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Paddy Power Betfair

LSE:PPB
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPB
LSE
€5B
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

Paddy Power Betfair plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, and internationally. The last earnings update was 57 days ago. More info.


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PPB Share Price and Events
7 Day Returns
-0.7%
LSE:PPB
0.3%
GB Hospitality
0.5%
GB Market
1 Year Returns
-34.7%
LSE:PPB
-8.7%
GB Hospitality
-5.4%
GB Market
PPB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Paddy Power Betfair (PPB) -0.7% -12.7% -4.9% -34.7% -36.5% 35.3%
GB Hospitality 0.3% -0.1% -2.9% -8.7% 9.7% 28.7%
GB Market 0.5% -1.7% 2.1% -5.4% 13.8% 1.8%
1 Year Return vs Industry and Market
  • PPB underperformed the Hospitality industry which returned -8.7% over the past year.
  • PPB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.
Price Volatility
PPB
Industry
5yr Volatility vs Market

PPB Value

 Is Paddy Power Betfair undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Paddy Power Betfair to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Paddy Power Betfair.

LSE:PPB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PPB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 7.1%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.927 (1 + (1- 12.5%) (6.32%))
0.985
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.985 * 7.14%)
8.26%

Discounted Cash Flow Calculation for LSE:PPB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Paddy Power Betfair is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:PPB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.26%)
2019 236.33 Analyst x6 218.30
2020 308.80 Analyst x6 263.46
2021 362.50 Analyst x4 285.67
2022 352.00 Analyst x1 256.22
2023 380.00 Analyst x1 255.49
2024 396.81 Est @ 4.42% 246.43
2025 410.56 Est @ 3.46% 235.51
2026 422.03 Est @ 2.79% 223.61
2027 431.83 Est @ 2.32% 211.34
2028 440.44 Est @ 1.99% 199.10
Present value of next 10 years cash flows £2,395.13
LSE:PPB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £440.44 × (1 + 1.23%) ÷ (8.26% – 1.23%)
£6,336.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £6,336.38 ÷ (1 + 8.26%)10
£2,864.36
LSE:PPB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,395.13 + £2,864.36
£5,259.49
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £5,259.49 / 78.03
£76.33
LSE:PPB Discount to Share Price
Calculation Result
Exchange Rate GBP/EUR
(Reporting currency to currency of ISE:PPB)
1.134
Value per Share
(EUR)
= Value per Share in GBP x Exchange Rate (GBP/EUR)
= £67.4 x 1.134
€76.46
Non-primary Listing Adjustment Factor 1 share in LSE:PPB represents 0.88302x of ISE:PPB
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88302x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (EUR) x Listing Adjustment Factor
= € 76.46 x 0.88302
£67.51
Value per share (GBP) From above. £67.51
Current discount Discount to share price of £57.82
= -1 x (£57.82 - £67.51) / £67.51
14.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Paddy Power Betfair is available for.
Intrinsic value
14%
Share price is £57.82 vs Future cash flow value of £67.51
Current Discount Checks
For Paddy Power Betfair to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Paddy Power Betfair's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Paddy Power Betfair's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Paddy Power Betfair's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Paddy Power Betfair's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PPB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £2.42
ISE:PPB Share Price ** ISE (2019-05-23) in EUR €65.48
ISE:PPB Share Price converted to GBP reporting currency Exchange rate (EUR/ GBP) 0.882 £57.73
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Paddy Power Betfair.

LSE:PPB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ISE:PPB Share Price ÷ EPS (both in GBP)

= 57.73 ÷ 2.42

23.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paddy Power Betfair is overvalued based on earnings compared to the GB Hospitality industry average.
  • Paddy Power Betfair is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Paddy Power Betfair's expected growth come at a high price?
Raw Data
LSE:PPB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
13.9%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

LSE:PPB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.89x ÷ 13.9%

1.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paddy Power Betfair is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Paddy Power Betfair's assets?
Raw Data
LSE:PPB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £50.39
ISE:PPB Share Price * ISE (2019-05-23) in EUR €65.48
ISE:PPB Share Price converted to GBP reporting currency Exchange rate (EUR/ GBP) 0.882 £57.73
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.5x
LSE:PPB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ISE:PPB Share Price ÷ Book Value per Share (both in GBP)

= 57.73 ÷ 50.39

1.15x

* Primary Listing of Paddy Power Betfair.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paddy Power Betfair is good value based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Paddy Power Betfair's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Paddy Power Betfair has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PPB Future Performance

