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Playtech

LSE:PTEC
Snowflake Description

Very undervalued with reasonable growth potential and pays a dividend.

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

Playtech Plc develops and sells software products for the online and land-based gambling industries worldwide. The last earnings update was 89 days ago. More info.


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PTEC Share Price and Events
7 Day Returns
3.9%
LSE:PTEC
3.2%
GB Hospitality
1.3%
GB Market
1 Year Returns
-50.4%
LSE:PTEC
-7.6%
GB Hospitality
-5%
GB Market
PTEC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Playtech (PTEC) 3.9% -7% 11.8% -50.4% -51.7% -36%
GB Hospitality 3.2% 0.5% -1.3% -7.6% 11% 30.7%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • PTEC underperformed the Hospitality industry which returned -7.6% over the past year.
  • PTEC underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
PTEC
Industry
5yr Volatility vs Market

Value

 Is Playtech 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 Playtech 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 Playtech.

LSE:PTEC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
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:PTEC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.932 (1 + (1- 21%) (57.3%))
1.237
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.237 * 5.96%)
8.6%

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

The calculations below outline how an intrinsic value for Playtech 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:PTEC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 8.6%)
2019 191.55 Analyst x2 176.39
2020 242.43 Analyst x3 205.57
2021 256.20 Analyst x1 200.04
2022 260.11 Est @ 1.53% 187.02
2023 263.85 Est @ 1.44% 174.68
2024 267.47 Est @ 1.37% 163.06
2025 271.03 Est @ 1.33% 152.15
2026 274.55 Est @ 1.3% 141.92
2027 278.05 Est @ 1.28% 132.36
2028 281.56 Est @ 1.26% 123.42
Present value of next 10 years cash flows €1,656.61
LSE:PTEC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €281.56 × (1 + 1.23%) ÷ (8.6% – 1.23%)
€3,867.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €3,867.03 ÷ (1 + 8.6%)10
€1,695.05
LSE:PTEC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €1,656.61 + €1,695.05
€3,351.66
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €3,351.66 / 307.17
€10.91
LSE:PTEC Discount to Share Price
Calculation Result
Exchange Rate EUR/GBP
(Reporting currency to currency of LSE:PTEC)
0.877
Value per Share
(GBP)
= Value per Share in EUR x Exchange Rate (EUR/GBP)
= €10.91 x 0.877
£9.57
Value per share (GBP) From above. £9.57
Current discount Discount to share price of £4.05
= -1 x (£4.05 - £9.57) / £9.57
57.7%

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

Current Discount
Amount off the current price Playtech is available for.
Intrinsic value
>50%
Share price is £4.05 vs Future cash flow value of £9.57
Current Discount Checks
For Playtech to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Playtech's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Playtech's share price is below the future cash flow value, and 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 Playtech's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Playtech's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PTEC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.39
LSE:PTEC Share Price ** LSE (2019-05-20) in GBP £4.05
LSE:PTEC Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.14 €4.61
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 17.95x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.24x

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

** Primary Listing of Playtech.

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

= LSE:PTEC Share Price ÷ EPS (both in EUR)

= 4.61 ÷ 0.39

11.73x

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

  • Playtech is good value based on earnings compared to the GB Hospitality industry average.
  • Playtech is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Playtech's expected growth come at a high price?
Raw Data
LSE:PTEC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
21.1%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.06x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.73x ÷ 21.1%

0.56x

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

  • Playtech is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Playtech's assets?
Raw Data
LSE:PTEC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €4.26
LSE:PTEC Share Price * LSE (2019-05-20) in GBP £4.05
LSE:PTEC Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.14 €4.61
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.39x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:PTEC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PTEC Share Price ÷ Book Value per Share (both in EUR)

= 4.61 ÷ 4.26

1.08x

* Primary Listing of Playtech.

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

  • Playtech is good value based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess Playtech'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. Playtech has a total score of 6/6, 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.

