WH Smith (SMWH) AI Stock Analysis

• Market Cap: £777.26M
• Dividend Yield: 4.48%
• Average Volume (3M): 728.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -19.03%
• EPS Growth: -318.35%
• Country: UK
• Employees: 14,451
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.80
• Shares Outstanding: 126,453,150
• 10 Day Avg. Volume: 459,918
• 30 Day Avg. Volume: 728,200
• PEG Ratio: 0.02
• Price to Book (P/B): 5.51
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 4.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £727.86
• Price Target Upside: 16.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 608.00p ▼(-2.56% Downside)

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

Cash generation

Sustained operating cash flow (~£276m) and improved free cash flow (~£199m) provide durable internal funding for CapEx, dividends and debt servicing. This cash resilience increases the company's ability to deleverage and fund strategic initiatives without reliance on equity issuance.

Travel franchise and product mix

Strong Travel division growth, notably North America Travel Essentials (19% CC growth, ~55% share), signals durable demand in high-footfall transport hubs and a higher-margin, convenience-led mix. This strategic shift supports more resilient revenues and lessens reliance on cyclical book/stationery sales.

Refinancing and capital allocation discipline

Completed refinancing secures near-term funding and reduces rollover risk, enabling management to target net debt/EBITDA <2x while retaining a disciplined dividend policy. Improved funding visibility supports execution of turnaround plans and structured deleveraging over the medium term.

Negative Factors

High leverage

Very elevated debt relative to equity (~6x) materially limits financial flexibility, increases refinancing and solvency risk, and magnifies earnings volatility from rising interest rates. High leverage constrains strategic investments and makes achieving sustained margin recovery more challenging over the medium term.

Revenue decline and profitability hit

A sharp ~20% revenue decline and a £144m net loss reflect weakened demand and margin compression. Persistent top-line weakness erodes retained earnings and reduces headroom for investment, making dividend and deleveraging targets harder to sustain without sustained recovery in sales and margins.

North America execution and supplier/inventory issues

Material North America underperformance, supplier income reductions and inventory charges indicate structural execution and supply-chain issues. These pressures depress margins and cash conversion, and raise the risk that targeted NA recovery and profit margin improvements prove slow or costly to achieve over the medium term.

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 1, 166 units primarily in airports, hospitals, railway stations, motorway service areas, and workplaces. The High Street segment sells stationery products, including greetings cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books. It operated 544 stores. This segment also offers its stationery, books, magazines, and gifts through whsmith.co.uk; personalized greetings cards and gifts through funkypigeon.com; pens through cultpens.com; and personalized stationery products through treeofhearts.co.uk and dottyaboutpaper.co.uk websites. The company was founded in 1792 and is based in Swindon, the United Kingdom.

How the Company Makes Money

WH Smith generates revenue through multiple channels, primarily from the sale of books, stationery, and other media products in its retail stores. The High Street segment contributes significantly to its earnings by targeting local customers with a diverse product range, including gifts and convenience items. The Travel Retail segment capitalizes on the increasing number of travelers by offering products that cater to their needs, such as snacks, drinks, and travel-related items. Additionally, WH Smith benefits from partnerships with publishers and suppliers, which allow them to offer exclusive titles and promotions, enhancing their product offerings. The company also explores opportunities in e-commerce, expanding its online presence to reach a broader customer base, which is becoming an increasingly important revenue stream.

WH Smith Financial Statement Overview

Summary

WH Smith demonstrates strong revenue growth and operational efficiency, supported by solid cash flow metrics. However, the high leverage poses a potential risk, necessitating careful monitoring.

Income Statement

WH Smith has shown consistent revenue growth over the past few years, with a notable increase from 2023 to 2024. Gross and net profit margins have improved, reflecting growing profitability. However, net income has slightly decreased in 2024 compared to 2023, which could be a concern. EBIT and EBITDA margins indicate stable operational efficiency.

Balance Sheet

The company has a relatively high debt-to-equity ratio, indicating significant leverage. However, the return on equity has improved, reflecting better utilization of shareholders' equity. The equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

