company background image
LWRK

LifeWorksTSX:LWRK Stock Report

Market Cap

CA$1.7b

7D

-4.0%

1Y

-14.7%

Updated

02 Dec, 2021

Data

Company Financials +
LWRK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends3/6

LWRK Stock Overview

LifeWorks Inc. provides technology based human resources consulting services in Canada, the United States, and internationally.

LifeWorks Competitors

Aon

NYSE:AON

US$65.2b

Manulife Financial

TSX:MFC

CA$44.4b

Sun Life Financial

TSX:SLF

CA$39.7b

Willis Towers Watson

NasdaqGS:WLTW

US$28.1b

Price History & Performance

Summary of all time highs, changes and price drops for LifeWorks
Historical stock prices
Current Share PriceCA$25.20
52 Week HighCA$37.56
52 Week LowCA$24.93
Beta0.72
1 Month Change-19.90%
3 Month Change-27.75%
1 Year Change-14.66%
3 Year Change-2.29%
5 Year Change35.56%
Change since IPO136.62%

Recent News & Updates

Nov 21
LifeWorks (TSE:LWRK) Has Re-Affirmed Its Dividend Of CA$0.065

LifeWorks (TSE:LWRK) Has Re-Affirmed Its Dividend Of CA$0.065

LifeWorks Inc.'s ( TSE:LWRK ) investors are due to receive a payment of CA$0.065 per share on 15th of December. The...

Oct 22
LifeWorks (TSE:LWRK) Has Affirmed Its Dividend Of CA$0.065

LifeWorks (TSE:LWRK) Has Affirmed Its Dividend Of CA$0.065

LifeWorks Inc.'s ( TSE:LWRK ) investors are due to receive a payment of CA$0.065 per share on 15th of November. This...

Shareholder Returns

LWRKCA Professional ServicesCA Market
7D-4.0%-1.4%-4.8%
1Y-14.7%47.5%19.0%

Return vs Industry: LWRK underperformed the Canadian Professional Services industry which returned 47.5% over the past year.

Return vs Market: LWRK underperformed the Canadian Market which returned 19% over the past year.

Price Volatility

Is LWRK's price volatile compared to industry and market?
LWRK volatility
LWRK Average Weekly Movement3.8%
Professional Services Industry Average Movement7.6%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.2%
10% least volatile stocks in CA Market3.6%

Stable Share Price: LWRK is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LWRK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19626,500Stephen Liptraphttps://www.lifeworks.com

LifeWorks Inc. provides technology based human resources consulting services in Canada, the United States, and internationally. It provides health and productivity, administrative, and retirement solutions to assist employers in managing the financial security, health, and productivity of their employees. The company offers health and productivity services, including absence and disability management, Internet-based cognitive behavioral therapy, safety groups, influencecare, and workers’ compensation services; and administrative solutions, such as defined benefit and contribution pension administration, employee self-service, health and benefits administration, and human resources contact centers, as well as pension and benefits software.

LifeWorks Fundamentals Summary

How do LifeWorks's earnings and revenue compare to its market cap?
LWRK fundamental statistics
Market CapCA$1.73b
Earnings (TTM)-CA$11.82m
Revenue (TTM)CA$1.01b

1.7x

P/S Ratio

-147.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LWRK income statement (TTM)
RevenueCA$1.01b
Cost of RevenueCA$704.44m
Gross ProfitCA$306.18m
ExpensesCA$318.00m
Earnings-CA$11.82m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.17
Gross Margin30.30%
Net Profit Margin-1.17%
Debt/Equity Ratio76.0%

How did LWRK perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

-462%

Payout Ratio

Valuation

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

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LWRK (CA$25.2) is trading below our estimate of fair value (CA$33.73)

Significantly Below Fair Value: LWRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LWRK is unprofitable, so we can't compare its PE Ratio to the Canadian Professional Services industry average.

PE vs Market: LWRK is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LWRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LWRK is good value based on its PB Ratio (2.9x) compared to the CA Professional Services industry average (3.9x).


Future Growth

How is LifeWorks forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

111.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LWRK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: LWRK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LWRK's is expected to become profitable in the next 3 years.

Revenue vs Market: LWRK's revenue (5.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: LWRK's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LWRK's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has LifeWorks performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LWRK is currently unprofitable.

Growing Profit Margin: LWRK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LWRK is unprofitable, and losses have increased over the past 5 years at a rate of 8.3% per year.

Accelerating Growth: Unable to compare LWRK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LWRK is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (30.2%).


Return on Equity

High ROE: LWRK has a negative Return on Equity (-1.97%), as it is currently unprofitable.


Financial Health

How is LifeWorks's financial position?


Financial Position Analysis

Short Term Liabilities: LWRK's short term assets (CA$275.1M) do not cover its short term liabilities (CA$281.7M).

Long Term Liabilities: LWRK's short term assets (CA$275.1M) do not cover its long term liabilities (CA$588.9M).


Debt to Equity History and Analysis

Debt Level: LWRK's net debt to equity ratio (74.3%) is considered high.

Reducing Debt: LWRK's debt to equity ratio has increased from 69.4% to 76% over the past 5 years.

Debt Coverage: LWRK's debt is well covered by operating cash flow (34.6%).

Interest Coverage: LWRK's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

What is LifeWorks's current dividend yield, its reliability and sustainability?

3.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LWRK's dividend (3.1%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: LWRK's dividend (3.1%) is low compared to the top 25% of dividend payers in the Canadian market (4.74%).


Stability and Growth of Payments

Stable Dividend: LWRK's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: LWRK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: LWRK's dividends in 3 years are forecast to be covered by earnings (84.7% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Stephen Liptrap (55 yo)

4.5yrs

Tenure

CA$3,176,950

Compensation

Mr. Stephen Liptrap has been Chief Executive Officer and President of Morneau Shepell Ltd since May 4, 2017 & was its GM until 2020. Mr. Liptrap’s responsibilities include the development and execution of...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD2.49M) is about average for companies of similar size in the Canadian market ($USD1.93M).

Compensation vs Earnings: Stephen's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: LWRK's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: LWRK's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LWRK insiders have sold more shares than they have bought 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

LifeWorks Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: LifeWorks Inc.
  • Ticker: LWRK
  • Exchange: TSX
  • Founded: 1962
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: CA$1.725b
  • Shares outstanding: 69.20m
  • Website: https://www.lifeworks.com

Number of Employees


Location

  • LifeWorks Inc.
  • One Morneau Shepell Centre
  • Suite 700
  • Toronto
  • Ontario
  • M3C 1W3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:05
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.