LSE:PTEC

Stock Analysis Report

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Executive Summary

Playtech Plc develops and sells software platforms and services for the online and land-based gambling industry worldwide. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PTEC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.9%

PTEC

-0.1%

GB Hospitality

-0.7%

GB Market


1 Year Return

27.3%

PTEC

-18.5%

GB Hospitality

-8.5%

GB Market

Return vs Industry: PTEC exceeded the UK Hospitality industry which returned -18.5% over the past year.

Return vs Market: PTEC exceeded the UK Market which returned -8.5% over the past year.


Shareholder returns

PTECIndustryMarket
7 Day6.9%-0.1%-0.7%
30 Day19.1%4.7%3.8%
90 Day32.2%25.0%14.6%
1 Year27.3%27.3%-16.9%-18.5%-4.7%-8.5%
3 Year-34.6%-40.0%-1.3%-9.5%3.9%-8.8%
5 Year-22.5%-36.0%29.5%8.7%47.6%14.1%

Long-Term 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?

1.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PTEC (£4.8) is trading above our estimate of fair value (£4.13)

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


Price To Earnings Ratio

PE vs Industry: PTEC is unprofitable, so we can't compare its PE Ratio to the GB Hospitality industry average.

PE vs Market: PTEC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PTEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PTEC is good value based on its PB Ratio (1.3x) compared to the GB Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Playtech forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

68.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: PTEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PTEC's is expected to become profitable in the next 3 years.

Revenue vs Market: PTEC's revenue (9.2% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: PTEC's revenue (9.2% 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 (6.3%).


Next Steps

Past Performance

How has Playtech performed over the past 5 years?

-17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTEC is currently unprofitable.

Growing Profit Margin: PTEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PTEC is unprofitable, and losses have increased over the past 5 years at a rate of 17.1% per year.

Accelerating Growth: Unable to compare PTEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PTEC is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-41.3%).


Return on Equity

High ROE: PTEC has a negative Return on Equity (-0.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is Playtech's financial position?


Financial Position Analysis

Short Term Liabilities: PTEC's short term assets (€1.3B) exceed its short term liabilities (€812.2M).

Long Term Liabilities: PTEC's short term assets (€1.3B) do not cover its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: PTEC's debt to equity ratio (97.4%) is considered high.

Reducing Debt: PTEC's debt to equity ratio has increased from 20.6% to 97.4% over the past 5 years.

Debt Coverage: PTEC's debt is well covered by operating cash flow (37.2%).

Interest Coverage: PTEC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.17%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.4yrs

Average management tenure


CEO

Mor Weizer (44 yo)

13.67yrs

Tenure

€2,930,588

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 ($USD3.54M) is above average for companies of similar size in the UK market ($USD1.77M).

Compensation vs Earnings: Mor's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Moran Weizer
CEO & Executive Director13.67yrs€2.93m0.087%
€ 1.2m
Andrew Smith
CFO & Executive Director4yrs€1.16m0.026%
€ 372.5k
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 Officer4.58yrsno datano data
Robert Penfold
Head of Internal Auditno datano datano data
Ron Hoffman
Chief Executive Officer of TradeTech Group4yrs€1.35m0.017%
€ 238.1k
Brian Moore
Company Secretary6yrsno datano data
Armin Sageder
Chief Executive Officer of BGT Sports4.17yrsno datano data

4.4yrs

Average Tenure

Experienced Management: PTEC's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Moran Weizer
CEO & Executive Director13.67yrs€2.93m0.087%
€ 1.2m
Andrew Smith
CFO & Executive Director4yrs€1.16m0.026%
€ 372.5k
Ian Penrose
Independent Non-Executive Director2.33yrs€120.13k0.0059%
€ 82.8k
John Jackson
Senior Independent Director1.67yrs€120.13k0.0017%
€ 23.7k
John Krumins
Independent Non-Executive Director1.75yrs€89.72k0.0034%
€ 47.3k
Anna Massion
Independent Non-Executive Director1.75yrs€89.72k0.0074%
€ 104.2k
Claire Milne
Independent Group Interim Chairman0.67yr€120.13kno data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: PTEC's board of directors are not considered experienced ( 1.8 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.


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£1.408b
  • Shares outstanding: 297.49m
  • 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)YesNew Ordinary SharesGBGBPMar 2006
PL8DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURMar 2006
PYTC.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDMar 2006
PTECLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPMar 2006
PYTC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDMay 2010

Biography

Playtech Plc develops and sells software platforms and services for the online and land-based gambling industry worldwide. The company operates through Gaming B2B, Gaming B2C, and Financial segments. It op...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 19:54
End of Day Share Price2021/01/18 00:00
Earnings2020/06/30
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.