% 4.6% 1.1% - -
GB Hospitality 0.3% -0.1% -2.9% -8.7% 9.7% 28.7%
GB Market 0.5% -1.7% 2.1% -5.4% 13.8% 1.8%
1 Year Return vs Industry and Market
  • BOWL outperformed the Hospitality industry which returned -8.7% over the past year.
  • BOWL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.
Price Volatility
BOWL
Industry
5yr Volatility vs Market

Value

 Is Hollywood Bowl Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hollywood Bowl Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hollywood Bowl Group.

LSE:BOWL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:BOWL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 19%) (7.9%))
0.991
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.991 * 6.65%)
7.82%

Discounted Cash Flow Calculation for LSE:BOWL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hollywood Bowl Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:BOWL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.82%)
2019 15.97 Analyst x2 14.81
2020 18.81 Analyst x2 16.18
2021 21.45 Analyst x2 17.11
2022 22.58 Est @ 5.28% 16.71
2023 23.50 Est @ 4.07% 16.13
2024 24.25 Est @ 3.21% 15.44
2025 24.89 Est @ 2.62% 14.70
2026 25.43 Est @ 2.2% 13.93
2027 25.92 Est @ 1.91% 13.17
2028 26.36 Est @ 1.7% 12.42
Present value of next 10 years cash flows £150.59
LSE:BOWL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £26.36 × (1 + 1.23%) ÷ (7.82% – 1.23%)
£404.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £404.97 ÷ (1 + 7.82%)10
£190.80
LSE:BOWL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £150.59 + £190.80
£341.39
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £341.39 / 150.00
£2.28
LSE:BOWL Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.28
Current discount Discount to share price of £2.38
= -1 x (£2.38 - £2.28) / £2.28
-4.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hollywood Bowl Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hollywood Bowl Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hollywood Bowl Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:BOWL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £0.13
LSE:BOWL Share Price ** LSE (2019-05-23) in GBP £2.38
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hollywood Bowl Group.

LSE:BOWL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:BOWL Share Price ÷ EPS (both in GBP)

= 2.38 ÷ 0.13

18.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hollywood Bowl Group is overvalued based on earnings compared to the GB Hospitality industry average.
  • Hollywood Bowl Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Hollywood Bowl Group's expected growth come at a high price?
Raw Data
LSE:BOWL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
7.4%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

LSE:BOWL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.97x ÷ 7.4%

2.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hollywood Bowl Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hollywood Bowl Group's assets?
Raw Data
LSE:BOWL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £0.63
LSE:BOWL Share Price * LSE (2019-05-23) in GBP £2.38
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.5x
LSE:BOWL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:BOWL Share Price ÷ Book Value per Share (both in GBP)

= 2.38 ÷ 0.63

3.75x

* Primary Listing of Hollywood Bowl Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hollywood Bowl Group is overvalued based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Hollywood Bowl Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Hollywood Bowl Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hollywood Bowl Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hollywood Bowl Group expected to grow at an attractive rate?
  • Hollywood Bowl Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Hollywood Bowl Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Hollywood Bowl Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:BOWL Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:BOWL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 7.4%
LSE:BOWL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 5.1%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:BOWL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:BOWL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 148 1
2021-09-30 141 36 24 7
2020-09-30 135 34 22 7
2019-09-30 128 33 21 7
LSE:BOWL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 121 31 19
2018-06-30 120 31 19
2018-03-31 119 32 20
2017-12-31 117 31 19
2017-09-30 114 29 18
2017-06-30 111 12
2017-03-31 108 22 6
2016-12-31 106 24 4
2016-09-30 105 25 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hollywood Bowl Group's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
  • Hollywood Bowl Group's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:BOWL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Hollywood Bowl Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BOWL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30
2021-09-30 0.16 0.16 0.16 4.00
2020-09-30 0.15 0.15 0.15 4.00
2019-09-30 0.14 0.14 0.14 4.00
LSE:BOWL Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 0.13
2018-06-30 0.13
2018-03-31 0.13
2017-12-31 0.13
2017-09-30 0.12
2017-06-30 0.09
2017-03-31 0.05
2016-12-31 0.03
2016-09-30 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hollywood Bowl Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Hollywood Bowl Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hollywood Bowl Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hollywood Bowl Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hollywood Bowl Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Hollywood Bowl Group's 1-year earnings growth is less than its 5-year average (2.9% vs 37.9%)
  • Hollywood Bowl Group's earnings growth has not exceeded the GB Hospitality industry average in the past year (2.9% vs 12.8%).
Earnings and Revenue History
Hollywood Bowl Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hollywood Bowl Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:BOWL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 120.55 18.78 67.64
2018-06-30 119.96 19.42 67.65
2018-03-31 119.38 20.07 67.66
2017-12-31 116.67 19.16 66.45
2017-09-30 113.97 18.26 65.25
2017-06-30 111.02 12.24 67.64
2017-03-31 108.07 6.21 70.04
2016-12-31 106.43 3.70 65.43
2016-09-30 104.80 1.19 60.82
2015-09-30 84.62 3.59 58.05
2014-09-30 78.73 5.13 48.24
2013-09-30 70.15 1.59 45.53
2012-09-30 68.18 1.71 44.55

