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WH Smith

LSE:SMWH
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMWH
LSE
£2B
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

WH Smith PLC operates as a retailer in the United Kingdom and internationally. The last earnings update was 108 days ago. More info.


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SMWH Share Price and Events
7 Day Returns
0.3%
LSE:SMWH
2.6%
GB Specialty Retail
1.9%
GB Market
1 Year Returns
11.3%
LSE:SMWH
-5%
GB Specialty Retail
1.2%
GB Market
SMWH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
WH Smith (SMWH) 0.3% 5.4% 23.6% 11.3% 19.4% 76.8%
GB Specialty Retail 2.6% 2.8% 21% -5% -24.5% -29.9%
GB Market 1.9% 1.5% 9.1% 1.2% 14.5% 3.1%
1 Year Return vs Industry and Market
  • SMWH outperformed the Specialty Retail industry which returned -5% over the past year.
  • SMWH outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.2% over the past year.
Price Volatility
SMWH
Industry
5yr Volatility vs Market

SMWH Value

 Is WH Smith undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of WH Smith to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for WH Smith.

LSE:SMWH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SMWH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.857 (1 + (1- 19%) (2.03%))
0.914
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.914 * 6.65%)
7.3%

Discounted Cash Flow Calculation for LSE:SMWH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for WH Smith is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SMWH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.3%)
2019 117.17 Analyst x3 109.19
2020 129.03 Analyst x3 112.07
2021 138.95 Analyst x2 112.47
2022 146.66 Est @ 5.55% 110.64
2023 152.90 Est @ 4.25% 107.49
2024 158.02 Est @ 3.35% 103.53
2025 162.30 Est @ 2.71% 99.10
2026 165.98 Est @ 2.27% 94.45
2027 169.23 Est @ 1.95% 89.74
2028 172.16 Est @ 1.74% 85.09
Present value of next 10 years cash flows £1,023.77
LSE:SMWH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £172.16 × (1 + 1.23%) ÷ (7.3% – 1.23%)
£2,868.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £2,868.70 ÷ (1 + 7.3%)10
£1,417.77
LSE:SMWH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,023.77 + £1,417.77
£2,441.54
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,441.54 / 107.89
£22.63
LSE:SMWH Discount to Share Price
Calculation Result
Value per share (GBP) From above. £22.63
Current discount Discount to share price of £21.50
= -1 x (£21.50 - £22.63) / £22.63
5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price WH Smith is available for.
Intrinsic value
5%
Share price is £21.5 vs Future cash flow value of £22.63
Current Discount Checks
For WH Smith to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • WH Smith's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • WH Smith's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for WH Smith's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are WH Smith's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SMWH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-08-31) in GBP £0.99
LSE:SMWH Share Price ** LSE (2019-03-21) in GBP £21.5
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PE Ratio Median Figure of 27 Publicly-Listed Specialty Retail Companies 10.98x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 808 Publicly-Listed Companies 15.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of WH Smith.

LSE:SMWH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SMWH Share Price ÷ EPS (both in GBP)

= 21.5 ÷ 0.99

21.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Smith is overvalued based on earnings compared to the GB Specialty Retail industry average.
  • WH Smith is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does WH Smith's expected growth come at a high price?
Raw Data
LSE:SMWH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
9.7%per year
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PEG Ratio Median Figure of 25 Publicly-Listed Specialty Retail Companies 1.41x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

LSE:SMWH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.7x ÷ 9.7%

2.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Smith is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on WH Smith's assets?
Raw Data
LSE:SMWH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-08-31) in GBP £1.94
LSE:SMWH Share Price * LSE (2019-03-21) in GBP £21.5
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PB Ratio Median Figure of 39 Publicly-Listed Specialty Retail Companies 1.09x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.5x
LSE:SMWH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SMWH Share Price ÷ Book Value per Share (both in GBP)

= 21.5 ÷ 1.94

11.07x

* Primary Listing of WH Smith.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WH Smith is overvalued based on assets compared to the GB Specialty Retail industry average.
X
Value checks
We assess WH Smith's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. WH Smith has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SMWH Future Performance

