DB:WQ9

Stock Analysis Report

Wilson Bayly Holmes-Ovcon

Executive Summary

Wilson Bayly Holmes-Ovcon Limited engages in civil engineering and building construction activities in South Africa, rest of Africa, and Australia.

Snowflake

Fundamentals

Undervalued with moderate growth potential.

Share Price & News

How has Wilson Bayly Holmes-Ovcon's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

DB:WQ9

-3.3%

DE Construction

-1.5%

DE Market


1 Year Return

-30.6%

DB:WQ9

-30.6%

DE Construction

-10.4%

DE Market

WQ9 matched the Construction industry (-30.6%) over the past year.

WQ9 underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

WQ9IndustryMarket
7 Day-2.7%-3.3%-1.5%
30 Day-4.3%-3.1%-4.6%
90 Day-9.8%-16.1%-4.6%
1 Year-29.1%-30.6%-27.8%-30.6%-7.6%-10.4%
3 Year-19.8%-26.7%-14.8%-21.1%9.4%0.03%
5 Year-20.2%-31.3%78.2%58.3%25.6%8.1%

Price Volatility Vs. Market

How volatile is Wilson Bayly Holmes-Ovcon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Wilson Bayly Holmes-Ovcon undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Wilson Bayly Holmes-Ovcon's share price is below the future cash flow value, and at a moderate discount (> 20%).

Wilson Bayly Holmes-Ovcon's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Wilson Bayly Holmes-Ovcon is overvalued based on earnings compared to the Europe Construction industry average.

Wilson Bayly Holmes-Ovcon is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Wilson Bayly Holmes-Ovcon is good value based on expected growth next year.


Price Based on Value of Assets

Wilson Bayly Holmes-Ovcon is good value based on assets compared to the Europe Construction industry average.


Next Steps

Future Growth

How is Wilson Bayly Holmes-Ovcon expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Wilson Bayly Holmes-Ovcon's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Wilson Bayly Holmes-Ovcon's earnings are expected to grow significantly at over 20% yearly.

Wilson Bayly Holmes-Ovcon's revenue growth is positive but not above the Germany market average.

Wilson Bayly Holmes-Ovcon's earnings growth is expected to exceed the Germany market average.

Wilson Bayly Holmes-Ovcon's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Wilson Bayly Holmes-Ovcon is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Wilson Bayly Holmes-Ovcon performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Wilson Bayly Holmes-Ovcon's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Wilson Bayly Holmes-Ovcon's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Wilson Bayly Holmes-Ovcon's 1-year earnings growth is negative, it can't be compared to the Europe Construction industry average.


Return on Equity

Wilson Bayly Holmes-Ovcon has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Wilson Bayly Holmes-Ovcon used its assets less efficiently than the Europe Construction industry average last year based on Return on Assets.


Return on Capital Employed

Wilson Bayly Holmes-Ovcon's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Wilson Bayly Holmes-Ovcon's financial position?


Financial Position Analysis

Wilson Bayly Holmes-Ovcon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Wilson Bayly Holmes-Ovcon's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Unable to establish if Wilson Bayly Holmes-Ovcon's level of debt is high without past debt data.

Unable to establish if Wilson Bayly Holmes-Ovcon's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Wilson Bayly Holmes-Ovcon has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are -85.2x debt.


Next Steps

Dividend

What is Wilson Bayly Holmes-Ovcon's current dividend yield, its reliability and sustainability?

5.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Wilson Bayly Holmes-Ovcon's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Wilson Bayly Holmes-Ovcon's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Wilson Bayly Holmes-Ovcon has not reported any payouts.

Unable to verify if Wilson Bayly Holmes-Ovcon's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Wilson Bayly Holmes-Ovcon has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of Wilson Bayly Holmes-Ovcon's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average management tenure


CEO

Louwtjie Nel (56yo)

11.0yrs

Tenure

SAR10,487,000

Compensation

Mr. Elia Louw Nel, also known as Louwtjie, BSc (Eng), has been the Chief Executive Officer and Executive Director of Wilson Bayly Holmes-Ovcon Ltd since August 1, 2008. Mr. Nel has been the Chief Executive ...


CEO Compensation Analysis

Louwtjie's remuneration is about average for companies of similar size in Germany.

Louwtjie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Wilson Bayly Holmes-Ovcon management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.8yrs

Average Tenure

56yo

Average Age

The tenure for the Wilson Bayly Holmes-Ovcon board of directors is about average.