Future Performance

 How is Playtech expected to perform in the next 1 to 3 years based on estimates from 6 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
21.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Playtech expected to grow at an attractive rate?
  • Playtech's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Playtech's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Playtech'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:PTEC Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PTEC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 21.1%
LSE:PTEC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 11.1%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
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 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*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:PTEC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PTEC Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,760 426 241 3
2020-12-31 1,660 409 214 6
2019-12-31 1,608 380 190 5
LSE:PTEC Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 1,240 387 124
2018-09-30 1,031 384 197
2018-06-30 822 382 271
2018-03-31 815 344 260
2017-12-31 807 307 248
2017-09-30 800 303 241
2017-06-30 792 299 234
2017-03-31 750 275 213
2016-12-31 709 251 193
2016-09-30 695 228 147
2016-06-30 682 205 101
2016-03-31 656 203 118

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Playtech's earnings are expected to grow significantly at over 20% yearly.
  • Playtech's revenue is expected to grow by 11.1% 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:PTEC 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 6 Analyst Estimates (S&P Global) See Below

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

LSE:PTEC Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.76 0.77 0.76 2.00
2020-12-31 0.65 0.68 0.61 3.00
2019-12-31 0.60 0.60 0.60 1.00
LSE:PTEC Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.39
2018-09-30 0.63
2018-06-30 0.86
2018-03-31 0.82
2017-12-31 0.79
2017-09-30 0.77
2017-06-30 0.75
2017-03-31 0.68
2016-12-31 0.61
2016-09-30 0.46
2016-06-30 0.32
2016-03-31 0.38

*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.
  • Playtech is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Playtech'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.
Playtech has a total score of 4/6, 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.

Past Performance

  How has Playtech 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 Playtech'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.
  • Playtech's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Playtech's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Playtech's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.
Earnings and Revenue History
Playtech'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 Playtech Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PTEC Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,240.44 123.81 923.10
2018-09-30 1,031.23 197.36 743.69
2018-06-30 822.03 270.92 548.19
2018-03-31 814.57 259.53 526.83
2017-12-31 807.12 248.14 521.54
2017-09-30 799.76 241.02 495.69
2017-06-30 792.41 233.91 469.83
2017-03-31 750.48 213.47 441.55
2016-12-31 708.56 193.03 413.27
2016-09-30 695.17 146.85 410.62
2016-06-30 681.79 100.67 407.98
2016-03-31 655.94 118.24 395.54
2015-12-31 630.09 135.81 383.10
2015-09-30 579.37 142.22 348.92
2015-06-30 528.65 148.63 314.73
2015-03-31 492.82 144.48 286.80
2014-12-31 456.98 140.33 258.87
2014-09-30 430.86 145.44 244.64
2014-06-30 404.73 150.55 230.42
2014-03-31 385.97 319.56 221.83
2013-12-31 367.21 488.58 213.24
2013-09-30 353.89 481.41 205.83
2013-06-30 340.58 474.25 198.42
2013-03-31 329.04 280.50 192.11
2012-12-31 317.50 86.76 185.79
2012-09-30 301.21 76.37 177.13
2012-06-30 284.92 65.99 168.46

*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.
  • Playtech has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Playtech used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • Playtech's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Playtech'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.
Playtech has a total score of 0/6, 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.

Health

 How is Playtech'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 Playtech's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Playtech's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Playtech's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Playtech'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 1.2x 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 Playtech Company Filings, last reported 4 months ago.

LSE:PTEC Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,350.51 811.55 622.20
2018-09-30 1,350.51 811.55 622.20
2018-06-30 1,438.00 1,295.14 936.57
2018-03-31 1,438.00 1,295.14 936.57
2017-12-31 1,358.45 476.46 583.96
2017-09-30 1,358.45 476.46 583.96
2017-06-30 1,108.17 471.29 536.43
2017-03-31 1,108.17 471.29 536.43
2016-12-31 1,099.72 466.23 544.84
2016-09-30 1,099.72 466.23 544.84
2016-06-30 1,239.10 461.30 777.58
2016-03-31 1,239.10 461.30 777.58
2015-12-31 1,260.70 456.43 857.90
2015-09-30 1,260.70 456.43 857.90
2015-06-30 1,245.07 251.68 780.25
2015-03-31 1,245.07 251.68 780.25
2014-12-31 873.18 247.04 692.35
2014-09-30 873.18 247.04 692.35
2014-06-30 780.86 0.00 365.97
2014-03-31 780.86 0.00 365.97
2013-12-31 921.02 0.00 533.24
2013-09-30 921.02 0.00 533.24
2013-06-30 875.50 0.00 576.22
2013-03-31 875.50 0.00 576.22
2012-12-31 514.18 69.22 127.37
2012-09-30 514.18 69.22 127.37
2012-06-30 462.13 75.60 139.32
  • Playtech's level of debt (60.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 60.1% today).
  • Debt is well covered by operating cash flow (47.7%, greater than 20% of total debt).
  • Playtech earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Playtech'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. Playtech 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.