 How is Paddy Power Betfair expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Paddy Power Betfair expected to grow at an attractive rate?
  • Paddy Power Betfair's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Paddy Power Betfair's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Paddy Power Betfair's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PPB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PPB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 13.9%
LSE:PPB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 10.8%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PPB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PPB Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2,613 466 301 8
2020-12-31 2,344 462 259 9
2019-12-31 2,129 378 210 10
LSE:PPB Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 1,873 330 201
2018-09-30 1,829 362 210
2018-06-30 1,785 393 219
2018-03-31 1,765 432 219
2017-12-31 1,745 472 218
2017-09-30 1,682 400 175
2017-06-30 1,619 328 132
2017-03-31 1,560 266 63
2016-12-31 1,501 204 -6
2016-09-30 1,309 200 0
2016-06-30 1,117 197 5
2016-03-31 955 193 57

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Paddy Power Betfair's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
  • Paddy Power Betfair's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PPB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Paddy Power Betfair Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PPB Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.45 3.84 2.95 3.00
2020-12-31 3.56 3.84 2.98 4.00
2019-12-31 3.18 3.39 2.69 4.00
LSE:PPB Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 2.42
2018-09-30 2.50
2018-06-30 2.58
2018-03-31 2.58
2017-12-31 2.58
2017-09-30 2.08
2017-06-30 1.58
2017-03-31 0.77
2016-12-31 -0.07
2016-09-30 0.00
2016-06-30 0.09
2016-03-31 1.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Paddy Power Betfair is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Paddy Power Betfair's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Paddy Power Betfair has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PPB Past Performance

  How has Paddy Power Betfair performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Paddy Power Betfair's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Paddy Power Betfair's year on year earnings growth rate has been positive over the past 5 years.
  • Paddy Power Betfair's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Paddy Power Betfair's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.
Earnings and Revenue History
Paddy Power Betfair's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Paddy Power Betfair Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PPB Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,873.40 201.40 952.50
2018-09-30 1,829.25 210.35 920.30
2018-06-30 1,785.10 219.30 888.10
2018-03-31 1,765.25 218.50 877.45
2017-12-31 1,745.40 217.70 866.80
2017-09-30 1,682.20 175.05 831.15
2017-06-30 1,619.00 132.40 795.50
2017-03-31 1,559.90 63.35 781.40
2016-12-31 1,500.80 -5.70 767.30
2016-09-30 1,308.65 -0.30 685.65
2016-06-30 1,116.50 5.10 604.00
2016-03-31 955.40 56.65 518.05
2015-12-31 794.30 108.20 432.10
2015-09-30 776.93 113.21 338.32
2015-06-30 730.24 116.07 369.81
2015-03-31 687.47 111.10 333.55
2014-12-31 684.75 112.55 315.93
2014-09-30 639.32 99.08 300.16
2014-06-30 609.79 87.89 292.01
2014-03-31 622.91 96.30 294.39
2013-12-31 619.48 102.40 288.79
2013-09-30 613.40 105.10 284.41
2013-06-30 617.83 109.71 284.85
2013-03-31 580.58 105.16 269.23
2012-12-31 530.32 98.15 247.49
2012-09-30 490.63 101.50 226.46
2012-06-30 467.23 108.17 212.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Paddy Power Betfair has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Paddy Power Betfair used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Paddy Power Betfair's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Paddy Power Betfair's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Paddy Power Betfair has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PPB Health

 How is Paddy Power Betfair's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Paddy Power Betfair's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Paddy Power Betfair's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Paddy Power Betfair's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Paddy Power Betfair's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Paddy Power Betfair Company Filings, last reported 4 months ago.

LSE:PPB Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,211.30 283.40 123.70
2018-09-30 4,211.30 283.40 123.70
2018-06-30 4,189.30 168.50 317.00
2018-03-31 4,189.30 168.50 317.00
2017-12-31 4,395.40 62.20 306.60
2017-09-30 4,395.40 62.20 306.60
2017-06-30 4,309.40 145.20 232.00
2017-03-31 4,309.40 145.20 232.00
2016-12-31 4,316.60 213.80 249.90
2016-09-30 4,316.60 213.80 249.90
2016-06-30 4,251.20 210.00 213.20
2016-03-31 4,251.20 210.00 213.20
2015-12-31 50.90 142.00 86.10
2015-09-30 51.10 142.66 112.34
2015-06-30 7.05 171.76 91.42
2015-03-31 7.20 175.35 93.33
2014-12-31 300.56 0.00 190.88
2014-09-30 301.07 0.00 191.21
2014-06-30 262.59 0.00 152.77
2014-03-31 271.20 0.00 157.78
2013-12-31 258.54 0.00 145.52
2013-09-30 259.99 0.00 146.33
2013-06-30 247.17 0.00 154.29
2013-03-31 243.85 0.00 152.21
2012-12-31 225.23 0.00 138.73
2012-09-30 221.17 0.00 136.23
2012-06-30 212.03 0.00 121.52
  • Paddy Power Betfair's level of debt (6.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 6.7% today).
  • Debt is well covered by operating cash flow (116.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 129.9x coverage).
X
Financial health checks
We assess Paddy Power Betfair's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Paddy Power Betfair has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PPB Dividends

