Whitbread plc (WTB.L) stock analysis

In our weekly check, Whitbread plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 8, red flags: 3.

About Whitbread plc

Whitbread plc is a Consumer Cyclical company (Travel Lodging) based in the United Kingdom, listed on LSE as WTB.L.

What our checks show for WTB.L

Red flags

• Net debt is 5x a year of EBITDA (debt/equity 1.79). That limits room in a downturn and raises refinancing risk.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.4 years.

Warning signs

• Analysts expect only about 2.3% a year of growth in revenue.
• Revenue grew only 3.6% a year over the last 3 years.
• Earnings per share fell 3.8% a year over the last 3 years.
• Net profit fell 8.6% a year over the last 3 years.
• The net margin is only 7.3%: little room if costs rise.
• Free cash flow is only 3.4% of revenue.
• Free cash flow covers the dividend only 0.8 times.
• Return on capital (ROCE) is only 7.4%.

Strengths

• The net margin rose by 4.8 points over 5 years, to 7.3%.
• The gross margin is 50.6% and has risen by 18.2 points: pricing power is holding.
• Operating cash flow is 3.54x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 22.1% a year over the next years.
• Analysts expect the net margin to improve by 5.2 points from today's 7.3%.
• Beta 0.65: the stock usually moves less than the market.

Similar companies

ATAT · CHH · WH · HGV · AC.PA · H

Questions

What grade does Whitbread plc (WTB.L) have?

In our weekly check, Whitbread plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 8, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WTB.L stock?

This week's biggest flags for Whitbread plc: High debt, Deep past fall, Slow recovery after falls. In total 11 of 25 checks show a warning or a red flag.

What does Whitbread plc do?

Whitbread plc is a Consumer Cyclical company (Travel Lodging) based in the United Kingdom, listed on LSE as WTB.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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