LSE:ENT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£10.7b

Last Updated

2021/08/02 22:51 UTC

Data Sources

Company Financials +

Executive Summary

Entain PLC, together with its subsidiaries, operates as a sports-betting and 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 not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ENT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

ENT

0.6%

GB Hospitality

0.9%

GB Market


1 Year Return

163.2%

ENT

59.6%

GB Hospitality

25.9%

GB Market

Return vs Industry: ENT exceeded the UK Hospitality industry which returned 61.2% over the past year.

Return vs Market: ENT exceeded the UK Market which returned 22.5% over the past year.


Shareholder returns

ENTIndustryMarket
7 Day-1.8%0.6%0.9%
30 Day1.2%-3.4%1.6%
90 Day10.5%-2.3%6.5%
1 Year163.2%163.2%59.9%59.6%26.0%25.9%
3 Year73.6%60.9%9.1%1.7%25.0%24.9%
5 Year208.2%166.2%25.8%8.2%40.3%13.5%

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?

13.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENT (£18.2) is trading below our estimate of fair value (£21)

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 (115.2x) compared to the UK Hospitality industry average (29.9x).

PE vs Market: ENT is poor value based on its PE Ratio (115.2x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: ENT is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ENT is overvalued based on its PB Ratio (3.5x) compared to the GB Hospitality industry average (2.4x).


Future Growth

How is Entain forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENT's forecast earnings growth (49.8% per year) is above the savings rate (0.9%).

Earnings vs Market: ENT's earnings (49.8% per year) are forecast to grow faster than the UK market (14.8% per year).

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

Revenue vs Market: ENT's revenue (8.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: ENT's revenue (8.4% 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 (17.4%).


Past Performance

How has Entain performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENT has a large one-off gain of £131.1M 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 -9.8% 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 (6.1%).


Return on Equity

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


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 (3.8x coverage).


Balance Sheet


Dividend

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

2.06%

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?

1.9yrs

Average management tenure


CEO

Jette Nygaard-Andersen (53 yo)

0.58

Tenure

UK£85,000

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

Experienced Management: ENT's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: ENT's board of directors are not considered experienced ( 1.5 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£10.655b
  • Shares outstanding: 585.59m
  • Website: https://entaingroup.com

Number of Employees


Location

  • Entain Plc
  • One New Change
  • London
  • Greater London
  • IM1 1JB
  • United Kingdom

Listings


Biography

Entain PLC, together with its subsidiaries, operates as a sports-betting and gaming company in the United Kingdom and internationally. It operates through Online, UK Retail, European Retail, and Other segm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:51
End of Day Share Price2021/08/02 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.