LSE:WMH

Stock Analysis Report

Executive Summary

William Hill plc provides sports betting and gaming services in the United Kingdom, the United States, and internationally.


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

WMHIndustryMarket
7 Day65.9%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

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

NamePositionTenureCompensationOwnership
Ulrik Bengtsson
CEO & Executive Director0.58yrUK£868.82kno data
Ruth Prior
CFO & Executive Director2.5yrsUK£520.69k0.033% £269.8k
Phillip Feuvre
Interim Chief Operating Officer1.25yrsno datano data
Satty Bhens
Chief Product & Technology Officer0.42yrno datano data
Louise Turner-Smith
Director of Investor Relationsno datano datano data
Balbir Kelly-Bisla
General Counsel & Company Secretary0.25yrno datano data
Alison Cole
Director of Corporate Communicationsno datano datano data
Crispin Nieboer
Group Corporate Development Director2.25yrsno datano data
Karen Myers
Chief Human Resources Officer5yrsno datano data
Nicola Frampton
Managing Director of UK Retailno datano datano 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

NamePositionTenureCompensationOwnership
Ulrik Bengtsson
CEO & Executive Director0.58yrUK£868.82kno data
Ruth Prior
CFO & Executive Director2.5yrsUK£520.69k0.033% £269.8k
Matthew Ashley
Former CFO & Executive Directorno datano datano data
Roger Devlin
Chairman2yrsUK£297.96k0.0089% £73.2k
Gordon Wilson
Independent Non-Executive Director1.25yrsUK£55.00kno data
Robin Terrell
Independent Non-Executive Director3.25yrsUK£71.44k0.0014% £11.6k
Mark David Brooker
Senior Independent Non-Executive Director1.42yrsUK£88.00k0.0013% £10.9k
Jane Hanson
Independent Non-Executive Director0.75yrUK£27.50kno data
Lynne Weedall
Independent Non-Executive Director0.75yrUK£31.61kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2002
WMHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2002
WIMH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2002
WMHLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2002
WIMH.YOTCPK (Pink Sheets LLC)ADR-ORD SHSUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 22:26
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.