WH Smith PLC
WH Smith PLC Fundamental Analysis
WH Smith PLC (WHTPF) shows moderate financial fundamentals with a PE ratio of -5.86, profit margin of -9.28%, and ROE of -57.17%. The company generates $1.5B in annual revenue with moderate year-over-year growth of 6.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -53.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WHTPF's fundamental strength across five key dimensions:
Efficiency Score
WeakWHTPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWHTPF trades at attractive valuation levels.
Growth Score
ModerateWHTPF shows steady but slowing expansion.
Financial Health Score
WeakWHTPF carries high financial risk with limited liquidity.
Profitability Score
WeakWHTPF struggles to sustain strong margins.
Key Financial Metrics
Is WHTPF Expensive or Cheap?
P/E Ratio
WHTPF trades at -5.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WHTPF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values WH Smith PLC at 5.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -2.61 times EBITDA. This is generally considered low.
How Well Does WHTPF Make Money?
Net Profit Margin
For every $100 in sales, WH Smith PLC keeps $-9.28 as profit after all expenses.
Operating Margin
Core operations generate 9.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-57.17 in profit for every $100 of shareholder equity.
ROA
WH Smith PLC generates $-9.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WH Smith PLC produces operating cash flow of $228.24M, showing steady but balanced cash generation.
Free Cash Flow
WH Smith PLC generates strong free cash flow of $176.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.42 in free cash annually.
FCF Yield
WHTPF converts 21.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.57
vs 25 benchmark
ROA
Return on assets percentage
-0.10
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How WHTPF Stacks Against Its Sector Peers
| Metric | WHTPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.86 | 24.85 | Better (Cheaper) |
| ROE | -57.17% | 1165.00% | Weak |
| Net Margin | -9.28% | 749.00% | Weak |
| Debt/Equity | 8.73 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.39 | 9.23 | Weak Liquidity |
| ROA | -9.88% | 1271.00% | Weak |
WHTPF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WH Smith PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.94%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-47.08%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
54.52%
Industry Style: Cyclical, Growth, Discretionary
High Growth