GVC Holdings
Market Cap
UK£4.8b
Last Updated
2019/12/10 21:54 UTC
Data Sources
Company Financials +
Executive Summary
GVC Holdings PLC, together with its subsidiaries, operates as an online gaming company in Germany, the United Kingdom, rest of Europe, and internationally.
Snowflake Analysis
Reasonable growth potential and fair value.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
GVC
-1.6%
GB Hospitality
0.1%
GB Market
1 Year Return
29.0%
GVC
18.0%
GB Hospitality
9.8%
GB Market
Return vs Industry: GVC exceeded the UK Hospitality industry which returned 18% over the past year.
Return vs Market: GVC exceeded the UK Market which returned 9.8% over the past year.
Shareholder returns
| GVC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -1.6% | 0.1% |
| 30 Day | 3.2% | -2.3% | -0.2% |
| 90 Day | 16.5% | -0.3% | 2.0% |
| 1 Year | 37.0%29.0% | 21.4%18.0% | 15.5%9.8% |
| 3 Year | 55.6%34.4% | 36.3%22.1% | 20.1%4.8% |
| 5 Year | 116.7%70.6% | 58.9%33.9% | 44.5%11.5% |
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
2 months ago | Simply Wall St
Did GVC Holdings PLC (LON:GVC) Insiders Buy Up More Shares?3 months ago | Simply Wall St
Know This Before Buying GVC Holdings PLC (LON:GVC) For Its Dividend3 months ago | Simply Wall St
Don't Race Out To Buy GVC Holdings PLC (LON:GVC) Just Because It's Going Ex-DividendValuation
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 (£8.29) is trading below our estimate of fair value (£20.38)
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 good value based on its PB Ratio (1.5x) compared to the GB Hospitality industry average (1.6x).
Next Steps
Future Growth
How is GVC Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
48.8%
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 (4.5% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: GVC's revenue (4.5% 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 (13.4%).
Next Steps
Past Performance
How has GVC Holdings performed over the past 5 years?
-30.4%
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 -30.4% 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 (1.6%).
Return on Equity
High ROE: GVC has a negative Return on Equity (-5.18%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is GVC Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: GVC's short term assets (£924.6M) do not cover its short term liabilities (£1.3B).
Long Term Liabilities: GVC's short term assets (£924.6M) do not cover its long term liabilities (£3.0B).
Debt to Equity History and Analysis
Debt Level: GVC's debt to equity ratio (68.8%) is considered high.
Reducing Debt: GVC's debt to equity ratio has increased from 5.6% to 68.8% over the past 5 years.
Balance Sheet
Inventory Level: GVC has a low level of unsold assets or inventory.
Debt Coverage by Assets: GVC's debt is not covered by short term assets (assets are 0.4x debt).
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 88.8% per year.
Next Steps
Dividend
What is GVC Holdings's current dividend yield, its reliability and sustainability?
4.25%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: GVC's dividend (4.25%) is higher than the bottom 25% of dividend payers in the UK market (1.95%).
High Dividend: GVC's dividend (4.25%) is low compared to the top 25% of dividend payers in the UK market (5.19%).
Stability and Growth of Payments
Stable Dividend: GVC's dividend payments have been volatile in the past 10 years.
Growing Dividend: GVC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: GVC is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: GVC's dividends in 3 years are forecast to be well covered by earnings (42.3% payout ratio).
Next Steps
Management
What is the CEO of GVC Holdings's salary, the management and board of directors tenure and is there insider trading?
3.8yrs
Average management tenure
CEO
Kenny Alexander (50yo)
12.8yrs
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 ($USD21.19M) is above average for companies of similar size in the UK market ($USD3.43M).
Compensation vs Earnings: Kenny's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
3.8yrs
Average Tenure
Experienced Management: GVC's management team is considered experienced (3.8 years average tenure).
Board Age and Tenure
1.5yrs
Average Tenure
60yo
Average Age
Experienced Board: GVC's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: GVC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 25,000 |
| Max Price | UK£7.96 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 18,000 |
| Max Price | UK£5.49 |
| Entity | Individual |
| Role | Lead Director Senior Independent Non-Executive Director |
| Shares | 19,425 |
| Max Price | UK£5.15 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 7,000 |
| Max Price | UK£5.44 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 19,335 |
| Max Price | UK£5.15 |
| Entity | Individual |
| Shares | 100,000 |
| Max Price | UK£7.33 |
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.4%.
Management Team
Per Gustafsson
Vice President of Business Development
- Tenure: 0yrs
Robert Willis (49yo)
Co-Founder
- Tenure: 0yrs
Kenny Alexander (50yo)
CEO & Executive Director
- Tenure: 12.8yrs
- Compensation: UK£19.10m
Jon Salmon
Head of CasinoClub
- Tenure: 9.8yrs
Shay Segev
Chief Operating Officer
- Tenure: 3.8yrs
Liron Snir
Chief Product Officer
- Tenure: 3.8yrs
Adam Lewis
Chief Marketing Officer
- Tenure: 6.8yrs
Adele Lawton
Head of Bingo
- Tenure: 3.3yrs
Paul Tymms
Director of Investor Relations & Corporate Communications
- Tenure: 0yrs
Rob Wood
CFO & Director
- Tenure: 0.8yrs
Board Members
Lee Feldman (51yo)
Non Executive Chairman
- Tenure: 11.3yrs
- Compensation: UK£8.53m
Virginia McDowell (61yo)
Independent Non-Executive Director
- Tenure: 1.5yrs
- Compensation: UK£63.00k
Pierre Bruno Bouchut (64yo)
Independent Non-Executive Director
- Tenure: 1.3yrs
- Compensation: UK£33.00k
Kenny Alexander (50yo)
CEO & Executive Director
- Tenure: 12.8yrs
- Compensation: UK£19.10m
Jane Anscombe
Independent Non-Executive Director
- Tenure: 2.5yrs
- Compensation: UK£111.00k
Barry Gibson (67yo)
Independent Non-Executive Director
- Tenure: 0.08yrs
Stephen Morana (48yo)
Senior Independent Non-Executive Director
- Tenure: 1.5yrs
- Compensation: UK£142.00k
Peter Isola (60yo)
Independent Non-Executive Director
- Tenure: 3.8yrs
- Compensation: UK£88.00k
Rob Wood
CFO & Director
- Tenure: 0.8yrs
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£4.826b
- Shares outstanding: 582.13m
- Website: https://www.gvc-plc.com
Number of Employees
Location
- GVC Holdings PLC
- 32 Athol Street
- Douglas
- Isle of Man
- IM1 1JB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 6GI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2004 |
| GMVH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2004 |
| GVC | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Dec 2004 |
| GVCL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Dec 2004 |
| GVC | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Dec 2004 |
Biography
GVC Holdings PLC, together with its subsidiaries, operates as an online gaming company in Germany, the United Kingdom, rest of Europe, and internationally. It operates through Sports Labels, Games Labels, ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/10 21:54 |
| End of Day Share Price | 2019/12/10 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.