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

Excellent balance sheet and good value.


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

5.4%

TEG

0.4%

GB Hospitality

2.0%

GB Market


1 Year Return

10.4%

TEG

15.5%

GB Hospitality

3.3%

GB Market

Return vs Industry: TEG underperformed the UK Hospitality industry which returned 15.5% over the past year.

Return vs Market: TEG exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

TEGIndustryMarket
7 Day5.4%0.4%2.0%
30 Day9.0%0.6%-0.6%
90 Day1.6%4.8%-1.5%
1 Year15.9%10.4%19.8%15.5%8.3%3.3%
3 Yearn/a28.8%15.2%19.0%4.5%
5 Yearn/a69.7%42.9%38.4%8.4%

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

Undervalued: TEG (£2.54) is trading below our estimate of fair value (£5.44)

Significantly Undervalued: TEG is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TEG is good value based on its PE Ratio (18.4x) compared to the Hospitality industry average (24.4x).

PE vs Market: TEG is poor value based on its PE Ratio (18.4x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: TEG is good value based on its PEG Ratio (1x)


Price Based on Value of Assets

PB vs Industry: TEG is overvalued based on its PB Ratio (3.1x) compared to the GB Hospitality industry average (1.3x).


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?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TEG's forecast earnings growth (18.7% per year) is above the savings rate (1.2%).

Earnings vs Market: TEG's earnings (18.7% per year) are forecast to grow faster than the UK market (12.3% per year).

High Growth Earnings: TEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEG's revenue (8.5% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: TEG's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

57.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TEG has become profitable over the past 5 years, growing earnings by 57.5% per year.

Accelerating Growth: TEG's earnings growth over the past year (4.9%) is below its 5-year average (57.5% per year).

Earnings vs Industry: TEG earnings growth over the past year (4.9%) underperformed the Hospitality industry 5.6%.


Return on Equity

High ROE: TEG's Return on Equity (17.1%) is considered low.


Return on Assets

ROA vs Industry: TEG has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: TEG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ten Entertainment Group's financial position?


Financial Position Analysis

Short Term Liabilities: TEG's short term assets (£9.4M) do not cover its short term liabilities (£22.3M)

Long Term Liabilities: TEG's short term assets (£9.4M) exceeds its long term liabilities (£8.0M)


Debt to Equity History and Analysis

Debt Level: TEG's debt to equity ratio (11.7%) is considered satisfactory

Reducing Debt: TEG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TEG's debt is well covered by operating cash flow (284.8%).

Interest Coverage: TEG's interest payments on its debt are well covered by EBIT (27.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: TEG's debt is covered by short term assets (assets are 1.535310x debt).


Next Steps

Dividend

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

5.39%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Ten Entertainment Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.5%marketbottom25%2.0%markettop25%5.4%industryaverage3.1%forecastin3Years5.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TEG's dividend (4.49%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: TEG's dividend (4.49%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: TEG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TEG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.4%), TEG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEG's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


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?

0.8yrs

Average management tenure


CEO

Duncan Garrood (60yo)

0.8yrs

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

Compensation vs. Market: Insufficient data to establish whether Duncan's total compensation is reasonable compared to companies of similar size in the UK market.

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


Management Age and Tenure

0.8yrs

Average Tenure

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


Board Age and Tenure

2.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: TEG's board of directors are not considered experienced ( 2.5 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

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: 0.8yrs
    • Compensation: UK£877.20k
  • Graham Blackwell (50yo)

    Chief Commercial Officer & Director

    • Tenure: 2.6yrs
    • Compensation: UK£167.55k
  • Antony Smith

    CFO, Company Secretary & Director

    • Tenure: 0.5yrs

Board Members

  • Chris Mills (65yo)

    Non-Executive Director

    • Tenure: 10.4yrs
    • Compensation: UK£50.00k
  • Duncan Garrood (60yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: UK£877.20k
  • Nick Basing (57yo)

    Non-Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: UK£141.43k
  • David Wild (64yo)

    Senior Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£50.00k
  • Julie Sneddon

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£50.00k
  • Adam Bellamy (49yo)

    Non-Executive Independent Director

    • Tenure: 0.9yrs
    • Compensation: UK£8.33k
  • Graham Blackwell (50yo)

    Chief Commercial Officer & Director

    • Tenure: 2.6yrs
    • Compensation: UK£167.55k
  • Antony Smith

    CFO, Company Secretary & Director

    • Tenure: 0.5yrs

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£165.100m
  • 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 Analysis2019/10/12 23:17
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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