Dividends

 What is Playtech'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
5.23%
Current annual income from Playtech dividends. Estimated to be 6.36% next year.
If you bought £2,000 of Playtech shares you are expected to receive £105 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?
  • Playtech's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Playtech's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
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:PTEC 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 6 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 705 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 5.2%

Industry and Market average data is calculated daily.

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

LSE:PTEC Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.31 3.00
2020-12-31 0.30 7.00
2019-12-31 0.28 7.00
LSE:PTEC Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.241 4.918
2019-02-20 0.241 5.472
2018-02-22 0.360 5.984
2017-04-21 0.327 3.207
2017-02-23 0.327 3.065
2016-04-14 0.285 2.800
2015-04-17 0.264 2.348
2014-02-20 0.232 2.689
2013-08-29 0.232 2.714
2013-03-14 0.308 4.085
2012-11-14 0.156 2.781
2012-08-30 0.156 3.189
2012-03-15 0.165 3.744
2011-05-11 0.192 5.706
2010-08-26 0.188 4.152
2010-03-17 0.188 3.362
2010-01-26 0.188 3.343

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

  • Playtech 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 Playtech only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Playtech's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Playtech'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 Playtech afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Playtech has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of Playtech'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
Mor Weizer
COMPENSATION €4,191,576
AGE 42
TENURE AS CEO 12 years
CEO Bio

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. Weizer has considerable international sales and management experience in a hi-tech environment and extensive knowledge of the online gambling industry. Mr. Weizer served as the Chief Executive Officer of one of Playtech's subsidiaries, Techplay Marketing Ltd which oversaw licensee relationship management, product management for new licensees and the group's marketing activities. Mr. Weizer worked in a variety of roles, including as an auditor and financial consultant for PricewaterhouseCoopers and a system analyst for Tadiran Electronic Systems Limited. Mr. Weizer worked for Oracle for over four years, initially as a Development Consultant and then as a Product Manager, which involved creating sales and consulting channels on behalf of Oracle Israel and Oracle Europe, the Middle East and Africa. Mr. Weizer has been Chairman of the Board of Directors at Snaitech S.p.A. since July 2018. Mr. Weizer has been a Director of Playtech Inc. and Snaitech S.p.A. Mr. Weizer served as a Non-Executive Director of Sportech plc from March 23, 2011 to June 20, 2013. Mr. Weizer is a Qualified Accountant.

CEO Compensation
  • Mor's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Mor's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Playtech management team in years:

2.6
Average Tenure
  • The tenure for the Playtech management team is about average.
Management Team

Mor Weizer

TITLE
CEO & Executive Director
COMPENSATION
€4M
AGE
42
TENURE
12 yrs

Andy Smith

TITLE
CFO & Executive Director
COMPENSATION
€1M
TENURE
2.3 yrs

Shimon Akad

TITLE
Chief Operating Officer

Chris McGinnis

TITLE
Director of Investor Relations & Strategic Analysis

Ian Ince

TITLE
Head of Regulatory Affairs & Compliance

Alex Latner

TITLE
General Counsel

James Newman

TITLE
Director of Corporate Affairs

Francesco Rodano

TITLE
Chief Policy Officer
TENURE
2.9 yrs

Robert Penfold

TITLE
Head of Internal Audit

Ron Hoffman

TITLE
Chief Executive Officer of TradeTech Group
COMPENSATION
€1M
AGE
41
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Playtech board of directors in years:

1.5
Average Tenure
55.5
Average Age
  • The average tenure for the Playtech board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alan Jackson

