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Ei Group

LSE:EIG
Snowflake Description

Reasonable growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EIG
LSE
£957M
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Ei Group plc operates leased and tenanted pubs in the United Kingdom. The last earnings update was 6 days ago. More info.


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EIG Share Price and Events
7 Day Returns
2.2%
LSE:EIG
3.2%
GB Hospitality
1.3%
GB Market
1 Year Returns
54.8%
LSE:EIG
-7.6%
GB Hospitality
-5%
GB Market
EIG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ei Group (EIG) 2.2% 0% 7.3% 54.8% 121.8% 59.3%
GB Hospitality 3.2% 0.5% -1.3% -7.6% 11% 30.7%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • EIG outperformed the Hospitality industry which returned -7.6% over the past year.
  • EIG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
EIG
Industry
5yr Volatility vs Market

EIG Value

 Is Ei 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 Ei 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 Ei Group.

LSE:EIG 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 14.5%
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:EIG
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))
= 0.932 (1 + (1- 19%) (215.8%))
2.045
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (2 * 6.65%)
14.53%

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

The calculations below outline how an intrinsic value for Ei 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:EIG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 14.53%)
2019 105.86 Analyst x2 92.44
2020 107.09 Analyst x3 81.65
2021 106.29 Analyst x3 70.76
2022 106.13 Est @ -0.16% 61.69
2023 106.40 Est @ 0.26% 54.00
2024 106.99 Est @ 0.55% 47.41
2025 107.79 Est @ 0.75% 41.71
2026 108.76 Est @ 0.89% 36.74
2027 109.84 Est @ 0.99% 32.40
2028 111.01 Est @ 1.06% 28.59
Present value of next 10 years cash flows £547.40
LSE:EIG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £111.01 × (1 + 1.23%) ÷ (14.53% – 1.23%)
£844.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £844.89 ÷ (1 + 14.53%)10
£217.63
LSE:EIG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £547.40 + £217.63
£765.03
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £765.03 / 445.90
£1.72
LSE:EIG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.72
Current discount Discount to share price of £2.15
= -1 x (£2.15 - £1.72) / £1.72
-25.1%

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

  • The current share price of Ei 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 Ei Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ei Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:EIG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.09
LSE:EIG Share Price ** LSE (2019-05-20) in GBP £2.15
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 17.95x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.24x

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

** Primary Listing of Ei Group.

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

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

= 2.15 ÷ 0.09

22.94x

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

  • Ei Group is overvalued based on earnings compared to the GB Hospitality industry average.
  • Ei Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Ei Group's expected growth come at a high price?
Raw Data
LSE:EIG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
23.6%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.06x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.94x ÷ 23.6%

0.97x

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

  • Ei Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Ei Group's assets?
Raw Data
LSE:EIG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £3.27
LSE:EIG Share Price * LSE (2019-05-20) in GBP £2.15
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.39x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:EIG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.15 ÷ 3.27

0.66x

* Primary Listing of Ei Group.

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

  • Ei Group is good value based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Ei 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. Ei Group has a total score of 2/6, 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.

EIG Future Performance

 How is Ei 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
23.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ei Group expected to grow at an attractive rate?
  • Ei Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Ei Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Ei 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:EIG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:EIG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 23.6%
LSE:EIG 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 12.1%
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 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*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:EIG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month 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:EIG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 829 1
2021-09-30 801 111 109 5
2020-09-30 762 106 98 7
2019-09-30 715 106 100 5
LSE:EIG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 718 278 43
2018-12-31 707 275 58
2018-09-30 695 271 72
2018-06-30 682 270 76
2018-03-31 668 269 81
2017-12-31 658 265 67
2017-09-30 648 261 54
2017-06-30 643 259 51
2017-03-31 637 257 48
2016-12-31 635 263 60
2016-09-30 632 269 71
2016-06-30 630 272 17

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ei Group's earnings are expected to grow significantly at over 20% yearly.
  • Ei 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:EIG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Ei Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:EIG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30
2021-09-30 0.24 0.24 0.24 1.00
2020-09-30 0.22 0.23 0.21 2.00
2019-09-30 0.12 0.12 0.12 1.00
LSE:EIG Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.09
2018-12-31 0.12
2018-09-30 0.15
2018-06-30 0.16
2018-03-31 0.17
2017-12-31 0.14
2017-09-30 0.11
2017-06-30 0.11
2017-03-31 0.10
2016-12-31 0.12
2016-09-30 0.14
2016-06-30 0.03

*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.
  • Unable to establish if Ei Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ei 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.
Ei Group has a total score of 4/6, 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.

EIG Past Performance

  How has Ei 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 Ei 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.
  • Ei Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Ei Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ei Group's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.
Earnings and Revenue History
Ei 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 Ei Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:EIG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 718.00 43.30
2018-12-31 706.50 57.50
2018-09-30 695.00 71.70
2018-06-30 681.50 76.35
2018-03-31 668.00 81.00
2017-12-31 658.00 67.40
2017-09-30 648.00 53.80
2017-06-30 642.50 51.00
2017-03-31 637.00 48.20
2016-12-31 634.50 59.60
2016-09-30 632.00 71.00
2016-06-30 630.00 17.35
2016-03-31 628.00 -36.30
2015-12-31 626.50 -50.65
2015-09-30 625.00 -65.00
2015-06-30 625.50 -33.95 -8.50
2015-03-31 626.00 -2.90 -17.00
2014-12-31 629.00 13.55 -8.50
2014-09-30 632.00 30.00
2014-06-30 633.50 19.10 16.50
2014-03-31 635.00 8.20 33.00
2013-12-31 637.00 2.10 32.50
2013-09-30 639.00 -4.00 32.00
2013-06-30 650.50 6.00 32.50
2013-03-31 662.00 16.00 33.00
2012-12-31 677.00 30.00 34.00
2012-09-30 692.00 44.00 35.00
2012-06-30 699.50 25.00 34.00

*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.
  • Ei Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ei Group used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Ei Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ei 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.
Ei Group has a total score of 2/6, 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.

EIG Health

 How is Ei 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 Ei Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ei Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ei Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ei 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 not covered by short term assets, assets are 0.2x 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 Ei Group Company Filings, last reported 1 month ago.

LSE:EIG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,504.00 2,065.00 338.00
2018-12-31 1,504.00 2,065.00 338.00
2018-09-30 1,554.00 2,192.00 158.00
2018-06-30 1,554.00 2,192.00 158.00
2018-03-31 1,521.00 2,238.00 150.00
2017-12-31 1,521.00 2,238.00 150.00
2017-09-30 1,503.00 2,261.00 151.00
2017-06-30 1,503.00 2,261.00 151.00
2017-03-31 1,450.00 2,324.00 154.00
2016-12-31 1,450.00 2,324.00 154.00
2016-09-30 1,448.00 2,343.00 145.00
2016-06-30 1,448.00 2,343.00 145.00
2016-03-31 1,394.00 2,414.00 144.00
2015-12-31 1,394.00 2,414.00 144.00
2015-09-30 1,346.00 2,447.00 127.00
2015-06-30 1,346.00 2,447.00 127.00
2015-03-31 1,405.00 2,503.00 116.00
2014-12-31 1,405.00 2,503.00 116.00
2014-09-30 1,403.00 2,527.00 123.00
2014-06-30 1,403.00 2,527.00 123.00
2014-03-31 1,440.00 2,590.00 113.00
2013-12-31 1,440.00 2,590.00 113.00
2013-09-30 1,402.00 2,665.00 144.00
2013-06-30 1,402.00 2,665.00 144.00
2013-03-31 1,444.00 2,806.00 128.00
2012-12-31 1,444.00 2,806.00 128.00
2012-09-30 1,425.00 2,862.00 125.00
2012-06-30 1,425.00 2,862.00 125.00
  • Ei Group's level of debt (137.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (179.9% vs 137.3% today).
  • Debt is not well covered by operating cash flow (13.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Ei 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. Ei Group has a total score of 2/6, 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.

EIG Dividends

 What is Ei 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
0%
Current annual income from Ei Group dividends. Estimated to be 0% next year.
If you bought £2,000 of Ei Group shares you are expected to receive £0 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?
  • Unable to evaluate Ei Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ei Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:EIG 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 705 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 5.2%

Industry and Market average data is calculated daily.

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

LSE:EIG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.00 1.00
2021-09-30 0.00 4.00
2020-09-30 0.00 5.00
2019-09-30 0.00 5.00
LSE:EIG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2010-05-11 0.000 0.000
2009-12-11 0.000 0.000
2009-11-17 0.000 0.000

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

  • Unable to perform a dividend volatility check as Ei Group has not reported any payouts.
  • Unable to verify if Ei Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ei Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ei Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Ei Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Ei 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 Ei Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ei Group has a total score of 0/6, see the detailed checks below.


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

EIG Management

 What is the CEO of Ei 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
William Townsend
COMPENSATION £1,816,000
AGE 56
TENURE AS CEO 5.3 years
CEO Bio

Mr. William Simon Townsend is Non-Executive Director of Countryside Properties PLC since March 1, 2019. He has been the Chief Executive Officer at Enterprise Inns Plc and Ei Group plc since February 06, 2014 and has been its Executive Director since October 01, 2000. Mr. Townsend served as the Customer Services Director and Chief Operating Officer at Enterprise Inns Plc until February 06, 2014. He was responsible for the provision of all support services to the Enterprise estate. He serves as Vice Chairman of the BBPA. He joined Enterprise Inns Plc, in February 1999 and serves as its Executive Director. He serves as a Director and Group Chief Executive Officer of The Unique Pub Finance Company Plc. He worked for 20 years in the pub and leisure industry, with Whitbread plc, Allied Domecq PLC, Rank Group Plc, Marston and Thompson & Eversheds Plc.

