LSE:WTB

Stock Analysis Report

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Executive Summary

Whitbread PLC operates hotels and restaurants in the United Kingdom and internationally. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Whitbread's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WTB is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WTB's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

WTB

-0.4%

GB Hospitality

-0.3%

GB Market


1 Year Return

-30.3%

WTB

-18.9%

GB Hospitality

-7.9%

GB Market

Return vs Industry: WTB underperformed the UK Hospitality industry which returned -17.7% over the past year.

Return vs Market: WTB underperformed the UK Market which returned -8.1% over the past year.


Shareholder returns

WTBIndustryMarket
7 Day1.4%-0.4%-0.3%
30 Day3.4%5.3%5.4%
90 Day33.3%26.4%15.7%
1 Year-18.8%-30.3%-17.3%-18.9%-4.1%-7.9%
3 Year-3.8%-21.1%-2.3%-10.4%4.2%-8.5%
5 Year-0.5%-22.1%25.1%5.2%45.0%12.1%

Long-Term Price Volatility Vs. Market

How volatile is Whitbread's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Whitbread undervalued compared to its fair value and its price relative to the market?

1.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WTB (£31.03) is trading above our estimate of fair value (£19.18)

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


Price To Earnings Ratio

PE vs Industry: WTB is unprofitable, so we can't compare its PE Ratio to the GB Hospitality industry average.

PE vs Market: WTB 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 WTB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WTB is good value based on its PB Ratio (1.3x) compared to the GB Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Whitbread forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

104.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: WTB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WTB's is expected to become profitable in the next 3 years.

Revenue vs Market: WTB's revenue (27.5% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: WTB's revenue (27.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WTB's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Whitbread performed over the past 5 years?

-35.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTB is currently unprofitable.

Growing Profit Margin: WTB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WTB is unprofitable, and losses have increased over the past 5 years at a rate of 35.8% per year.

Accelerating Growth: Unable to compare WTB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WTB is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-41.3%).


Return on Equity

High ROE: WTB has a negative Return on Equity (-15.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Whitbread's financial position?


Financial Position Analysis

Short Term Liabilities: WTB's short term assets (£1.1B) exceed its short term liabilities (£450.2M).

Long Term Liabilities: WTB's short term assets (£1.1B) do not cover its long term liabilities (£3.7B).


Debt to Equity History and Analysis

Debt Level: WTB's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: WTB's debt to equity ratio has reduced from 42.4% to 18.4% over the past 5 years.

Debt Coverage: WTB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if WTB's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Whitbread current dividend yield, its reliability and sustainability?

0.91%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

5.0yrs

Average management tenure


CEO

Alison Brittain (56 yo)

5yrs

Tenure

UK£2,636,000

Compensation

Ms. Alison J. Brittain, CBE, has been Independent Non-Executive Director at Experian plc since September 1, 2020. Ms. Brittain has been Chief Executive Officer of Whitbread PLC since January 4, 2016. Ms. B...


CEO Compensation Analysis

Compensation vs Market: Alison's total compensation ($USD3.59M) is above average for companies of similar size in the UK market ($USD2.66M).

Compensation vs Earnings: Alison's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alison Brittain
Chief Executive & Director5yrsUK£2.64m0.032%
£ 2.0m
Nicholas Cadbury
Group Finance Director & Executive Director8.17yrsUK£1.61m0.0091%
£ 566.5k
Louise Smalley
Group Human Resource Director & Executive Director8.17yrsUK£1.06m0.017%
£ 1.1m
Nigel Jones
Group Operations & Transformation Director3.42yrsno datano data
Clefton Vaughan
General Counsel & Company Secretary5.08yrsno datano data
Simon Jones
Managing Director of Premier Inn & Restaurants UK4.17yrsno datano data
Simon Ewins
Managing Director of Premier Inn2.25yrsno datano data
Mark Anderson
Managing Director Property & Internationalno datano datano data

5.0yrs

Average Tenure

54yo

Average Age

Experienced Management: WTB's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alison Brittain
Chief Executive & Director5yrsUK£2.64m0.032%
£ 2.0m
Nicholas Cadbury
Group Finance Director & Executive Director8.17yrsUK£1.61m0.0091%
£ 566.5k
Louise Smalley
Group Human Resource Director & Executive Director8.17yrsUK£1.06m0.017%
£ 1.1m
Richard Gillingwater
Senior Independent Director2.58yrsUK£81.00k0.00075%
£ 46.7k
Susan Martin
Independent Non–Executive Director9yrsUK£66.00k0.0011%
£ 69.2k
Chris Kennedy
Independent Non–Executive Director4.83yrsUK£81.00k0.0011%
£ 69.8k
Adam Crozier
Independent Chairman2.83yrsUK£400.00k0.0022%
£ 139.6k
David Atkins
Independent Non-Executive Director4yrsUK£71.00k0.0011%
£ 66.1k
Frank Fiskers
Independent Non Executive Director1.92yrsUK£72.00k0.0010%
£ 65.4k
Horst Baier
Independent Non-Executive Director1.17yrsUK£22.00k0.0012%
£ 74.8k

4.4yrs

Average Tenure

56yo

Average Age

Experienced Board: WTB's board of directors are considered experienced (4.4 years average tenure).


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 substantially diluted in the past year, with total shares outstanding growing by 50.8%.


Top Shareholders

Company Information

Whitbread PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Whitbread PLC
  • Ticker: WTB
  • Exchange: LSE
  • Founded: 1742
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: UK£6.232b
  • Shares outstanding: 200.83m
  • Website: https://www.whitbread.co.uk

Number of Employees


Location

  • Whitbread PLC
  • Whitbread Court
  • Houghton Hall Business Park
  • Dunstable
  • Bedfordshire
  • LU5 5XE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTBC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
WTBLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
WHF4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
WTBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
WTBD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

Whitbread PLC operates hotels and restaurants in the United Kingdom and internationally. It operates approximately 820 hotels with 78,500 rooms under the Premier Inn and the hub by Premier Inn brand names;...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 00:43
End of Day Share Price2021/01/19 00:00
Earnings2020/08/27
Annual Earnings2020/02/27


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.