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| Datum / Uhrzeit |
Titel |
Bewertung |
| 11.08.25 07:28:30 |
Was ist Whitbread plc's (LON:WTB) Share Price Doing? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Here’s a 400-word summary of the text, followed by a German translation:
**Summary (English)**
Whitbread plc (LON: WTB) has experienced a recent 12% share price increase on the London Stock Exchange, bringing it closer to its yearly highs. Despite this growth, analysts suggest the stock may still represent a bargain. The analysis focuses on the company's valuation using a price-to-earnings ratio comparison, revealing that WTB currently trades slightly above the industry average (22.34x vs. 19.9x). This suggests the stock is reasonably priced, and further growth is likely limited to industry peers.
However, Whitbread's volatility – indicated by a high beta – creates an opportunity for a potential price decline. This volatility could allow investors to buy the stock at a lower price. Importantly, the company is projected to deliver strong earnings growth – 63% over the next couple of years – driven by increased cash flow, which should positively impact its valuation.
The analysis highlights that the market may have already factored in this positive outlook. For existing shareholders, it’s crucial to reassess the company's financial strength and consider whether current valuations reflect the most favorable conditions.
For potential investors, the optimistic growth forecast is encouraging. However, given the stock’s trading near industry multiples, it might not be the ideal time to purchase. Further investigation of the balance sheet and key risk factors is recommended, particularly noting the identified warning sign.
Ultimately, the article advises cautious consideration, emphasizing that a potential price drop could offer an entry point for astute investors willing to embrace the stock’s volatility and future growth prospects.
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**German Translation:**
**Zusammenfassung (Deutsch):**
Whitbread plc (LON: WTB) hat in den letzten Monaten einen Aktienkursanstieg von 12 % an der London Stock Exchange verzeichnet, was dem Unternehmen näher an seine jährlichen Höchststände bringt. Trotz dieses Wachstums glauben Analysten, dass der Aktienkurs immer noch ein Schnäppchen darstellt. Die Analyse konzentriert sich auf die Bewertung des Unternehmens anhand eines Vergleichs des Kurs-Gewinn-Verhältnisses und zeigt, dass WTB derzeit leicht über dem Branchendurchschnitt (22,34x gegenüber 19,9x) liegt. Dies deutet darauf hin, dass der Aktienkurs angemessen ist, und weitere Wachstumschancen sind wahrscheinlich begrenzt.
Dennoch bietet Whitbread aufgrund seiner Volatilität – wie durch ein hohes Beta angezeigt – die Möglichkeit eines weiteren Preisverfalls. Diese Volatilität könnte es Investoren ermöglichen, die Aktie zu einem niedrigeren Preis zu kaufen. Besonders wichtig ist, dass das Unternehmen eine starke Gewinnentwicklung – 63 % innerhalb der nächsten zwei Jahre – erwarten lässt, die durch einen höheren Cashflow angetrieben wird, was seine Bewertung positiv beeinflussen wird.
Die Analyse unterstreicht, dass der Markt möglicherweise bereits diese positive Sichtweise berücksichtigt hat. Für bestehende Aktionäre ist es entscheidend, die finanzielle Stärke des Unternehmens zu überprüfen und zu beurteilen, ob die aktuellen Bewertungen die günstigsten Bedingungen widerspiegeln. Für potenzielle Investoren ist die optimistische Wachstumsprognose ermutigend. Allerdings, da der Aktienkurs nahe bei Branchentiefen liegt, mag dies nicht die ideale Zeit zum Kauf sein. Es empfiehlt sich, das Bilanz des Unternehmens und andere wichtige Risikofaktoren zu prüfen, insbesondere angesichts des identifizierten Warnsignals.
Im Wesentlichen rät der Artikel zu einer vorsichtigen Bewertung, wobei die Möglichkeit eines Preisverfalls eine günstige Gelegenheit für geschickte Investoren bietet, die die Volatilität und Wachstumsaussichten der Aktie annehmen.
