LSE:GVC

Stock Analysis Report

Executive Summary

GVC Holdings PLC, together with its subsidiaries, operates as an online gaming company in the United Kingdom and internationally.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GVC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

39.1%

GVC

16.1%

GB Hospitality

8.6%

GB Market


1 Year Return

7.0%

GVC

-16.8%

GB Hospitality

-19.4%

GB Market

Return vs Industry: GVC exceeded the UK Hospitality industry which returned -16.8% over the past year.

Return vs Market: GVC exceeded the UK Market which returned -19.4% over the past year.


Shareholder returns

GVCIndustryMarket
7 Day39.1%16.1%8.6%
30 Day3.5%-7.2%-3.5%
90 Day-28.3%-27.2%-23.0%
1 Year10.3%7.0%-14.6%-16.8%-15.5%-19.4%
3 Year1.6%-9.0%-8.9%-18.0%-8.8%-19.9%
5 Year84.8%52.0%7.2%-9.4%4.2%-19.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GVC (£6.73) is trading below our estimate of fair value (£18.16)

Significantly Below Fair Value: GVC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GVC is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: GVC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GVC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GVC is overvalued based on its PB Ratio (1.4x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is GVC Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

87.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GVC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: GVC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GVC's is expected to become profitable in the next 3 years.

Revenue vs Market: GVC's revenue (5.2% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: GVC's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GVC's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has GVC Holdings performed over the past 5 years?

-33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GVC is currently unprofitable.

Growing Profit Margin: GVC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GVC is unprofitable, and losses have increased over the past 5 years at a rate of -33.5% per year.

Accelerating Growth: Unable to compare GVC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GVC is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-10.9%).


Return on Equity

High ROE: GVC has a negative Return on Equity (-4.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is GVC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GVC's short term assets (£924.2M) do not cover its short term liabilities (£1.3B).

Long Term Liabilities: GVC's short term assets (£924.2M) do not cover its long term liabilities (£2.9B).


Debt to Equity History and Analysis

Debt Level: GVC's debt to equity ratio (74.1%) is considered high.

Reducing Debt: GVC's debt to equity ratio has increased from 3.7% to 74.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GVC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GVC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.5% per year.


Next Steps

Dividend

What is GVC Holdings's current dividend yield, its reliability and sustainability?

5.56%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GVC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GVC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.1yrs

Average management tenure


CEO

Kenny Alexander (50yo)

13.08s

Tenure

UK£19,099,000

Compensation

Mr. Kenneth Jack Alexander, also known as Kenny, has been the Chief Executive Officer of GVC Holdings PLC since joined in March 01, 2007 and its Director since February 2007. Mr. Alexander served as the Ma ...


CEO Compensation Analysis

Compensation vs Market: Kenny's total compensation ($USD20.77M) is above average for companies of similar size in the UK market ($USD3.37M).

Compensation vs Earnings: Kenny's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Alexander
CEO & Executive Director13.08yrsUK£19.10m0.11% £4.5m
Robert Willis
Co-Founderno datano datano data
Rob Wood
CFO & Director1.08yrsno datano data
Rob Wood
CFO & Director1.08yrsno datano data
Shay Segev
Chief Operating Officer4.08yrsno datano data
David Lloyd-Seed
Director of Investor Relations & External Communications0.083yrno datano data
Per Gustafsson
Vice President of Business Developmentno datano datano data
Adam Lewis
Chief Marketing Officer7.08yrsno datano data
Jon Salmon
Head of CasinoClub10.17yrsno datano data
Liron Snir
Chief Product Officer4.08yrsno datano data

4.1yrs

Average Tenure

50yo

Average Age

Experienced Management: GVC's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Alexander
CEO & Executive Director13.08yrsUK£19.10m0.11% £4.5m
Rob Wood
CFO & Director1.08yrsno datano data
Rob Wood
CFO & Director1.08yrsno datano data
Virginia McDowell
Independent Non-Executive Director1.83yrsUK£63.00k0.0012% £47.0k
Pierre Bruno Bouchut
Independent Non-Executive Director1.58yrsUK£33.00k0.0031% £121.2k
John Michael Gibson
Independent Non-Executive Chairman of the Board0.17yrno datano data
Jane Anscombe
Independent Non-Executive Director2.83yrsUK£111.00k0.00089% £34.9k
Barry Gibson
Independent Non-Executive Chairman0.17yrno data0.0073% £286.6k
Stephen Morana
Senior Independent Non-Executive Director1.83yrsUK£142.00k0.0059% £230.1k
Peter Isola
Independent Non-Executive Director4.17yrsUK£88.00k0.0033% £130.2k

1.7yrs

Average Tenure

61yo

Average Age

Experienced Board: GVC's board of directors are not considered experienced ( 1.7 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 been diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: GVC Holdings PLC
  • Ticker: GVC
  • Exchange: LSE
  • Founded: 2004
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£3.921b
  • Shares outstanding: 582.75m
  • Website: https://www.gvc-plc.com

Number of Employees


Location

  • GVC Holdings 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
GVCLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2004
GVCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2004
GVCWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 2004

Biography

GVC Holdings 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 mobile and web under the Bwin brand; online and multi-channel betting services under the Ladbrokes brand; street and online betting under the Coral brand; sports betting, poker, and casino games under the Crystalbet brand; software and technology for race books and sportsbook under the Stadium brand; online sports betting, casino, and gaming products under the Eurobet brand; sports action and horse racing under the Neds brand; sports betting, casinos, games, and poker under the Sportingbet brand; peer-to-peer sports betting exchange under the Betdaq brand; and online bingo, sportsbook, casino, and poker access under the Betboo brand, as well as operates an online casino website for German-speaking markets under the CasinoClub brand. It also offers Gamebookers, a full-service sportsbook; partypoker, which operates online poker services; PartyCasino that provides online casino services; Gioco Digitale, a gaming site; Foxy Bingo that provides online bingo services; and Foxy Games, which offers slot games, jackpots, and various table games, as well as MGM Resorts International, a casino operator. In addition, the company provides Danske Spil that provides online gaming services; PMU that offers online poker services; Fortuna, which offers sports betting; virtual sports products under the AGT brand; online bingo and games under the Gala Bingo and Gala Casino brands; Gala Spins, a gaming application; Cheeky Bingo, a bingo platform; and InterTrader, which provides market financial derivatives, such as spread betting, as well as Playtech casino games under the Casino Las Vegas, SCasino, and Casino King brands. Further, it offers betting in the shop estates and telephone betting services. The company was founded in 2004 and is based in Douglas, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:49
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.