LSE:BOWL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


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


Market Performance


7 Day Return

4.5%

BOWL

0.2%

GB Hospitality

1.7%

GB Market


1 Year Return

17.1%

BOWL

16.1%

GB Hospitality

2.9%

GB Market

Return vs Industry: BOWL exceeded the UK Hospitality industry which returned 16.1% over the past year.

Return vs Market: BOWL exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

BOWLIndustryMarket
7 Day4.5%0.2%1.7%
30 Day5.9%0.2%-0.7%
90 Day7.4%1.3%-1.8%
1 Year22.8%17.1%20.4%16.1%8.0%2.9%
3 Year53.1%38.0%27.8%14.4%18.2%3.8%
5 Yearn/a63.5%37.7%35.6%6.1%

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?

17.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BOWL (£2.33) is trading above our estimate of fair value (£2.31)

Significantly Undervalued: BOWL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BOWL is good value based on its PE Ratio (17.1x) compared to the Hospitality industry average (24.8x).

PE vs Market: BOWL is poor value based on its PE Ratio (17.1x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BOWL is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BOWL is overvalued based on its PB Ratio (3.7x) compared to the GB Hospitality industry average (1.3x).


Next Steps

Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOWL's forecast earnings growth (6.7% per year) is above the savings rate (1.2%).

Earnings vs Market: BOWL's earnings (6.7% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: BOWL's revenue (5.4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: BOWL's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BOWL's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

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

38.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BOWL's earnings have grown significantly by 38.3% per year over the past 5 years.

Accelerating Growth: BOWL's earnings growth over the past year (1.6%) is below its 5-year average (38.3% per year).

Earnings vs Industry: BOWL earnings growth over the past year (1.6%) underperformed the Hospitality industry 5.6%.


Return on Equity

High ROE: BOWL's Return on Equity (21.3%) is considered high.


Return on Assets

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


Return on Capital Employed

ROCE Improving: BOWL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hollywood Bowl Group's financial position?


Financial Position Analysis

Short Term Liabilities: BOWL's short term assets (£31.2M) exceeds its short term liabilities (£22.1M)

Long Term Liabilities: BOWL's short term assets (31.2M) do not cover its long term liabilities (36.9M)


Debt to Equity History and Analysis

Debt Level: BOWL's debt to equity ratio (28.7%) is considered satisfactory

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

Debt Coverage: BOWL's debt is well covered by operating cash flow (114.5%).

Interest Coverage: BOWL's interest payments on its debt are well covered by EBIT (34.1x coverage).


Balance Sheet

Inventory Level: BOWL has a high level of physical assets or inventory.

Debt Coverage by Assets: BOWL's debt is covered by short term assets (assets are 1.137830x debt).


Next Steps

Dividend

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

4.65%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BOWL's dividend (4.65%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: BOWL's dividend (4.65%) is low compared to the top 25% of dividend payers in the UK market (5.41%).

Stable Dividend: Whilst dividend payments have been stable, BOWL has been paying a dividend for less than 10 years.

Growing Dividend: BOWL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.8%), BOWL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BOWL's dividends in 3 years are forecast to be covered by earnings (59.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Steve Burns 0

5.8yrs

Tenure

UK£536,100

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: Insufficient data to establish whether Steve's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: BOWL's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£33,84014 Oct 19
Ivan Schofield
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceUK£2.26
SellUK£450,50009 Oct 19
Melanie Dickinson
EntityIndividual
Shares200,000
Max PriceUK£2.25
SellUK£541,45021 Aug 19
Mathew Hart
EntityIndividual
Role
Chief Technology Officer
Chief Marketing & Technology Officer
Shares238,000
Max PriceUK£2.28
SellUK£694,37824 Jun 19
Mathew Hart
EntityIndividual
Role
Chief Technology Officer
Chief Marketing & Technology Officer
Shares303,129
Max PriceUK£2.29
BuyUK£40,38319 Jun 19
Ivan Schofield
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares17,700
Max PriceUK£2.28
SellUK£40,35619 Jun 19
Ivan Schofield
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares17,700
Max PriceUK£2.28

Ownership Breakdown


Management Team

  • Mat Hart

    Chief Marketing & Technology Officer

    • Tenure: 1.8yrs
  • Steve Burns

    CEO & Non-Independent Director

    • Tenure: 5.8yrs
    • Compensation: UK£536.10k
  • Laurence Keen

    CFO & Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: UK£356.50k

Board Members

  • Nick Backhouse (55yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£50.70k
  • Claire Tiney (58yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£45.70k
  • Peter Boddy (54yo)

    Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: UK£101.50k
  • Steve Burns

    CEO & Non-Independent Director

    • Tenure: 5.8yrs
    • Compensation: UK£536.10k
  • Laurence Keen

    CFO & Non-Independent Director

    • Tenure: 3.3yrs
    • Compensation: UK£356.50k
  • Ivan Schofield

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: UK£45.00k

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£349.500m
  • Shares outstanding: 150.00m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:27
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.