Would you like me to translate any specific section of the German translation, or perhaps generate a more concise version? |
| 25.07.25 10:36:18 |
Haben Sie eine Rolle beim Fahren von Whitbread plcs (LON:WTB) spielen? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Whitbread (LON:WTB) hat sich in den letzten drei Monaten mit seinem Bestand um 28% erhöht. Wie die meisten wissen, sind die Grundlagen, die in der Regel Marktpreisbewegungen langfristig führen, so haben wir uns entschieden, die wichtigsten Finanzindikatoren des Unternehmens heute zu betrachten, um festzustellen, ob sie eine Rolle in der jüngsten Preisbewegung spielen. In diesem Artikel haben wir uns entschlossen, sich auf Whitbreads ROE zu konzentrieren.
Die Eigenkapitalrendite oder ROE ist eine wichtige Maßnahme, mit der beurteilt wird, wie effizient die Unternehmensleitung das Kapital des Unternehmens nutzt. Kurz gesagt, ROE zeigt den Gewinn, den jeder Dollar in Bezug auf seine Anteilseigner-Investitionen erzeugt.
AI wird die Gesundheitsversorgung verändern. Diese 20 Bestände arbeiten an allem von der Frühdiagnostik bis zur Drogenentdeckung. Der beste Teil - sie sind alle unter $10bn in marktcap - es gibt noch Zeit, in früh zu bekommen.
Wie berechnen Sie Return on Equity?
Die Eigenkapitalrendite kann mit der Formel berechnet werden:
Eigenkapitalrendite = Nettogewinn (aus fortgeführten Geschäften) ÷ Eigenkapital der Aktionäre
Der ROE für Whitbread ist also auf Basis der obigen Formel:
7,6% = UK£254m ÷ UK£3.3b (basierend auf den folgenden zwölf Monaten bis Februar 2025).
Die "Return" bezieht sich auf das Ergebnis eines Unternehmens im letzten Jahr. Das bedeutet also, dass das Unternehmen für jeden £1 der Investitionen des Aktionärs einen Gewinn von £0,08 erwirtschaftet.
Sehen Sie unsere neueste Analyse für Whitbread
Warum ist ROE wichtig für Ergebniswachstum?
Bisher haben wir gelernt, dass ROE misst, wie effizient ein Unternehmen seine Gewinne generiert. Wir müssen jetzt bewerten, wie viel Profit das Unternehmen reinvestiert oder "hält" für zukünftiges Wachstum, was uns dann eine Idee über das Wachstumspotenzial des Unternehmens gibt. Im Allgemeinen haben andere Dinge, die gleich sind, Unternehmen mit einer hohen Eigenkapitalrendite und Gewinnrückhaltung, eine höhere Wachstumsrate als Unternehmen, die diese Attribute nicht teilen.
Whitbreads Ergebniswachstum und 7,6% ROE
Auf den ersten Blick sieht Whitbreads ROE nicht vielversprechend aus. Da der ROE des Unternehmens jedoch der durchschnittlichen Industrie ROE von 8,7% entspricht, können wir ihm einige Gedanken überlassen. Darüber hinaus freuen wir uns sehr, dass das Nettoeinkommen von Whitbread in den letzten fünf Jahren deutlich zu 53% gewachsen ist. Angesichts des leicht niedrigen ROE ist es wahrscheinlich, dass es einige andere Aspekte geben könnte, die dieses Wachstum vorantreiben. Beispielsweise ist es möglich, dass das Management des Unternehmens einige gute strategische Entscheidungen getroffen hat oder dass das Unternehmen eine geringe Auszahlungsquote hat.
Als nächstes haben wir festgestellt, dass das Wachstum von Whitbread im Vergleich zum durchschnittlichen Industriewachstum von 32% im gleichen Zeitraum sehr hoch ist, was sehr gut zu sehen ist.
Geschichte geht weiter
LSE: WTB Vergangenes Ergebnis Wachstum 25. Juli 2025
Das Ergebniswachstum ist eine wichtige Metrik, um bei der Bewertung eines Bestands zu berücksichtigen. Es ist wichtig, dass ein Investor weiß, ob der Markt im erwarteten Ergebniswachstum (oder Rückgang) des Unternehmens preiswert ist. Dies hilft ihnen dann zu bestimmen, ob der Bestand für eine helle oder bleak Zukunft platziert wird. Ist Whitbread im Vergleich zu anderen Unternehmen recht geschätzt? Diese 3 Bewertungsmaßnahmen helfen Ihnen bei der Entscheidung.