TITLE
Non-Executive Chairman of Board
COMPENSATION
€449K
AGE
74
TENURE
5.6 yrs

Mor Weizer

TITLE
CEO & Executive Director
COMPENSATION
€4M
AGE
42
TENURE
12 yrs

Andy Smith

TITLE
CFO & Executive Director
COMPENSATION
€1M
TENURE
2.3 yrs

Claire Milne

TITLE
Non-Executive Director
COMPENSATION
€117K
TENURE
2.8 yrs

Sue Ball

TITLE
Non-Executive Director
AGE
57
TENURE
0.8 yrs

Ian Penrose

TITLE
Non-Executive Director
AGE
52
TENURE
0.7 yrs

John Jackson

TITLE
Senior Independent Director
COMPENSATION
€117K
AGE
71

Anna Massion

TITLE
Independent Non-Executive Director
TENURE
0.1 yrs

John Krumins

TITLE
Independent Non-Executive Director
AGE
54
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Playtech insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
01. Mar 19 Buy Andrew Smith Individual 28. Feb 19 28. Feb 19 4,500 £4.18 £18,810
01. Mar 19 Buy Moran Weizer Individual 28. Feb 19 28. Feb 19 14,750 £4.25 £62,687
06. Jul 18 Buy Andrew Smith Individual 05. Jul 18 05. Jul 18 15,000 £5.41 £81,090
06. Jul 18 Buy Ron Hoffman Individual 05. Jul 18 05. Jul 18 13,300 £5.44 £72,332
06. Jul 18 Buy Moran Weizer Individual 05. Jul 18 05. Jul 18 55,000 £5.39 £296,582
06. Jul 18 Buy Alan Jackson Individual 05. Jul 18 05. Jul 18 10,000 £5.40 £54,010
X
Management checks
We assess Playtech'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. Playtech 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.

News

Simply Wall St News

Should You Be Excited About Playtech plc's (LON:PTEC) 19% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.19. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Much is Playtech plc's (LON:PTEC) CEO Getting Paid?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Mor Weizer's Compensation Compare With Similar Sized Companies. … It would therefore appear that Playtech plc pays Mor Weizer more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Playtech plc (LON:PTEC): Time For A Financial Health Check

Playtech plc (LON:PTEC) is a small-cap stock with a market capitalization of UK£1.4b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is.

Simply Wall St -

An Examination Of Playtech plc (LON:PTEC)

Attractive stocks have exceptional fundamentals. … In the case of Playtech plc (LON:PTEC), there's … track record

Simply Wall St -

Does Playtech plc's (LON:PTEC) PE Ratio Warrant A Buy?

Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will explain what the P/E ratio is as well as what you should look out for when using it … Breaking down the Price-Earnings ratio

Simply Wall St -

What You Must Know About Playtech plc's (LON:PTEC) Financial Health

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Playtech plc (LON:PTEC) with a market-capitalization of €1.72b, rarely draw their attention. … Let’s take a look at PTEC’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Does Playtech plc's (LON:PTEC) 28.55% Earnings Growth Make It An Outperformer?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Investors may find my commentary, albeit very high-level and brief, on Playtech plc (LON:PTEC) useful as an attempt to give more color around how Playtech is currently performing. … PTEC's trailing twelve-month earnings (from 31 December 2017) of €248.14m has

Simply Wall St -

Does Playtech plc (LON:PTEC) Generate Enough Cash?

If you are currently a shareholder in Playtech plc (LON:PTEC), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Playtech generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Playtech’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow.

Simply Wall St -

Should You Be Tempted To Sell Playtech plc (LON:PTEC) At Its Current PE Ratio?

But can investors make a closing judgement of the company’s value based on this low multiple. … The answer is no, since important variables like the company’s potential to grow and debt levels are ignored in the PE’s calculation … Below, I will lay out some important considerations to help determine which multiple best suits

Simply Wall St -

Have Investors Priced In Playtech plc's (LON:PTEC) Growth?

Playtech plc (LON:PTEC) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of £7.65 is based on unrealistic expectations. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … According to the analysts covering the company, the following few years should bring about good growth prospects for Playtech

Simply Wall St -

Company Info

Description

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.

Details
Name: Playtech plc
PTEC
Exchange: LSE
Founded: 1999
£1,242,804,410
307,168,663
Website: http://www.playtech.com
Address: Playtech plc
St George’s Court,
Ground Floor,
Douglas,
IM1 1EE,
Isle of Man
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PTEC Ordinary Shares London Stock Exchange GB GBP 28. Mar 2006
OTCPK PYTC.F Ordinary Shares Pink Sheets LLC US USD 28. Mar 2006
DB PL8 Ordinary Shares Deutsche Boerse AG DE EUR 28. Mar 2006
BST PL8 Ordinary Shares Boerse-Stuttgart DE EUR 28. Mar 2006
BATS-CHIXE PTECL Ordinary Shares BATS 'Chi-X Europe' GB GBP 28. Mar 2006
OTCPK PYTC.Y UNSPONSORED ADS Pink Sheets LLC US USD 28. May 2010
Number of employees
Current staff
Staff numbers
5,800
Playtech employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 21:01
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/02/20
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.