LSE:WTB

Stock Analysis Report

Executive Summary

Whitbread PLC operates hotels and restaurants in the United Kingdom.

Rewards

Earnings are forecast to grow 5.1% per year

Pays a high and reliable dividend of 2.08%

Risk Analysis

Large one-off items impacting financial results

Profit margins (9.5%) are lower than last year (16%)



Snowflake Analysis

Established dividend payer with adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

WTB

-1.1%

GB Hospitality

-0.4%

GB Market


1 Year Return

-3.6%

WTB

15.9%

GB Hospitality

6.6%

GB Market

Return vs Industry: WTB underperformed the UK Hospitality industry which returned 15.9% over the past year.

Return vs Market: WTB underperformed the UK Market which returned 6.6% over the past year.


Shareholder returns

WTBIndustryMarket
7 Day-1.8%-1.1%-0.4%
30 Day6.8%0.4%-1.7%
90 Day5.8%1.5%5.4%
1 Year-1.4%-3.6%19.2%15.9%12.4%6.6%
3 Year33.4%24.3%32.5%19.3%18.5%3.4%
5 Year0.03%-10.5%49.9%26.5%35.8%4.7%

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?

42.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTB (£47.86) is trading above our estimate of fair value (£12.83)

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 (42.6x) compared to the Hospitality industry average (26.5x).

PE vs Market: WTB is poor value based on its PE Ratio (42.6x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: WTB is poor value based on its PEG Ratio (8.4x)


Price to Book Ratio

PB vs Industry: WTB is overvalued based on its PB Ratio (2.1x) compared to the GB Hospitality industry average (1.7x).


Next Steps

Future Growth

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

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTB's forecast earnings growth (5.1% per year) is above the savings rate (0.5%).

Earnings vs Market: WTB's earnings (5.1% per year) are forecast to grow slower than the UK market (13.1% per year).

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

Revenue vs Market: WTB's revenue (5.4% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: WTB's revenue (5.4% 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 (8.1%).


Next Steps

Past Performance

How has Whitbread performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTB has a large one-off loss of £135.5M impacting its August 29 2019 financial results.

Growing Profit Margin: WTB's current net profit margins (9.5%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: WTB's earnings have declined by -7.6% 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 (-40.1%) over the past year, making it difficult to compare to the Hospitality industry average (5.6%).


Return on Equity

High ROE: WTB's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Whitbread's financial position?


Financial Position Analysis

Short Term Liabilities: WTB's short term assets (£1.0B) exceed its short term liabilities (£621.5M).

Long Term Liabilities: WTB's short term assets (£1.0B) do not cover its long term liabilities (£3.4B).


Debt to Equity History and Analysis

Debt Level: WTB's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: WTB's debt to equity ratio has reduced from 29.1% to 23.4% over the past 5 years.

Debt Coverage: WTB's debt is not well covered by operating cash flow (10%).

Interest Coverage: WTB's interest payments on its debt are well covered by EBIT (21.5x 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 1.1x debt).


Next Steps

Dividend

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

2.11%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.8%markettop25%5.1%industryaverage2.5%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: WTB's dividend (2.08%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: WTB's dividend (2.08%) is low compared to the top 25% of dividend payers in the UK market (5.12%).


Stability and Growth of Payments

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 (88.7%), 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 (45.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Alison Brittain (55yo)

4.1yrs

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 ($USD7.23M) is above average for companies of similar size in the UK market ($USD3.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alison Brittain
Chief Executive & Director4.1yrsUK£5.59m0.036% £2.3m
Nicholas Cadbury
Group Finance Director & Executive Director7.3yrsUK£3.48m0.0058% £368.7k
Louise Smalley
Group Human Resource Director & Executive Director7.3yrsUK£2.30m0.024% £1.5m
Nigel Jones
Group Operations & Transformation Director2.5yrsno datano data
Clefton Vaughan
General Counsel & Company Secretary4.2yrsno datano data
Simon Jones
Managing Director of Premier Inn & Restaurants UK3.3yrsno datano data
Simon Ewins
Managing Director of Premier Inn1.3yrsno datano data
Mark Anderson
Managing Director Property & International0yrsno datano data
Phil Birbeck
Managing Director of Restaurants1.3yrsno datano data

3.7yrs

Average Tenure

53yo

Average Age

Experienced Management: WTB's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alison Brittain
Chief Executive & Director4.1yrsUK£5.59m0.036% £2.3m
Nicholas Cadbury
Group Finance Director & Executive Director7.3yrsUK£3.48m0.0058% £368.7k
Louise Smalley
Group Human Resource Director & Executive Director7.3yrsUK£2.30m0.024% £1.5m
Deanna Oppenheimer
Independent Non–Executive Director3.1yrsUK£80.00k0.0012% £76.0k
Richard Gillingwater
Senior Independent Director1.7yrsUK£51.00k0.00075% £47.5k
Susan Martin
Independent Non–Executive Director8.1yrsUK£65.00k0.0011% £70.3k
Chris Kennedy
Independent Non–Executive Director3.9yrsUK£80.00k0.0011% £70.9k
Adam Crozier
Independent Chairman1.9yrsUK£400.00k0.0022% £141.9k
David Atkins
Independent Non-Executive Director3.1yrsUK£70.00k0.0011% £67.1k
Frank Fiskers
Independent Non Executive Director1yrsUK£5.00k0.00046% £29.1k

3.5yrs

Average Tenure

55yo

Average Age

Experienced Board: WTB's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WTB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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£6.335b
  • Shares outstanding: 133.87m
  • 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. It operates approximately 800 hotels with 76,171 rooms under the Premier Inn and the hub by Premier Inn brand names; and restaurants under the Brewers Fayre, Beefeater Grill, coockhouse & Pub, Bar+Block, thyme, and Table Table brands. The company was founded in 1742 and is based in Dunstable, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:21
End of Day Share Price2020/02/20 00:00
Earnings2019/08/29
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.