Ist Whitbread mit seinem Retained Earnings effektiv?
Whitbread hat eine signifikante Drei-Jahres-Mittelzahl von 57%, was bedeutet, dass das Unternehmen nur 43% seines Einkommens behält. Dies bedeutet, dass das Unternehmen in der Lage war, ein hohes Ergebniswachstum zu erzielen, obwohl die meisten Gewinne an die Aktionäre zurückgegeben wurden.
Darüber hinaus ist Whitbread entschlossen, seine Gewinne mit Aktionären zu teilen, die wir von seiner langen Geschichte der Zahlung einer Dividende für mindestens zehn Jahre unterziehen. Nach dem Studium der neuesten Konsensdaten der Analysten haben wir festgestellt, dass das Unternehmen voraussichtlich in den nächsten drei Jahren rund 48 % seiner Gewinne auszahlen wird. Dennoch deuten Prognosen darauf hin, dass der zukünftige ROE von Whitbread auf 12 % ansteigen wird, auch wenn die Auszahlungsquote des Unternehmens nicht viel zu ändern erwartet wird.
Schlussfolgerung
Insgesamt haben wir das Gefühl, dass Whitbread einige positive Attribute hat. Zwar ist sein Ergebniswachstum recht beträchtlich, aber wir sind der Ansicht, dass die Reinvestitionsrate ziemlich niedrig ist, was bedeutet, dass die Ergebniswachstumszahl deutlich höher gewesen sein könnte, wenn das Unternehmen mehr von seinen Gewinnen hält. So zeigt eine Studie der neuesten Analystenprognosen, dass das Unternehmen voraussichtlich eine Verlangsamung in seinem zukünftigen Ergebniswachstum sehen wird. Um mehr über die zukünftigen Ergebnis-Wachstumsprognosen des Unternehmens zu erfahren, werfen Sie einen Blick auf diesen kostenlosen Bericht über Analystenprognosen für das Unternehmen, um mehr zu erfahren.
Haben Sie Feedback zu diesem Artikel? Über den Inhalt? Kontaktieren Sie uns direkt. Alternativ, E-Mail Editorial-team (at) einfachwallst.com.
Dieser Artikel von Simply Wall St ist allgemein in der Natur. Wir liefern Kommentare basierend auf historischen Daten und Analystenprognosen nur mit einer unvoreingenommenen Methodik und unsere Artikel sind nicht als Finanzberatung gedacht. Es stellt keine Empfehlung dar, Aktien zu kaufen oder zu verkaufen, und berücksichtigt nicht Ihre Ziele oder Ihre finanzielle Situation. Wir wollen Ihnen langfristig fokussierte Analysen, die durch grundlegende Daten getrieben werden, mitbringen. Beachten Sie, dass unsere Analyse möglicherweise nicht in den neuesten preisempfindlichen Unternehmensansagen oder qualitativen Material ausschlaggebend ist. Einfach Wand St hat keine Position in den genannten Beständen.
Kommentare anzeigen |
| 01.05.25 06:31:31 |
Top UK Dividend Stocks To Consider In May 2025 |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
As the United Kingdom's FTSE 100 index grapples with global economic challenges, including weak trade data from China and fluctuating commodity prices, investors are increasingly looking for stability in their portfolios. In such uncertain times, dividend stocks can offer a reliable income stream and potential for long-term growth, making them an attractive option to consider.
Top 10 Dividend Stocks In The United Kingdom
Name Dividend Yield Dividend Rating WPP (LSE:WPP) 6.84% ★★★★★★ Man Group (LSE:EMG) 7.92% ★★★★★☆ Keller Group (LSE:KLR) 3.50% ★★★★★☆ Treatt (LSE:TET) 3.30% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.23% ★★★★★☆ Grafton Group (LSE:GFTU) 4.08% ★★★★★☆ NWF Group (AIM:NWF) 4.70% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.49% ★★★★★☆ James Latham (AIM:LTHM) 7.66% ★★★★★☆ OSB Group (LSE:OSB) 7.09% ★★★★★☆
Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Intermediate Capital Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Intermediate Capital Group plc is a private equity firm specializing in direct and fund of fund investments, with a market cap of £5.38 billion.