WH Smith has shown positive free cash flow growth, indicative of strong cash generation capabilities. The operating cash flow to net income ratio is healthy, demonstrating effective conversion of earnings into cash. The free cash flow to net income ratio also supports the company's cash-generating efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.55B	1.55B	1.92B	1.79B	1.40B	886.00M
Gross Profit	0.00	880.00M	1.21B	1.11B	849.00M	514.00M
EBITDA	183.00M	183.00M	334.00M	316.00M	228.00M	42.00M
Net Income	-144.00M	-144.00M	67.00M	79.00M	47.00M	-82.00M
Balance Sheet
Total Assets	1.46B	1.46B	1.87B	1.65B	1.69B	1.35B
Cash, Cash Equivalents and Short-Term Investments	71.00M	71.00M	56.00M	56.00M	132.00M	130.00M
Total Debt	945.00M	945.00M	1.05B	951.00M	1.00B	925.00M
Total Liabilities	1.26B	1.26B	1.42B	1.31B	1.42B	1.21B
Stockholders Equity	158.00M	158.00M	416.00M	277.00M	255.00M	133.00M
Cash Flow
Free Cash Flow	199.00M	199.00M	144.00M	129.00M	104.00M	56.00M
Operating Cash Flow	276.00M	276.00M	275.00M	251.00M	187.00M	100.00M
Investing Cash Flow	-69.00M	-69.00M	-137.00M	-122.00M	-83.00M	-43.00M
Financing Cash Flow	-192.00M	-192.00M	-138.00M	-203.00M	-104.00M	-35.00M

WH Smith Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 624.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMWH, the sentiment is Negative. The current price of 624 is below the 20-day moving average (MA) of 639.55, below the 50-day MA of 650.40, and below the 200-day MA of 840.20, indicating a bearish trend. The MACD of -9.53 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 22.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SMWH.

WH Smith Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURY	71 Outperform	£1.33B	10.33	6.16%	1.18%	9.51%	-31.96%
CARD	67 Neutral	£231.01M	5.41	13.18%	7.08%	6.18%	4.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WRKS	60 Neutral	£20.75M	2.41	63.08%	―	-1.96%	28.69%
MOON	56 Neutral	£668.61M	14.95	―	1.40%	3.94%	―
MRK	53 Neutral	£48.80M	-44.71	-9.68%	2.09%	-5.97%	14.75%
SMWH	46 Neutral	£777.26M	-5.50	-11.61%	4.48%	-19.03%	-318.35%

WH Smith Corporate Events

WH Smith Chair Annette Court to Take Senior Role on Next plc Board

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 appointment underlines Court’s growing influence in UK corporate governance and may enhance WH Smith’s connectivity and insight across the wider UK retail sector, although she will continue in her existing leadership role at WH Smith.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £600.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Non-Executive Director Helen Rose Buys Shares on Market

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 personal investment by a board member and underscoring alignment of director interests with those of shareholders.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £600.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Confirms Voting Share Capital of 126.5 Million Shares

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 shareholders must use to assess and disclose any notifiable holdings or changes in their interests under the UK Financial Conduct Authority’s disclosure and transparency rules, ensuring ongoing compliance and transparency in the company’s shareholder reporting.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £607.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Executives Exercise and Sell Shares Under Long-Term Incentive Plans

WH Smith has disclosed a series of share transactions by senior executives under its long-term incentive plans, in line with EU Market Abuse Regulation requirements. Group chief financial officer Max Izzard exercised 3,625 ordinary shares from the 2024 long-term incentive plan and subsequently sold 1,704 shares at £6.37 to cover tax and National Insurance obligations, while company secretary and legal director Ian Houghton exercised 40,035 shares under the 2020 award and sold 18,864 shares at £6.32. All transactions, conducted outside a trading venue on 23 December 2025, underline ongoing alignment of management remuneration with equity performance and provide investors with visibility into insider dealings at the retailer.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Files 2025 Annual Report and AGM Documents

WH Smith PLC has published its Annual Report and Accounts 2025 and the Notice of Annual General Meeting, making them available via the UK Financial Conduct Authority’s National Storage Mechanism and on the company’s website. The retailer has also filed related governance documents, including its proxy form and the rules for its long-term incentive plan and Sharesave scheme, which are to be distributed or made accessible to shareholders shortly, underscoring ongoing compliance with listing requirements and providing investors with detailed information ahead of the forthcoming AGM.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Grants LTIP Share Awards to Senior Leadership

WH Smith PLC has granted long-term incentive plan (LTIP) share awards to several senior executives, including Interim Group Chief Executive Andrew Harrison, Group Chief Financial Officer Max Izzard, Company Secretary and Legal Director Ian Houghton, and North America Chief Executive Huw Crwys Williams. The awards, comprising zero-cost grants of ordinary shares made outside a trading venue on 24 December 2025, form part of the company’s established executive remuneration framework and are designed to align management incentives with shareholder interests and the group’s longer-term performance objectives.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith CFO Max Izzard Buys 20,000 Shares in Retailer

WH Smith has disclosed that its Group Chief Financial Officer, Max Izzard, purchased 20,000 ordinary shares in the company at a price of £6.40 per share on 23 December 2025, with the trade executed on the London Stock Exchange. The transaction, reported under market abuse regulation disclosure rules, signals increased personal investment by a key executive and may be read by investors as a vote of confidence in the retailer’s prospects.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Announces Departure of Remuneration Committee Chair Nicky Dulieu

