LSE:SPO

Stock Analysis Report

Executive Summary

Sportech PLC, a sports entertainment company, provides technology solutions for gaming companies, sports teams, and racetracks in the United Kingdom, North America, South America, Europe, and internationally.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.7%

SPO

0.08%

GB Hospitality

0.08%

GB Market


1 Year Return

-43.7%

SPO

20.5%

GB Hospitality

3.5%

GB Market

Return vs Industry: SPO underperformed the UK Hospitality industry which returned 20.5% over the past year.

Return vs Market: SPO underperformed the UK Market which returned 3.5% over the past year.


Shareholder returns

SPOIndustryMarket
7 Day11.7%0.08%0.08%
30 Day5.2%-0.5%-1.3%
90 Day-1.2%2.5%-2.2%
1 Year-43.7%-43.7%25.0%20.5%9.0%3.5%
3 Year-35.3%-53.1%30.8%16.9%18.1%3.1%
5 Year-27.1%-47.2%64.3%38.3%36.2%5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SPO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SPO's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: SPO 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 SPO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPO is good value based on its PB Ratio (1.2x) compared to the GB Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Sportech forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SPO's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if SPO's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: SPO's revenue (3.9% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: SPO's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SPO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sportech performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SPO is unprofitable, and losses have increased over the past 5 years at a rate of -2.4% per year.

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

Earnings vs Industry: SPO is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (4.7%).


Return on Equity

High ROE: SPO has a negative Return on Equity (-11.51%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SPO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SPO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Sportech's financial position?


Financial Position Analysis

Short Term Liabilities: SPO's short term assets (£28.4M) exceeds its short term liabilities (£23.6M)

Long Term Liabilities: SPO's short term assets (28.4M) exceeds its long term liabilities (9.7M)


Debt to Equity History and Analysis

Debt Level: SPO's debt to equity ratio (1%) is considered satisfactory

Reducing Debt: SPO's debt to equity ratio has reduced from 1.4% to 1% over the past 5 years.

Debt Coverage: SPO's debt is well covered by operating cash flow (501.8%).

Interest Coverage: Insufficient data to determine if SPO's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: SPO's debt is covered by short term assets (assets are 56.778000x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate SPO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SPO's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Richard McGuire (53yo)

0.3yrs

Tenure

UK£220,000

Compensation

Mr. Richard Anthony McGuire serves as the President of Tavistock Europe. Mr. McGuire has been the Chief Executive Officer at Sportech PLC since July 2, 2019 and was its Interim Executive Chairman since Nov ...


CEO Compensation Analysis

Compensation vs. Market: Richard has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

0.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SPO's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: SPO's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£43,42003 Jul 19
Richard McGuire
EntityIndividual
Role
Chief Executive Officer
CEO & Lead Director
Shares130,000
Max PriceUK£0.33
BuyUK£101,48016 Nov 18
Richard McGuire
EntityIndividual
Role
Chief Executive Officer
CEO & Lead Director
Shares250,000
Max PriceUK£0.41

Ownership Breakdown


Management Team

  • Tom Hearne (54yo)

    CFO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£185.00k
  • Ted Taylor (57yo)

    President & MD of Sportech Venues

    • Tenure: 0yrs
  • Nicola Rowlands

    Group Financial Controller

    • Tenure: 0yrs
  • Richard McGuire (53yo)

    CEO & Lead Director

    • Tenure: 0.3yrs
    • Compensation: UK£220.00k
  • Andrew Lindley (48yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Jennifer Conning

    Chief Marketing Officer

    • Tenure: 1.8yrs
  • Rich Pingel

    Chief Legal Officer

    • Tenure: 0yrs
  • Karin Smith

    Human Resources Director

    • Tenure: 6.8yrs
  • Julian Bewley

    Chief Commercial Officer

    • Tenure: 0.3yrs
  • Raj Sanjanwala

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Tom Hearne (54yo)

    CFO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£185.00k
  • Giles Vardey (62yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: UK£60.00k
  • Richard McGuire (53yo)

    CEO & Lead Director

    • Tenure: 0.3yrs
    • Compensation: UK£220.00k
  • Chris Rigg (45yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs

Company Information

Sportech PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sportech PLC
  • Ticker: SPO
  • Exchange: LSE
  • Founded: 1923
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£61.344m
  • Shares outstanding: 188.75m
  • Website: https://www.sportechplc.com

Number of Employees


Location

  • Sportech PLC
  • 20 Balderton Street
  • London
  • Greater London
  • W1K 6TL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPOLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 1993
SPOZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1993
ROEADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1993
SPOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 1993

Biography

Sportech PLC, a sports entertainment company, provides technology solutions for gaming companies, sports teams, and racetracks in the United Kingdom, North America, South America, Europe, and international ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:59
End of Day Share Price2019/10/22 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.