 How is WH Smith expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is WH Smith expected to grow at an attractive rate?
  • WH Smith's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • WH Smith's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • WH Smith's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SMWH Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SMWH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 9.7%
LSE:SMWH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 5.1%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SMWH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SMWH Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-08-31 1,658 1
2022-08-31 1,602 1
2021-08-31 1,468 194 145 6
2020-08-31 1,412 184 134 7
2019-08-31 1,348 173 124 7
LSE:SMWH Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-08-31 1,262 143 108
2018-05-31 1,248 145 111
2018-02-28 1,234 146 114
2017-11-30 1,234 147 115
2017-08-31 1,234 148 116
2017-05-31 1,228 141 114
2017-02-28 1,222 134 111
2016-11-30 1,217 134 110
2016-08-31 1,212 134 108
2016-05-31 1,206 135 108
2016-02-29 1,200 135 107
2015-11-30 1,189 140 104

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • WH Smith's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
  • WH Smith's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SMWH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from WH Smith Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SMWH Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-08-31
2022-08-31
2021-08-31 1.40 1.44 1.35 2.00
2020-08-31 1.26 1.31 1.20 4.00
2019-08-31 1.17 1.20 1.14 4.00
LSE:SMWH Past Financials Data
Date (Data in GBP Millions) EPS *
2018-08-31 0.99
2018-05-31 1.01
2018-02-28 1.04
2017-11-30 1.04
2017-08-31 1.05
2017-05-31 1.02
2017-02-28 1.00
2016-11-30 0.98
2016-08-31 0.96
2016-05-31 0.95
2016-02-29 0.93
2015-11-30 0.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • WH Smith is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess WH Smith's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
WH Smith has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SMWH Past Performance

  How has WH Smith performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare WH Smith's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • WH Smith's year on year earnings growth rate has been positive over the past 5 years.
  • WH Smith's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • WH Smith's 1-year earnings growth is negative, it can't be compared to the GB Specialty Retail industry average.
Earnings and Revenue History
WH Smith's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from WH Smith Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SMWH Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-08-31 1,262.00 108.00 618.00
2018-05-31 1,248.00 111.00 606.50
2018-02-28 1,234.00 114.00 595.00
2017-11-30 1,234.00 115.00 595.00
2017-08-31 1,234.00 116.00 595.00
2017-05-31 1,228.00 113.50 586.00
2017-02-28 1,222.00 111.00 577.00
2016-11-30 1,217.00 109.50 578.00
2016-08-31 1,212.00 108.00 579.00
2016-05-31 1,206.00 107.50 569.00
2016-02-29 1,200.00 107.00 559.00
2015-11-30 1,189.00 104.00 558.50
2015-08-31 1,178.00 101.00 558.00
2015-05-31 1,168.50 98.50 552.50
2015-02-28 1,159.00 96.00 547.00
2014-11-30 1,160.00 94.00 547.00
2014-08-31 1,161.00 92.00 547.00
2014-05-31 1,161.00 88.50 549.50
2014-02-28 1,161.00 85.00 552.00
2013-11-30 1,173.50 83.00 552.00
2013-08-31 1,186.00 81.00 552.00
2013-05-31 1,201.00 79.50 557.00
2013-02-28 1,216.00 78.00 562.00
2012-11-30 1,229.50 79.00 562.00
2012-08-31 1,243.00 80.00 562.00
2012-05-31 1,247.50 80.00 565.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • WH Smith made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • WH Smith used its assets more efficiently than the GB Specialty Retail industry average last year based on Return on Assets.
  • WH Smith's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess WH Smith's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
WH Smith has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SMWH Health

 How is WH Smith's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up WH Smith's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • WH Smith's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • WH Smith's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of WH Smith's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from WH Smith Company Filings, last reported 6 months ago.

