WH Smith PLC (GB:SMWH)
LSE:SMWH
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WH Smith
(LSE:SMWH)
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Rating:46Neutral
Price Target:
545.00 p
â–¼(-5.71% Downside)
Action:ReiteratedDate:01/06/26
The score is held down primarily by weakened financial performance (revenue drop, margin compression, net loss) and a highly leveraged balance sheet, with bearish technicals reinforcing the near-term risk. Offsetting factors include resilient cash generation, a relatively high dividend yield, and FY26 guidance indicating a return to growth and improved profitability, though regulatory and North America execution risks remain meaningful.
Positive Factors
Strong cash generation
WH Smith's robust operating cash flow (~£276m) and improved free cash flow (~£199m) provide durable internal funding for capex, dividends and debt servicing. Sustained cash conversion supports de‑leveraging and operational flexibility even if earnings remain volatile, improving resilience over 2–6 months.
Negative Factors
Very high leverage
WH Smith's elevated debt relative to a thin equity base (~6x) materially limits financial flexibility. High leverage increases refinancing and interest‑rate sensitivity, constrains capital allocation and raises the required free cash flow threshold for sustained deleveraging and dividend support over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
WH Smith's robust operating cash flow (~£276m) and improved free cash flow (~£199m) provide durable internal funding for capex, dividends and debt servicing. Sustained cash conversion supports de‑leveraging and operational flexibility even if earnings remain volatile, improving resilience over 2–6 months.
Read all positive factors
WH Smith (SMWH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£719.96M
Dividend Yield4.48%
Average Volume (3M)728.20K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-19.03%
EPS Growth-318.35%
CountryUK
Employees14,451
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.80
Shares Outstanding126,453,150
10 Day Avg. Volume459,918
30 Day Avg. Volume728,200
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)5.51
Price to Sales (P/S)0.56
P/FCF Ratio4.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£716.00Price Target Upside23.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.55
Revenue Forecast (FY)£1.61B
WH Smith Business Overview & Revenue Model
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...
How the Company Makes Money
WH Smith makes money primarily by selling merchandise through its retail stores, with revenue generated at the point of sale across its two operating segments. The largest driver is typically its Travel division, which benefits from high footfall ...
WH Smith Earnings Call Summary
Earnings Call Date:Dec 19, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: the group delivered solid top-line growth, strong EBITDA and notable outperformance in key areas such as UK operations and North America Travel Essentials, and management secured refinancing and reiterated disciplined capital allocation. However, material issues in North America (supplier income reductions, inventory adjustments, lower-than-expected profit), significant impairments and one-off costs, elevated net debt/leverage and a newly announced FCA investigation are meaningful negatives. Management has set clear remedial actions and medium-term plans, but near-term profitability and balance-sheet pressure temper the outlook.Positive Updates
Group revenue growth and like-for-like momentum
Total group revenue increased 5% y/y to GBP 1.6bn, with group like-for-like revenue up 5% for the year and +3% in the 13 weeks to 31 Aug; constant currency revenue was up 7%.
Negative Updates
Group headline trading profit decline
Group headline trading profit decreased 6% y/y to GBP 159m, and headline profit before tax was GBP 108m—reflecting headwinds, primarily in North America.
Read all updates
Q4-2025 Updates
Positive
Negative
Group revenue growth and like-for-like momentum
Total group revenue increased 5% y/y to GBP 1.6bn, with group like-for-like revenue up 5% for the year and +3% in the 13 weeks to 31 Aug; constant currency revenue was up 7%.
