LSE:PTEC

Stock Analysis Report

Executive Summary

Playtech Plc develops and sells software products for the online and land-based gambling industries worldwide.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PTEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.9%

PTEC

16.1%

GB Hospitality

8.6%

GB Market


1 Year Return

-49.4%

PTEC

-16.8%

GB Hospitality

-19.4%

GB Market

Return vs Industry: PTEC underperformed the UK Hospitality industry which returned -26.7% over the past year.

Return vs Market: PTEC underperformed the UK Market which returned -23.6% over the past year.


Shareholder returns

PTECIndustryMarket
7 Day23.9%16.1%8.6%
30 Day5.3%-7.2%-3.5%
90 Day-45.3%-27.2%-23.0%
1 Year-47.6%-49.4%-14.6%-16.8%-15.5%-19.4%
3 Year-73.7%-76.6%-8.9%-18.0%-8.8%-19.9%
5 Year-65.2%-71.9%7.2%-9.4%4.2%-19.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

57.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PTEC (£1.77) is trading above our estimate of fair value (£1.15)

Significantly Below Fair Value: PTEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PTEC is poor value based on its PE Ratio (45.8x) compared to the Hospitality industry average (18.1x).

PE vs Market: PTEC is poor value based on its PE Ratio (45.8x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: PTEC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: PTEC is good value based on its PB Ratio (0.5x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is Playtech forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTEC's forecast earnings growth (53.5% per year) is above the savings rate (0.5%).

Earnings vs Market: PTEC's earnings (53.5% per year) are forecast to grow faster than the UK market (15.5% per year).

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

Revenue vs Market: PTEC's revenue (0.7% per year) is forecast to grow slower than the UK market (2.5% per year).

High Growth Revenue: PTEC's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTEC's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Playtech performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTEC has a large one-off loss of €28.9M impacting its December 31 2019 financial results.

Growing Profit Margin: PTEC's current net profit margins (0.9%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: PTEC's earnings have declined by -4% per year over the past 5 years.

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

Earnings vs Industry: PTEC had negative earnings growth (-89.3%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).


Return on Equity

High ROE: PTEC's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Playtech's financial position?


Financial Position Analysis

Short Term Liabilities: PTEC's short term assets (€1.0B) exceed its short term liabilities (€777.2M).

Long Term Liabilities: PTEC's short term assets (€1.0B) do not cover its long term liabilities (€1.1B).


Debt to Equity History and Analysis

Debt Level: PTEC's debt to equity ratio (76.6%) is considered high.

Reducing Debt: PTEC's debt to equity ratio has increased from 28.2% to 76.6% over the past 5 years.

Debt Coverage: PTEC's debt is well covered by operating cash flow (34.3%).

Interest Coverage: PTEC's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Playtech's current dividend yield, its reliability and sustainability?

7.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PTEC's dividend (9.01%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: PTEC's dividend (9.01%) is in the top 25% of dividend payers in the UK market (7.08%)


Stability and Growth of Payments

Stable Dividend: PTEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: PTEC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (412.5%), PTEC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PTEC's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Mor Weizer (43yo)

12.92s

Tenure

€3,016,985

Compensation

Mr. Mor Weizer, also known as Mor, serves as the Chief Executive Officer of Playtech Inc. Mr. Weizer has been the Chief Executive Officer and Executive Director of Playtech plc since May 2, 2007. Mr. Weize ...


CEO Compensation Analysis

Compensation vs Market: Mor's total compensation ($USD3.26M) is above average for companies of similar size in the UK market ($USD1.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Moran Weizer
CEO & Executive Director12.92yrs€3.02m0.081% 526.7k
Andrew Smith
CFO & Executive Director3.25yrs€962.32k0.026% 172.9k
Shimon Akad
Chief Operating Officerno datano datano data
Chris McGinnis
Director of Investor Relations & Strategic Analysisno datano datano data
Ian Ince
Head of Regulatory Affairs & Complianceno datano datano data
Alex Latner
General Counselno datano datano data
James Newman
Director of Corporate Affairsno datano datano data
Francesco Rodano
Chief Policy Officer3.83yrsno datano data
Robert Penfold
Head of Internal Auditno datano datano data
Ron Hoffman
Chief Executive Officer of TradeTech Group3.25yrs€1.35mno data

3.5yrs

Average Tenure

Experienced Management: PTEC's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Moran Weizer
CEO & Executive Director12.92yrs€3.02m0.081% 526.7k
Andrew Smith
CFO & Executive Director3.25yrs€962.32k0.026% 172.9k
Alan Jackson
Non-Executive Chairman of Board6.5yrs€442.89k0.0084% 54.9k
Ian Penrose
Non-Executive Director1.58yrs€39.26k0.0059% 38.5k
John Jackson
Senior Independent Director0.92yr€118.56k0.0017% 11.0k
John Krumins
Independent Non-Executive Director1yrno datano data
Anna Massion
Independent Non-Executive Director1yrno datano data
Claire Milne
Non-Executive Director3.75yrs€118.56kno data

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: PTEC'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: PTEC 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

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


Key Information

  • Name: Playtech plc
  • Ticker: PTEC
  • Exchange: LSE
  • Founded: 1999
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£653.277m
  • Shares outstanding: 297.35m
  • Website: https://www.playtech.com

Number of Employees


Location

  • Playtech plc
  • St George’s Court
  • Ground Floor
  • Douglas
  • IM1 1EE
  • Isle of Man

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTECLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2006
PL8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2006
PYTC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2006
PTECLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2006
PYTC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDMay 2010

Biography

Playtech Plc develops and sells software products for the online and land-based gambling industries worldwide. The company operates through Gaming B2B, Gaming B2C, and Financial segments. It operates an online trading platform to retail customers, which enable them to trade contracts for differences on various instruments, such as foreign exchange, commodities, equities, and indices; and provides B2B clearing and execution services for retail brokers and professional clients. The company also offers online gaming applications, including online casino, poker, bingo, sports betting, live gaming, casual, and fixed odds games. In addition, it owns the intellectual property rights and licenses the software; provides marketing and advertising, turnkey, and operational and hosting services; offers advisory services for processing and cashier to online gaming operators; operates betting shops; and distributes lottery software. Playtech Plc was founded in 1999 and is headquartered in Douglas, the Isle of Man. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:16
End of Day Share Price2020/04/09 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.