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SMWH

WH Smith LSE:SMWH Stock Report

Last Price

UK£15.20

Market Cap

UK£2.0b

7D

-0.2%

1Y

-13.0%

Updated

25 May, 2022

Data

Company Financials +
SMWH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

SMWH Stock Overview

WH Smith PLC operates as a retailer in the United Kingdom and internationally.

WH Smith Competitors

Price History & Performance

Summary of all time highs, changes and price drops for WH Smith
Historical stock prices
Current Share PriceUK£15.20
52 Week HighUK£18.10
52 Week LowUK£12.60
Beta1.68
1 Month Change0.60%
3 Month Change-2.56%
1 Year Change-13.04%
3 Year Change-22.01%
5 Year Change-14.80%
Change since IPO297.74%

Recent News & Updates

May 03
Should You Investigate WH Smith PLC (LON:SMWH) At UK£14.56?

Should You Investigate WH Smith PLC (LON:SMWH) At UK£14.56?

WH Smith PLC ( LON:SMWH ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Apr 12
Calculating The Fair Value Of WH Smith PLC (LON:SMWH)

Calculating The Fair Value Of WH Smith PLC (LON:SMWH)

Does the April share price for WH Smith PLC ( LON:SMWH ) reflect what it's really worth? Today, we will estimate the...

Jan 26
Is WH Smith PLC (LON:SMWH) Potentially Undervalued?

Is WH Smith PLC (LON:SMWH) Potentially Undervalued?

WH Smith PLC ( LON:SMWH ), is not the largest company out there, but it saw a significant share price rise of over 20...

Shareholder Returns

SMWHGB Specialty RetailGB Market
7D-0.2%-2.1%1.0%
1Y-13.0%-24.0%-2.8%

Return vs Industry: SMWH exceeded the UK Specialty Retail industry which returned -23.7% over the past year.

Return vs Market: SMWH underperformed the UK Market which returned -3% over the past year.

Price Volatility

Is SMWH's price volatile compared to industry and market?
SMWH volatility
SMWH Average Weekly Movement5.9%
Specialty Retail Industry Average Movement6.3%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.4%
10% least volatile stocks in GB Market3.0%

Stable Share Price: SMWH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SMWH's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
179211,000Carl Cowlinghttps://www.whsmithplc.co.uk

WH Smith PLC operates as a retailer in the United Kingdom and internationally. It operates in two segments, Travel and High Street. The Travel segment offers news, books, and convenience for travelling customers.

WH Smith Fundamentals Summary

How do WH Smith's earnings and revenue compare to its market cap?
SMWH fundamental statistics
Market CapUK£1.99b
Earnings (TTM)-UK£35.00m
Revenue (TTM)UK£1.07b

1.8x

P/S Ratio

-56.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMWH income statement (TTM)
RevenueUK£1.07b
Cost of RevenueUK£429.00m
Gross ProfitUK£645.00m
Other ExpensesUK£680.00m
Earnings-UK£35.00m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.27
Gross Margin60.06%
Net Profit Margin-3.26%
Debt/Equity Ratio201.9%

How did SMWH perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


31.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SMWH (£15.2) is trading below our estimate of fair value (£22.2)

Significantly Below Fair Value: SMWH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMWH is unprofitable, so we can't compare its Price-To-Earnings Ratio to the UK Specialty Retail industry average.

PE vs Market: SMWH is unprofitable, so we can't compare its Price-To-Earnings Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SMWH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SMWH is overvalued based on its Price-To-Book Ratio (10.1x) compared to the GB Specialty Retail industry average (1.4x).


Future Growth

How is WH Smith forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


43.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMWH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

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

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

Revenue vs Market: SMWH's revenue (9.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: SMWH's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMWH's Return on Equity is forecast to be high in 3 years time (26.4%)


Past Performance

How has WH Smith performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-54.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMWH is currently unprofitable.

Growing Profit Margin: SMWH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMWH is unprofitable, and losses have increased over the past 5 years at a rate of 54% per year.

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

Earnings vs Industry: SMWH is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (50.5%).


Return on Equity

High ROE: SMWH has a negative Return on Equity (-14.9%), as it is currently unprofitable.


Financial Health

How is WH Smith's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMWH's short term assets (£290.0M) do not cover its short term liabilities (£357.0M).

Long Term Liabilities: SMWH's short term assets (£290.0M) do not cover its long term liabilities (£789.0M).


Debt to Equity History and Analysis

Debt Level: SMWH's net debt to equity ratio (159.6%) is considered high.

Reducing Debt: SMWH's debt to equity ratio has increased from 26% to 201.9% over the past 5 years.

Debt Coverage: SMWH's debt is well covered by operating cash flow (27.6%).

Interest Coverage: SMWH's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet


Dividend

What is WH Smith current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.55%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: SMWH is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SMWH has not reported any payouts.


Discover strong dividend paying companies

Management

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

8.8yrs

Average management tenure


CEO

Carl Cowling

2.5yrs

Tenure

UK£1,183,000

Compensation

Mr. Carl D. Cowling has been Group Chief Executive at WH Smith PLC since November 01, 2019. Mr. Cowling served as Managing Director of High Street Business at WH Smith PLC since 2017 until November 01, 201...


CEO Compensation Analysis

Compensation vs Market: Carl's total compensation ($USD1.49M) is below average for companies of similar size in the UK market ($USD2.96M).

Compensation vs Earnings: Carl's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SMWH's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: SMWH's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WH Smith PLC's employee growth, exchange listings and data sources


Key Information

  • Name: WH Smith PLC
  • Ticker: SMWH
  • Exchange: LSE
  • Founded: 1792
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: UK£1.985b
  • Shares outstanding: 130.61m
  • Website: https://www.whsmithplc.co.uk

Number of Employees


Location

  • WH Smith PLC
  • Greenbridge Road
  • Swindon
  • Wiltshire
  • SN3 3RX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/02/28
Annual Earnings2021/08/31


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.