Operations: Intermediate Capital Group's revenue is derived from its Investment Company (IC) segment, which generated £214.10 million, and its Fund Management Company (FMC) segment, contributing £708.50 million.
Dividend Yield: 4.2%
Intermediate Capital Group's dividend yield of 4.24% is below the top 25% of UK dividend payers, but its dividends are well-covered by both earnings and cash flows, with payout ratios at 57.1% and 50.5%, respectively. Despite a history of volatility in dividend payments, there has been growth over the past decade. Recent developments include potential involvement in a €2.3 billion acquisition deal for Akuo Energy SAS and upcoming changes to its board composition with Robin Lawther joining as a Non-Executive Director in November 2025.
Dive into the specifics of Intermediate Capital Group here with our thorough dividend report. Our comprehensive valuation report raises the possibility that Intermediate Capital Group is priced lower than what may be justified by its financials.LSE:ICG Dividend History as at May 2025
Keller Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Keller Group plc offers specialist geotechnical services across North America, Europe, the Asia-Pacific, the Middle East, and Africa, with a market cap of approximately £1.01 billion.
Operations: Keller Group plc generates its revenue of approximately £2.99 billion from its specialist geotechnical services provided across various regions including North America, Europe, the Asia-Pacific, the Middle East, and Africa.
Story Continues
Dividend Yield: 3.5%
Keller Group's dividend yield of 3.5% is modest compared to the top UK payers, yet it remains well-covered by earnings and cash flows, with payout ratios at 25.2% and 19.9%, respectively. The company has a stable dividend history over the past decade, showing consistent growth. Recent announcements include a share buyback program and an increased final dividend for 2024, reflecting strong financial performance with net income rising to £142.3 million from £89.4 million in the previous year.
Click to explore a detailed breakdown of our findings in Keller Group's dividend report. Our valuation report unveils the possibility Keller Group's shares may be trading at a discount.LSE:KLR Dividend History as at May 2025
Whitbread
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally with a market cap of £4.55 billion.
Operations: Whitbread plc generates revenue of £2.96 billion from its Accommodation, Food, and Beverage segments across various regions.
Dividend Yield: 3.8%
Whitbread's dividend yield of 3.83% is modest relative to top UK payers, with a payout ratio of 77.1% covered by earnings and cash flows at 62.3%. Despite an increase in dividends over the past decade, payments have been volatile, reflecting an unstable track record. Trading below fair value estimates by analysts, the stock shows potential for price appreciation but faces challenges with declining profit margins from 11.9% to 8.1%, impacted by large one-off items.
Delve into the full analysis dividend report here for a deeper understanding of Whitbread. In light of our recent valuation report, it seems possible that Whitbread is trading behind its estimated value.LSE:WTB Dividend History as at May 2025
Summing It All Up
Unlock our comprehensive list of 62 Top UK Dividend Stocks by clicking here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Curious About Other Options?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LSE:ICG LSE:KLR and LSE:WTB.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments |
| 28.03.25 06:01:32 |
3 Premier UK Dividend Stocks Yielding Up To 9% |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Amidst the backdrop of a faltering FTSE 100, influenced by weak trade data from China and declining commodity prices, investors are increasingly seeking stability in dividend stocks. In such uncertain times, these stocks can offer a reliable income stream and potential for long-term growth, making them an attractive option for those looking to navigate the current market volatility.
