WTB:LSEWhitbread PLC Analysis
Data as of 2026-03-11 - not real-time
£2,436.00
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Technical outlook: Whitbread is trading at 2,436 GBp, well below its 20‑day (2,605 GBp), 50‑day (2,660 GBp) and 200‑day (2,867 GBp) simple moving averages, signaling a bearish momentum. The 14‑day RSI sits at 30.7, flirting with oversold territory, while the MACD remains in a bearish configuration. Immediate support is identified around 2,397 GBp with resistance near 2,771 GBp.
Fundamental backdrop: Revenue has slipped 1.9% year‑over‑year, yet margins remain healthy (gross 38%, operating 25%). Earnings per share are projected to rise from 1.43 to 2.02, compressing the forward P/E to ~12×. The dividend yield of 3.95% and a payout ratio of 68% are backed by positive operating and free cash flow, though leverage is high (debt‑to‑equity ~179%). Analysts target a median price of 2,815 GBp, implying roughly 18% upside, and maintain a "buy" stance.
Fundamental backdrop: Revenue has slipped 1.9% year‑over‑year, yet margins remain healthy (gross 38%, operating 25%). Earnings per share are projected to rise from 1.43 to 2.02, compressing the forward P/E to ~12×. The dividend yield of 3.95% and a payout ratio of 68% are backed by positive operating and free cash flow, though leverage is high (debt‑to‑equity ~179%). Analysts target a median price of 2,815 GBp, implying roughly 18% upside, and maintain a "buy" stance.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price trading below key moving averages indicating bearish bias
- RSI near oversold levels suggesting potential short‑term bounce
- Support level at 2,397 GBp providing a downside cushion
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Forward P/E of ~12× indicating earnings‑driven valuation appeal
- Analyst target median price of 2,815 GBp implying ~18% upside
- Attractive dividend yield of 3.95% with sustainable payout
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- Strong brand portfolio (Premier Inn, Beefeater) providing stable cash flow
- High leverage (debt‑to‑equity ~179%) posing balance‑sheet risk
- Consistent dividend policy supporting shareholder returns
Key Metrics & Analysis
Financial Health
Revenue Growth-1.90%
Profit Margin8.65%
P/E Ratio17.0
ROE7.52%
ROA3.65%
Debt/Equity179.00
P/B Ratio133.8
Op. Cash Flow£753.8M
Free Cash Flow£313.6M
Technical Analysis
TrendBearish
RSI30.7
Support£2,397.00
Resistance£2,771.00
MA 20£2,604.75
MA 50£2,659.60
MA 200£2,867.08
MACDBearish
VolumeStable
Fear & Greed Index77.75
Valuation
Target Price£2,878.82
Upside/Downside18.18%
GradeUndervalued
TypeBlend
Dividend Yield3.95%
Risk Assessment
Beta0.24
Volatility23.87%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.