LSE:WTB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

WTB

-2.5%

GB Hospitality

-0.7%

GB Market


1 Year Return

-49.7%

WTB

-42.3%

GB Hospitality

-12.7%

GB Market

Return vs Industry: WTB underperformed the UK Hospitality industry which returned -44.2% over the past year.

Return vs Market: WTB underperformed the UK Market which returned -16.2% over the past year.


Shareholder returns

WTBIndustryMarket
7 Day-4.8%-2.5%-0.7%
30 Day-8.7%-9.3%-1.3%
90 Day-24.1%-14.2%4.8%
1 Year-41.0%-49.7%-40.3%-42.3%-8.8%-12.7%
3 Year-31.2%-44.1%-32.0%-38.5%-7.7%-19.0%
5 Year-45.9%-57.9%-16.0%-30.9%11.6%-13.3%

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?

14.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTB (£21.8) is trading above our estimate of fair value (£2.88)

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


Price To Earnings Ratio

PE vs Industry: WTB is good value based on its PE Ratio (14.9x) compared to the GB Hospitality industry average (15.6x).

PE vs Market: WTB is good value based on its PE Ratio (14.9x) compared to the UK market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: WTB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: WTB is good value based on its PB Ratio (0.8x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is Whitbread forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTB's forecast earnings growth (17.8% per year) is above the savings rate (1.2%).

Earnings vs Market: WTB's earnings (17.8% per year) are forecast to grow slower than the UK market (21.8% per year).

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

Revenue vs Market: WTB's revenue (4.8% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: WTB's revenue (4.8% 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 (5.2%).


Next Steps

Past Performance

How has Whitbread performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTB has a large one-off loss of £71.0M impacting its February 27 2020 financial results.

Growing Profit Margin: WTB's current net profit margins (10.5%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: WTB's earnings have declined by 11.8% per year over the past 5 years.

Accelerating Growth: WTB's earnings growth over the past year (22.7%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: WTB earnings growth over the past year (22.7%) exceeded the Hospitality industry -27%.


Return on Equity

High ROE: WTB's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Whitbread's financial position?


Financial Position Analysis

Short Term Liabilities: WTB's short term assets (£847.9M) exceed its short term liabilities (£646.9M).

Long Term Liabilities: WTB's short term assets (£847.9M) do not cover its long term liabilities (£3.4B).


Debt to Equity History and Analysis

Debt Level: WTB's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: WTB's debt to equity ratio has reduced from 30.8% to 22.1% over the past 5 years.

Debt Coverage: WTB's debt is well covered by operating cash flow (28.2%).

Interest Coverage: WTB's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.51%

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?

4.2yrs

Average management tenure


CEO

Alison Brittain (56 yo)

4.58yrs

Tenure

UK£2,636,000

Compensation

Ms. Alison J. 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 ...


CEO Compensation Analysis

Compensation vs Market: Alison's total compensation ($USD3.46M) is about average for companies of similar size in the UK market ($USD3.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alison Brittain
Chief Executive & Director4.58yrsUK£2.64m0.039%
£ 1.7m
Nicholas Cadbury
Group Finance Director & Executive Director7.75yrsUK£1.61m0.0091%
£ 398.1k
Louise Smalley
Group Human Resource Director & Executive Director7.75yrsUK£1.06m0.016%
£ 718.7k
Nigel Jones
Group Operations & Transformation Director3yrsno datano data
Clefton Vaughan
General Counsel & Company Secretary4.67yrsno datano data
Simon Jones
Managing Director of Premier Inn & Restaurants UK3.75yrsno datano data
Simon Ewins
Managing Director of Premier Inn1.83yrsno datano data
Mark Anderson
Managing Director Property & Internationalno datano datano data
Phil Birbeck
Managing Director of Restaurants1.83yrsno datano data

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: WTB's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alison Brittain
Chief Executive & Director4.58yrsUK£2.64m0.039%
£ 1.7m
Nicholas Cadbury
Group Finance Director & Executive Director7.75yrsUK£1.61m0.0091%
£ 398.1k
Louise Smalley
Group Human Resource Director & Executive Director7.75yrsUK£1.06m0.016%
£ 718.7k
Deanna Oppenheimer
Independent Non–Executive Director3.58yrsUK£78.00k0.00080%
£ 35.0k
Richard Gillingwater
Senior Independent Director2.17yrsUK£81.00k0.00075%
£ 32.8k
Susan Martin
Independent Non–Executive Director8.58yrsUK£66.00k0.0011%
£ 48.6k
Chris Kennedy
Independent Non–Executive Director4.42yrsUK£81.00k0.0011%
£ 49.1k
Adam Crozier
Independent Chairman2.42yrsUK£400.00k0.0022%
£ 98.1k
David Atkins
Independent Non-Executive Director3.58yrsUK£71.00k0.0011%
£ 46.4k
Frank Fiskers
Independent Non Executive Director1.5yrsUK£72.00k0.0010%
£ 46.0k
Horst Baier
Independent Non-Executive Director0.75yrUK£22.00k0.0012%
£ 52.1k

3.6yrs

Average Tenure

56yo

Average Age

Experienced Board: WTB's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WTB 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£4.380b
  • Shares outstanding: 200.91m
  • 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 Analysis2020/08/02 21:13
End of Day Share Price2020/07/31 00:00
Earnings2020/02/27
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.