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hollywood Bowl Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hollywood Bowl Group used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Hollywood Bowl Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hollywood Bowl Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hollywood Bowl Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hollywood Bowl Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hollywood Bowl Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hollywood Bowl Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hollywood Bowl Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hollywood Bowl Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hollywood Bowl Group Company Filings, last reported 7 months ago.

LSE:BOWL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 94.94 28.14 26.04
2018-06-30 94.94 28.14 26.04
2018-03-31 90.76 28.83 22.03
2017-12-31 90.76 28.83 22.03
2017-09-30 89.76 29.52 21.89
2017-06-30 89.76 29.52 21.89
2017-03-31 84.05 29.49 16.54
2016-12-31 84.05 29.49 16.54
2016-09-30 74.36 29.46 9.22
2015-09-30 -0.29 93.43 14.70
2014-09-30 14.57 0.00 3.97
2013-09-30 9.44 0.00 10.98
2012-09-30 7.86 0.00 9.11
  • Hollywood Bowl Group's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 29.6% today).
  • Debt is well covered by operating cash flow (108.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 28.2x coverage).
X
Financial health checks
We assess Hollywood Bowl Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hollywood Bowl Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.46%
Current annual income from Hollywood Bowl Group dividends. Estimated to be 3.41% next year.
If you bought £2,000 of Hollywood Bowl Group shares you are expected to receive £89 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hollywood Bowl Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
  • Hollywood Bowl Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:BOWL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:BOWL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.08 1.00
2021-09-30 0.09 7.00
2020-09-30 0.08 7.00
2019-09-30 0.08 7.00
LSE:BOWL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-01-31 0.106 4.702
2018-01-30 0.058 2.722
2017-05-24 0.036 2.017
2017-01-04 0.002 0.114
2016-12-13 0.002 0.112

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Hollywood Bowl Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Hollywood Bowl Group only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Hollywood Bowl Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Hollywood Bowl Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hollywood Bowl Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hollywood Bowl Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hollywood Bowl Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Burns
COMPENSATION £536,100
TENURE AS CEO 5.3 years
CEO Bio

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. Burns joined Hollywood Bowl as Business Development Director in 2011 and served as its Managing Director in 2012. Previously, he worked within the Health and Fitness industry, holding various roles within Cannons Health and Fitness Limited since 1999, becoming Sales and Client Retention Director since 2007 upon the successful acquisition of Cannons Health and Fitness Ltd by Nuffield Health and then becoming Regional Director in 2009. In 2011 he was appointed to the operating board of MWB Business Exchange, a public company specializing in serviced offices, meeting and conference rooms and virtual offices, looking after the CEC and outer London brands. Mr. Burns was appointed as Chairman as Club Company Limited in June 2018. He has been Non-Independent Director of Hollywood Bowl Group Plc since June 14, 2016.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Steve Burns

TITLE
CEO & Non-Independent Director
COMPENSATION
£536K
TENURE
5.3 yrs

Laurence Keen

TITLE
CFO & Non-Independent Director
COMPENSATION
£357K

Mat Hart

TITLE
Chief Marketing & Technology Officer
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Hollywood Bowl Group board of directors in years:

2.9
Average Tenure
54
Average Age
  • The average tenure for the Hollywood Bowl Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Peter Boddy

