WH Smith Plc (SMWH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tesco Plc

TheWorks.co.uk Plc

Scholium Group Plc

J Sainsbury Plc

Ocado Group Plc

Card Factory Plc

WH Smith Plc

Everest Global Plc

DFI Retail Group Holdings Ltd.

Why is WH Smith Plc ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 20.55% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 20.55% of over the last 5 years

With a fall in EPS of -685.29%, the company declared Very Negative results in Aug 25

PRE-TAX PROFIT(Q) At GBP 54 MM has Fallen at -52.21%
ROCE(HY) Lowest at -12.55%
DEBTORS TURNOVER RATIO(HY) Lowest at 12.83 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -49.16%, its profits have fallen by -42.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -49.16% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is WH Smith Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

WH Smith Plc

-49.63%

-0.98

55.27%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.75%

EBIT Growth (5y)

20.55%

EBIT to Interest (avg)

-0.76

Debt to EBITDA (avg)

2.16

Net Debt to Equity (avg)

2.01

Sales to Capital Employed (avg)

1.78

Tax Ratio

52.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.17%

ROCE (avg)

12.51%

ROE (avg)

23.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.46

EV to EBIT

9.03

EV to EBITDA

4.65

EV to Capital Employed

2.01

EV to Sales

0.83

PEG Ratio

Dividend Yield

2.90%

ROCE (Latest)

22.26%

ROE (Latest)

53.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 551 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

CASH AND EQV(HY)

Highest at GBP 71 MM

-20What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP 54 MM has Fallen at -52.21%

ROCE(HY)

Lowest at -12.55%

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.83 times

INTEREST COVERAGE RATIO(Q)

Lowest at 571.43

DEBT-EQUITY RATIO (HY)

Highest at 774.58 %

NET SALES(Q)

Lowest at GBP 602 MM

OPERATING PROFIT(Q)

Lowest at GBP 120 MM

NET PROFIT(Q)

Lowest at GBP 15.64 MM

EPS(Q)

Lowest at GBP -0.8

Here's what is working for WH Smith Plc

Operating Cash Flow

Highest at GBP 551 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Cash and Eqv

Highest at GBP 71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for WH Smith Plc

Net Sales

At GBP 602 MM has Fallen at -39.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (GBP MM)

Pre-Tax Profit

At GBP 54 MM has Fallen at -52.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 15.64 MM has Fallen at -79.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest Coverage Ratio

Lowest at 571.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 12.83 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at GBP 602 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 120 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Net Profit

Lowest at GBP 15.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Highest at 774.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio