LSE:PPH

Stock Analysis Report

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Executive Summary

PPHE Hotel Group Limited owns, develops, leases, operates, and franchises full-service upscale and lifestyle hotels in Netherlands, Germany and Hungary, Croatia, and the United Kingdom.


Snowflake Analysis

Fair value with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PPH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

PPH

-2.5%

GB Hospitality

-0.7%

GB Market


1 Year Return

-39.9%

PPH

-39.8%

GB Hospitality

-15.7%

GB Market

Return vs Industry: PPH underperformed the UK Hospitality industry which returned -37.5% over the past year.

Return vs Market: PPH underperformed the UK Market which returned -14.9% over the past year.


Shareholder returns

PPHIndustryMarket
7 Day4.6%-2.5%-0.7%
30 Day-2.6%-4.0%0.6%
90 Day-2.6%-4.2%11.3%
1 Year-39.3%-39.9%-37.6%-39.8%-11.7%-15.7%
3 Year41.9%34.5%-26.0%-33.0%-4.3%-16.1%
5 Year148.4%96.5%-12.2%-27.8%13.5%-11.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PPHE Hotel Group 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: PPH (£11.3) is trading below our estimate of fair value (£39.89)

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


Price To Earnings Ratio

PE vs Industry: PPH is good value based on its PE Ratio (15.7x) compared to the GB Hospitality industry average (18.1x).

PE vs Market: PPH is poor value based on its PE Ratio (15.7x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: PPH is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

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


Next Steps

Future Growth

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

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPH's forecast earnings growth (8.8% per year) is above the savings rate (1.2%).

Earnings vs Market: PPH's earnings (8.8% per year) are forecast to grow slower than the UK market (21.6% per year).

High Growth Earnings: PPH's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPH's revenue (6% per year) is forecast to grow faster than the UK market (3.1% per year).

High Growth Revenue: PPH's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPH's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has PPHE Hotel Group performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPH has high quality earnings.

Growing Profit Margin: PPH's current net profit margins (9.5%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: PPH's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: PPH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PPH had negative earnings growth (-10.9%) over the past year, making it difficult to compare to the Hospitality industry average (-15.1%).


Return on Equity

High ROE: PPH's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is PPHE Hotel Group's financial position?


Financial Position Analysis

Short Term Liabilities: PPH's short term assets (£191.9M) exceed its short term liabilities (£71.1M).

Long Term Liabilities: PPH's short term assets (£191.9M) do not cover its long term liabilities (£1.0B).


Debt to Equity History and Analysis

Debt Level: PPH's debt to equity ratio (141.2%) is considered high.

Reducing Debt: PPH's debt to equity ratio has reduced from 180.8% to 141.2% over the past 5 years.

Debt Coverage: PPH's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: PPH's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.61%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PPH'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 PPH's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.5yrs

Average management tenure


CEO

Boris Ivesha (75yo)

13.08yrs

Tenure

UK£531,649

Compensation

Mr. Boris Ernest Ivesha has been the Chief Executive Officer at PPHE Hotel Group Limited (a/k/a, Park Plaza Hotels Ltd) since June 14, 2007 and has been its President since 1991. He has been the President  ...


CEO Compensation Analysis

Compensation vs Market: Boris's total compensation ($USD670.54K) is below average for companies of similar size in the UK market ($USD1.21M).

Compensation vs Earnings: Boris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Boris Ivesha
President13.08yrsUK£531.65k10.92% £52.4m
Daniel Kos
CFO & Executive Director2.42yrsUK£354.65kno data
Greg Hegarty
Deputy CEO & COO2.5yrsno datano data
Inbar Zilberman
Chief Corporate & Legal Officer0.50yrno datano data
Lisa Woodman
Director of Corporate Communicationsno datano datano data
Jaklien van Sterkenburg
Executive VP of People & Culture and Head of Human Resources2.58yrsno datano data
Robert Henke
Executive Vice President of Commercial Affairs2.67yrsno datano data
Kurt Kuen
Senior Vice President of UK Regionno datano datano data

2.5yrs

Average Tenure

50yo

Average Age

Experienced Management: PPH's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Boris Ivesha
President13.08yrsUK£531.65k10.92% £52.4m
Daniel Kos
CFO & Executive Director2.42yrsUK£354.65kno data
Dawn Morgan
Independent Non-Executive Director4.17yrsUK£69.05kno data
Eli Papouchado
Non-Executive Chairman13.08yrsUK£200.00k3.6% £17.3m
Kevin McAuliffe
Non-Executive Deputy Chairman2.08yrsUK£110.00kno data
Nigel Keen
Senior Independent Director & Non-Executive Director0.17yrno datano data
Ken Bradley
Independent Non-Executive Director0.83yrUK£18.10kno data

2.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: PPH's board of directors are not considered experienced ( 2.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PPHE Hotel Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PPHE Hotel Group Limited
  • Ticker: PPH
  • Exchange: LSE
  • Founded: 1989
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: UK£479.791m
  • Shares outstanding: 42.46m
  • Website: https://www.pphe.com

Number of Employees


Location

  • PPHE Hotel Group Limited
  • Motion Building
  • 9th Floor
  • Amsterdam
  • Noord-Holland
  • 1043
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2007
32PDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
PPHLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2007

Biography

PPHE Hotel Group Limited owns, develops, leases, operates, and franchises full-service upscale and lifestyle hotels in Netherlands, Germany and Hungary, Croatia, and the United Kingdom. It owns and operates hotels and resorts under the Park Plaza, the art’otel, and the Arena Campsites brands, as well as the Arena Hotels & Apartments. As of January 30, 2020, the company owned/operated 37 hotels and resorts with approximately 8,800 rooms; and 8 campsites offering approximately 6,000 units in central London. It also operates restaurants and bars; and coffee shop and Spa. The company was formerly known as Park Plaza Hotels Limited and changed its name to PPHE Hotel Group Limited in March 2012. PPHE Hotel Group Limited was founded in 1989 and is based in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 20:57
End of Day Share Price2020/07/14 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.