LSE:SMWH Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-08-31 212.00 47.00 45.00
2018-05-31 212.00 47.00 45.00
2018-02-28 202.00 51.00 36.00
2017-11-30 202.00 51.00 36.00
2017-08-31 187.00 34.00 38.00
2017-05-31 187.00 34.00 38.00
2017-02-28 172.00 58.00 37.00
2016-11-30 172.00 58.00 37.00
2016-08-31 168.00 31.00 38.00
2016-05-31 168.00 31.00 38.00
2016-02-29 161.00 35.00 34.00
2015-11-30 161.00 35.00 34.00
2015-08-31 147.00 19.00 34.00
2015-05-31 147.00 19.00 34.00
2015-02-28 138.00 26.00 36.00
2014-11-30 138.00 26.00 36.00
2014-08-31 101.00 12.00 34.00
2014-05-31 101.00 12.00 34.00
2014-02-28 99.00 39.00 57.00
2013-11-30 99.00 39.00 57.00
2013-08-31 102.00 0.00 31.00
2013-05-31 102.00 0.00 31.00
2013-02-28 161.00 0.00 41.00
2012-11-30 161.00 0.00 41.00
2012-08-31 95.00 0.00 36.00
2012-05-31 149.00 0.00 36.00
  • WH Smith's level of debt (22.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.4% vs 22.2% today).
  • Debt is well covered by operating cash flow (304.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 71.5x coverage).
X
Financial health checks
We assess WH Smith's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. WH Smith has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SMWH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.52%
Current annual income from WH Smith dividends. Estimated to be 2.87% next year.
If you bought £2,000 of WH Smith shares you are expected to receive £50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • WH Smith's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.04%).
  • WH Smith's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.24%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SMWH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 3.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SMWH Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-08-31
2022-08-31
2021-08-31 0.67 5.00
2020-08-31 0.62 8.00
2019-08-31 0.57 8.00
LSE:SMWH Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-12-03 0.541 2.786
2018-10-11 0.541 2.851
2017-11-06 0.482 2.370
2017-10-12 0.482 2.341
2016-11-09 0.439 2.568
2016-10-13 0.439 2.896
2015-10-30 0.394 2.364
2015-10-15 0.394 2.366
2015-04-16 0.363 2.388
2014-12-08 0.350 2.644
2013-12-09 0.307 2.796
2013-10-10 0.307 3.267
2013-04-11 0.280 3.601
2012-12-10 0.269 3.934
2012-10-11 0.269 4.253
2012-01-31 0.225 4.101
2010-10-14 0.194 3.949
2009-10-30 0.167 3.595
2009-10-15 0.167 3.300
2009-04-23 0.151 3.456
2009-03-23 0.143 3.774

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of WH Smith's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess WH Smith's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can WH Smith afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. WH Smith has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SMWH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Clarke
COMPENSATION £2,902,000
TENURE AS CEO 5.7 years
CEO Bio

Mr. Stephen Clarke, also known as Steve, has been the Chief Executive Officer of WH Smith plc since July 1, 2013. Mr. Clarke has been an Executive Director at WH Smith plc since June 1, 2012. Mr. Clarke served as Managing Director of High Street Retail at WH Smith plc from 2008 to July 1, 2013. Mr. Clarke served as Commercial and Marketing Director of WH Smith plc since January 2006 and Managing Director for High Street Retail since December 2008. Mr. Clarke joined WHSmith in August 2004 as Marketing Director for High Street Retail. He joined WHSmith in 2004 from Argos where he served as Head of Product Marketing since 2001. His career began at the Dixons Group where he carried out a number of store, product and marketing roles from 1989 to 1994. He served as Marketing Manager for Cable & Wireless Optus from 1995 to 1999 and Marketing Director of Vox Retail Ltd and Buy.com until 2001. From 2000 to 2002, he served as a Non Executive Director at Force Technology, concurrent with his full time roles at Vox and Buy.com.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Steve Clarke

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£3M
TENURE
5.7 yrs

Robert Moorhead

TITLE
CFO, COO & Executive Director
COMPENSATION
£2M
AGE
53

Ian Houghton

TITLE
Legal Director & Company Secretary
TENURE
20.5 yrs

Carl Cowling

TITLE
MD of High Street Business & Executive Director
Board of Directors Tenure

Average tenure and age of the WH Smith board of directors in years:

5.5
Average Tenure
56.5
Average Age
  • The tenure for the WH Smith board of directors is about average.
Board of Directors