Read all positive updates
Company Guidance
The group guided to mid‑single‑digit revenue growth for FY26 (UK 3–5%, North America 6–8%, Rest of World 4–6%) and group headline profit before tax and non‑underlying items of £100–115m, with headline trading margins expected at ~14–15% in the UK, ~7–8% in North America and ~5% in Rest of World; central costs £30–32m and finance costs £33–35m are anticipated. FY26 CapEx is guided at c.£90m (FY25 £81m, normalizing to ~£80m thereafter) and headline net debt is expected to be c.£400m (FY25 headline net debt £390m; rolling 12‑month net debt/EBITDA 2.1x, target to get below 2x). North America specifics include a FY25 trading margin of 4% rebuilding to c.7–8% in FY26, Travel Essentials now >50% of NA revenue (19% CC growth in FY25, c.10% trading margin today, target >70% mix medium‑term), InMotion (123 stores) expected to contract ~20–30% to below 100 stores, Resorts rationalization underway; key one‑offs include a £12m inventory charge, a net £23m supplier income reduction (with prior year restatement benefit c.£13m) and non‑underlying cash outflows of £38m. The board proposes a final dividend of 6p (full year 17.3p, 2.5x cover policy), refinancing includes £200m USPP, £120m term debt and a £200m backstop, and the group expects interest rates on debt to lift income statement charge toward c.6.3% by end FY27.WH Smith Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
28
Negative
Cash Flow
63
Positive
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.55B | 1.92B | 1.79B | 1.40B | 886.00M |
| Gross Profit | 880.00M | 1.21B | 1.11B | 849.00M | 514.00M |
| EBITDA | 183.00M | 334.00M | 316.00M | 228.00M | 42.00M |
| Net Income | -144.00M | 67.00M | 79.00M | 47.00M | -82.00M |
Balance Sheet | |||||
| Total Assets | 1.46B | 1.87B | 1.65B | 1.69B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 71.00M | 56.00M | 56.00M | 132.00M | 130.00M |
| Total Debt | 1.38B | 1.05B | 951.00M | 1.00B | 925.00M |
| Total Liabilities | 1.27B | 1.42B | 1.31B | 1.42B | 1.21B |
| Stockholders Equity | 158.00M | 416.00M | 277.00M | 255.00M | 133.00M |
Cash Flow | |||||
| Free Cash Flow | 199.00M | 144.00M | 129.00M | 104.00M | 56.00M |
| Operating Cash Flow | 276.00M | 275.00M | 251.00M | 187.00M | 100.00M |
| Investing Cash Flow | -69.00M | -137.00M | -122.00M | -83.00M | -43.00M |
| Financing Cash Flow | -192.00M | -138.00M | -203.00M | -104.00M | -35.00M |
WH Smith Technical Analysis
Neutral
578.00
Price Trends
626.00
Negative
636.94
Negative
733.26
Negative
Market Momentum
-12.09
Negative
46.76
Neutral
67.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMWH, the sentiment is Neutral. The current price of 578 is above the 20-day moving average (MA) of 564.05, below the 50-day MA of 626.00, and below the 200-day MA of 733.26, indicating a neutral trend. The MACD of -12.09 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 67.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SMWH.
WH Smith Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.30B | 23.58 | 5.88% | 1.18% | 9.51% | -31.96% | |
67 Neutral | £216.87M | 16.03 | 12.51% | 7.08% | 6.18% | 4.22% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £26.88M | -1.20 | 63.25% | ― | -1.96% | 28.69% | |
56 Neutral | £642.57M | 8.84 | -113.93% | 1.40% | 3.94% | ― | |
53 Neutral | £49.85M | -28.65 | -10.09% | 2.09% | -5.97% | 14.75% | |
46 Neutral | £719.96M | -6.05 | -62.07% | 4.48% | -19.03% | -318.35% |
* Consumer Cyclical Sector Average
GB:SMWH
WH Smith
578.00
-305.27
-34.56%
GB:CARD
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62.70
-14.88
-19.18%
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32.67
35.23%
GB:WRKS
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43.00
22.90
113.93%
GB:MOON
Moonpig Group Plc
208.60
3.20
1.56%
GB:MRK
Marks Electrical Group Plc
47.50
-9.38
-16.49%
WH Smith Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
WH Smith Investors Back Leo Quinn as Executive Chairman Amid Pay Scrutiny
Neutral
Mar 12, 2026
WH Smith shareholders have approved the election of Leo Quinn as a director, paving the way for him to become Executive Chairman from 7 April 2026, with over 86% of votes cast in favour. The board framed his appointment as central to leading the g...