 What is Paddy Power Betfair's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.46%
Current annual income from Paddy Power Betfair dividends. Estimated to be 3.48% next year.
If you bought £2,000 of Paddy Power Betfair shares you are expected to receive £69 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Paddy Power Betfair's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
  • Paddy Power Betfair's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PPB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PPB Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.16 9.00
2020-12-31 1.99 13.00
2019-12-31 1.92 14.00
LSE:PPB Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-27 2.000 3.253
2019-03-06 2.000 3.454
2018-04-03 2.000 2.839
2018-03-07 2.000 2.654
2017-09-12 1.780 2.187
2017-03-07 1.650 2.049
2017-03-01 1.650 1.889
2016-08-24 0.800 0.923
2016-01-27 1.363 1.574
2015-04-15 1.172 1.805
2015-03-03 1.196 2.166
2014-04-10 1.089 2.643
2014-03-04 1.232 2.565
2013-08-28 1.145 2.353
2013-03-05 1.121 2.064
2012-03-30 1.730 4.014
2012-03-05 0.923 2.370
2011-08-30 0.733 2.199
2011-04-01 0.719 2.455
2011-03-07 0.715 2.796
2010-04-15 0.525 2.352
2010-03-02 0.568 2.597

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Paddy Power Betfair has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Paddy Power Betfair only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Paddy Power Betfair's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Paddy Power Betfair's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Paddy Power Betfair afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Paddy Power Betfair has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PPB Management

 What is the CEO of Paddy Power Betfair's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeremy Jackson
COMPENSATION £66,000
AGE 43
TENURE AS CEO 1.3 years
CEO Bio

Mr. Jeremy Peter Jackson has been the Chief Executive Officer and a Director at at Paddy Power Betfair plc since January 8, 2018. Mr. Jackson was an Independent Non-Executive Director at Paddy Power Betfair plc since February 02, 2016 until January 8, 2018. Mr. Jackson has been the Chief Executive Officer of WorldPay (UK) Limited at Worldpay Group plc since March 1, 2017. Mr. Jackson served as Head of Innovation Area at Banco Santander, S.A. since January 29, 2016 and served as its Head of Corporate Innovation from April 1, 2016 to February 28, 2017. He served as the Chief Executive Officer of Travelex Group Limited from March 2010 to February 25, 2015. Mr. Jackson served as Managing Director of Consumer Banking at Lloyds Banking Group where he held a number of senior roles within the Retail arm of HBOS plc before its merger with Lloyds. He started his career at McKinsey and Co. Mr. Jackson has been an Independent Non-Executive Director at Betfair Group PLC since April 24, 2013 and Betfair Limited since April 2013. He served as a Non-Executive Director of Santander UK Group Holdings plc from April 1, 2016 to February 28, 2017. He served as Non Executive Director of Santander UK plc from April 1, 2016 to February 28, 2017. He serves as an Independent Non-Executive Director at The Sporting Exchange Limited. He served as a Director of Travelex Group Limited and Travelex Holdings Limited until March 24, 2015. He served as a Director of Travelex Financing PLC from June 12, 2013 to February 26, 2015. Mr. Jackson holds 1st Class Honours degree in Manufacturing Engineering from Cambridge University.

