LSE:TEG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Proven track record with reasonable growth potential.


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

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


Market Performance


7 Day Return

-1.2%

TEG

11.4%

GB Hospitality

2.7%

GB Market


1 Year Return

-48.6%

TEG

-37.7%

GB Hospitality

-12.4%

GB Market

Return vs Industry: TEG underperformed the UK Hospitality industry which returned -37.7% over the past year.

Return vs Market: TEG underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

TEGIndustryMarket
7 Day-1.2%11.4%2.7%
30 Day-16.5%1.8%0.2%
90 Day-18.5%-4.1%4.0%
1 Year-47.8%-48.6%-35.6%-37.7%-8.8%-12.4%
3 Year-13.9%-22.5%-24.6%-31.8%-4.9%-16.3%
5 Yearn/a-7.6%-24.1%14.2%-11.1%

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 compared to its fair value and its price relative to the market?

9.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TEG (£1.26) is trading above our estimate of fair value (£0.9)

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


Price To Earnings Ratio

PE vs Industry: TEG is good value based on its PE Ratio (9x) compared to the GB Hospitality industry average (18.1x).

PE vs Market: TEG is good value based on its PE Ratio (9x) compared to the UK market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: TEG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: TEG is overvalued based on its PB Ratio (1.4x) compared to the GB Hospitality industry average (1.2x).


Next Steps

Future Growth

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

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEG's forecast earnings growth (24.9% per year) is above the savings rate (1.2%).

Earnings vs Market: TEG's earnings (24.9% per year) are forecast to grow faster than the UK market (23% per year).

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

Revenue vs Market: TEG's revenue (6.2% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: TEG's revenue (6.2% 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 TEG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

49.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEG has high quality earnings.

Growing Profit Margin: TEG's current net profit margins (10.7%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: TEG has become profitable over the past 5 years, growing earnings by 49% per year.

Accelerating Growth: TEG's earnings growth over the past year (11%) is below its 5-year average (49% per year).

Earnings vs Industry: TEG earnings growth over the past year (11%) exceeded the Hospitality industry -22.5%.


Return on Equity

High ROE: TEG's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is Ten Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: TEG's short term assets (£8.4M) do not cover its short term liabilities (£20.0M).

Long Term Liabilities: TEG's short term assets (£8.4M) do not cover its long term liabilities (£9.0M).


Debt to Equity History and Analysis

Debt Level: TEG's debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: TEG's debt to equity ratio has increased from 4% to 10.7% over the past 5 years.

Debt Coverage: TEG's debt is well covered by operating cash flow (337.5%).

Interest Coverage: TEG's interest payments on its debt are well covered by EBIT (24.1x coverage).


Balance Sheet


Next Steps

Dividend

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

5.81%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.0yrs

Average management tenure


CEO

Duncan Garrood (61 yo)

1.67yrs

Tenure

UK£348,633

Compensation

Mr. Duncan S. Garrood has been Chief Executive Officer and Executive Director of Ten Entertainment Group plc since December 15, 2018. Mr. Garrood served on the board as President of M.H. Alshaya where he w ...


CEO Compensation Analysis

Compensation vs Market: Duncan's total compensation ($USD456.05K) is above average for companies of similar size in the UK market ($USD349.57K).

Compensation vs Earnings: Insufficient data to compare Duncan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Basing
Interim Executive Chairman3.42yrsUK£140.81k1.61%
£ 1.4m
Duncan Garrood
CEO & Executive Director1.67yrsUK£348.63k0.050%
£ 42.4k
Antony Smith
CFO, Company Secretary & Executive Director1.33yrsUK£248.87k0.058%
£ 49.9k
Graham Blackwell
COO & Executive Director3.42yrsUK£213.06k0.083%
£ 70.7k

1.0yrs

Average Tenure

58yo

Average Age

Experienced Management: TEG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nicholas Basing
Interim Executive Chairman3.42yrsUK£140.81k1.61%
£ 1.4m
Duncan Garrood
CEO & Executive Director1.67yrsUK£348.63k0.050%
£ 42.4k
Antony Smith
CFO, Company Secretary & Executive Director1.33yrsUK£248.87k0.058%
£ 49.9k
Graham Blackwell
COO & Executive Director3.42yrsUK£213.06k0.083%
£ 70.7k
Christopher Mills
Non-Executive Director3.42yrsUK£50.00kno data
Julie Sneddon
Independent Non-Executive Director3.42yrsUK£50.00k0.073%
£ 62.5k
Adam Bellamy
Senior Independent Director0.083yrUK£50.00k0.044%
£ 37.5k

3.4yrs

Average Tenure

58yo

Average Age

Experienced Board: TEG's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.


Top Shareholders

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£85.434m
  • Shares outstanding: 68.35m
  • 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
TEGLBATS-CHIXE (BATS 'Chi-X Europe')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 Analysis2020/08/10 20:51
End of Day Share Price2020/08/10 00:00
Earnings2019/12/29
Annual Earnings2019/12/29


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.