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 Africa, Australia, and the United Kingdom.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

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

Stable Share Price: WQ9's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

WQ9

12.3%

DE Construction

2.1%

DE Market


1 Year Return

-39.9%

WQ9

-50.0%

DE Construction

-16.6%

DE Market

Return vs Industry: WQ9 exceeded the German Construction industry which returned -53.7% over the past year.

Return vs Market: WQ9 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

WQ9IndustryMarket
7 Day0.5%12.3%2.1%
30 Day-24.2%-18.6%-12.6%
90 Day-51.8%-42.7%-22.9%
1 Year-39.0%-39.9%-47.9%-50.0%-14.2%-16.6%
3 Year-54.1%-57.6%-55.3%-58.6%-14.8%-21.9%
5 Year-47.3%-54.0%-3.4%-14.3%-16.6%-27.8%

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 compared to its fair value and its price relative to the market?

7.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WQ9 (€3.98) is trading above our estimate of fair value (€3.55)

Significantly Below Fair Value: WQ9 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WQ9 is good value based on its PE Ratio (7x) compared to the Construction industry average (9.5x).

PE vs Market: WQ9 is good value based on its PE Ratio (7x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: WQ9 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: WQ9 is good value based on its PB Ratio (0.7x) compared to the XE Construction industry average (0.9x).


Next Steps

Future Growth

How is Wilson Bayly Holmes-Ovcon forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WQ9's forecast earnings growth (25.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: WQ9's earnings (25.9% per year) are forecast to grow faster than the German market (14.1% per year).

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

Revenue vs Market: WQ9's revenue (2.3% per year) is forecast to grow slower than the German market (4% per year).

High Growth Revenue: WQ9's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WQ9's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WQ9 has high quality earnings.

Growing Profit Margin: WQ9's current net profit margins (1.5%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: WQ9's earnings have declined by -1.5% per year over the past 5 years.

Accelerating Growth: WQ9's earnings growth over the past year (30.3%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: WQ9 earnings growth over the past year (30.3%) exceeded the Construction industry 6.3%.


Return on Equity

High ROE: WQ9's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: WQ9's short term assets (ZAR12.5B) exceed its short term liabilities (ZAR10.9B).

Long Term Liabilities: WQ9's short term assets (ZAR12.5B) exceed its long term liabilities (ZAR612.4M).


Debt to Equity History and Analysis

Debt Level: WQ9 is debt free.

Reducing Debt: WQ9 has no debt compared to 5 years ago when its debt to equity ratio was 1.6%.

Debt Coverage: WQ9 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WQ9 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

6.90%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WQ9's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WQ9's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WQ9's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WQ9's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WQ9 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WQ9's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Wolfgang Neff

0.42

Tenure

Mr. Wolfgang Nef (BSc (Civil), Pr Eng, Pr CM), has been the Chief Executive Officer of Wilson Bayly Holmes-Ovcon Limited since November 20, 2019 and served as its Managing Director of North and Africa Buil ...


Leadership Team

NamePositionTenureCompensationOwnership
Elia Nel
Executive Chairman0.42yrR19.38m0.62% ZAR1.4m
Charles Henwood
CFO & Executive Director8.42yrsR17.84m0.20% ZAR444.1k
Samuel Gumede
Group Legal Counsel5.25yrsR4.11mno data
Paul Foley
Group Managing Director of Building & Civil Engineering Divisionno dataR24.35m0.19% ZAR416.8k
Shereen Vally-Kara
Company Secretary12.5yrsR5.36m0.042% ZAR92.5k
Edwin Mashishi
Director5.75yrsR10.83m0.070% ZAR155.0k
Wolfgang Neff
Chief Executive Officer0.42yrno data0.050% ZAR111.0k
Kevin Reddie
Group Human Resources Divisional Director19.25yrsno datano data
Simon Gray
Group Managing Director of Probuildno datano datano data
Derek Wallace
Divisional Managing Director of Projects8.25yrsno datano data

8.3yrs

Average Tenure

55yo

Average Age

Experienced Management: WQ9's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Elia Nel
Executive Chairman0.42yrR19.38m0.62% ZAR1.4m
Charles Henwood
CFO & Executive Director8.42yrsR17.84m0.20% ZAR444.1k
Savannah Nonhlanhla Danson
Independent Non-Executive Director13.5yrsR819.00k0.45% ZAR1.0m
Hatla Ntene
Independent Non-Executive Director2.42yrsR556.00kno data
Andries Bester
Independent Non-Executive Director2.42yrsR630.00kno data
Ross Gardiner
Lead Independent Directorno dataR906.00kno data
Karen Forbay
Independent Non-Executive Director2.42yrsR484.00kno data

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: WQ9's board of directors are not considered experienced ( 2.4 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: Insufficient data to determine if 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

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: R4.547b
  • Listing Market Cap: R222.752m
  • Shares outstanding: 53.17m
  • 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 Africa, Australia, and the United Kingdom. It operates through six segments: Building and Civil Engineering, Roads and Earthworks, Australia, the United Kingdom, Property Developments, and Construction Materials. The company constructs retail shopping centres, commercial buildings, hotels, hospitals, and residential apartments primarily for the private sector, as well as civil engineering related infrastructure for the mining, industrial, energy, and oil and gas sectors. It also undertakes roads and earthworks, such as water and gas pipelines, and other infrastructure projects; retail, residential, and commercial building projects for the private building sector, as well as various engineering disciplines servicing the road and mining sectors, and telecommunications; and building refurbishments and fit-out projects. In addition, the company acquires, develops, and sells land; and manufactures and sells long-steel products. Wilson Bayly Holmes-Ovcon Limited was founded in 1970 and is headquartered in Johannesburg, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 23:54
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.