Capitalcube gives Playtech Plc a score of 68.
Our analysis is based on comparing Playtech Plc with the following peers – GVC Holdings PLC, Webis Holdings plc, William Hill PLC, Veltyco Group Plc, 888 Holdings Plc and Ladbrokes Coral Group Plc (GVC-GB, WEB-GB, WMH-GB, VLTY-GB, 888-GB and LCL-GB).
Playtech Plc has a fundamental score of 68 and has a relative valuation of UNDERVALUED.
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- From a peer analysis angle, relative underperformance over the last year has improved more recently.
- It’s current Price/Book of 2.90 is about median in its peer group.
- We classify PTEC-GB as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- PTEC-GB‘s relatively high profit margins are burdened by relative asset inefficiency.
- Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
- PTEC-GB‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- While PTEC-GB‘s revenues growth in recent years has been around the peer median, the stock’s below peer median P/E ratio suggests that the market likely sees the company’s long-term growth prospects to be fading.
- The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
- PTEC-GB has the financial and operating capacity to borrow quickly.
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Leverage & Liquidity
PTEC-GB has the financial and operating capacity to borrow quickly.
- With debt at a relatively low 16.89% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 13.19%), and a well-cushioned interest coverage level of 13.64x, PTEC-GB can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
- Of the 6 chosen peers for the company, only 5 of the stocks have an outstanding debt balance. Companies with no debt include 888-GB.
PTEC-GB has maintained its Quick & Able profile from the prior year-end.
- PTEC-GB‘s interest coverage has increased 2.47 points from last year’s low but is still below its four-year average interest coverage of 49.83.
- While its interest coverage increased to 13.64x from 11.17x (in 2015), its peer median decreased during this period to 5.10x from 31.75x.
- Interest coverage rose 29.11 points relative to peers (and is now higher than its peer median).
- PTEC-GB‘s debt-EV is its highest over the last four years and compares to a low of 0% in 2013.
- The increase in its debt-EV to 16.89% from 15.40% (in 2015) was also accompanied by an increase in its peer median during this period to 13.19% from 10.82%.
- Relative to peers, debt-EV fell 0.88 percentage points.
Access the detailed analysis for Playtech Plc
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|GVC Holdings PLC||9.49||1.25||0.92||25.36|
|Webis Holdings plc||N/A||1.11||5.1||117.14|
|William Hill PLC||27.22||0.77||5.01||31.6|
|Veltyco Group Plc||0.05||13.13||217.62||19420.15|
|888 Holdings Plc||0||0.72||No interest exp||999|
|Ladbrokes Coral Group Plc||33.98||0.36||2.52||15|
|Best In Class||0.05||13.13||No interest exp||19420.15|
Looking for more metrics and analysis for Playtech Plc?
Playtech Plc develops unified software platforms and content for the online, mobile and land-based gaming industry. The company’s gaming applications include casino, poker, bingo, sports betting, live gaming, lottery and casual games. It provides licensees with the cutting-edge tools, which includes established online operators, sportsbooks and entertainment brands. The company was founded in 1999 and is headquartered in Douglas, Isle of Man.
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