WH Smith PLC (GB:SMWH)
LSE:SMWH
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WH Smith
(LSE:SMWH)
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Rating:47Neutral
Price Target:
470.00 p
â–¼(-27.91% Downside)
Action:Reiterated
Date:04/24/26
The score is held back primarily by weakened financial performance (sharp revenue decline, net loss, and high leverage) and a bearish technical setup (below all key moving averages). Earnings-call guidance and refinancing offer some stabilization, and the ~3% dividend yield provides modest support, but near-term profitability risks and regulatory uncertainty keep the overall score below average.
Positive Factors
Cash generation
WH Smith's material operating cash flow (~£276m) and improved free cash flow (~£199m) provide a durable internal funding source. Over 2–6 months this supports deleveraging, staged capex (~£90m guidance), dividend policy and gives management flexibility to execute restructuring without immediate external funding.
Negative Factors
High leverage
Very elevated debt relative to equity (c.6x) is a persistent constraint on strategic flexibility. High leverage raises refinancing and covenant risk, increases sensitivity to interest-rate rises, and limits the company's ability to invest in growth or absorb further shocks over the coming months despite cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
WH Smith's material operating cash flow (~£276m) and improved free cash flow (~£199m) provide a durable internal funding source. Over 2–6 months this supports deleveraging, staged capex (~£90m guidance), dividend policy and gives management flexibility to execute restructuring without immediate external funding.
Read all positive factors
WH Smith (SMWH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£585.43M
Dividend Yield4.48%
Average Volume (3M)728.20K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-30.52%
EPS Growth-2064.92%
CountryUK
Employees14,451
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-1.02
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
£625.57Price Target Upside-4.05% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.49
Revenue Forecast (FY)£1.60B
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 through retail sales across two main channels: (1) Travel retail, where it runs convenience-format stores in high-footfall locations (airports, rail stations and hospitals) and generates revenue from selling products...
WH Smith Earnings Call Summary
Earnings Call Date:Dec 19, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 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 | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 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 | 204.00M | 183.00M | 334.00M | 316.00M | 228.00M | 42.00M |
| Net Income | -128.00M | -144.00M | 67.00M | 79.00M | 47.00M | -82.00M |
Balance Sheet | ||||||
| Total Assets | 1.45B | 1.46B | 1.87B | 1.65B | 1.69B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 48.00M | 71.00M | 56.00M | 56.00M | 132.00M | 130.00M |
| Total Debt | 1.06B | 1.38B | 1.05B | 951.00M | 1.00B | 925.00M |
| Total Liabilities | 1.29B | 1.27B | 1.42B | 1.31B | 1.42B | 1.21B |
| Stockholders Equity | 125.00M | 158.00M | 416.00M | 277.00M | 255.00M | 133.00M |
Cash Flow | ||||||
| Free Cash Flow | 111.00M | 199.00M | 144.00M | 129.00M | 104.00M | 56.00M |
| Operating Cash Flow | 186.00M | 276.00M | 275.00M | 251.00M | 187.00M | 100.00M |
| Investing Cash Flow | -68.00M | -69.00M | -137.00M | -122.00M | -83.00M | -43.00M |
| Financing Cash Flow | -109.00M | -192.00M | -138.00M | -203.00M | -104.00M | -35.00M |
WH Smith Technical Analysis
Negative
652.00
Price Trends
555.31
Negative
606.23
Negative
659.51
Negative
Market Momentum
-32.44
Positive
38.27
Neutral
25.99
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 652 is above the 20-day moving average (MA) of 517.40, above the 50-day MA of 555.31, and below the 200-day MA of 659.51, indicating a bearish trend. The MACD of -32.44 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £234.59M | 7.56 | 9.00% | 7.08% | 7.41% | -34.62% | |
73 Outperform | £1.31B | 23.58 | 5.88% | 1.18% | 9.51% | -31.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £30.81M | -1.20 | 63.25% | ― | -2.65% | -18.90% | |
56 Neutral | £624.64M | 8.84 | -113.93% | 1.40% | 3.94% | ― | |
53 Neutral | £51.43M | -28.65 | -10.09% | 2.09% | -5.97% | 14.75% | |
47 Neutral | £585.43M | -7.96 | -90.46% | 4.48% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
GB:SMWH
WH Smith
477.20
-554.67
-53.75%
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GB:MRK
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WH Smith Corporate Events
Executive/Board Changes
WH Smith grants large share option package to executive chair Leo Quinn
Positive
May 20, 2026
WH Smith has disclosed that its executive chair, Leo Quinn, has been granted an option over 1,887,519 ordinary shares in the company, at a price of zero, under its share-based remuneration framework. The transaction, recorded on 19 May 2026 outsid...
Regulatory Filings and Compliance
WH Smith Confirms Updated Share Capital and Voting Rights
Neutral
Apr 30, 2026
WH Smith has confirmed that, as of 30 April 2026, its issued share capital comprises 126,453,145 ordinary shares, each carrying voting rights, with no shares held in treasury. This disclosure clarifies the total voting rights in the company and pr...
Regulatory Filings and Compliance
WH Smith’s Executive Chair Leo Quinn Buys Additional Shares
Positive
Apr 27, 2026
WH Smith PLC disclosed that its executive chair, Leo Quinn, purchased 17,764 ordinary shares in the company on 24 April 2026 on the London Stock Exchange. The transaction, carried out at prices between £5.58 and £5.60 per share for a tot...
Business Operations and StrategyExecutive/Board Changes
WH Smith Announces Board Changes and New Remuneration Committee Chair
Neutral
Apr 23, 2026
WH Smith PLC announced that non-executive director Colette Burke will step down from the board on 30 June 2026 after a three-year tenure, during which she was credited with providing valuable challenge and perspective through a period of substanti...
Business Operations and StrategyDividendsFinancial Disclosures
WH Smith Cuts Dividend and Tightens Focus as Profit Drops Despite Revenue Growth
Negative
Apr 23, 2026
WH Smith reported a 5% rise in group revenue to £748m for the half year to 28 February 2026, driven by growth in North America and the Rest of the World, though headline profit before tax fell sharply to £3m amid refurbishment disruption...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
WH Smith Reshapes Leadership as Leo Quinn Becomes Executive Chair
Positive
Apr 7, 2026
WH Smith PLC announced that Leo Quinn has formally assumed the role of Executive Chair of the company, following shareholder approval at a general meeting held in March 2026. In conjunction with this board change, Andrew Harrison has stepped down ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
WH Smith Reshapes Board as Leo Quinn Becomes Executive Chair
Positive
Apr 7, 2026
WH Smith PLC has implemented a planned leadership restructuring, with Leo Quinn formally taking up the role of executive chair following shareholder approval at a general meeting held in March. At the same time, Andrew Harrison has stepped down fr...
Regulatory Filings and Compliance
WH Smith Confirms Total Voting Share Capital at End of March 2026
Neutral
Mar 31, 2026
WH Smith PLC has confirmed that, as of 31 March 2026, its issued share capital comprises 126,453,145 ordinary shares with voting rights and no shares held in treasury. This update clarifies the total number of voting shares in circulation and prov...
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...
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.