LSE:PPH

Stock Analysis Report

Executive Summary

PPHE Hotel Group Limited owns, develops, leases, operates, and franchises full-service upscale and lifestyle hotels in Europe, the Middle East, and Africa.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.

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


Market Performance


7 Day Return

1.6%

PPH

-1.2%

GB Hospitality

-0.4%

GB Market


1 Year Return

16.4%

PPH

16.7%

GB Hospitality

2.9%

GB Market

Return vs Industry: PPH matched the UK Hospitality industry which returned 16.7% over the past year.

Return vs Market: PPH exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

PPHIndustryMarket
7 Day1.6%-1.2%-0.4%
30 Day2.2%-0.8%-1.4%
90 Day0%1.6%-2.1%
1 Year18.8%16.4%21.1%16.7%8.0%2.9%
3 Year185.8%167.1%27.9%14.5%18.0%3.6%
5 Year458.9%333.8%63.5%37.7%35.8%6.4%

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 (£18.5) is trading below our estimate of fair value (£66.17)

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


Price To Earnings Ratio

PE vs Industry: PPH is poor value based on its PE Ratio (29x) compared to the Hospitality industry average (24.7x).

PE vs Market: PPH is poor value based on its PE Ratio (29x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: PPH is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: PPH is overvalued based on its PB Ratio (2.1x) compared to the GB Hospitality industry average (1.4x).


Next Steps

Future Growth

How is PPHE Hotel Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPH's forecast earnings growth (8.6% per year) is above the savings rate (1.2%).

Earnings vs Market: PPH's earnings (8.6% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: PPH's revenue (2.8% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: PPH's revenue (2.8% 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 (8.3%).


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


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 (-29.4%) over the past year, making it difficult to compare to the Hospitality industry average (4.9%).


Return on Equity

High ROE: PPH's Return on Equity (6.9%) is considered low.


Return on Assets

ROA vs Industry: PPH's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: PPH has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PPHE Hotel Group's financial position?


Financial Position Analysis

Short Term Liabilities: PPH's short term assets (£206.7M) exceeds its short term liabilities (£84.2M)

Long Term Liabilities: PPH's short term assets (206.7M) do not cover its long term liabilities (1.0B)


Debt to Equity History and Analysis

Debt Level: PPH's debt to equity ratio (105.4%) is considered high

Reducing Debt: PPH's debt to equity ratio has reduced from 184% to 105.4% over the past 5 years.

Debt Coverage: PPH's debt is not well covered by operating cash flow (15.1%).

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


Balance Sheet

Inventory Level: PPH has a high level of physical assets or inventory.

Debt Coverage by Assets: PPH's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PPH's dividend (2.05%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: PPH's dividend (2.05%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: Whilst dividend payments have been stable, PPH has been paying a dividend for less than 10 years.

Growing Dividend: PPH's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.4%), PPH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPH's dividends in 3 years are forecast to be well covered by earnings (47.9% payout ratio).


Next Steps

Management

What is the CEO of PPHE Hotel Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Boris Ivesha (74yo)

12.3yrs

Tenure

UK£537,000

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 ($USD691.24K) is about average for companies of similar size in the UK market ($USD1.18M).

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


Management Age and Tenure

1.8yrs

Average Tenure

49yo

Average Age

Experienced Management: PPH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: PPH's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Boris Ivesha (74yo)

    President

    • Tenure: 12.3yrs
    • Compensation: UK£537.00k
  • Robert Henke (42yo)

    Executive Vice President of Commercial & Corporate Affairs

    • Tenure: 1.9yrs
  • Kurt Kuen (72yo)

    Senior Vice President of UK Region

    • Tenure: 0yrs
  • Inbar Zilberman (44yo)

    General Counsel

    • Tenure: 0yrs
  • Jaklien van Sterkenburg (54yo)

    Executive VP of People & Culture and Head of Human Resources

    • Tenure: 1.8yrs
  • Daniel Kos (41yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£255.00k
  • Greg Hegarty

    Chief Operating Officer

    • Tenure: 1.8yrs
  • Lisa Woodman

    Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Dawn Morgan (55yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£52.00k
  • Nigel Jones (58yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£60.00k
  • Boris Ivesha (74yo)

    President

    • Tenure: 12.3yrs
    • Compensation: UK£537.00k
  • Eli Papouchado (82yo)

    Non-Executive Chairman

    • Tenure: 12.3yrs
    • Compensation: UK£200.00k
  • Kevin McAuliffe (62yo)

    Non-Executive Deputy Chairman

    • Tenure: 12.3yrs
    • Compensation: UK£86.00k
  • Daniel Kos (41yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£255.00k
  • Kenneth Bradley

    Non-Executive Director

    • Tenure: 0.08yrs

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£784.366m
  • Shares outstanding: 42.40m
  • Website: https://www.pphe.com

Number of Employees


Location

  • PPHE Hotel Group Limited
  • Viñoly Tower
  • 5th Floor
  • Amsterdam
  • Noord-Holland
  • 1082 MD
  • 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 Europe, the Middle East, and Africa. It owns and operates hotels and resorts under the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:09
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.