LSE:GYS

Stock Analysis Report

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Executive Summary

Gamesys Group plc, through its subsidiaries, operates online casino and bingo-led brands in the United Kingdom, Asia, Europe, and internationally. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GYS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GYS's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

GYS

3.0%

GB Hospitality

3.0%

GB Market


1 Year Return

55.2%

GYS

-17.4%

GB Hospitality

-6.1%

GB Market

Return vs Industry: GYS exceeded the UK Hospitality industry which returned -16.1% over the past year.

Return vs Market: GYS exceeded the UK Market which returned -5.6% over the past year.


Shareholder returns

GYSIndustryMarket
7 Day-2.4%3.0%3.0%
30 Day-12.3%28.3%11.1%
90 Day-3.2%22.9%11.9%
1 Year56.9%55.2%-15.0%-17.4%-2.4%-6.1%
3 Year29.0%27.6%-2.3%-11.1%4.5%-8.2%
5 Yearn/a23.7%2.7%38.9%7.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GYS (£10.8) is trading below our estimate of fair value (£16.96)

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


Price To Earnings Ratio

PE vs Industry: GYS is poor value based on its PE Ratio (40x) compared to the GB Hospitality industry average (30.4x).

PE vs Market: GYS is poor value based on its PE Ratio (40x) compared to the UK market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: GYS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: GYS is overvalued based on its PB Ratio (2.4x) compared to the GB Hospitality industry average (1.8x).


Next Steps

Future Growth

How is Gamesys Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GYS's forecast earnings growth (27.3% per year) is above the savings rate (1.2%).

Earnings vs Market: GYS's earnings (27.3% per year) are forecast to grow faster than the UK market (26.2% per year).

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

Revenue vs Market: GYS's revenue (8.1% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: GYS's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GYS's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has Gamesys Group performed over the past 5 years?

49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GYS has a large one-off loss of £19.2M impacting its June 30 2020 financial results.

Growing Profit Margin: GYS's current net profit margins (4.6%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: GYS has become profitable over the past 5 years, growing earnings by 49.7% per year.

Accelerating Growth: GYS's earnings growth over the past year (9.9%) is below its 5-year average (49.7% per year).

Earnings vs Industry: GYS earnings growth over the past year (9.9%) exceeded the Hospitality industry -13.1%.


Return on Equity

High ROE: GYS's Return on Equity (5.6%) is considered low.


Next Steps

  • Explore strong past performing companies in the Consumer Services industry.

Financial Health

How is Gamesys Group's financial position?


Financial Position Analysis

Short Term Liabilities: GYS's short term assets (£215.9M) exceed its short term liabilities (£146.9M).

Long Term Liabilities: GYS's short term assets (£215.9M) do not cover its long term liabilities (£598.1M).


Debt to Equity History and Analysis

Debt Level: GYS's debt to equity ratio (105.7%) is considered high.

Reducing Debt: GYS's debt to equity ratio has increased from 55.7% to 105.7% over the past 5 years.

Debt Coverage: GYS's debt is well covered by operating cash flow (27.1%).

Interest Coverage: GYS's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Gamesys Group current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GYS's dividend (2.22%) is higher than the bottom 25% of dividend payers in the UK market (1.67%).

High Dividend: GYS's dividend (2.22%) is low compared to the top 25% of dividend payers in the UK market (4.79%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GYS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GYS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.4%), GYS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GYS's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Lee Fenton

1.25yrs

Tenure

UK£635,407

Compensation

Mr. Lee Daniel Fenton serves as the Chief Executive Officer and Director of Gamesys Group plc since September 26, 2019. He has been the Chief Operating Officer of freenet digital GmbH since February 12, 20...


CEO Compensation Analysis

Compensation vs Market: Lee's total compensation ($USD855.99K) is below average for companies of similar size in the UK market ($USD1.83M).

Compensation vs Earnings: Insufficient data to compare Lee's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Lee Fenton
CEO & Director1.25yrsUK£635.41k0.67%
£ 7.9m
Keith Laslop
CFO & Director4.25yrsUK£888.00k0.99%
£ 11.6m
Robeson Reeves
COO & Director1.25yrsUK£438.25k0.71%
£ 8.4m
Jason Holden
Director of Investor Relations3.67yrsno data0.023%
£ 270.0k
Daniel Talisman
Chief Legal Counsel & Company Secretary3.33yrsno data0.0030%
£ 34.9k
Amanda Brewer
Vice President of Corporate Communications5.67yrsno datano data
Irina Cornides
Chief Marketing Officerno datano data0.044%
£ 515.0k
Darren Rennick
President of Jackpotjoy Operationsno dataUK£388.30k0.46%
£ 5.4m
Johan Königslehner
Chief Executive Officer of Dumarca Gaming and Chief Marketing Officer of Dumarca Gaming5yrsno datano data
John Rowland-Jones
Deputy Company Secretary1.92yrsno datano data

3.3yrs

Average Tenure

45yo

Average Age

Experienced Management: GYS's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Fenton
CEO & Director1.25yrsUK£635.41k0.67%
£ 7.9m
Keith Laslop
CFO & Director4.25yrsUK£888.00k0.99%
£ 11.6m
Robeson Reeves
COO & Director1.25yrsUK£438.25k0.71%
£ 8.4m
James Ryan
Independent Non-Executive Director4.25yrsUK£68.00k0.0092%
£ 108.0k
Neil Goulden
Non-Executive Chair4.33yrsUK£748.00k0.11%
£ 1.3m
Katie Vanneck-Smith
Independent Non-Executive Director & Employee Voice Director1.17yrsUK£16.00kno data
Nigel Brewster
Independent Non-Executive Director3.92yrsUK£70.00k0.0046%
£ 54.0k
Andria Vidler
Independent Non-Executive Director2.58yrsUK£67.00kno data
Colin Sturgeon
Senior Independent Non-Executive Director3.92yrsUK£80.00k0.0046%
£ 54.0k

3.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: GYS's board of directors are considered experienced (3.9 years average tenure).


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

Gamesys Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gamesys Group plc
  • Ticker: GYS
  • Exchange: LSE
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£1.181b
  • Shares outstanding: 109.32m
  • Website: https://www.gamesysgroup.com

Number of Employees


Location

  • Gamesys Group plc
  • 10 Piccadilly
  • London
  • Greater London
  • W1J 0DD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GYSLSE (London Stock Exchange)YesCommon SharesGBGBPJan 2017
JP7DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2017
GYSLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBGBPJan 2017
JKPT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2017

Biography

Gamesys Group plc, through its subsidiaries, operates online casino and bingo-led brands in the United Kingdom, Asia, Europe, and internationally. It offers bingo, casino, and other games under the Jackpot...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 19:59
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
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.