AI Spotlight on SMWH
Company Description
WH Smith PLC operates as a retailer in the United Kingdom and internationally.It operates in two segments, Travel and High Street.The Travel segment offers news, books, and convenience for travelling customers.
As of August 31, 2021, it operated 1, 166 units primarily in airports, hospitals, railway stations, motorway service areas, and workplaces.The High Street segment sells stationery products, including greetings cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books.It operated 544 stores.
This segment also offers its stationery, books, magazines, and gifts through whsmith.co.uk; personalized greetings cards and gifts through funkypigeon.com; pens through cultpens.com; and personalized stationery products through treeofhearts.co.uk and dottyaboutpaper.co.uk websites.The company was founded in 1792 and is based in Swindon, the United Kingdom.
Market Data
Last Price | 1307 |
Change Percentage | 1.48% |
Open | 1257 |
Previous Close | 1288 |
Market Cap ( Millions) | 1668 |
Volume | 273440 |
Year High | 1499 |
Year Low | 1069 |
M A 50 | 1201.06 |
M A 200 | 1242.42 |
Financial Ratios
FCF Yield | 8.51% |
Dividend Yield | 2.57% |
ROE | 17.78% |
Debt / Equity | 253.12% |
Net Debt / EBIDTA | 367.90% |
Price To Book | 4.11 |
Price Earnings Ratio | 26.71 |
Price To FCF | 11.75 |
Price To sales | 0.9 |
EV / EBITDA | 9.83 |
News
- Jan -29 - WH Smith reveals falling high street sales amid talks to sell the division
- Jan -28 - WH Smith: Why now is an βodd timeβ to sell and what the future holds for its high street stores
- Jan -28 - Reevesβs tax overhaul will βexacerbateβ high streetβs decline
- Jan -27 - HMV owner plots bid for WH Smithβs high street shops
- Jan -27 - Uncertainty for WH Smith high street shops as private equity firms ponder deal
- Jan -27 - WH Smith exploring possible sale of its high street business
- Jan -26 - WH Smith considers axing its high street stores after 230 years
- Jan -25 - WH Smith in talks to quit high street after 230 years
- Jan -25 - WH Smith in talks to sell high street arm
- Jan -25 - UK's WH Smith says it is exploring potential sale of high street arm
- Jan -24 - Discover On The Beach Group And Two Other UK Stocks Estimated Below Intrinsic Value
- Jan -15 - WH Smith PLC's (LON:SMWH) Intrinsic Value Is Potentially 38% Above Its Share Price
- Dec -25 - UK Stocks Investors May Be Undervaluing By Up To 25.4%
- Dec -18 - WH Smith (LON:SMWH) Is Increasing Its Dividend To Β£0.226
- Nov -26 - 3 UK Stocks Possibly Trading Below Intrinsic Value Estimates
- Nov -16 - WH Smith Full Year 2024 Earnings: EPS Misses Expectations
- Nov -14 - Trumpβs trade war could hit Britain, warns Bank of England ratesetter
- Nov -14 - WH Smith Targets 500 Stores in North America by 2028
- Oct -29 - WH Smith opens three retail concepts at Salt Lake City Airport, Utah
- Oct -21 - Vinyl to return to WH Smith stores for first time for more than 30 years
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Travel
Expected Growth : 7 %
What the company do ?
Travel from WH Smith PLC offers a range of travel accessories, guides, and luggage tags to make your journey comfortable and convenient.
Why we expect these perspectives ?
WH Smith PLC's 7% travel segment growth is driven by increasing passenger traffic, higher average transaction values, and strategic store locations in high-traffic areas. Additionally, the company's focus on convenience, travel essentials, and partnerships with travel operators contribute to its growth momentum.
Segment nΒ°2 -> High Street
Expected Growth : 5 %
What the company do ?
High Street is a retail segment of WH Smith PLC, offering a wide range of products, including books, stationery, and convenience items, targeting local communities.
Why we expect these perspectives ?
High Street segment of WH Smith PLC is driven by strategic store refurbishments, effective cost management, and a strong stationery market. Additionally, the company's focus on convenience and travel locations, as well as its growing online presence, contribute to its 5% growth rate.
Wh Smith Plc Products
Product Range | What is it ? |
---|---|
Stationery | A wide range of stationery products including pens, pencils, notebooks, and more |
Books | A vast selection of fiction and non-fiction books for adults and children |
News and Magazines | A wide range of newspapers and magazines covering news, entertainment, and lifestyle |
Travel Accessories | A variety of travel-related products including luggage tags, travel wallets, and more |
Gifts and Impulse | A selection of gifts, souvenirs, and impulse buys including toys, games, and more |
In-Store Services | A range of services including photo printing, lottery tickets, and more |
WH Smith PLC's Porter Forces
Threat Of Substitutes
WH Smith PLC faces moderate threat from substitutes, as customers can opt for digital alternatives such as e-books and online news sources. However, the company's strong brand presence and diversified product offerings mitigate this threat to some extent.
Bargaining Power Of Customers
WH Smith PLC's customers have relatively low bargaining power, as they are individual consumers with limited ability to negotiate prices. The company's large customer base and diversified product offerings also reduce customer bargaining power.
Bargaining Power Of Suppliers
WH Smith PLC's suppliers, including publishers and distributors, have moderate bargaining power. While the company relies on these suppliers for its products, it also has some negotiating power due to its large scale and diversified product offerings.
Threat Of New Entrants
The threat of new entrants is low for WH Smith PLC, as the company has a strong brand presence and established relationships with suppliers. Additionally, the company's diversified product offerings and large scale make it difficult for new entrants to compete.
Intensity Of Rivalry
The intensity of rivalry in the retail industry is high, with WH Smith PLC facing competition from other retailers, online platforms, and supermarkets. The company must continually innovate and adapt to changing consumer preferences to maintain its market share.
Capital Structure
Value | |
---|---|
Debt Weight | 66.14% |
Debt Cost | 5.80% |
Equity Weight | 33.86% |
Equity Cost | 11.95% |
WACC | 7.88% |
Leverage | 195.31% |
WH Smith PLC : Quality Control
WH Smith PLC passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
BHG.ST | BHG Group AB (publ) operates as a consumer e-commerce company in Sweden, Finland, Denmark, Norway, rest of Europe, and internationally. It operates in two segments, Do-It-Yourself (DIY) and Home Furnishing. β¦ |
H24.DE | home24 SE, together with its subsidiaries, markets, sells, and ships furniture and home furnishings in Europe and Brazil. It offers living, dining, bedroom, upholstered, and garden furniture; textiles; and lamps β¦ |
MMGR-B.ST | Momentum Group AB (publ) supplies industrial components, industrial services, and related services to the industrial sector. The company was founded in 1997 and is based in Stockholm, Sweden. |
CEC.DE | Ceconomy AG engages in the consumer electronics retail business. The company operates approximately 850 stores in 14 countries under the MediaMarkt brand; and approximately 170 stores in 3 countries under β¦ |
FOI-B.ST | Fenix Outdoor International AG, together with its subsidiaries, develops, manufactures, and sells outdoor products primarily in Switzerland, Sweden, other Nordic countries, Germany, Benelux, other European countries, the Americas, and internationally. β¦ |