# WH Smith (SMWH.LSE)

Canonical: https://gigainvestors.com/s/SMWH.LSE

Analysis as of: 2026-10-16T07:44:59.717Z. Financial observations: FY2005–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 387.20 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 0.85×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.11×

- FY2018: 0.12×

- FY2019: 0.11×

- FY2020: -0.05×

- FY2021: -0.04×

- FY2022: 0.08×

- FY2023: 0.09×

- FY2024: 0.08×

- FY2025: 0.09×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 15.7%

- ROIC, second-lowest year: -5.6%

- Typical minus recent gross margin: 3.2 pp

- Typical gross margin (annual median): 59.9%

- Recent gross margin (lower of latest and 3-year median): 56.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.0%

- ROIC including acquisitions, ten-year median: -0.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 87.1%

- FY2017: 78.9%

- FY2018: 69.4%

- FY2019: 53.2%

- FY2020: -6.4%

- FY2021: -5.6%

- FY2022: 14.4%

- FY2023: 17.0%

- FY2024: 11.6%

- FY2025: 8.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -300M

- Net income, five-year total: GBP -33M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -0.9 pp

- Working capital / revenue, final three-year average: 5.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: GBP -86M

- FY2022: GBP -20M

- FY2023: GBP 3.8M

- FY2024: GBP -13M

- FY2025: GBP -184M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 78.9% vs 11.6%

- Per-share earnings: 0.82 to 0.51 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: GBP -1.5B

- Cumulative retained earnings: GBP -337M

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.8%

- Per-share value change: GBP -0.31

- Per-share value, starting three-year median: GBP 0.82

- Per-share value, ending three-year median: GBP 0.51

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 1.5%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 858M

- Cumulative net income, 10 years: GBP 166M

- ROIC, first three-year median: 78.9%

- ROIC, last three-year median: 11.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.82

- FY2017: GBP 0.89

- FY2018: GBP 0.82

- FY2019: GBP 0.81

- FY2020: GBP -1.83

- FY2021: GBP -0.63

- FY2022: GBP 0.36

- FY2023: GBP 0.60

- FY2024: GBP 0.51

- FY2025: GBP -1.12

### accounting: pass

- Sloan accruals: -28.8%

- Receivables to sales index (DSRI): 1.16×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.1%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.83×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.5%

- FY2017: -6.6%

- FY2018: -6.6%

- FY2019: -5.8%

- FY2020: -22.1%

- FY2021: -13.5%

- FY2022: -8.3%

- FY2023: -10.4%

- FY2024: -11.1%

- FY2025: -28.8%

## Holders

## Price story

Down 77% since Jan 2022 · "WH Smith set for sharp fall in profits amid cost and trading pressures" (uk.finance.yahoo.com, Sep 2026) · sales -19%

Story as of 2026-10-16T10:00:13.279Z; price observation 2026-10-15.

- 2025-06-30: WH Smith cuts sale price of high street business after weaker trading ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wh-smith-cuts-sale-price-111819810.html))

- 2025-08-21: WH Smith shares tumble after lowering profit outlook on US accounting error ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wh-smith-shares-tumble-lowering-081447890.html))

- 2026-04-23: WH Smith alerts over profits on Iran war disruption to air travel ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wh-smith-alerts-over-profits-083554920.html))

- 2026-06-10: WH Smith warns on profit and plans equity raise as airport passenger numbers dip ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wh-smith-warns-profit-plans-071758115.html))

- 2026-09-16: WH Smith set for sharp fall in profits amid cost and trading pressures ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wh-smith-set-sharp-fall-065231856.html))

### Sales · FY2024–2025

sales -19%; source https://filings.xbrl.org/2138001KJNGUJ34G7X91/2025-08-31/ESEF/GB/0/2138001KJNGUJ34G7X91-2025-08-31/reports/2138001KJNGUJ34G7X91-2025-08-31-T01.xhtml; observed 2026-01-08.

- FY2016: GBP 1.2B 

- FY2017: GBP 1.2B 

- FY2018: GBP 1.3B 

- FY2019: GBP 1.4B 

- FY2020: GBP 1.0B 

- FY2021: GBP 886M 

- FY2022: GBP 1.4B 

- FY2023: GBP 1.8B 

- FY2024: GBP 1.9B 

- FY2025: GBP 1.6B 

### Gross margin · FY2025

gross margin 56.7%; source https://filings.xbrl.org/2138001KJNGUJ34G7X91/2025-08-31/ESEF/GB/0/2138001KJNGUJ34G7X91-2025-08-31/reports/2138001KJNGUJ34G7X91-2025-08-31-T01.xhtml; observed 2026-01-08.