CEO Compensation
  • William's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • William's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

William Townsend

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
56
TENURE
5.3 yrs

Neil Smith

TITLE
CFO & Director
COMPENSATION
£1M
AGE
53
TENURE
8.3 yrs

Loretta Togher

TITLE
Company Secretary & Group Legal Counsel
Board of Directors Tenure

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

6.3
Average Tenure
59
Average Age
  • The tenure for the Ei Group board of directors is about average.
Board of Directors

Robert Walker

TITLE
Chairman of the Board
COMPENSATION
£213K
AGE
73
TENURE
7.2 yrs

William Townsend

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
56
TENURE
18.6 yrs

Neil Smith

TITLE
CFO & Director
COMPENSATION
£1M
AGE
53
TENURE
8.3 yrs

Peter Baguley

TITLE
Independent Non-Executive Director
COMPENSATION
£66K
AGE
65
TENURE
6.3 yrs

Adam Fowle

TITLE
Senior Independent Director
COMPENSATION
£65K
AGE
59
TENURE
1.8 yrs

Marisa Cassoni

TITLE
Independent Non-Executive Director
COMPENSATION
£66K
AGE
67
TENURE
4.1 yrs

Jane Bednall

TITLE
Independent Non-Executive Director
COMPENSATION
£15K
AGE
51
TENURE
0.8 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 (£)
X
Management checks
We assess Ei 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. Ei 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.

EIG News

Simply Wall St News

Is Ei Group's (LON:EIG) Share Price Gain Of 131% Well Earned?

For instance the Ei Group plc (LON:EIG) share price is 131% higher than it was three years ago. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St -

Ei Group plc (LON:EIG): Assessing Capital Returns

and looking to gauge the potential return on investment in Ei Group plc (LON:EIG). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Ei Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Ei Group plc (LON:EIG): Is Consumer Sector Attractive??

operates in the consumer discretionary industry,. … whose performance is predominantly driven by consumer confidence, which is linked to employment and wage rates. … Consumer discretionary analysts are forecasting for the entire industry,

Simply Wall St -

Ei Group plc (LON:EIG): A Look At Return On Capital

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently Ei Group is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Is Ei Group plc (LON:EIG) A Financially Sound Company?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Does Ei Group plc's (LON:EIG) CEO Salary Compare Well With Others?

William Townsend took the helm as Ei Group plc's (LON:EIG) CEO and grew market cap to UK£735.51m recently. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … View out our latest analysis for Ei Group

Simply Wall St -

With An ROE Of 5.33%, Can Ei Group plc (LON:EIG) Catch Up To The Industry?

and want to begin learning the link between Ei Group plc (LON:EIG)’s return fundamentals and stock market performance. … Ei Group plc (LON:EIG) generated a below-average return on equity of 5.33% in the past 12 months, while its industry returned 10.39%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into EIG's past performance.

Simply Wall St -

Is Ei Group plc (LON:EIG) A Financially Sound Company?

Ei Group plc (LON:EIG) is a small-cap stock with a market capitalization of UK£683.44m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Ei Group plc (LON:EIG): What The Forecasts Are Telling Us

stable vision for earnings in the future … growth of 6.02% annualised … but it's necessary to take a moment

Simply Wall St -

Calculating The Fair Value Of Ei Group plc (LON:EIG)

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (£, Millions) £106.36 £113.13 £101.14 £101.63 £102.13 Source Analyst x3 Analyst x2 Analyst x2 Extrapolated @ (0.49%) Extrapolated @ (0.49%) Present Value Discounted @ 18.6% £89.68 £80.42 £60.62 £51.36 £43.52 Present Value of 5-year Cash Flow (PVCF)= £326 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = £102 × (1 + 1.4%) ÷ (18.6% – 1.4%) = £602 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = £602 / ( 1 + 18.6%)5 = £256 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is £582. … LSE:EIG Intrinsic Value Jun 4th 18 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

EIG Company Info

Description

Ei Group plc operates leased and tenanted pubs in the United Kingdom. It operates through three segments: Publican Partnerships, Commercial Properties, and Managed. The company engages in the rental of commercial properties, as well as financing and public houses management businesses. It is also involved in the sale of foods and drinks, as well as accommodation and gaming machines. The company operates approximately 4,400 pubs. The company was formerly known as Enterprise Inns plc and changed its name to Ei Group plc in February 2017. Ei Group plc was founded in 1991 and is headquartered in Solihull, the United Kingdom.

Details
Name: Ei Group plc
EIG
Exchange: LSE
Founded: 1991
£956,892,315
445,895,767
Website: http://www.eipublicanpartnerships.com
Address: Ei Group plc
3 Monkspath Hall Road,
Solihull,
West Midlands, B90 4SJ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE EIG Ordinary Shares London Stock Exchange GB GBP 06. Nov 1995
OTCPK ETIN.F Ordinary Shares Pink Sheets LLC US USD 06. Nov 1995
DB IJIA Ordinary Shares Deutsche Boerse AG DE EUR 06. Nov 1995
BATS-CHIXE EIGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 06. Nov 1995
Number of employees
Current staff
Staff numbers
1,371
Ei Group employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 21:07
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
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.