LSE:TEG

Stock Analysis Report

Executive Summary

Ten Entertainment Group plc, together with its subsidiaries, engages in tenpin bowling operations in the United Kingdom.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Ten Entertainment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

LSE:TEG

1.0%

GB Hospitality

-0.3%

GB Market


1 Year Return

-2.8%

LSE:TEG

-2.4%

GB Hospitality

-5.3%

GB Market

TEG matched the Hospitality industry (-2.4%) over the past year.

TEG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

TEGIndustryMarket
7 Day1.7%1.0%-0.3%
30 Day-2.0%0.7%-3.9%
90 Day3.8%4.6%-2.2%
1 Year2.0%-2.8%1.0%-2.4%-0.9%-5.3%
3 Yearn/a19.7%7.9%18.9%5.1%
5 Yearn/a66.8%42.1%28.1%1.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ten Entertainment Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ten Entertainment Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ten Entertainment Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Ten Entertainment Group is good value based on earnings compared to the GB Hospitality industry average.

Ten Entertainment Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Ten Entertainment Group is poor value based on expected growth next year.


Price Based on Value of Assets

Ten Entertainment Group is overvalued based on assets compared to the GB Hospitality industry average.


Next Steps

Future Growth

How is Ten Entertainment Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ten Entertainment Group's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Ten Entertainment Group's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

Ten Entertainment Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Ten Entertainment Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Ten Entertainment Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ten Entertainment Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ten Entertainment Group performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ten Entertainment Group has delivered over 20% year on year earnings growth in the past 5 years.

Ten Entertainment Group's 1-year earnings growth exceeds its 5-year average (57.8% vs 48.8%)

Ten Entertainment Group's earnings growth has exceeded the GB Hospitality industry average in the past year (57.8% vs 4.7%).


Return on Equity

Ten Entertainment Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ten Entertainment Group used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Ten Entertainment Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ten Entertainment Group's financial position?


Financial Position Analysis

Ten Entertainment Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Ten Entertainment Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ten Entertainment Group's level of debt (17.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (116.1% vs 17.1% today).

Debt is well covered by operating cash flow (188.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Ten Entertainment Group's current dividend yield, its reliability and sustainability?

5.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ten Entertainment Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Ten Entertainment Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Ten Entertainment Group 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 Ten Entertainment Group only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Duncan Garrood (60yo)

0.7yrs

Tenure

UK£877,200

Compensation

Mr. Duncan S. Garrood has been Chief Executive Officer and Director of Ten Entertainment Group plc since December 15, 2018. He was the Chief Executive of Punch Taverns plc since June 15, 2015 until Septemb ...


CEO Compensation Analysis

Duncan's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Duncan to compare compensation growth.


Management Age and Tenure

0.7yrs

Average Tenure

The average tenure for the Ten Entertainment Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Ten Entertainment Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUK£689,04029 Apr 19
Graham Blackwell
EntityIndividual
Role
Member of the Board of Directors
Chief Commercial Officer & Director
Shares297,000
Max PriceUK£2.32
BuyUK£23,65006 Nov 18
David Wild
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares10,000
Max PriceUK£2.37

Ownership Breakdown


Management Team

  • Duncan Garrood (60yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: UK£877.20k
  • Graham Blackwell (50yo)

    Chief Commercial Officer & Director

    • Tenure: 2.4yrs
    • Compensation: UK£167.55k
  • Antony Smith

    CFO, Company Secretary & Director

    • Tenure: 0.3yrs

Board Members

  • Chris Mills (65yo)

    Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: UK£50.00k
  • Duncan Garrood (60yo)

    CEO & Director

    • Tenure: 0.7yrs
    • Compensation: UK£877.20k
  • Nick Basing (57yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: UK£141.43k
  • David Wild (64yo)

    Senior Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£50.00k
  • Julie Sneddon

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: UK£50.00k
  • Adam Bellamy (49yo)

    Non-Executive Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£8.33k
  • Graham Blackwell (50yo)

    Chief Commercial Officer & Director

    • Tenure: 2.4yrs
    • Compensation: UK£167.55k
  • Antony Smith

    CFO, Company Secretary & Director

    • Tenure: 0.3yrs

Company Information

Ten Entertainment Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ten Entertainment Group plc
  • Ticker: TEG
  • Exchange: LSE
  • Founded: 2017
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: UK£157.950m
  • Shares outstanding: 65.00m
  • Website: https://www.tegplc.co.uk

Number of Employees


Location

  • Ten Entertainment Group plc
  • Aragon House
  • University Way
  • Bedford
  • Bedfordshire
  • MK43 0EQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEGLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPApr 2017

Biography

Ten Entertainment Group plc, together with its subsidiaries, engages in tenpin bowling operations in the United Kingdom. The company operates 45 bowling sites with approximately 1,000 bowling lanes under t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 22:09
End of Day Share Price2019/08/20 00:00
Earnings2018/12/30
Annual Earnings2018/12/30


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.