- FY2016: 58.5% 

- FY2017: 59.4% 

- FY2018: 60.3% 

- FY2019: 60.5% 

- FY2020: 55.6% 

- FY2021: 58.0% 

- FY2022: 60.6% 

- FY2023: 62.0% 

- FY2024: 63.2% 

- FY2025: 56.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are GBP 1.6 billion.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2025-08-31 (filed 2026-01-08); FY2025: revenue 1553000000; grossProfit 880000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMWH.LSE: WH Smith PLC operates as a travel retailer in the United Kingdom, North America, Australia, Ireland, Spain, and internationally. It offers news, books, and convenience for travelling customers. It operates stores in airports, hospitals, railway stations, and motorway service areas. The company is also involved in International Travel Retail, UK Travel Retail, and North America. The company was formerly known as New WH Smith PLC. WH Smith PLC was founded in 1792 and is based in Swindon, the United Kingdom.

### Why customers stay

Margins ranged from 56.7% to 63.2% during 2023–25; it earns 15.7% on its capital.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2023-08-31 (filed 2026-01-08); FY2023: grossProfit / revenue = 62%.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2024-08-31 (filed 2026-01-08); FY2024: grossProfit / revenue = 63.2%.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2025-08-31 (filed 2026-01-08); FY2025: grossProfit / revenue = 56.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); 10-year return on capital observations [[2016,0.8713461180413331],[2017,0.7885714285714285],[2018,0.6941592614959883],[2019,0.5322175732217573],[2020,-0.0639236641221374],[2021,-0.05572614107883817],[2022,0.14429130508762975],[2023,0.16956521739130434],[2024,0.11628529372407333],[2025,0.08186090225563909]]; median 0.15692826123946704. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 50 million of shares.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2016-08-31 (filed 2026-01-08); FY2016: growth capex 0; upkeep 34000000; owner earnings 112000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2017-08-31 (filed 2026-01-08); FY2017: growth capex 0; upkeep 39000000; owner earnings 118000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2018-08-31 (filed 2026-01-08); FY2018: growth capex 0; upkeep 43000000; owner earnings 110000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2019-08-31 (filed 2026-01-08); FY2019: growth capex 0; upkeep 47000000; owner earnings 106200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2023-08-31 (filed 2026-01-08); FY2023: growth capex 0; upkeep 122000000; cash acquisitions 0; owner earnings 3800000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Dividend observations: [[2016,46000000],[2017,50000000],[2018,54000000],[2019,60000000],[2020,47000000],[2021,51000000],[2022,7000000],[2023,22000000],[2024,41000000],[2025,43000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/SMWH.LSE.json#2025-08-31 (filed 2026-01-08); FY2025: cash repurchases 50000000 GBP.

### Are managers owners

Insiders own 2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMWH.LSE SharesStats.PercentInsiders = 1.9769999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Closing price 387.2 GBX; reporting-to-trading FX 100; FY2025 annual sales per share 12.03875968992248; price multiple 0.3216278171281391. FY2025 cash earnings/share -1.4248062015503875. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,473.00 per share