Business Operations and StrategyFinancial Disclosures
WH Smith posts solid first-half sales as it reshapes travel retail portfolio
Positive
Mar 5, 2026
WH Smith reported a 5% rise in group revenue on a constant currency basis for the 26 weeks to 28 February 2026, driven by growth in North America and Rest of World despite modest gains in the UK. The company highlighted solid performances in UK ho...
Regulatory Filings and Compliance
WH Smith Confirms Current Voting Share Capital and Free Float
Neutral
Feb 27, 2026
WH Smith has confirmed that its issued share capital stands at 126,453,145 ordinary shares, each carrying voting rights, with no shares currently held in treasury. This clarification, made under the U.K. Disclosure and Transparency Rules, sets the...
Regulatory Filings and Compliance
WH Smith Leaves Employee Share Scheme Balances Unchanged in Latest Block Listing Return
Neutral
Feb 25, 2026
WH Smith PLC reported its latest six-monthly block listing return for its employee share schemes, the WH Smith Sharesave Scheme and the WH Smith Executive Share Option Scheme, covering the period from 25 August 2025 to 24 February 2026. The compan...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
WH Smith Sets March General Meeting to Approve Leo Quinn as Executive Chairman
Neutral
Feb 12, 2026
WH Smith has called a general meeting for 12 March 2026 to seek shareholder approval for the appointment of Leo Quinn as executive chairman and to authorise a related stand-alone share award. The company has published and filed the meeting notice ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
WH Smith shareholders back all AGM resolutions and confirm board changes
Positive
Feb 3, 2026
WH Smith PLC reported that all resolutions put to shareholders at its Annual General Meeting on 2 February 2026 were approved, including acceptance of the company’s reports and accounts, the remuneration report, a final dividend and authorit...
Regulatory Filings and Compliance
WH Smith Confirms Current Share Capital and Voting Rights Structure
Neutral
Jan 30, 2026
WH Smith PLC has confirmed that, as of 30 January 2026, its issued share capital comprises 126,453,145 ordinary shares, each carrying voting rights, with no shares held in treasury. The company noted that shareholders should use this total number ...
Other
WH Smith CFO Max Izzard Buys 25,000 Shares in Insider Purchase
Positive
Jan 29, 2026
WH Smith’s Group Chief Financial Officer, Max Izzard, has increased his personal stake in the company by purchasing 25,000 ordinary shares at £6.75 each on 29 January 2026 via the London Stock Exchange. The insider purchase, disclosed u...
Business Operations and StrategyExecutive/Board Changes
WH Smith Taps Turnaround Veteran Leo Quinn as Executive Chairman to Drive Long-Term Growth
Positive
Jan 19, 2026
WH Smith PLC has announced its intention to appoint veteran UK executive Leo Quinn as Executive Chairman with effect from 7 April 2026, subject to shareholder approval, as part of its strategy to return the group to stability and long-term growth....
Executive/Board Changes
WH Smith Chair Annette Court to Take Senior Role on Next plc Board
Positive
Jan 9, 2026
WH Smith PLC has announced that its chair, Annette Court, will join fashion and homeware retailer Next plc as a non-executive director from 1 March 2026 and will become Next’s Senior Independent Director on 21 May 2026. The cross-board appoi...
Other
WH Smith Non-Executive Director Helen Rose Buys Shares on Market
Positive
Jan 8, 2026
WH Smith PLC has disclosed that non-executive director Helen Rose purchased 7,972 ordinary shares in the company on 8 January 2026. The shares were acquired on the London Stock Exchange at a price of £6.27 per share, signalling increased pers...
Regulatory Filings and Compliance
WH Smith Confirms Voting Share Capital of 126.5 Million Shares
Neutral
Dec 31, 2025
WH Smith PLC has confirmed that, as of 31 December 2025, its issued share capital comprises 126,453,145 ordinary shares with full voting rights and no shares held in treasury. This updated capital figure provides the reference denominator sharehol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.