TITLE
Non-Executive Chairman
COMPENSATION
£102K
AGE
53
TENURE
5.3 yrs

Steve Burns

TITLE
CEO & Non-Independent Director
COMPENSATION
£536K
TENURE
2.9 yrs

Laurence Keen

TITLE
CFO & Non-Independent Director
COMPENSATION
£357K
TENURE
2.9 yrs

Nick Backhouse

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£51K
AGE
54
TENURE
2.9 yrs

Claire Tiney

TITLE
Independent Non-Executive Director
COMPENSATION
£46K
AGE
57
TENURE
2.9 yrs

Ivan Schofield

TITLE
Independent Non-Executive Director
COMPENSATION
£45K
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
14. Sep 18 Buy Laurence Keen Individual 14. Sep 18 14. Sep 18 2,352 £2.13 £4,998
01. Jun 18 Buy Laurence Keen Individual 31. May 18 31. May 18 1,000 £2.29 £2,285
X
Management checks
We assess Hollywood Bowl Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hollywood Bowl Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Hollywood Bowl Group plc (LON:BOWL) Earns A Nice Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Hollywood Bowl Group: 0.19 = UK£25m ÷ (UK£154m - UK£21m) (Based on the trailing twelve months to September 2018.) So, Hollywood Bowl Group has an ROCE of 19%. … View our latest analysis for Hollywood Bowl Group Is Hollywood Bowl Group's ROCE Good? … How Hollywood Bowl Group's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months.

Simply Wall St -

A Look At The Intrinsic Value Of Hollywood Bowl Group plc (LON:BOWL)

by taking the expected future cash flows and discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Should Hollywood Bowl Group (LON:BOWL) Be Disappointed With Their 10% Profit?

For example, the Hollywood Bowl Group plc (LON:BOWL) share price is up 10% in the last year, clearly besting than the market return of around 1.7% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the last year Hollywood Bowl Group grew its earnings per share (EPS) by 2.9%.

Simply Wall St -

You Might Like Hollywood Bowl Group plc (LON:BOWL) But Do You Like Its Debt?

However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

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What Should We Expect From Hollywood Bowl Group plc's (LON:BOWL) Earnings In The Next 12 Months?

In September 2018, Hollywood Bowl Group plc (LON:BOWL) released its earnings update. … with earnings expected to grow by 9.6% in the upcoming year … the higher past 5-year average growth rate of 38%

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Hollywood Bowl Group plc (LON:BOWL)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Hollywood Bowl Group plc's (LON:BOWL) P/E ratio and reflect on what it tells us about the company's share price. … Hollywood Bowl Group has a price to earnings ratio of 18.37, based on the last twelve months.

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Does Hollywood Bowl Group plc's (LON:BOWL) 2.9% Earnings Growth Reflect The Long-Term Trend?

Investors may find my commentary, albeit very high-level and brief, on Hollywood Bowl Group plc (LON:BOWL) useful as an attempt to give more color around how Hollywood Bowl Group is currently performing. … View our latest analysis for Hollywood Bowl Group? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 38%, indicating the rate at which BOWL is growing has slowed down.

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How Much Money Does Hollywood Bowl Group plc (LON:BOWL) Make?

Two important questions to ask before you buy Hollywood Bowl Group plc (LON:BOWL) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Hollywood Bowl Group’s cash flow, which will help you understand the stock from a cash standpoint. … Is Hollywood Bowl Group generating enough cash.

Simply Wall St -

Is Hollywood Bowl Group plc's (LON:BOWL) ROE Of 20% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Hollywood Bowl Group plc (LON:BOWL). … That means that for every £1 worth of shareholders' equity, it generated £0.20 in profit.

Simply Wall St -

Hollywood Bowl Group plc (LON:BOWL) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Company Info

Description

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.

Details
Name: Hollywood Bowl Group plc
BOWL
Exchange: LSE
Founded:
£356,250,000
150,000,000
Website: http://www.hollywoodbowlgroup.com
Address: Hollywood Bowl Group plc
Focus 31,
West Wing,
Hemel Hempstead,
Hertfordshire, HP2 7BW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE BOWL Ordinary Shares London Stock Exchange GB GBP 21. Sep 2016
DB 2H4 Ordinary Shares Deutsche Boerse AG DE EUR 21. Sep 2016
BATS-CHIXE BOWLL Ordinary Shares BATS 'Chi-X Europe' GB GBP 21. Sep 2016
Number of employees
Current staff
Staff numbers
1,921
Hollywood Bowl Group employees.
Industry
Leisure Facilities
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:30
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/23
Last earnings filing: 2019/01/02
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.