- 2016-11: GBX 1,508.00 per share

- 2016-12: GBX 1,558.00 per share

- 2017-01: GBX 1,630.00 per share

- 2017-02: GBX 1,692.00 per share

- 2017-03: GBX 1,773.00 per share

- 2017-04: GBX 1,769.00 per share

- 2017-05: GBX 1,784.00 per share

- 2017-06: GBX 1,715.00 per share

- 2017-07: GBX 1,760.00 per share

- 2017-08: GBX 1,849.00 per share

- 2017-09: GBX 2,021.00 per share

- 2017-10: GBX 2,047.00 per share

- 2017-11: GBX 2,092.00 per share

- 2017-12: GBX 2,347.00 per share

- 2018-01: GBX 2,138.00 per share

- 2018-02: GBX 2,028.00 per share

- 2018-03: GBX 1,948.00 per share

- 2018-04: GBX 1,951.00 per share

- 2018-05: GBX 1,938.00 per share

- 2018-06: GBX 1,999.00 per share

- 2018-07: GBX 1,925.00 per share

- 2018-08: GBX 2,064.00 per share

- 2018-09: GBX 2,062.00 per share

- 2018-10: GBX 1,945.00 per share

- 2018-11: GBX 1,906.00 per share

- 2018-12: GBX 1,720.00 per share

- 2019-01: GBX 1,954.00 per share

- 2019-02: GBX 2,098.00 per share

- 2019-03: GBX 2,122.00 per share

- 2019-04: GBX 2,048.00 per share

- 2019-05: GBX 1,962.00 per share

- 2019-06: GBX 1,970.00 per share

- 2019-07: GBX 2,118.00 per share

- 2019-08: GBX 1,958.00 per share

- 2019-09: GBX 1,987.00 per share

- 2019-10: GBX 2,188.00 per share

- 2019-11: GBX 2,448.00 per share

- 2019-12: GBX 2,600.00 per share

- 2020-01: GBX 2,392.00 per share

- 2020-02: GBX 1,927.00 per share

- 2020-03: GBX 1,141.00 per share

- 2020-04: GBX 1,253.00 per share

- 2020-05: GBX 1,063.00 per share

- 2020-06: GBX 1,097.00 per share

- 2020-07: GBX 940.00 per share

- 2020-08: GBX 1,177.00 per share

- 2020-09: GBX 953.00 per share

- 2020-10: GBX 997.00 per share

- 2020-11: GBX 1,417.00 per share

- 2020-12: GBX 1,510.00 per share

- 2021-01: GBX 1,530.00 per share

- 2021-02: GBX 1,910.00 per share

- 2021-03: GBX 1,797.00 per share

- 2021-04: GBX 1,809.50 per share

- 2021-05: GBX 1,729.00 per share

- 2021-06: GBX 1,608.50 per share

- 2021-07: GBX 1,625.00 per share

- 2021-08: GBX 1,632.00 per share

- 2021-09: GBX 1,713.00 per share

- 2021-10: GBX 1,562.00 per share

- 2021-11: GBX 1,326.00 per share

- 2021-12: GBX 1,480.00 per share

- 2022-01: GBX 1,648.00 per share

- 2022-02: GBX 1,625.50 per share

- 2022-03: GBX 1,436.00 per share

- 2022-04: GBX 1,455.50 per share

- 2022-05: GBX 1,594.00 per share

- 2022-06: GBX 1,406.00 per share

- 2022-07: GBX 1,443.50 per share

- 2022-08: GBX 1,429.50 per share

- 2022-09: GBX 1,196.50 per share

- 2022-10: GBX 1,177.00 per share

- 2022-11: GBX 1,413.00 per share

- 2022-12: GBX 1,484.50 per share

- 2023-01: GBX 1,595.50 per share

- 2023-02: GBX 1,580.00 per share

- 2023-03: GBX 1,495.00 per share

- 2023-04: GBX 1,574.00 per share

- 2023-05: GBX 1,570.00 per share

- 2023-06: GBX 1,548.00 per share

- 2023-07: GBX 1,493.00 per share

- 2023-08: GBX 1,467.00 per share

- 2023-09: GBX 1,344.00 per share

- 2023-10: GBX 1,160.00 per share

- 2023-11: GBX 1,267.00 per share

- 2023-12: GBX 1,334.00 per share

- 2024-01: GBX 1,211.00 per share

- 2024-02: GBX 1,236.00 per share

- 2024-03: GBX 1,317.00 per share

- 2024-04: GBX 1,097.00 per share

- 2024-05: GBX 1,150.00 per share

- 2024-06: GBX 1,132.00 per share

- 2024-07: GBX 1,320.00 per share

- 2024-08: GBX 1,283.00 per share

- 2024-09: GBX 1,458.00 per share

- 2024-10: GBX 1,320.00 per share

- 2024-11: GBX 1,230.00 per share

- 2024-12: GBX 1,189.00 per share

- 2025-01: GBX 1,307.00 per share

- 2025-02: GBX 1,159.00 per share

- 2025-03: GBX 1,014.00 per share

- 2025-04: GBX 904.50 per share

- 2025-05: GBX 1,046.00 per share

- 2025-06: GBX 1,090.00 per share

- 2025-07: GBX 1,025.00 per share

- 2025-08: GBX 690.00 per share

- 2025-09: GBX 676.50 per share

- 2025-10: GBX 676.00 per share

- 2025-11: GBX 686.00 per share

- 2025-12: GBX 639.00 per share

- 2026-01: GBX 675.00 per share

- 2026-02: GBX 687.50 per share

- 2026-03: GBX 574.00 per share

- 2026-04: GBX 510.50 per share

- 2026-05: GBX 495.00 per share

- 2026-06: GBX 393.00 per share

- 2026-07: GBX 433.40 per share

- 2026-08: GBX 412.80 per share

- 2026-09: GBX 390.60 per share

- 2026-10: GBX 387.20 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 821.12 per share, central GBX 932.88 per share, high GBX 1,081.67 per share

- FY2017: low GBX 894.10 per share, central GBX 1,036.64 per share, high GBX 1,203.54 per share

- FY2018: low GBX 969.79 per share, central GBX 1,146.64 per share, high GBX 1,332.08 per share

- FY2019: low GBX 1,180.77 per share, central GBX 1,478.78 per share, high GBX 1,725.02 per share

- FY2020: low GBX 810.22 per share, central GBX 912.71 per share, high GBX 1,049.14 per share

- FY2021: low GBX 648.14 per share, central GBX 725.68 per share, high GBX 828.90 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138001KJNGUJ34G7X91/2025-08-31/ESEF/GB/0/2138001KJNGUJ34G7X91-2025-08-31/reports/2138001KJNGUJ34G7X91-2025-08-31-T01.xhtml); period 2025-08-31, filed 2026-01-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations