William Hill
Market Cap
UK£825.8m
Last Updated
2020/04/09 22:26 UTC
Data Sources
Company Financials +
Executive Summary
William Hill plc provides sports betting and gaming services in the United Kingdom, the United States, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential average dividend payer.
Similar Companies
Share Price & News
How has William Hill's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WMH's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
65.9%
WMH
16.1%
GB Hospitality
8.6%
GB Market
1 Year Return
-34.0%
WMH
-16.8%
GB Hospitality
-19.4%
GB Market
Return vs Industry: WMH underperformed the UK Hospitality industry which returned -26.7% over the past year.
Return vs Market: WMH underperformed the UK Market which returned -23.6% over the past year.
Shareholder returns
| WMH | Industry | Market | |
|---|---|---|---|
| 7 Day | 65.9% | 16.1% | 8.6% |
| 30 Day | -15.6% | -7.2% | -3.5% |
| 90 Day | -42.3% | -27.2% | -23.0% |
| 1 Year | -30.0%-34.0% | -14.6%-16.8% | -15.5%-19.4% |
| 3 Year | -59.0%-65.0% | -8.9%-18.0% | -8.8%-19.9% |
| 5 Year | -64.4%-71.8% | 7.2%-9.4% | 4.2%-19.0% |
Price Volatility Vs. Market
How volatile is William Hill's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Are Investors Undervaluing William Hill plc (LON:WMH) By 43%?1 month ago | Simply Wall St
Here's Why William Hill (LON:WMH) Has A Meaningful Debt Burden2 months ago | Simply Wall St
Is William Hill plc's (LON:WMH) 8.1% ROE Better Than Average?Valuation
Is William Hill undervalued compared to its fair value and its price relative to the market?
33.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WMH (£0.9) is trading below our estimate of fair value (£1.73)
Significantly Below Fair Value: WMH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WMH is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.
PE vs Market: WMH 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 WMH's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: WMH is overvalued based on its PB Ratio (2.5x) compared to the GB Hospitality industry average (1x).
Next Steps
Future Growth
How is William Hill forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
65.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WMH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).
Earnings vs Market: WMH is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: WMH's is expected to become profitable in the next 3 years.
Revenue vs Market: WMH's revenue (3.6% per year) is forecast to grow faster than the UK market (2.5% per year).
High Growth Revenue: WMH's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WMH's Return on Equity is forecast to be high in 3 years time (30%)
Next Steps
Past Performance
How has William Hill performed over the past 5 years?
-51.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WMH is currently unprofitable.
Growing Profit Margin: WMH is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: WMH is unprofitable, and losses have increased over the past 5 years at a rate of -51% per year.
Accelerating Growth: Unable to compare WMH's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: WMH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-3.5%).
Return on Equity
High ROE: WMH has a negative Return on Equity (-8.43%), as it is currently unprofitable.
Next Steps
Financial Health
How is William Hill's financial position?
Financial Position Analysis
Short Term Liabilities: WMH's short term assets (£516.9M) do not cover its short term liabilities (£782.2M).
Long Term Liabilities: WMH's short term assets (£516.9M) do not cover its long term liabilities (£902.1M).
Debt to Equity History and Analysis
Debt Level: WMH's debt to equity ratio (280%) is considered high.
Reducing Debt: WMH's debt to equity ratio has increased from 61.7% to 280% over the past 5 years.
Debt Coverage: WMH's debt is well covered by operating cash flow (20.4%).
Interest Coverage: WMH is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is William Hill's current dividend yield, its reliability and sustainability?
7.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WMH's dividend (8.89%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).
High Dividend: WMH's dividend (8.89%) is in the top 25% of dividend payers in the UK market (7.08%)
Stability and Growth of Payments
Stable Dividend: WMH's dividend payments have been volatile in the past 10 years.
Growing Dividend: WMH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: WMH is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: WMH's dividends in 3 years are forecast to be well covered by earnings (37.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Ulrik Bengtsson (47yo)
0.58
Tenure
UK£868,819
Compensation
Mr. Ulrik Bengtsson has ben Chief Executive Officer of William Hill plc since September 30, 2019. Mr. Bengtsson serves as Director of William Hill plc since September 5, 2019. Mr. Bengtsson was the Group a ...
CEO Compensation Analysis
Compensation vs Market: Ulrik's total compensation ($USD1.07M) is about average for companies of similar size in the UK market ($USD1.27M).
Compensation vs Earnings: Insufficient data to compare Ulrik's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 0.58yr | UK£868.82k | no data | |
| CFO & Executive Director | 2.5yrs | UK£520.69k | 0.033% £269.8k | |
| Interim Chief Operating Officer | 1.25yrs | no data | no data | |
| Chief Product & Technology Officer | 0.42yr | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | 0.25yr | no data | no data | |
| Director of Corporate Communications | no data | no data | no data | |
| Group Corporate Development Director | 2.25yrs | no data | no data | |
| Chief Human Resources Officer | 5yrs | no data | no data | |
| Managing Director of UK Retail | no data | no data | no data |
1.3yrs
Average Tenure
Experienced Management: WMH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 0.58yr | UK£868.82k | no data | |
| CFO & Executive Director | 2.5yrs | UK£520.69k | 0.033% £269.8k | |
| Former CFO & Executive Director | no data | no data | no data | |
| Chairman | 2yrs | UK£297.96k | 0.0089% £73.2k | |
| Independent Non-Executive Director | 1.25yrs | UK£55.00k | no data | |
| Independent Non-Executive Director | 3.25yrs | UK£71.44k | 0.0014% £11.6k | |
| Senior Independent Non-Executive Director | 1.42yrs | UK£88.00k | 0.0013% £10.9k | |
| Independent Non-Executive Director | 0.75yr | UK£27.50k | no data | |
| Independent Non-Executive Director | 0.75yr | UK£31.61k | no data |
1.3yrs
Average Tenure
52yo
Average Age
Experienced Board: WMH's board of directors are not considered experienced ( 1.3 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
William Hill plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: William Hill plc
- Ticker: WMH
- Exchange: LSE
- Founded: 1934
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: UK£825.834m
- Shares outstanding: 874.27m
- Website: https://www.williamhillplc.com
Number of Employees
Location
- William Hill plc
- 1 Bedford Avenue
- London
- Greater London
- WC1B 3AU
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WHI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2002 |
| WMH | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jun 2002 |
| WIMH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2002 |
| WMHL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jun 2002 |
| WIMH.Y | OTCPK (Pink Sheets LLC) | ADR-ORD SHS | US | USD | Jul 2008 |
Biography
William Hill plc provides sports betting and gaming services in the United Kingdom, the United States, and internationally. It operates through Retail, Online, US Existing, US Expansion, and Other segments. The company operates licensed betting offices (LBOs) that offer sports betting services on football, horseracing, and other sports, as well as gaming machines. It also operates online betting and gaming business that provides in-play and pre-match sports betting services and a range of gaming products; and offers casino, poker, and other gaming products, as well as telephone betting services. In addition, the company is involved in on-course betting operations. As at December 31, 2019, it operated 1,568 LBOs. William Hill plc was founded in 1934 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 22:26 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.