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WH Smith (SMWH) AI Stock Analysis
WH Smith
(LSE:SMWH)
The score is primarily weighed down by weakened financial performance (sharp revenue decline, margin compression, and a swing to a sizable net loss) combined with a highly leveraged balance sheet. Technicals add additional pressure given the downtrend and negative momentum signals. A relatively high dividend yield offers some offset, but the negative P/E underscores that profitability is currently impaired.
WH Smith (SMWH) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 642.93M
- Dividend Yield
- 4.05%
- Average Volume (3M)
- 633.27K
- Price to Earnings (P/E)
- -4.2
- Beta (1Y)
- 1.36
- Revenue Growth
- -30.52%
- EPS Growth
- -2064.92%
- Country
- UK
- Employees
- 9,290
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Specialty Retail
WH Smith Business Overview & Revenue Model
Company Description
WH Smith PLC functions as a retail enterprise with a presence across the United Kingdom and globally. The company's operations are divided into two primary divisions: Travel and High Street. The Travel segment caters to customers on the move, offerin...
How the Company Makes Money
WH Smith makes money chiefly by operating retail stores and selling products to consumers, with revenue driven by transaction volume and basket size in high-footfall locations. Its key revenue streams are: (1) Travel retail sales: sales of convenienc...
WH Smith Earnings Call Summary
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.
Q4-2025 Updates
Positive Updates
Negative 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
Financial performance is pressured by a sharp deterioration in the latest year: revenue fell ~20.1%, gross margin compressed (~63.2% to ~56.7%), and the company swung to a £144m net loss (net margin -9.3%). Cash flow is a partial offset (operating cash flow ~£276m; free cash flow ~£199m), but leverage is a major constraint with ~£945m debt versus ~£158m equity (~6.0x), limiting flexibility.
Income Statement
45NeutralBalance Sheet
28NegativeCash Flow
63Positive| 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 | 408.00M | 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 | 885.00M |
| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMWH, the sentiment is Positive. The current price of 427.20 is above the 20-day moving average (MA) of 401.01, above the 50-day MA of 390.84, and below the 200-day MA of 494.56, indicating a neutral trend. The MACD of 13.09 indicates Negative momentum. The RSI at 64.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SMWH.
WH Smith Peers Comparison
Overall Rating
GB:CARD71Outperform
GB:CURY71Outperform
GB:MOON65Neutral
GB:WRKS56Neutral- GB:SMWH45Neutral
GB:MRK44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:CARD | 71Outperform | GBP 289.98M | 8.86 | 9.93% | 5.62% | 7.12% | -18.46% |
| GB:CURY | 71Outperform | GBP 1.46B | 9.28 | 7.10% | 2.09% | 6.29% | 55.06% |
| GB:MOON | 65Neutral | GBP 813.74M | 17.36 | -99.49% | 1.34% | 6.54% | ― |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GB:WRKS | 56Neutral | GBP 61.12M | 52.58 | 9.46% | ― | -6.13% | -82.79% |
| GB:SMWH | 45Neutral | GBP 642.36M | -4.19 | -90.46% | 4.05% | -30.52% | -2064.92% |
| GB:MRK | 44Neutral | GBP 51.43M | -122.50 | -4.18% | ― | -7.46% | 71.01% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:SMWH | WH Smith | 427.20 | -234.93 | -35.48% | |
| GB:CARD | Card Factory | 88.90 | -6.47 | -6.79% | |
| GB:CURY | Currys Plc | 143.80 | 9.77 | 7.29% | |
| GB:WRKS | TheWorks.co.uk plc | 97.80 | 54.40 | 125.35% | |
| GB:MOON | Moonpig Group Plc | 279.00 | 73.49 | 35.76% | |
| GB:MRK | Marks Electrical Group Plc | 49.00 | -2.00 | -3.92% |
WH Smith Corporate Events
WH Smith Confirms Current Voting Share Capital for Investor Disclosure
PositiveWH Smith PLC has confirmed that its issued share capital at the end of the previous month comprised 152,258,405 ordinary shares, each carrying voting rights, with no shares held in treasury. The company highlighted that this share count should be use...
WH Smith Delivers Solid Summer Trading as Travel-Focused Transformation Accelerates
PositiveWH Smith reported solid peak summer trading with group revenue up 5% year on year and expects full-year headline profit before tax of about £75m, in line with market expectations despite margin pressure from heavier promotions, reduced brand mar...
WH Smith Updates Market on Voting Share Capital and Disclosure Base
NeutralWH Smith PLC has confirmed that, as of the end of the previous calendar month, its issued share capital comprises 152,258,405 ordinary shares with full voting rights and no shares held in treasury. The company stated that shareholders should use this...
WH Smith Non-Executive Director Helen Rose Buys Shares on Market
PositiveWH Smith PLC disclosed that non-executive director Helen Rose purchased 11,102 ordinary shares in the company at a price of £4.50337 per share on 10 August 2026. The on-market transaction, carried out on the London Stock Exchange, modestly incre...
WH Smith updates market on share capital and voting rights
NeutralWH Smith PLC has confirmed that, as of the end of the previous calendar month, its issued share capital comprises 152,258,405 ordinary shares, each carrying voting rights, with no shares held in treasury. The company noted that shareholders should us...
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.
Date of analysis: Aug 22, 2026