ASX:WOR

Stock Analysis Report

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Executive Summary

Worley Limited provides professional services to resources and energy sectors. More Details


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

WORIndustryMarket
7 Day-0.2%1.3%-0.3%
30 Day5.8%9.0%0.7%
90 Day14.3%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 Year279.4%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

Valuation

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

NamePositionTenureCompensationOwnership
Robert Ashton
MD, CEO & Director0.92yrAU$2.58m0.027%
A$ 1.8m
Thomas Honan
Chief Financial Officer5.08yrsAU$2.67m0.039%
A$ 2.6m
Karen Sobel
Group President of Americas3.92yrsAU$1.46m0.0017%
A$ 109.8k
Adrian Smith
President of Advisian3.25yrsAU$1.35m0.0038%
A$ 252.8k
Andrew Berryman
Group President of Project Deliveryno dataAU$1.84m0.0024%
A$ 159.5k
Vinayak Pai
Group President of EMEA & APACno dataAU$2.74m0.0049%
A$ 321.6k
Verena Preston
Group Director Investor Relationsno datano datano data
Lawrence Kalban
Group General Counsel of Legalno datano datano data
Mark Trueman
Executive Group Director of Growthno datano datano data
Brian Evans
Managing Director of Hydrocarbonsno datano datano data
Denis Lucey
Regional Managing Director of Services - APAC5yrsAU$556.79kno data
Marian McLean
Executive Group Director of Healthno datano datano data

3.9yrs

Average Tenure

Experienced Management: WOR's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Ashton
MD, CEO & Director0.92yrAU$2.58m0.027%
A$ 1.8m
Andrew Liveris
Deputy Chairman of Board0.92yrAU$250.00k0.0034%
A$ 226.3k
John Grill
Chairman7.83yrsAU$525.00k3.35%
A$ 222.0m
Xiao Bin Wang
Non-Executive Director9.08yrsAU$230.00k0.0021%
A$ 139.0k
Emma Stein
Independent Non-Executive Director0.083yrno data0.0027%
A$ 180.0k
Roger Higgins
Non-Executive Independent Director1.92yrsAU$220.00k0.0065%
A$ 430.1k
Anne Templeman-Jones
Non Executive Director3.17yrsAU$246.00k0.0015%
A$ 102.6k
Thomas Gorman
Non-Executive Director3.08yrsAU$275.00k0.0055%
A$ 366.6k
Sharon Warburton
Non Executive Independent Director1.92yrsAU$226.00k0%
A$ 0
Christopher Haynes
Lead Independent Director1.25yrsAU$285.00k0.0036%
A$ 239.5k
Martin Parkinson
Independent Non-Executive Director0.92yrAU$76.00k0.0031%
A$ 202.5k
Juan José Coppel
Independent Non-Executive Director1.67yrsAU$245.00k0.0013%
A$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WYGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2002
WORASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2002
WF9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2002
WORCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2002
WYGP.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 07:02
End of Day Share Price2021/01/19 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.