Fact based stock research
Whitbread (LSE:WTB)

GB00B1KJJ408

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Whitbread stock research in summary

whitbread.co.uk

ANALYSIS: With an Obermatt Combined Rank of 6 (worse than 94% compared with investment alternatives), Whitbread (Hotels, Resorts & Cruise Lines, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Whitbread are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives) and show below-average growth (Growth Rank of 8) but are safely financed (Safety Rank of 50), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 6, is a sell recommendation based on Whitbread's financial characteristics. As the company Whitbread's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 38) and low growth (Obermatt Growth Rank of 8), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 50) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	38
Growth Rank	8
Safety Rank	50
Combined Rank	6

Country	United Kingdom
Industry	Hotels, Resorts & Cruise Lines
Index	FTSE All Shares, FTSE 100, FTSE 350, Renewables Users, Sound Pay Europe
Size class	Large

This stock has achievements: Gold Winner CEO.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Whitbread

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	5	38	48	38
GROWTH
GROWTH	20	17	25	8
SAFETY
SAFETY	18	54	64	50
SENTIMENT
SENTIMENT	n/a	55	66	^new
360° VIEW
360° VIEW	n/a	24	45	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 29-Feb-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Whitbread is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	5	38	48	38
GROWTH
GROWTH	20	17	25	8
SAFETY
SAFETY	18	54	64	50
COMBINED
COMBINED	3	12	34	6

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Whitbread the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), Whitbread shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Whitbread. Expected dividend yields are higher than for 67% of comparable companies (a Dividend Yield rank of 67), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 65, which means that the stock price is lower compared with invested capital than for 65% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 24 which means that the stock price compared with what market professionals expect for future profits is higher than for 76% of comparable companies, indicating a low value concerning Whitbread's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Whitbread with a rank of 46. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 54% of comparable companies, indicating a low value concerning Whitbread's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 38, is a hold recommendation based on Whitbread's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Whitbread may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	3	22	23	24
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	15	22	43	46
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	71	74	62	65
DIVIDEND YIELD
DIVIDEND YIELD	1	67	70	67
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	5	38	48	38

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Whitbread; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 8 (better than 8% compared with alternatives), Whitbread shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Whitbread. Only Capital Growth has a good rank of 81, which means that currently professionals expect the company to grow its invested capital more than 15% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 6 which means that currently professionals expect the company to grow less than 94% of its competitors. Profit Growth with a rank of 15 and Stock Returns with a rank of 20 are also low (below 80% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 8, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Whitbread is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	17	65	28	6
PROFIT GROWTH
PROFIT GROWTH	87	54	56	15
CAPITAL GROWTH
CAPITAL GROWTH	n/a	8	14	81
STOCK RETURNS
STOCK RETURNS	65	27	75	20
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	20	17	25	8

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Whitbread.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 50 (better than 50% compared with alternatives), the company Whitbread has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Whitbread is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Whitbread. Refinancing is at 65, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. Liquidity is also good at 52, meaning the company generates more profit to service its debt than 52% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 38, which means the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 50 (better than 50% compared with alternatives), Whitbread has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Whitbread could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Whitbread and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	35	47	48	38
REFINANCING
REFINANCING	40	77	70	65
LIQUIDITY
LIQUIDITY	22	26	57	52
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	18	54	64	50

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Whitbread and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	48	40	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	96	63	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	26	92	^new
MARKET PULSE
MARKET PULSE	n/a	42	31	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	55	66	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Whitbread.
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