William Hill
Market Cap
UK£2.8b
Last Updated
2020/12/04 19:52 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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 3.4% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Acceptable track record and slightly overvalued.
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 is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: WMH's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of UK stocks.
Market Performance
7 Day Return
0.04%
WMH
3.0%
GB Hospitality
3.0%
GB Market
1 Year Return
58.4%
WMH
-17.4%
GB Hospitality
-6.1%
GB Market
Return vs Industry: WMH exceeded the UK Hospitality industry which returned -16.1% over the past year.
Return vs Market: WMH exceeded the UK Market which returned -5.6% over the past year.
Shareholder returns
| WMH | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.04% | 3.0% | 3.0% |
| 30 Day | -1.6% | 28.3% | 11.1% |
| 90 Day | 50.7% | 22.9% | 11.9% |
| 1 Year | 58.4%58.4% | -15.0%-17.4% | -2.4%-6.1% |
| 3 Year | -3.2%-13.4% | -2.3%-11.1% | 4.5%-8.2% |
| 5 Year | -10.1%-26.2% | 23.7%2.7% | 38.9%7.4% |
Long-Term 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 months ago | Simply Wall St
A Look At The Fair Value Of William Hill plc (LON:WMH)3 months ago | Simply Wall St
What Type Of Returns Would William Hill's(LON:WMH) Shareholders Have Earned If They Purchased Their SharesFive Years Ago?7 months ago | Simply Wall St
Why William Hill plc (LON:WMH) Could Be Worth WatchingValuation
Is William Hill undervalued compared to its fair value and its price relative to the market?
15.59x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WMH (£2.69) is trading above our estimate of fair value (£1.88)
Significantly Below Fair Value: WMH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WMH is good value based on its PE Ratio (15.6x) compared to the GB Hospitality industry average (30.4x).
PE vs Market: WMH is good value based on its PE Ratio (15.6x) compared to the UK market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: WMH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WMH is overvalued based on its PB Ratio (3.5x) compared to the GB Hospitality industry average (1.8x).
Next Steps
Future Growth
How is William Hill forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
-3.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WMH's earnings are forecast to decline over the next 3 years (-3.4% per year).
Earnings vs Market: WMH's earnings are forecast to decline over the next 3 years (-3.4% per year).
High Growth Earnings: WMH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WMH's revenue (14.3% per year) is forecast to grow faster than the UK market (6.6% per year).
High Growth Revenue: WMH's revenue (14.3% 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 low in 3 years time (16.3%).
Next Steps
Past Performance
How has William Hill performed over the past 5 years?
-36.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WMH has a large one-off gain of £146.9M impacting its June 30 2020 financial results.
Growing Profit Margin: WMH's current net profit margins (11.5%) are higher than last year (1.3%).
Past Earnings Growth Analysis
Earnings Trend: WMH's earnings have declined by 36.1% per year over the past 5 years.
Accelerating Growth: WMH's earnings growth over the past year (619%) exceeds its 5-year average (-36.1% per year).
Earnings vs Industry: WMH earnings growth over the past year (619%) exceeded the Hospitality industry -13.1%.
Return on Equity
High ROE: Whilst WMH's Return on Equity (21.55%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is William Hill's financial position?
Financial Position Analysis
Short Term Liabilities: WMH's short term assets (£1.0B) exceed its short term liabilities (£663.1M).
Long Term Liabilities: WMH's short term assets (£1.0B) do not cover its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: WMH's debt to equity ratio (129.3%) is considered high.
Reducing Debt: WMH's debt to equity ratio has increased from 59.1% to 129.3% over the past 5 years.
Debt Coverage: WMH's debt is not well covered by operating cash flow (16.4%).
Interest Coverage: WMH's interest payments on its debt are not well covered by EBIT (1.6x coverage).
Balance Sheet
Next Steps
Dividend
What is William Hill current dividend yield, its reliability and sustainability?
0.88%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WMH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WMH'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 WMH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WMH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: WMH is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WMH'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?
1.9yrs
Average management tenure
CEO
Ulrik Bengtsson (48 yo)
1.25yrs
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 ($USD1.17M) is below average for companies of similar size in the UK market ($USD2.11M).
Compensation vs Earnings: Insufficient data to compare Ulrik's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.25yrs | UK£868.82k | 0.012% £ 349.8k | |
| CFO & Executive Director | 0.67yr | no data | 0.029% £ 823.2k | |
| Interim Chief Operating Officer | 1.92yrs | no data | no data | |
| Chief Product & Technology Officer | 1.08yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | no data | no data | no data | |
| Director of Corporate Communications | no data | no data | no data | |
| Group Corporate Development Director | 2.92yrs | no data | no data | |
| Global Brand & Marketing Director | 2.08yrs | no data | no data | |
| Chief Human Resources Officer | 5.67yrs | no data | no data | |
| Managing Director of UK Retail | no data | no data | no data | |
| Online International Managing Director | no data | no data | no data |
1.9yrs
Average Tenure
Experienced Management: WMH's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.25yrs | UK£868.82k | 0.012% £ 349.8k | |
| CFO & Executive Director | 0.67yr | no data | 0.029% £ 823.2k | |
| Chairman | 2.67yrs | UK£297.96k | 0.0091% £ 256.9k | |
| Independent Non-Executive Director | 1.92yrs | UK£55.00k | 0.0040% £ 113.0k | |
| Independent Non-Executive Director | 3.92yrs | UK£71.44k | 0.0014% £ 39.8k | |
| Senior Independent Non-Executive Director | 2.08yrs | UK£88.00k | 0.0014% £ 38.4k | |
| Independent Non-Executive Director | 1.42yrs | UK£27.50k | no data | |
| Independent Non-Executive Director | 1.42yrs | UK£31.61k | 0.0011% £ 32.2k |
1.7yrs
Average Tenure
51.5yo
Average Age
Experienced Board: WMH's board of directors are not considered experienced ( 1.7 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.2%.
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£2.826b
- Shares outstanding: 1.05b
- 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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/04 19:52 |
| End of Day Share Price | 2020/12/04 00:00 |
| Earnings | 2020/06/30 |
| 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.