Top 10 Dividend Stocks In The United Kingdom
Name Dividend Yield Dividend Rating WPP (LSE:WPP) 6.53% ★★★★★★ Man Group (LSE:EMG) 6.39% ★★★★★☆ Keller Group (LSE:KLR) 3.54% ★★★★★☆ 4imprint Group (LSE:FOUR) 4.70% ★★★★★☆ Grafton Group (LSE:GFTU) 4.25% ★★★★★☆ DCC (LSE:DCC) 3.83% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.91% ★★★★★☆ OSB Group (LSE:OSB) 7.76% ★★★★★☆ NWF Group (AIM:NWF) 4.76% ★★★★★☆ James Latham (AIM:LTHM) 6.97% ★★★★★☆
Click here to see the full list of 56 stocks from our Top UK Dividend Stocks screener.
Let's uncover some gems from our specialized screener.
Vertu Motors
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Vertu Motors plc operates as an automotive retailer in the United Kingdom with a market cap of £168.18 million.
Operations: Vertu Motors plc generates its revenue primarily from its operations as a retailer in the gasoline and auto dealership sector, with reported revenues of £4.79 billion.
Dividend Yield: 4.6%
Vertu Motors has a dividend payout ratio of 41.8%, indicating dividends are well covered by earnings, and a cash payout ratio of 17.3%, suggesting strong cash flow coverage. However, its dividend yield of 4.62% is lower than the top UK payers, and past payments have been volatile with instances of significant drops. Recent buyback announcements indicate strategic capital management but do not necessarily imply stable or growing dividends in the future.
Click here to discover the nuances of Vertu Motors with our detailed analytical dividend report. The analysis detailed in our Vertu Motors valuation report hints at an inflated share price compared to its estimated value.AIM:VTU Dividend History as at Mar 2025
City of London Investment Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: City of London Investment Group PLC is a publicly owned investment manager with a market cap of £169.53 million.
Operations: City of London Investment Group PLC generates revenue of $72.64 million from its asset management segment.
Dividend Yield: 9%
City of London Investment Group offers a high dividend yield of 9.02%, placing it among the top UK payers, but its dividends are not well covered by earnings due to a 111.6% payout ratio, although cash flow coverage is better at 84.3%. Despite recent growth in earnings and revenue, dividends have been historically volatile and unreliable over the past decade. The interim dividend was maintained at £0.11 per share for April 2025 distribution.
Story Continues
Dive into the specifics of City of London Investment Group here with our thorough dividend report. In light of our recent valuation report, it seems possible that City of London Investment Group is trading behind its estimated value.LSE:CLIG Dividend History as at Mar 2025
Whitbread
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally, with a market cap of £4.39 billion.
Operations: Whitbread plc generates revenue of £2.96 billion from its Accommodation, Food and Beverage segments.
Dividend Yield: 4%
Whitbread's dividend payments are covered by earnings and cash flows, with a payout ratio of 77.1% and cash payout ratio of 62.3%. However, its dividend yield of 3.97% is lower than the top UK payers, and the track record has been unstable over the past decade despite growth in payments. Recent profit margins have declined to 8.1% from last year's 11.9%, although future earnings growth is anticipated at a rate of 14.72%.
Navigate through the intricacies of Whitbread with our comprehensive dividend report here. According our valuation report, there's an indication that Whitbread's share price might be on the cheaper side.LSE:WTB Dividend History as at Mar 2025
Make It Happen
Click this link to deep-dive into the 56 companies within our Top UK Dividend Stocks screener. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
Curious About Other Options?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AIM:VTU LSE:CLIG and LSE:WTB.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments |
| 13.03.25 06:55:58 |
Calculating The Fair Value Of Whitbread plc (LON:WTB) |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Whitbread fair value estimate is UK£27.53 With UK£25.36 share price, Whitbread appears to be trading close to its estimated fair value The UK£35.62 analyst price target for WTB is 29% more than our estimate of fair value
How far off is Whitbread plc (LON:WTB) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
View our latest analysis for Whitbread
Is Whitbread Fairly Valued?
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
10-year free cash flow (FCF) estimate
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£394.9m UK£292.7m UK£287.1m UK£430.8m UK£487.9m UK£530.3m UK£566.3m UK£597.1m UK£623.9m UK£647.9m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x4 Analyst x1 Analyst x1 Est @ 8.70% Est @ 6.78% Est @ 5.44% Est @ 4.50% Est @ 3.84% Present Value (£, Millions) Discounted @ 12% UK£353 UK£234 UK£205 UK£275 UK£279 UK£271 UK£259 UK£244 UK£228 UK£212
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = UK£2.6b
Story Continues
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 12%.
Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£648m× (1 + 2.3%) ÷ (12%– 2.3%) = UK£7.0b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£7.0b÷ ( 1 + 12%)10= UK£2.3b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is UK£4.8b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of UK£25.4, the company appears about fair value at a 7.9% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.LSE:WTB Discounted Cash Flow March 13th 2025
Important Assumptions
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Whitbread as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 12%, which is based on a levered beta of 1.858. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
SWOT Analysis for Whitbread
Strength
Debt is not viewed as a risk.
Dividends are covered by earnings and cash flows.
Weakness
Earnings declined over the past year.
Dividend is low compared to the top 25% of dividend payers in the Hospitality market.
Opportunity
Annual earnings are forecast to grow faster than the British market.
Good value based on P/E ratio and estimated fair value.
Threat
Annual revenue is forecast to grow slower than the British market.
Moving On:
Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Whitbread, we've compiled three relevant aspects you should further research:
Risks: For example, we've discovered 3 warning signs for Whitbread that you should be aware of before investing here. Future Earnings: How does WTB's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 27.02.25 06:01:46 |
UK Dividend Stocks Featuring City of London Investment Group And 2 More |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index experiencing a dip due to weak trade data from China, highlighting the interconnectedness of global economies. In such volatile times, dividend stocks can offer a measure of stability and income for investors, making them an attractive option amidst fluctuating market conditions.
Top 10 Dividend Stocks In The United Kingdom
Name Dividend Yield Dividend Rating Keller Group (LSE:KLR) 3.54% ★★★★★☆ Dunelm Group (LSE:DNLM) 8.01% ★★★★★☆ OSB Group (LSE:OSB) 7.58% ★★★★★☆ Man Group (LSE:EMG) 5.87% ★★★★★☆ Epwin Group (AIM:EPWN) 5.76% ★★★★★☆ DCC (LSE:DCC) 3.72% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.78% ★★★★★☆ NWF Group (AIM:NWF) 4.76% ★★★★★☆ Grafton Group (LSE:GFTU) 4.27% ★★★★★☆ James Latham (AIM:LTHM) 7.21% ★★★★★☆
Click here to see the full list of 59 stocks from our Top UK Dividend Stocks screener.
We'll examine a selection from our screener results.
City of London Investment Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: City of London Investment Group PLC is a publicly owned investment manager with a market cap of £175.86 million.
Operations: City of London Investment Group PLC generates its revenue through investment management services.
Dividend Yield: 8.8%
City of London Investment Group offers a compelling dividend yield at 8.79%, ranking in the UK's top quartile, though its dividend history is volatile, with payments sometimes unstable over the past decade. Despite this, recent earnings growth and a payout ratio of 74.5% suggest dividends are currently sustainable. The company trades below its estimated fair value and has affirmed an interim dividend of £0.11 per share, maintaining last year's level despite profit increases to US$9.29 million for H1 2024-2025.
Delve into the full analysis dividend report here for a deeper understanding of City of London Investment Group. The analysis detailed in our City of London Investment Group valuation report hints at an deflated share price compared to its estimated value.LSE:CLIG Dividend History as at Feb 2025
Greggs
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Greggs plc is a UK-based food-on-the-go retailer with a market cap of £2.12 billion.
Operations: Greggs plc generates revenue from two main segments: Business to Business (B2B) at £219.90 million and Retail Company Managed Shops at £1.71 billion.
Dividend Yield: 3.1%
Greggs trades at a 19.1% discount to its estimated fair value, offering potential value for investors. Its dividend payout is sustainable, with a payout ratio of 48% and cash coverage at 44.3%, though the yield of 3.12% is below top-tier UK payers. Despite volatile dividends over the past decade, payments have grown in the long term, supported by recent earnings growth of 2.1%.
Story Continues
Get an in-depth perspective on Greggs' performance by reading our dividend report here. Our comprehensive valuation report raises the possibility that Greggs is priced lower than what may be justified by its financials.LSE:GRG Dividend History as at Feb 2025
Whitbread
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally, with a market cap of £4.75 billion.
Operations: Whitbread plc generates revenue from its Accommodation, Food and Beverage segment, totaling £2.96 billion.
Dividend Yield: 3.7%
Whitbread's dividend yield of 3.67% is below the top UK payers, yet it maintains sustainability with a payout ratio of 77.1% and cash coverage at 62.3%. Despite past volatility, dividends have grown over the last decade. Recent board changes may impact future governance, but upcoming sales updates could provide further insights into financial health. Profit margins have declined from last year, potentially influencing future dividend reliability and growth prospects.
Click here to discover the nuances of Whitbread with our detailed analytical dividend report. According our valuation report, there's an indication that Whitbread's share price might be on the cheaper side.LSE:WTB Dividend History as at Feb 2025
Summing It All Up
Dive into all 59 of the Top UK Dividend Stocks we have identified here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Want To Explore Some Alternatives?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LSE:CLIG LSE:GRG and LSE:WTB.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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| 26.02.25 09:11:33 |
Is Whitbread plc (LON:WTB) Potentially Undervalued? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
While Whitbread plc (LON:WTB) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to UK£30.04 at one point, and dropping to the lows of UK£26.16. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Whitbread's current trading price of UK£26.37 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Whitbread’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Whitbread
What's The Opportunity In Whitbread?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.06% above our intrinsic value, which means if you buy Whitbread today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is £23.74, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Whitbread’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Whitbread?LSE:WTB Earnings and Revenue Growth February 26th 2025
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 77% over the next couple of years, the future seems bright for Whitbread. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has already priced in WTB’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
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Are you a potential investor? If you’ve been keeping an eye on WTB, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 3 warning signs with Whitbread, and understanding them should be part of your investment process.
If you are no longer interested in Whitbread, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 12.02.25 08:59:58 |
Whitbread plc (LON:WTB) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Whitbread (LON:WTB) has had a rough three months with its share price down 6.3%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Whitbread's ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
Check out our latest analysis for Whitbread
How Is ROE Calculated?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Whitbread is:
6.9% = UK£239m ÷ UK£3.5b (Based on the trailing twelve months to August 2024).
The 'return' is the yearly profit. That means that for every £1 worth of shareholders' equity, the company generated £0.07 in profit.
Why Is ROE Important For Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
Whitbread's Earnings Growth And 6.9% ROE
At first glance, Whitbread's ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 8.8%. In spite of this, Whitbread was able to grow its net income considerably, at a rate of 48% in the last five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
We then compared Whitbread's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 25% in the same 5-year period.LSE:WTB Past Earnings Growth February 12th 2025
Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is WTB fairly valued? This infographic on the company's intrinsic value has everything you need to know.
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Is Whitbread Making Efficient Use Of Its Profits?
The high three-year median payout ratio of 55% (implying that it keeps only 45% of profits) for Whitbread suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.
Besides, Whitbread has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 47%. Regardless, the future ROE for Whitbread is predicted to rise to 11% despite there being not much change expected in its payout ratio.
Conclusion
Overall, we feel that Whitbread certainly does have some positive factors to consider. Namely, its high earnings growth. We do however feel that the earnings growth number could have been even higher, had the company been reinvesting more of its earnings and paid out less dividends. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 29.01.25 08:05:36 |
Top 3 UK Dividend Stocks To Consider |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The UK market has recently faced challenges, with the FTSE 100 index experiencing a downturn due to weak trade data from China, highlighting the interconnectedness of global economies. Amidst these fluctuations, dividend stocks can offer stability and income potential for investors seeking resilience in uncertain times.
Top 10 Dividend Stocks In The United Kingdom
Name Dividend Yield Dividend Rating Keller Group (LSE:KLR) 3.54% ★★★★★☆ OSB Group (LSE:OSB) 8.16% ★★★★★☆ Dunelm Group (LSE:DNLM) 8.06% ★★★★★☆ Man Group (LSE:EMG) 6.02% ★★★★★☆ Pets at Home Group (LSE:PETS) 5.77% ★★★★★☆ DCC (LSE:DCC) 3.64% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.67% ★★★★★☆ Grafton Group (LSE:GFTU) 3.99% ★★★★★☆ RS Group (LSE:RS1) 3.35% ★★★★★☆ James Latham (AIM:LTHM) 6.81% ★★★★★☆
Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Brooks Macdonald Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Brooks Macdonald Group plc offers investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the UK and Channel Islands, with a market cap of £233.43 million.
Operations: Brooks Macdonald Group plc generates revenue from its UK Investment Management (Including Financial Planning) segment, amounting to £113.71 million, and its International segment, contributing £19.91 million.
Dividend Yield: 5.2%
Brooks Macdonald Group has a history of stable and growing dividend payments over the past decade, though its current 5.23% yield is below the UK top tier. Despite trading at a discount to fair value, dividends are not well covered by earnings due to a high payout ratio of 194.5%. However, cash flows comfortably cover dividends with a low cash payout ratio of 35.8%. Recent strategic hires and acquisitions aim to streamline operations after selling its international arm for £51 million.
Click to explore a detailed breakdown of our findings in Brooks Macdonald Group's dividend report. Our comprehensive valuation report raises the possibility that Brooks Macdonald Group is priced lower than what may be justified by its financials.AIM:BRK Dividend History as at Jan 2025
Greggs
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Greggs plc is a UK-based food-on-the-go retailer with a market cap of £2.18 billion.
Operations: Greggs plc generates revenue through its Business to Business (B2B) segment, which accounts for £219.90 million, and its Retail Company Managed Shops, contributing £1.71 billion.
Dividend Yield: 3%
Greggs' dividend yield of 3.03% is modest compared to the UK's top payers, but its dividends are well-supported by earnings and cash flows with payout ratios of 48% and 44.3%, respectively. Although earnings grew by 2.1% last year, the dividend history is marked by volatility over the past decade. Despite this, Greggs trades at a good value relative to peers and below its estimated fair value, offering potential for capital appreciation alongside dividends.
Story Continues
Navigate through the intricacies of Greggs with our comprehensive dividend report here. The valuation report we've compiled suggests that Greggs' current price could be quite moderate.LSE:GRG Dividend History as at Jan 2025
Whitbread
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally with a market cap of £4.93 billion.
Operations: Whitbread plc generates revenue from its Accommodation, Food and Beverage segment, totaling £2.96 billion.
Dividend Yield: 3.4%
Whitbread's dividend yield of 3.42% is lower than the UK's top dividend payers, and its history is marked by volatility over the past decade. However, dividends are covered by earnings and cash flows with payout ratios of 77.1% and 62.3%, respectively, indicating sustainability despite past instability. Recent changes include Chris Kennedy stepping down as audit committee chair in June 2025, potentially impacting governance but not directly affecting dividend policy or financial stability.
Click here to discover the nuances of Whitbread with our detailed analytical dividend report. Our valuation report here indicates Whitbread may be overvalued.LSE:WTB Dividend History as at Jan 2025
Next Steps
Discover the full array of 62 Top UK Dividend Stocks right here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
Ready For A Different Approach?
Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AIM:BRK LSE:GRG and LSE:WTB.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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| 27.01.25 07:11:57 |
Whitbread (LON:WTB) shareholders have endured a 21% loss from investing in the stock five years ago |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Ideally, your overall portfolio should beat the market average. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in Whitbread plc (LON:WTB), since the last five years saw the share price fall 37%. Furthermore, it's down 13% in about a quarter. That's not much fun for holders.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
Check out our latest analysis for Whitbread
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, Whitbread moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move.
In contrast to the share price, revenue has actually increased by 20% a year in the five year period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).LSE:WTB Earnings and Revenue Growth January 27th 2025
Whitbread is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this freechart depicting consensus estimates.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Whitbread the TSR over the last 5 years was -21%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
While the broader market gained around 13% in the last year, Whitbread shareholders lost 20% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Whitbread better, we need to consider many other factors. For instance, we've identified 3 warning signs for Whitbread that you should be aware of.
Story Continues
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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