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WOR

WorleyASX:WOR Stock Report

Last Price

AU$11.78

Market Cap

AU$6.2b

7D

8.4%

1Y

-4.2%

Updated

17 Jan, 2022

Data

Company Financials +
WOR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends2/6

WOR Stock Overview

Worley Limited provides professional project and asset services to energy, chemicals, and resources sectors worldwide.

Worley Competitors

Schlumberger

NYSE:SLB

US$53.0b

Larsen & Toubro

BSE:500510

₹2.9t

CBRE Group

NYSE:CBRE

US$34.1b

LyondellBasell Industries

NYSE:LYB

US$34.0b

Price History & Performance

Summary of all time highs, changes and price drops for Worley
Historical stock prices
Current Share PriceAU$11.78
52 Week HighAU$12.66
52 Week LowAU$8.92
Beta2.34
1 Month Change10.30%
3 Month Change4.43%
1 Year Change-4.23%
3 Year Change-15.43%
5 Year Change20.82%
Change since IPO592.94%

Recent News & Updates

Jan 03
Estimating The Fair Value Of Worley Limited (ASX:WOR)

Estimating The Fair Value Of Worley Limited (ASX:WOR)

Today we will run through one way of estimating the intrinsic value of Worley Limited ( ASX:WOR ) by taking the...

Dec 02
Here's Why Worley (ASX:WOR) Has A Meaningful Debt Burden

Here's Why Worley (ASX:WOR) Has A Meaningful Debt Burden

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Sep 28
Worley Limited (ASX:WOR) Shares Could Be 23% Below Their Intrinsic Value Estimate

Worley Limited (ASX:WOR) Shares Could Be 23% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Worley Limited ( ASX:WOR ) by projecting its future...

Shareholder Returns

WORAU Energy ServicesAU Market
7D8.4%4.3%-0.5%
1Y-4.2%-9.4%10.4%

Return vs Industry: WOR exceeded the Australian Energy Services industry which returned -9.4% over the past year.

Return vs Market: WOR underperformed the Australian Market which returned 10.4% over the past year.

Price Volatility

Is WOR's price volatile compared to industry and market?
WOR volatility
WOR Average Weekly Movement4.8%
Energy Services Industry Average Movement6.7%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

Stable Share Price: WOR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WOR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200147,700Chris Ashtonhttps://www.worley.com

Worley Limited provides professional project and asset services to energy, chemicals, and resources sectors worldwide. The company offers digital, consulting, engineering and design, construction management, construction and fabrication, project management, and operation and maintenance services, as well as maintenance, modification, and operation services. It serves new energy, power, upstream and midstream, refining and chemicals, and infrastructure markets, as well as mining, minerals, and metals markets.

Worley Fundamentals Summary

How do Worley's earnings and revenue compare to its market cap?
WOR fundamental statistics
Market CapAU$6.18b
Earnings (TTM)AU$86.00m
Revenue (TTM)AU$9.52b

71.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WOR income statement (TTM)
RevenueAU$9.52b
Cost of RevenueAU$9.01b
Gross ProfitAU$506.00m
ExpensesAU$420.00m
EarningsAU$86.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 23, 2022

Earnings per share (EPS)0.16
Gross Margin5.32%
Net Profit Margin0.90%
Debt/Equity Ratio31.2%

How did WOR perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

304%

Payout Ratio

Valuation

Is Worley undervalued compared to its fair value and its price relative to the market?

2.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WOR (A$11.78) is trading below our estimate of fair value (A$12.09)

Significantly Below Fair Value: WOR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WOR is poor value based on its PE Ratio (71.9x) compared to the Global Energy Services industry average (16.3x).

PE vs Market: WOR is poor value based on its PE Ratio (71.9x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: WOR is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: WOR is good value based on its PB Ratio (1.1x) compared to the AU Energy Services industry average (1.3x).


Future Growth

How is Worley forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOR's forecast earnings growth (25.7% per year) is above the savings rate (1.9%).

Earnings vs Market: WOR's earnings (25.7% per year) are forecast to grow faster than the Australian market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WOR's revenue (4.7% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: WOR's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WOR's Return on Equity is forecast to be low in 3 years time (7.4%).


Past Performance

How has Worley performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WOR has a large one-off loss of A$129.0M impacting its June 30 2021 financial results.

Growing Profit Margin: WOR's current net profit margins (0.9%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: WOR's earnings have grown significantly by 31.1% per year over the past 5 years.

Accelerating Growth: WOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WOR had negative earnings growth (-49.7%) over the past year, making it difficult to compare to the Energy Services industry average (8.4%).


Return on Equity

High ROE: WOR's Return on Equity (1.5%) is considered low.


Financial Health

How is Worley's financial position?


Financial Position Analysis

Short Term Liabilities: WOR's short term assets (A$2.9B) exceed its short term liabilities (A$2.4B).

Long Term Liabilities: WOR's short term assets (A$2.9B) exceed its long term liabilities (A$2.1B).


Debt to Equity History and Analysis

Debt Level: WOR's net debt to equity ratio (21.9%) is considered satisfactory.

Reducing Debt: WOR's debt to equity ratio has reduced from 65.9% to 31.2% over the past 5 years.

Debt Coverage: WOR's debt is well covered by operating cash flow (30.5%).

Interest Coverage: WOR's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is Worley current dividend yield, its reliability and sustainability?

4.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WOR's dividend (4.24%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: WOR's dividend (4.24%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: WOR's dividend payments have been volatile in the past 10 years.

Growing Dividend: WOR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (303.9%), WOR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WOR's dividends in 3 years are forecast to be covered by earnings (70.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Chris Ashton

1.92yrs

Tenure

AU$3,803,000

Compensation

Mr. Robert Christopher Ashton, also known as Chris, serves as Chief Executive Officer, Managing Director and Director at Worley Limited since February 24, 2020. Mr. Ashton served as Chief Operating Officer...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.75M) is above average for companies of similar size in the Australian market ($USD1.72M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: WOR's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: WOR's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WOR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Worley Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Worley Limited
  • Ticker: WOR
  • Exchange: ASX
  • Founded: 2001
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: AU$6.180b
  • Shares outstanding: 524.64m
  • Website: https://www.worley.com

Number of Employees


Location

  • Worley Limited
  • 141 Walker Street
  • Level 17
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:21
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.