Henry Staunton

TITLE
Non-Executive Chairman
COMPENSATION
£223K
AGE
70
TENURE
5.5 yrs

Steve Clarke

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£3M
TENURE
6.8 yrs

Robert Moorhead

TITLE
CFO, COO & Executive Director
COMPENSATION
£2M
AGE
53
TENURE
10.3 yrs

Carl Cowling

TITLE
MD of High Street Business & Executive Director
TENURE
0.1 yrs

Annemarie Verna Durbin

TITLE
Non-Executive Director
COMPENSATION
£52K
AGE
54
TENURE
6.3 yrs

Suzanne Baxter

TITLE
Non-Executive Director
COMPENSATION
£65K
AGE
49
TENURE
6.1 yrs

John William Hall

TITLE
Senior Independent Director
COMPENSATION
£74K
AGE
69
TENURE
5.5 yrs

Simon Emeny

TITLE
Non-Executive Director
TENURE
0.1 yrs

Maurice Nicholas Thompson

TITLE
Non-Executive Director
AGE
59
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • WH Smith insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
19. Feb 19 Sell Robert Moorhead Individual 18. Feb 19 18. Feb 19 -50,000 £20.38 £-1,018,895
19. Feb 19 Sell Graham Miller Individual 18. Feb 19 18. Feb 19 -10,000 £20.38 £-203,779
01. Nov 18 Sell Carl Cowling Individual 31. Oct 18 31. Oct 18 -5,780 £19.56 £-113,032
X
Management checks
We assess WH Smith's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. WH Smith has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SMWH News

Simply Wall St News

Why WH Smith PLC’s (LON:SMWH) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

With A -6.9% Earnings Drop, Did WH Smith PLC (LON:SMWH) Really Underperform?

When WH Smith PLC (LON:SMWH) announced its most recent earnings (31 August 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … SMWH's trailing twelve-month earnings (from 31 August 2018) of UK£108m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.6%, indicating the rate at which SMWH is growing has slowed down

Simply Wall St -

Should You Expect WH Smith PLC (LON:SMWH) To Continue Delivering An ROE Of 56%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows WH Smith has a return on equity of 56% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

WH Smith PLC (LON:SMWH): Why Return On Capital Employed Is Important

and want a simplistic look at the return on WH Smith PLC (LON:SMWH) stock. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand WH Smith’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Before Investing In WH Smith PLC (LON:SMWH), Consider This

What is free cash flow. … WH Smith generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … What remains after this expenditure, is known as its free cash flow, or FCF, for short.

Simply Wall St -

A Look At The Intrinsic Value Of WH Smith PLC (LON:SMWH)

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

2 Days Left Before WH Smith PLC (LON:SMWH) Will Start Trading Ex-Dividend, Is It Worth Buying?

On the 02 August 2018, WH Smith PLC (LON:SMWH) will be paying shareholders an upcoming dividend amount of UK£0.16 per share. … However, investors must have bought the company's stock before 12 July 2018 in order to qualify for the payment. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

Simply Wall St -

Is WH Smith PLC's (LON:SMWH) PE Ratio A Signal To Sell For Investors?

This article is intended for those of you who are at the beginning of your investing journey. … and want to better understand how you can grow your money by investing in WH Smith PLC (LON:SMWH). … WH Smith PLC (LON:SMWH) is currently trading at a trailing P/E of 19.6x, which is higher than the industry average of 12.8x.

Simply Wall St -

Why WH Smith PLC (LON:SMWH) Should Have A Place In Your Portfolio

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on WH Smith PLC (LON:SMWH) due to its excellent fundamentals in more than one area.

Simply Wall St -

Why WH Smith PLC (LON:SMWH) Should Be In Your Portfolio

Does tick all the boxes of a great dividend stock? … 5 checks you should use to assess a dividend stock … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

SMWH Company Info

Description

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. As of August 31, 2018, it operated 867 units primarily in airports, railway stations, motorway service areas, hospitals, and workplaces. The High Street segment sells stationery products, including greetings cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books. As of August 31, 2018, it operated 607 stores. This segment also offers its stationery, books, magazines, and gifts through whsmith.co.uk; and its online personalized greetings cards and gifts through funkypigeon.com and funkypigeon.ie, as well as pens through cultpens.com. The company was founded in 1792 and is based in Swindon, the United Kingdom.

Details
Name: WH Smith PLC
SMWH
Exchange: LSE
Founded: 1792
£2,319,658,607
107,891,098
Website: http://www.whsmithplc.co.uk
Address: WH Smith PLC
Greenbridge Road,
Swindon,
Wiltshire, SN3 3RX,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SMWH Ordinary Shares London Stock Exchange GB GBP 03. Jan 1980
BATS-CHIXE SMWHL Ordinary Shares BATS 'Chi-X Europe' GB GBP 03. Jan 1980
Number of employees
Current staff
Staff numbers
13,296
WH Smith employees.
Industry
Specialty Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 21:34
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/12/03
Last earnings reported: 2018/08/31
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.