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WH Smith
(LSE:SMWH)
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Rating:45Neutral
Price Target:
363.00 p
▼(-12.02% Downside)
Action:Reiterated
Date:08/23/26
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.
Positive Factors
High-footfall travel model
Exposure to high-footfall locations and captive customer demand supports recurring transaction opportunities across the travel estate. Long opening hours and convenience-led products can sustain sales productivity, while passenger and visitor traffic provide a durable demand framework over the next several months.
Negative Factors
Sharp revenue contraction
The substantial revenue decline signals weakened trading performance and reduces confidence in near-term earnings momentum. If sustained, lower sales would pressure store economics, limit operating leverage and make it harder for the group to absorb fixed costs across its retail estate.
Read all positive and negative factors
Positive Factors
Negative Factors
High-footfall travel model
Exposure to high-footfall locations and captive customer demand supports recurring transaction opportunities across the travel estate. Long opening hours and convenience-led products can sustain sales productivity, while passenger and visitor traffic provide a durable demand framework over the next several months.
Read all positive factors
WH Smith (SMWH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£562.67M
Dividend Yield4.62%
Average Volume (3M)441.25K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-30.52%
EPS Growth-2064.92%
CountryUK
Employees9,290
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-1.02
Shares Outstanding152,258,400
10 Day Avg. Volume432,862
30 Day Avg. Volume441,247
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
£506.25Price Target Upside22.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.39
Revenue Forecast (FY)£1.64B
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, offe...
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 conveni...
WH Smith Earnings Call Summary
Earnings Call Date:Dec 19, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 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 | 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
Negative
412.60
Price Trends
415.05
Negative
444.06
Negative
539.79
Negative
Market Momentum
-14.19
Positive
27.37
Positive
9.76
Positive
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 412.6 is above the 20-day moving average (MA) of 401.72, below the 50-day MA of 415.05, and below the 200-day MA of 539.79, indicating a bearish trend. The MACD of -14.19 indicates Positive momentum. The RSI at 27.37 is Positive, neither overbought nor oversold. The STOCH value of 9.76 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | £226.49M | 7.59 | 9.00% | 7.35% | 7.41% | -34.62% | |
72 Outperform | £1.51B | 9.54 | 7.10% | 2.03% | 6.29% | 55.06% | |
65 Neutral | £758.71M | 16.00 | -99.49% | 1.26% | 6.54% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £59.37M | 51.08 | 9.46% | 0.04% | -6.13% | -82.79% | |
45 Neutral | £562.67M | -3.67 | -90.46% | 4.62% | -30.52% | -2064.92% | |
45 Neutral | £47.75M | -113.75 | -4.18% | 1.57% | -7.46% | 71.01% |
* Consumer Cyclical Sector Average
GB:SMWH
WH Smith
374.20
-301.31
-44.61%
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GB:WRKS
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GB:MOON
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GB:MRK
Marks Electrical Group Plc
45.50
-15.00
-24.79%
WH Smith Corporate Events
Regulatory Filings and Compliance
WH Smith Updates Market on Voting Share Capital and Disclosure Base
Neutral
Sep 1, 2026
WH 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 t...
Regulatory Filings and Compliance
WH Smith Non-Executive Director Helen Rose Buys Shares on Market
Positive
Aug 10, 2026
WH 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 in...
Regulatory Filings and Compliance
WH Smith updates market on share capital and voting rights
Neutral
Aug 3, 2026
WH 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...
Regulatory Filings and Compliance
WH Smith Confirms Current Voting Share Capital for Regulatory Disclosure
Neutral
Jun 30, 2026
WH Smith PLC has confirmed that, as of 30 June 2026, its issued share capital comprises 152,258,405 ordinary shares of 22 6/67 pence each, all of which carry voting rights and none of which are held in treasury. The disclosure, made under FCA tran...
Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and Compliance
WH Smith Admits 25.8 Million New Shares to London Market
Neutral
Jun 30, 2026
WH Smith has increased its share capital on the London Stock Exchange’s Main Market, admitting 25,805,260 new ordinary shares following a recent capital raise. The move takes the total number of shares in issue to 152,258,405, with the new s...
Regulatory Filings and Compliance
WH Smith Discloses Share Purchase by Non-Executive Director
Neutral
Jun 29, 2026
WH Smith has disclosed a transaction by non-executive director Simon Emeny, who purchased 5,000 ordinary shares in the company at a price of £3.98 per share, for a total consideration of £19,900. The market purchase, conducted on 26 June...
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.