Executive Summary
Worley Limited provides professional services to resources and energy sectors. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Worley's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WOR is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: WOR's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.2%
WOR
1.3%
AU Energy Services
-0.3%
AU Market
1 Year Return
-22.9%
WOR
-25.4%
AU Energy Services
-2.7%
AU Market
Return vs Industry: WOR exceeded the Australian Energy Services industry which returned -25.4% over the past year.
Return vs Market: WOR underperformed the Australian Market which returned -2.7% over the past year.
Shareholder returns
| WOR | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 1.3% | -0.3% |
| 30 Day | 5.8% | 9.0% | 0.7% |
| 90 Day | 14.3% | 17.8% | 9.1% |
| 1 Year | -19.4%-22.9% | -20.1%-25.4% | 0.6%-2.7% |
| 3 Year | -4.3%-16.2% | -52.4%-55.7% | 25.3%9.8% |
| 5 Year | 279.4%229.8% | 181.8%118.2% | 65.4%32.0% |
Long-Term Price Volatility Vs. Market
How volatile is Worley's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Shareholders Of Worley (ASX:WOR) Must Be Happy With Their 226% Total Return3 weeks ago | Simply Wall St
Estimating The Intrinsic Value Of Worley Limited (ASX:WOR)1 month ago | Simply Wall St
We Think Worley (ASX:WOR) Can Stay On Top Of Its DebtValuation
Is Worley undervalued compared to its fair value and its price relative to the market?
7.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WOR (A$12.3) is trading below our estimate of fair value (A$13.29)
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 (37.5x) compared to the XX Energy Services industry average (15.9x).
PE vs Market: WOR is poor value based on its PE Ratio (37.5x) compared to the Australian market (22.7x).
Price to Earnings Growth Ratio
PEG Ratio: WOR is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: WOR is overvalued based on its PB Ratio (1.1x) compared to the AU Energy Services industry average (1x).
Next Steps
Future Growth
How is Worley forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
20.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WOR's forecast earnings growth (20.3% per year) is above the savings rate (2%).
Earnings vs Market: WOR's earnings (20.3% per year) are forecast to grow faster than the Australian market (18.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WOR's revenue is expected to decline over the next 3 years (-1.7% per year).
High Growth Revenue: WOR's revenue is forecast to decline over the next 3 years (-1.7% 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%).
Next Steps
Past Performance
How has Worley performed over the past 5 years?
65.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WOR has a large one-off loss of A$243.0M impacting its June 30 2020 financial results.
Growing Profit Margin: WOR's current net profit margins (1.3%) are lower than last year (2.2%).
Past Earnings Growth Analysis
Earnings Trend: WOR has become profitable over the past 5 years, growing earnings by 65.8% per year.
Accelerating Growth: WOR's earnings growth over the past year (12.4%) is below its 5-year average (65.8% per year).
Earnings vs Industry: WOR earnings growth over the past year (12.4%) exceeded the Energy Services industry -1.8%.
Return on Equity
High ROE: WOR's Return on Equity (3.2%) is considered low.
Next Steps
Financial Health
How is Worley's financial position?
Financial Position Analysis
Short Term Liabilities: WOR's short term assets (A$3.2B) exceed its short term liabilities (A$3.1B).
Long Term Liabilities: WOR's short term assets (A$3.2B) exceed its long term liabilities (A$2.1B).
Debt to Equity History and Analysis
Debt Level: WOR's debt to equity ratio (31.2%) is considered satisfactory.
Reducing Debt: WOR's debt to equity ratio has reduced from 59.7% to 31.2% over the past 5 years.
Debt Coverage: WOR's debt is well covered by operating cash flow (44.7%).
Interest Coverage: WOR's interest payments on its debt are well covered by EBIT (5.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Worley current dividend yield, its reliability and sustainability?
4.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WOR's dividend (4.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.12%).
High Dividend: WOR's dividend (4.07%) is low compared to the top 25% of dividend payers in the Australian market (5%).
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 (152.4%), 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 (64% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Chris Ashton
0.92
Tenure
AU$2,582,000
Compensation
Mr. Robert Christopher Ashton, also known as Chris, serves as Chief Executive Officer, Managing Director and Director at Worley Limited since February 24, 2020. Mr. Ashton served as Chief Operating Officer...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD1.98M) is about average for companies of similar size in the Australian market ($USD2.56M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 0.92yr | AU$2.58m | 0.027% A$ 1.8m | |
| Chief Financial Officer | 5.08yrs | AU$2.67m | 0.039% A$ 2.6m | |
| Group President of Americas | 3.92yrs | AU$1.46m | 0.0017% A$ 109.8k | |
| President of Advisian | 3.25yrs | AU$1.35m | 0.0038% A$ 252.8k | |
| Group President of Project Delivery | no data | AU$1.84m | 0.0024% A$ 159.5k | |
| Group President of EMEA & APAC | no data | AU$2.74m | 0.0049% A$ 321.6k | |
| Group Director Investor Relations | no data | no data | no data | |
| Group General Counsel of Legal | no data | no data | no data | |
| Executive Group Director of Growth | no data | no data | no data | |
| Managing Director of Hydrocarbons | no data | no data | no data | |
| Regional Managing Director of Services - APAC | 5yrs | AU$556.79k | no data | |
| Executive Group Director of Health | no data | no data | no data |
3.9yrs
Average Tenure
Experienced Management: WOR's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 0.92yr | AU$2.58m | 0.027% A$ 1.8m | |
| Deputy Chairman of Board | 0.92yr | AU$250.00k | 0.0034% A$ 226.3k | |
| Chairman | 7.83yrs | AU$525.00k | 3.35% A$ 222.0m | |
| Non-Executive Director | 9.08yrs | AU$230.00k | 0.0021% A$ 139.0k | |
| Independent Non-Executive Director | 0.083yr | no data | 0.0027% A$ 180.0k | |
| Non-Executive Independent Director | 1.92yrs | AU$220.00k | 0.0065% A$ 430.1k | |
| Non Executive Director | 3.17yrs | AU$246.00k | 0.0015% A$ 102.6k | |
| Non-Executive Director | 3.08yrs | AU$275.00k | 0.0055% A$ 366.6k | |
| Non Executive Independent Director | 1.92yrs | AU$226.00k | 0% A$ 0 | |
| Lead Independent Director | 1.25yrs | AU$285.00k | 0.0036% A$ 239.5k | |
| Independent Non-Executive Director | 0.92yr | AU$76.00k | 0.0031% A$ 202.5k | |
| Independent Non-Executive Director | 1.67yrs | AU$245.00k | 0.0013% A$ 86.0k |
1.8yrs
Average Tenure
60yo
Average Age
Experienced Board: WOR's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Worley Limited
- Ticker: WOR
- Exchange: ASX
- Founded: 1971
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: AU$6.617b
- Shares outstanding: 523.08m
- Website: https://www.worley.com
Number of Employees
Location
- Worley Limited
- 141 Walker Street
- Level 15
- North Sydney
- New South Wales
- 2060
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WYGP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2002 |
| WOR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2002 |
| WF9 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2002 |
| WOR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2002 |
| WYGP.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Nov 2008 |
Biography
Worley Limited provides professional services to resources and energy sectors. It operates through Energy and Chemical Services; Mining, Minerals, and Metal Services; Major Projects and Integrated Solution...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 07:02 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.