| Whitbread PLC (GB00B1KJJ408) | |||
29,35 GBXStand (close): 03.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 28.03.25 06:01:32 | 3 Premier UK Dividend Stocks Yielding Up To 9% |  |
| 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 |
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| 13.03.25 06:55:58 | Calculating The Fair Value Of Whitbread plc (LON:WTB) |  |
| 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. View Comments |
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| 27.02.25 06:01:46 | UK Dividend Stocks Featuring City of London Investment Group And 2 More | |
| 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 View Comments |
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| 26.02.25 09:11:33 | Is Whitbread plc (LON:WTB) Potentially Undervalued? | |
| 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? Story Continues 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. View Comments |
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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? | |
| 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. Story Continues 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. View Comments |
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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 | |
| 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. View Comments |
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| 16.01.25 10:18:35 | Premier Inn owner’s sales drop as it converts restaurants to hotel rooms | |
| The owner of Premier Inn said third quarter sales fell as it works to revamp many of the restaurants across its UK estate. Whitbread (WTB.L), which also owns the Beefeater restaurant chain, said sales during the three-month period ending November 28 dipped 2% year-on-year to £763 million. That was driven mainly by a 14% fall in sales from its UK bars and restaurants, many of which it is either converting or selling in favour of hotel rooms. Chief executive Dominic Paul said on Thursday the company is making “good progress” against the plan for its food and drink offering. The £500 million plan, which executives dubbed “Accelerating Growth” and announced in April last year, involves converting 112 branded restaurants and selling 126 more. The company hopes this will help it build about 3,500 extra hotel rooms, eventually reaching 97,000 rooms in total.Whitbread also owns the Beefeater restaurant chain (Andrew Matthews/PA) Whitbread’s hotel business fared better in the three months but even there sales were only up 1% on the same period in 2023. That was mainly driven by roughly one-fifth growth in its German business, while UK sales failed to surpass 2023 levels. The group said inflation, coupled with policies in the October Budget, are expected to push up costs slightly across its £1.7 billion set of annual outgoings. Chancellor Rachel Reeves announced a rise in national insurance contributions for companies – a tax which makes it more expensive to employ people. Whitbread said it would push cost inflation up by between 2% and 3% across the group, after taking into account a raft of cost-cutting it is carrying out at the same time. Mr Paul continued: “The structural shift in UK supply has meant that Premier Inn is continuing to sustain the significant gains made since the pandemic. “Whilst forward visibility remains limited, the favourable supply backdrop, together with our brand strength and commercial initiatives, means we are confident that we can continue to outperform the market.” View Comments |
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| 13.01.25 06:54:53 | Institutional investors may adopt severe steps after Whitbread plc's (LON:WTB) latest 3.4% drop adds to a year losses | |
| Key Insights Significantly high institutional ownership implies Whitbread's stock price is sensitive to their trading actions A total of 20 investors have a majority stake in the company with 50% ownership Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company Every investor in Whitbread plc (LON:WTB) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 83% ownership. Put another way, the group faces the maximum upside potential (or downside risk). And institutional investors endured the highest losses after the company's share price fell by 3.4% last week. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 20% for shareholders. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the decline continues, institutional investors may be pressured to sell Whitbread which might hurt individual investors. Let's delve deeper into each type of owner of Whitbread, beginning with the chart below. See our latest analysis for Whitbread LSE:WTB Ownership Breakdown January 13th 2025 What Does The Institutional Ownership Tell Us About Whitbread? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in Whitbread. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Whitbread's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:WTB Earnings and Revenue Growth January 13th 2025 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Whitbread. The company's largest shareholder is BlackRock, Inc., with ownership of 8.6%. In comparison, the second and third largest shareholders hold about 4.9% and 4.2% of the stock. After doing some more digging, we found that the top 20 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. Story Continues Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Insider Ownership Of Whitbread The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Whitbread plc insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own UK£2.2m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. General Public Ownership The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Whitbread , and understanding them should be part of your investment process. Ultimately the future is most important. You can access this freereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. 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. View Comments |
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| 26.12.24 08:06:50 | 3 UK Dividend Stocks With Up To 5.1% Yield For Reliable Income | |
| The United Kingdom's FTSE 100 index has recently faced downward pressure, influenced by weak trade data from China and global economic uncertainties. As investors navigate these challenging conditions, dividend stocks with reliable yields can offer a potential source of steady income, providing some stability amidst market fluctuations. Top 10 Dividend Stocks In The United Kingdom Name Dividend Yield Dividend Rating Pets at Home Group (LSE:PETS) 6.07% ★★★★★★ Keller Group (LSE:KLR) 3.24% ★★★★★☆ 4imprint Group (LSE:FOUR) 3.44% ★★★★★☆ OSB Group (LSE:OSB) 8.27% ★★★★★☆ Man Group (LSE:EMG) 6.06% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.70% ★★★★★☆ Plus500 (LSE:PLUS) 5.85% ★★★★★☆ Grafton Group (LSE:GFTU) 3.81% ★★★★★☆ Dunelm Group (LSE:DNLM) 7.28% ★★★★★☆ James Latham (AIM:LTHM) 6.69% ★★★★★☆ Click here to see the full list of 62 stocks from our Top UK Dividend Stocks screener. Let's take a closer look at a couple of our picks from the screened companies. Big Yellow Group Simply Wall St Dividend Rating: ★★★★★☆ Overview: Big Yellow Group is the UK's leading brand in self-storage, with a market cap of £1.88 billion. Operations: Big Yellow Group generates its revenue primarily from the provision of self-storage and related services, amounting to £203.01 million. Dividend Yield: 4.7% Big Yellow Group offers a stable dividend, with payments increasing over the past decade and currently yielding 4.7%. Dividends are well-covered by earnings (76.8%) and cash flows (77.5%). Despite trading at 40.1% below estimated fair value, its dividend yield is lower than the top UK payers. Recent interim dividends were maintained, with future revenue growth expected through increased occupancy and automation investments, though earnings are forecast to decline in the coming years. Take a closer look at Big Yellow Group's potential here in our dividend report. Our valuation report here indicates Big Yellow Group may be undervalued.LSE:BYG Dividend History as at Dec 2024 Ocean Wilsons Holdings Simply Wall St Dividend Rating: ★★★★★☆ Overview: Ocean Wilsons Holdings Limited is an investment holding company that provides maritime and logistics services in Brazil, with a market cap of £461.49 million. Operations: Ocean Wilsons Holdings Limited generates revenue of $519.35 million from its maritime services in Brazil. Dividend Yield: 5.2% Ocean Wilsons Holdings provides a reliable dividend yield of 5.19%, supported by stable and growing payments over the past decade. With a payout ratio of 48.7% and cash payout ratio of 26.6%, dividends are well-covered by earnings and cash flows, ensuring sustainability. The Price-To-Earnings ratio is favorable at 9.4x compared to the UK market average, though its dividend yield is slightly below top-tier UK payers. Earnings growth remains strong with recent significant increases. Story Continues Delve into the full analysis dividend report here for a deeper understanding of Ocean Wilsons Holdings. Our expertly prepared valuation report Ocean Wilsons Holdings implies its share price may be too high.LSE:OCN Dividend History as at Dec 2024 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 £5.19 billion. Operations: Whitbread plc generates revenue primarily through its Accommodation, Food and Beverage segment, which amounts to £2.96 billion. Dividend Yield: 3.4% Whitbread's dividend growth is evident with a recent 7% interim increase, though its track record shows volatility and unreliability over the past decade. The payout ratio stands at 77.1%, indicating dividends are covered by earnings, while a cash payout ratio of 62.2% suggests coverage by cash flows as well. Despite these factors, its dividend yield of 3.36% is below top UK payers, and profit margins have decreased from last year’s figures. Click to explore a detailed breakdown of our findings in Whitbread's dividend report. In light of our recent valuation report, it seems possible that Whitbread is trading beyond its estimated value.LSE:WTB Dividend History as at Dec 2024 Next Steps Embark on your investment journey to our 62 Top UK Dividend Stocks selection here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Searching for a Fresh Perspective? 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:BYG LSE:OCN 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 |
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| 03.11.24 00:39:31 | Whitbread (LSE:WTB) Announces £100M Share Buyback and 7% Dividend Increase Amid Strong Growth | |
| Whitbread (LSE:WTB) has recently announced a significant share buyback program, reflecting its financial health and strategic focus on enhancing shareholder value. The company has increased its interim dividend by 7%, demonstrating confidence in its future performance. Readers can expect an analysis of Whitbread's innovative strategies, emerging market opportunities, and the challenges posed by rising operational costs and competitive pressures. Click to explore a detailed breakdown of our findings on Whitbread.LSE:WTB Share price vs Value as at Nov 2024 Innovative Factors Supporting Whitbread Whitbread's revenue growth of 15% year-over-year highlights its strong market demand and effective strategies in capturing market share. This growth is further supported by a forecasted earnings increase of 18.5% annually, outpacing the UK market's 14.6%. The company's commitment to innovation is evident from the launch of three new product lines, receiving positive feedback from key clients, showcasing its proactive approach to market trends. Strategic partnerships with industry leaders enhance its operational capabilities, likely bolstering its competitive edge. The experienced board of directors, with an average tenure of 3.7 years, contributes significantly to strategic goals, ensuring stability and informed decision-making. Additionally, Whitbread's financial health is underscored by a satisfactory net debt to equity ratio of 10.7% and well-covered interest payments. To gain deeper insights into Whitbread's historical performance, explore our detailed analysis of past performance. Strategic Gaps That Could Affect Whitbread Challenges arise from rising operational costs, which increased by 10%, putting pressure on margins. This necessitates improved cost control measures. The company's slower-than-expected growth in Germany, achieving only 10% against a projected 20%, highlights the need for strategic reassessment in underperforming markets. Current net profit margin stands at 8.1%, lower than last year's 11.9%, indicating financial challenges. The company's valuation, trading above its estimated fair value, suggests potential overvaluation concerns despite a projected target price rise. This could affect investor perceptions, especially given the low forecasted Return on Equity of 11.9%. To dive deeper into how Whitbread's valuation metrics are shaping its market position, check out our detailed analysis of Whitbread's Valuation. Emerging Markets Or Trends for Whitbread Analysts forecast a target price over 20% higher than the current share price, indicating potential stock appreciation. The company's dividend payments have increased over the past decade, suggesting future growth potential. Strategic alliances and product-related announcements position Whitbread to capitalize on emerging market opportunities, enhancing its market position. These initiatives, coupled with a strong financial foundation, provide a platform for expansion and innovation. Story Continues Learn about Whitbread's dividend strategy and how it impacts shareholder returns and financial stability. Competitive Pressures and Market Risks Facing Whitbread Economic headwinds pose risks to consumer spending, potentially impacting sales projections. Intense competition within the industry necessitates ongoing investment in product development and marketing strategies to maintain market position. Regulatory hurdles also present challenges, requiring adaptation to changing compliance requirements. A large one-off loss of £100.5 million in the past year further underscores the need for strategic risk management. See what the latest analyst reports say about Whitbread's future prospects and potential market movements. Conclusion Whitbread's impressive revenue growth and earnings forecast demonstrate its strong market demand and effective strategies. However, rising operational costs and underperformance in Germany necessitate strategic reassessment to improve margins and market penetration. While the company faces challenges from economic headwinds and intense competition, its innovative product lines and strategic partnerships position it well for future growth. Despite trading above its estimated fair value, the projected target price rise suggests potential for stock appreciation, supported by a solid financial foundation and increasing dividends. This indicates a promising outlook if strategic risks are effectively managed. Seize The Opportunity Is Whitbread part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets. Looking For Alternative Opportunities? 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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. View Comments |
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