Insider Trading

Wilson Bayly Holmes-Ovcon individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellSAR93,54526 Jun 19
Paul Foley
EntityIndividual
Role
Senior Key Executive
Group Managing Director of Building & Civil Engineering Division
Shares14,062
Max PriceSAR6.66
SellSAR2,96528 Dec 18
Paul Foley
EntityIndividual
Role
Senior Key Executive
Group Managing Director of Building & Civil Engineering Division
Shares361
Max PriceSAR8.21
SellSAR4,02428 Dec 18
Edwin Mashishi
EntityIndividual
Role
Other Key Executive
Director
Shares490
Max PriceSAR8.21
SellSAR1,30628 Dec 18
Charles Henwood
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares159
Max PriceSAR8.21
SellSAR65,13021 Dec 18
Edwin Mashishi
EntityIndividual
Role
Other Key Executive
Director
Shares7,772
Max PriceSAR8.55
SellSAR3,10921 Dec 18
Shereen Vally-Kara
EntityIndividual
Role
Secretary
Company Secretary
Shares371
Max PriceSAR8.55
SellSAR54,16021 Dec 18
Paul Foley
EntityIndividual
Role
Senior Key Executive
Group Managing Director of Building & Civil Engineering Division
Shares1,361
Max PriceSAR8.55
SellSAR12,88021 Dec 18
Elia Nel
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,537
Max PriceSAR8.55
SellSAR11,55621 Dec 18
Richard Smith
EntityIndividual
Role
Other Key Executive
Divisional Managing Director of Roads and Earthworks
Shares1,379
Max PriceSAR8.55
SellSAR30,48721 Dec 18
Charles Henwood
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares1,379
Max PriceSAR8.55
SellSAR76,35314 Dec 18
Shereen Vally-Kara
EntityIndividual
Role
Secretary
Company Secretary
Shares9,037
Max PriceSAR8.54
SellSAR279,87014 Dec 18
Paul Foley
EntityIndividual
Role
Senior Key Executive
Group Managing Director of Building & Civil Engineering Division
Shares33,125
Max PriceSAR8.54
SellSAR316,30214 Dec 18
Elia Nel
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares37,437
Max PriceSAR8.54
SellSAR283,57114 Dec 18
Charles Henwood
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares33,563
Max PriceSAR8.54
SellSAR174,51214 Dec 18
Edwin Mashishi
EntityIndividual
Role
Other Key Executive
Director
Shares20,655
Max PriceSAR8.54
SellSAR283,57114 Dec 18
Richard Smith
EntityIndividual
Role
Other Key Executive
Divisional Managing Director of Roads and Earthworks
Shares33,563
Max PriceSAR8.54

Ownership Breakdown


Management Team

  • Mike Wylie (67yo)

    Chairman

    • Tenure: 17.1yrs
    • Compensation: SAR7.48m
  • Eddie Maila (47yo)

    Group Business Development Director

    • Tenure: 0.0yrs
  • Louwtjie Nel (56yo)

    CEO & Executive Director

    • Tenure: 11.0yrs
    • Compensation: SAR10.49m
  • Paul Foley (52yo)

    Group Managing Director of Building & Civil Engineering Division

    • Tenure: 0.0yrs
    • Compensation: SAR14.48m
  • Shereen Vally-Kara (56yo)

    Company Secretary

    • Tenure: 11.8yrs
    • Compensation: SAR2.52m
  • Charles Henwood (55yo)

    CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: SAR10.01m
  • Wayne Reddie (57yo)

    Group Human Resources Divisional Director

    • Tenure: 18.6yrs
  • Eddie Mashishi (45yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: SAR5.77m
  • Richard Smith (59yo)

    Divisional Managing Director of Roads and Earthworks

    • Tenure: 11.6yrs
    • Compensation: SAR9.44m
  • S. Gumede

    Executive Officer

    • Tenure: 0.0yrs
    • Compensation: SAR4.27m

Board Members

  • Mike Wylie (67yo)

    Chairman

    • Tenure: 17.1yrs
    • Compensation: SAR7.48m
  • Savannah Nonhlanhla Danson (51yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: SAR552.00k
  • Hatla Ntene (65yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR364.00k
  • Louwtjie Nel (56yo)

    CEO & Executive Director

    • Tenure: 11.0yrs
    • Compensation: SAR10.49m
  • Charles Henwood (55yo)

    CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: SAR10.01m
  • Cobus Bester (58yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR415.00k
  • Ross Gardiner (56yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR814.00k
  • Karen Forbay

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR379.00k

Company Information

Wilson Bayly Holmes-Ovcon Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wilson Bayly Holmes-Ovcon Limited
  • Ticker: WQ9
  • Exchange: DB
  • Founded: 1970
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: SAR5.719b
  • Listing Market Cap: SAR338.172m
  • Shares outstanding: 53.20m
  • Website: https://www.wbho.co.za

Number of Employees


Location

  • Wilson Bayly Holmes-Ovcon Limited
  • 53 Andries Street
  • Wynberg
  • Johannesburg
  • Gauteng
  • 2090
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBOJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARAug 1993
WQ9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1993

Biography

Wilson Bayly Holmes-Ovcon Limited engages in civil engineering and building construction activities in South Africa, rest of Africa, and Australia. It operates through six segments: Building and Civil Engi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 20:56
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.