LSE:ENT

Stock Analysis Report

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Executive Summary

Entain PLC, together with its subsidiaries, operates as an online gaming company in the United Kingdom and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Entain's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENT is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ENT's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

0.1%

ENT

3.1%

GB Hospitality

1.2%

GB Market


1 Year Return

84.2%

ENT

10.7%

GB Hospitality

4.6%

GB Market

Return vs Industry: ENT exceeded the UK Hospitality industry which returned 10.7% over the past year.

Return vs Market: ENT exceeded the UK Market which returned 4.6% over the past year.


Shareholder returns

ENTIndustryMarket
7 Day0.1%3.1%1.2%
30 Day12.6%8.5%1.1%
90 Day39.3%11.2%2.4%
1 Year84.2%84.2%12.7%10.7%10.7%4.6%
3 Year64.2%49.7%6.8%-1.9%8.6%-4.5%
5 Year232.3%187.0%35.8%14.9%39.5%12.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Entain undervalued compared to its fair value and its price relative to the market?

16.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENT (£14.15) is trading below our estimate of fair value (£16.86)

Significantly Below Fair Value: ENT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ENT is poor value based on its PE Ratio (89.6x) compared to the GB Hospitality industry average (52.1x).

PE vs Market: ENT is poor value based on its PE Ratio (89.6x) compared to the UK market (24.1x).


Price to Earnings Growth Ratio

PEG Ratio: ENT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ENT is overvalued based on its PB Ratio (2.7x) compared to the GB Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Entain forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

49.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENT's forecast earnings growth (49.1% per year) is above the savings rate (1%).

Earnings vs Market: ENT's earnings (49.1% per year) are forecast to grow faster than the UK market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENT's revenue (7.9% per year) is forecast to grow faster than the UK market (6.7% per year).

High Growth Revenue: ENT's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENT's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Entain performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENT has a large one-off gain of £124.2M impacting its December 31 2020 financial results.

Growing Profit Margin: ENT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ENT has become profitable over the past 5 years, growing earnings by -10.1% per year.

Accelerating Growth: ENT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ENT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-81.1%).


Return on Equity

High ROE: ENT's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Entain's financial position?


Financial Position Analysis

Short Term Liabilities: ENT's short term assets (£1.4B) do not cover its short term liabilities (£1.5B).

Long Term Liabilities: ENT's short term assets (£1.4B) do not cover its long term liabilities (£2.7B).


Debt to Equity History and Analysis

Debt Level: ENT's debt to equity ratio (69%) is considered high.

Reducing Debt: ENT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ENT's debt is well covered by operating cash flow (33.4%).

Interest Coverage: ENT's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Entain current dividend yield, its reliability and sustainability?

2.60%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ENT'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?

2.0yrs

Average management tenure


CEO

Jette Nygaard-Andersen (52 yo)

0.17

Tenure

UK£5,000

Compensation

Ms. Jette Nygaard-Andersen has been an Independent Director of Coloplast A/S since December 9, 2015. She served as the Chairman of the Board at Astralis Group A/S since November 8, 2019 until March 31, 202...


Leadership Team

NamePositionTenureCompensationOwnership
Jette Nygaard-Andersen
CEO & Director0.17yrUK£5.00k0.0017%
£ 139.9k
Rob Wood
Deputy CEO2yrsUK£1.08m0.0044%
£ 361.1k
Robert Willis
Co-Founderno datano datano data
Sandeep Tiku
Group Chief Operating Officer0.67yrno datano data
David Lloyd-Seed
Director of Investor Relations & External Communications1yrno datano data
Tessa Curtis
Head of Media Relationsno datano datano data
Per Gustafsson
Vice President of Business Developmentno datano datano data
Adam Lewis
Chief Marketing Officer8yrsno datano data
Jon Salmon
Head of CasinoClub11.08yrsno datano data
Shay Segev
Executive Officer0.17yrno data0.27%
£ 22.7m
Liron Snir
Chief Product Officer5yrsno datano data
Adele Lawton
Head of Bingo4.58yrsno datano data

2.0yrs

Average Tenure

51yo

Average Age

Experienced Management: ENT's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jette Nygaard-Andersen
CEO & Director0.17yrUK£5.00k0.0017%
£ 139.9k
Rob Wood
Deputy CEO2yrsUK£1.08m0.0044%
£ 361.1k
Robert Hoskin
Chief Governance Officer & Executive Director0.17yrno data0.00013%
£ 10.8k
Virginia McDowell
Independent Non-Executive Director2.75yrsUK£110.00k0.0026%
£ 212.0k
Pierre Bruno Bouchut
Independent Non-Executive Director2.5yrsUK£110.00k0.0066%
£ 544.9k
David Satz
Independent Non-Executive Director0.42yrno datano data
John Michael Gibson
Independent Non-Executive Chairman1.08yrsUK£71.00kno data
Stella David
Senior Independent Non-Executive Directorno datano datano data
Stephen Morana
Senior Independent Non-Executive Director2.75yrsUK£155.00k0.0058%
£ 483.6k
Victoria Jarman
Independent Non-Executive Directorno datano datano data
Peter Isola
Independent Non-Executive Director5.08yrsUK£88.00k0.0062%
£ 510.9k

2.0yrs

Average Tenure

61yo

Average Age

Experienced Board: ENT's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Entain PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Entain PLC
  • Ticker: ENT
  • Exchange: LSE
  • Founded: 2004
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£8.281b
  • Shares outstanding: 585.23m
  • Website: https://entaingroup.com

Number of Employees


Location

  • Entain PLC
  • 32 Athol Street
  • Douglas
  • IM1 1JB
  • Isle of Man

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6GIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
GMVH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
ENTLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2004
GVCWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 2004
GMVH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDMar 2020

Biography

Entain PLC, together with its subsidiaries, operates as an online gaming company in the United Kingdom and internationally. The company provides online betting, casino, poker, and bingo services through mo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 21:13
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.