CEO Compensation
  • Jeremy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jeremy's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Paddy Power Betfair management team in years:

3.3
Average Tenure
43
Average Age
  • The tenure for the Paddy Power Betfair management team is about average.
Management Team

Jeremy Jackson

TITLE
CEO & Director
COMPENSATION
£66K
AGE
43
TENURE
1.3 yrs

Jonathan Hill

TITLE
CFO & Executive Director
AGE
50
TENURE
0.6 yrs

Paul Cutter

TITLE
Chief Technology Officer
TENURE
5.3 yrs

Edward Traynor

TITLE
Group General Counsel & Company Secretary
AGE
40
TENURE
4 yrs

Sally Cairns

TITLE
Chief People Officer
TENURE
3.3 yrs

Charlie Kelly

TITLE
Head of Retail Operations In Ireland
TENURE
14.3 yrs

Aine Flanagan

TITLE
Chief Strategy Officer
TENURE
3.1 yrs

Tanya Horgan

TITLE
Chief Risk Officer

Barni Evans

TITLE
Chief Executive Officer of Sportsbet
TENURE
1.3 yrs

Kip Levin

TITLE
Chief Executive Officer of Betfair US & TVG
TENURE
5.1 yrs
Board of Directors Tenure

Average tenure and age of the Paddy Power Betfair board of directors in years:

3.3
Average Tenure
56
Average Age
  • The tenure for the Paddy Power Betfair board of directors is about average.
Board of Directors

Gary McGann

TITLE
Chairman of the Board
COMPENSATION
£395K
AGE
68
TENURE
3.8 yrs

Jeremy Jackson

TITLE
CEO & Director
COMPENSATION
£66K
AGE
43
TENURE
3.3 yrs

Jonathan Hill

TITLE
CFO & Executive Director
AGE
50
TENURE
0.6 yrs

Michael Cawley

TITLE
Independent Non-Executive Director
COMPENSATION
£101K
AGE
64
TENURE
5.8 yrs

Ian Dyson

TITLE
Senior Independent Director
COMPENSATION
£90K
AGE
56
TENURE
3.3 yrs

Zillah Byng-Thorne

TITLE
Independent Non-Executive Director
COMPENSATION
£79K
AGE
43
TENURE
3.3 yrs

Peter Rigby

TITLE
Independent Non-Executive Director
COMPENSATION
£80K
AGE
62
TENURE
3.3 yrs

Emer Timmons

TITLE
Independent Non-Executive Director
COMPENSATION
£49K
AGE
49
TENURE
2 yrs

Jan Bolz

TITLE
Independent Non-Executive Director
COMPENSATION
£25K
AGE
57
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Paddy Power Betfair insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
15. May 19 Buy Zillah Byng-Thorne Individual 15. May 19 15. May 19 336 £58.62 £19,696
23. Aug 18 Buy Jeremy Jackson Individual 23. Aug 18 23. Aug 18 1,729 £71.85 £124,225
X
Management checks
We assess Paddy Power Betfair's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Paddy Power Betfair has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PPB News

Simply Wall St News

PPB Company Info

Description

Paddy Power Betfair plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, and internationally. The company operates through Online, Australia, Retail, and US segments. It offers exchange sports betting products; fixed odds games betting; online games and casino; peer-to-peer games, including online bingo and poker; and business-to-business services. The company provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, and adjarabet.com Websites under the Paddy Power, Betfair, Sportsbet, TVG, FanDuel, and Adjarabet brand names, as well as through a chain of licensed betting offices. It also operates TVG, a horseracing television channel and online advance deposit wagering network; DRAFT, an operator in daily fantasy sports; the Betfair New Jersey online casino; the Betfair New Jersey horseracing betting exchange; and Dial-a-Bet telephone betting service. Paddy Power Betfair plc was founded in 1988 and is headquartered in Dublin, Ireland.

Details
Name: Paddy Power Betfair plc
PPB
Exchange: LSE
Founded: 1988
€4,486,437,370
78,029,042
Website: http://www.paddypowerbetfair.com
Address: Paddy Power Betfair plc
Power Tower,
Belfield Office Park,
Dublin,
Co. Dublin, 4,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ISE PPB Ordinary Shares Irish Stock Exchange IE EUR 07. Dec 2000
OTCPK PDYP.F Ordinary Shares Pink Sheets LLC US USD 07. Dec 2000
DB PPB Ordinary Shares Deutsche Boerse AG DE EUR 07. Dec 2000
LSE PPB Ordinary Shares London Stock Exchange GB GBP 07. Dec 2000
BATS-CHIXE PPBI Ordinary Shares BATS 'Chi-X Europe' GB EUR 07. Dec 2000
BATS-CHIXE PPBL Ordinary Shares BATS 'Chi-X Europe' GB GBP 07. Dec 2000
OTCPK PDYP.Y UNSPONSORED ADR Pink Sheets LLC US USD 28. Oct 2008
Number of employees
Current staff
Staff numbers
7,901
Paddy Power Betfair employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 20:40
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/03/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.