LSE:WTB

Stock Analysis Report

Executive Summary

Whitbread PLC operates hotels and restaurants in the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


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


Market Performance


7 Day Return

-3.6%

WTB

-0.2%

GB Hospitality

0.2%

GB Market


1 Year Return

-6.2%

WTB

18.7%

GB Hospitality

1.7%

GB Market

Return vs Industry: WTB underperformed the UK Hospitality industry which returned 18.7% over the past year.

Return vs Market: WTB underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

WTBIndustryMarket
7 Day-3.6%-0.2%0.2%
30 Day-8.1%-0.3%-1.7%
90 Day-7.5%2.3%-3.1%
1 Year-4.1%-6.2%23.1%18.7%6.7%1.7%
3 Year19.8%11.5%29.9%16.2%17.7%3.1%
5 Year6.3%-4.6%64.7%38.7%36.1%5.5%

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?

35.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTB (£41.25) is trading above our estimate of fair value (£12.24)

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


Price To Earnings Ratio

PE vs Industry: WTB is poor value based on its PE Ratio (35.8x) compared to the Hospitality industry average (25x).

PE vs Market: WTB is poor value based on its PE Ratio (35.8x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: WTB is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: WTB is good value based on its PB Ratio (1.2x) 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 23 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTB's forecast earnings growth (12.4% per year) is above the savings rate (1.2%).

Earnings vs Market: WTB's earnings (12.4% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: WTB's revenue (4.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: WTB's revenue (4.7% per year) is forecast to grow slower 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 (9.2%).


Next Steps

Past Performance

How has Whitbread performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WTB's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: WTB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WTB had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Hospitality industry average (4.7%).


Return on Equity

High ROE: WTB's Return on Equity (3.4%) is considered low.


Return on Assets

ROA vs Industry: WTB's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: WTB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Whitbread's financial position?


Financial Position Analysis

Short Term Liabilities: WTB's short term assets (£3.6B) exceeds its short term liabilities (£605.2M)

Long Term Liabilities: WTB's short term assets (3.6B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: WTB's debt to equity ratio (13.3%) is considered satisfactory

Reducing Debt: WTB's debt to equity ratio has reduced from 26% to 13.3% over the past 5 years.

Debt Coverage: WTB's debt is well covered by operating cash flow (58.8%).

Interest Coverage: WTB's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: WTB's debt is covered by short term assets (assets are 4.321060x debt).


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WTB's dividend (2.42%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: WTB's dividend (2.42%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: WTB's dividends per share have been stable in the past 10 years.

Growing Dividend: WTB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.5%), WTB's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTB's dividends in 3 years are forecast to be well covered by earnings (40.6% payout ratio).


Next Steps

Management

What is the CEO of Whitbread's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Alison Brittain (55yo)

3.8yrs

Tenure

UK£5,588,000

Compensation

Ms. Alison Brittain, CBE, has been Chief Executive Officer of Whitbread PLC since January 4, 2016. Ms. Brittain serves as an Executive Director of Abbey National plc (ENG). She has significant financial an ...


CEO Compensation Analysis

Compensation vs. Market: Alison's total compensation ($USD7.24M) is about average for companies of similar size in the UK market ($USD3.51M).

Compensation vs Earnings: Alison's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: WTB's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

55yo

Average Age

Experienced Board: WTB's board of directors are considered experienced (3.2 years average tenure).


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£585,07201 Jul 19
Nicholas Cadbury
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares12,665
Max PriceUK£46.20
SellUK£13,62801 Jul 19
Nicholas Cadbury
EntityIndividual
Role
Member of the Board of Directors
Group Finance Director & Executive Director
Shares295
Max PriceUK£46.20
SellUK£162,03925 Feb 19
Louise Smalley
EntityIndividual
Role
Member of the Board of Directors
Group Human Resource Director & Executive Director
Shares3,313
Max PriceUK£48.91
SellUK£387,59325 Feb 19
Louise Smalley
EntityIndividual
Role
Member of the Board of Directors
Group Human Resource Director & Executive Director
Shares7,923
Max PriceUK£48.92
BuyUK£91,22014 Nov 18
Adam Crozier
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares2,000
Max PriceUK£45.61

Ownership Breakdown


Management Team

  • Chris Vaughan (77yo)

    General Counsel & Company Secretary

    • Tenure: 4yrs
  • Nick Cadbury (53yo)

    Group Finance Director & Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£3.48m
  • Louise Smalley (51yo)

    Group Human Resource Director & Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£2.30m
  • Alison Brittain (55yo)

    Chief Executive & Director

    • Tenure: 3.8yrs
    • Compensation: UK£5.59m
  • Mark Anderson

    Managing Director Property & International

    • Tenure: 0yrs
  • Dominic Paul

    Managing Director of Costa

    • Tenure: 3.3yrs
  • Nigel Jones

    Group Operations & Transformation Director

    • Tenure: 2.2yrs
  • Simon Jones (43yo)

    Managing Director of Premier Inn & Restaurants UK

    • Tenure: 2.9yrs
  • Phil Birbeck

    Managing Director of Restaurants

    • Tenure: 1yrs
  • Simon Ewins

    Managing Director of Premier Inn

    • Tenure: 1yrs

Board Members

  • Deanna Oppenheimer (61yo)

    Independent Non–Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£80.00k
  • Richard Gillingwater (62yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£51.00k
  • Nick Cadbury (53yo)

    Group Finance Director & Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£3.48m
  • Susan Martin (55yo)

    Independent Non–Executive Director

    • Tenure: 7.8yrs
    • Compensation: UK£65.00k
  • Chris Kennedy (55yo)

    Independent Non–Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£80.00k
  • Adam Crozier (55yo)

    Independent Chairman

    • Tenure: 1.6yrs
    • Compensation: UK£400.00k
  • David Atkins (53yo)

    Independent Non–Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£70.00k
  • Frank Fiskers (58yo)

    Independent Non Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£5.00k
  • Louise Smalley (51yo)

    Group Human Resource Director & Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£2.30m
  • Alison Brittain (55yo)

    Chief Executive & Director

    • Tenure: 3.8yrs
    • Compensation: UK£5.59m

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£5.494b
  • Shares outstanding: 133.19m
  • 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
WTB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
WTBD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

Whitbread PLC operates hotels and restaurants in the United Kingdom. It operates approximately 800 hotels with 76,171 rooms under the Premier Inn and the hub by Premier Inn brand names; and restaurants und ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:54
End of Day Share Price2019/10/22 00:00
Earnings2019/02/28
Annual Earnings2019/02/28


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.