WH Smith PLC, the global travel retailer, has announced a forthcoming change to its board, with Non-Executive Director and Chair of the Remuneration Committee Nicky Dulieu set to step down at the company’s next Annual General Meeting on 2 February 2026. Dulieu, who has served on the board since 2020, is leaving to focus on her other work and business commitments, and Chair Annette Court publicly thanked her for her commitment and contributions, signalling an upcoming refresh in the company’s board composition and remuneration oversight structure.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Completes Shift to Pure-Play Travel Retail as Profits Ease and FCA Probe Begins

WH Smith reported a 5% rise in group revenue to £1.55bn for the year to 31 August 2025 as it completed its transformation into a pure-play travel retailer, but headline pre-tax profit from continuing operations slipped to £108m and trading profits softened, with North America under pressure. The company outlined a more tightly focused strategy by region, including reinforcing its UK travel-essentials leadership while scaling health and beauty and food-to-go, exiting unprofitable fashion and speciality stores in its North American Resorts business and reviewing the InMotion portfolio, and concentrating Rest-of-the-World expansion on core markets and franchise-led growth. Current trading shows modest like-for-like revenue growth of 3% and the group is guiding to FY26 headline profit before tax of £100m–£115m and total revenue growth of 4–6%, while implementing a remediation plan following a Deloitte review and facing a newly opened FCA investigation, developments that put governance and controls under scrutiny even as management argues the streamlined travel-focused model positions the business for sustainable, profitable growth. The board proposes a final dividend of 6.0p, maintaining its reset dividend policy at 2.5 times cover on continuing earnings, signalling a commitment to shareholder returns despite the operational reset and regulatory challenges.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith PLC Reschedules Preliminary Results Announcement

WH Smith PLC has announced a revised date for the publication of its Preliminary Results for the financial year ending 31 August 2025, now scheduled for 19 December 2025. This change allows additional time for the company and its auditors, PricewaterhouseCoopers LLP, to complete necessary audit procedures, which could impact the company’s operational timelines and provide stakeholders with more accurate financial insights.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith PLC Updates Share Capital and Voting Rights

WH Smith PLC announced that as of 28 November 2025, the company’s capital consists of 126,453,145 ordinary shares with voting rights, with no shares held in treasury. This update is significant for shareholders as it provides the denominator needed for calculating their interest in the company under the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments and comply with regulatory requirements.

The most recent analyst rating on (GB:SMWH) stock is a Buy with a £750.00 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Unveils Remediation Plan Following Deloitte Review

WH Smith PLC has announced findings from an independent Deloitte review, revealing inconsistencies in the accounting treatment of supplier income in its North America division. This has led to an expected reduction in headline trading profit for the region and necessitated prior year adjustments. The company is implementing a comprehensive remediation plan, including leadership changes and enhanced governance frameworks, to address these issues and improve financial controls. The resignation of Group CEO Carl Cowling has also been announced, as the company seeks to rebuild trust and improve profitability in North America.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £6.75 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Unveils Financial Irregularities in North America, Announces CEO Resignation

WH Smith PLC has announced findings from an independent review by Deloitte, revealing inconsistencies in the accounting treatment of supplier income in its North America division, which has led to overstated income figures. The company is implementing a comprehensive remediation plan, including leadership changes and enhanced financial controls, to address these issues. The financial impact includes a significant reduction in expected profits for the North America division and additional costs related to inventory adjustments. The resignation of Group CEO Carl Cowling has been announced, and the company is focused on rebuilding trust and improving performance in North America.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £6.75 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith CEO Resigns Amid Deloitte Review; Interim CEO Appointed

WH Smith PLC announced the resignation of Group CEO Carl Cowling following a Deloitte review, with Andrew Harrison stepping in as interim CEO. The board is conducting a formal search for a new CEO to lead the company through its next strategic phase, emphasizing operational excellence and long-term growth.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £6.75 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith PLC Updates Share Capital and Voting Rights

WH Smith PLC announced that as of 31 October 2025, its capital structure consists of 126,453,145 ordinary shares, each with voting rights, and none held in treasury. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £6.75 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.

WH Smith Delays Financial Results Announcement to December

WH Smith PLC has announced a revised date for the publication of its preliminary financial results for the year ending 31 August 2025, now set for 16 December 2025. The delay is due to an ongoing independent review by Deloitte LLP, which is expected to conclude by the end of November 2025, and to allow PricewaterhouseCoopers LLP to complete necessary audit procedures. This adjustment reflects the company’s commitment to thorough financial scrutiny and transparency, potentially impacting stakeholder confidence and market positioning.

The most recent analyst rating on (GB:SMWH) stock is a Hold with a £6.75 price target. To see the full list of analyst forecasts on WH Smith stock, see the GB:SMWH Stock Forecast page.