LSE:GDWN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Goodwin PLC, together with its subsidiaries, provides mechanical and refractory engineering solutions primarily in the United Kingdom, rest of Europe, the United States, the Pacific Basin, and internationally. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has Goodwin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GDWN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.2%

GDWN

-0.1%

GB Machinery

-1.9%

GB Market


1 Year Return

-0.5%

GDWN

19.9%

GB Machinery

-14.5%

GB Market

Return vs Industry: GDWN underperformed the UK Machinery industry which returned 21.6% over the past year.

Return vs Market: GDWN exceeded the UK Market which returned -14.2% over the past year.


Shareholder returns

GDWNIndustryMarket
7 Day7.2%-0.1%-1.9%
30 Day8.4%8.5%-1.7%
90 Day3.2%12.0%-4.4%
1 Year2.3%-0.5%21.6%19.9%-11.3%-14.5%
3 Year85.2%69.7%18.2%10.2%-9.0%-20.3%
5 Year57.8%37.9%98.6%74.4%15.3%-10.6%

Price Volatility Vs. Market

How volatile is Goodwin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

30.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDWN (£32.75) is trading above our estimate of fair value (£9.58)

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


Price To Earnings Ratio

PE vs Industry: GDWN is poor value based on its PE Ratio (30.3x) compared to the GB Machinery industry average (21.9x).

PE vs Market: GDWN is poor value based on its PE Ratio (30.3x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GDWN is overvalued based on its PB Ratio (2.3x) compared to the GB Machinery industry average (1.7x).


Next Steps

Future Growth

How is Goodwin forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Goodwin has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Goodwin performed over the past 5 years?

-1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDWN has high quality earnings.

Growing Profit Margin: GDWN's current net profit margins (5.4%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: GDWN's earnings have declined by 1.2% per year over the past 5 years.

Accelerating Growth: GDWN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GDWN had negative earnings growth (-31.6%) over the past year, making it difficult to compare to the Machinery industry average (-13%).


Return on Equity

High ROE: GDWN's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Goodwin's financial position?


Financial Position Analysis

Short Term Liabilities: GDWN's short term assets (£90.8M) exceed its short term liabilities (£63.5M).

Long Term Liabilities: GDWN's short term assets (£90.8M) exceed its long term liabilities (£19.2M).


Debt to Equity History and Analysis

Debt Level: GDWN's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: GDWN's debt to equity ratio has increased from 19.4% to 25% over the past 5 years.

Debt Coverage: GDWN's debt is well covered by operating cash flow (70%).

Interest Coverage: GDWN's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet


Next Steps

Dividend

What is Goodwin current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GDWN's dividend (2.49%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: GDWN's dividend (2.49%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

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

Growing Dividend: GDWN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.7%), GDWN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Goodwin has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy John Goodwin
Chairman of the Board1.42yrsUK£194.00k1.43%
£ 3.4m
Matthew Goodwin
MD of the Goodwin PLC Mechanical Engineering Division & Executive Director13.83yrsUK£310.00k0.77%
£ 1.8m
John Connolly
Executive Director13.83yrsUK£241.00k0.10%
£ 249.6k
Simon Goodwin
MD of the Goodwin PLC Refractory Engineering Division & Executive Director9.83yrsUK£310.00k0.90%
£ 2.2m
Steven Birks
Executive Director7.92yrsUK£146.00k0.0027%
£ 6.6k
Bernard Rafe Goodwin
Executive Director7.92yrsUK£156.00k0.47%
£ 1.1m
Jenny Martin
Company Secretary1.75yrsno datano data

1.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: GDWN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy John Goodwin
Chairman of the Board1.42yrsUK£194.00k1.43%
£ 3.4m
Matthew Goodwin
MD of the Goodwin PLC Mechanical Engineering Division & Executive Director13.83yrsUK£310.00k0.77%
£ 1.8m
John Connolly
Executive Director13.83yrsUK£241.00k0.10%
£ 249.6k
Simon Goodwin
MD of the Goodwin PLC Refractory Engineering Division & Executive Director9.83yrsUK£310.00k0.90%
£ 2.2m
Steven Birks
Executive Director7.92yrsUK£146.00k0.0027%
£ 6.6k
Bernard Rafe Goodwin
Executive Director7.92yrsUK£156.00k0.47%
£ 1.1m
Jennifer Kelly
Independent Non Executive Director5.5yrsUK£63.00kno data

7.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: GDWN's board of directors are considered experienced (7.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GDWN insiders have only sold shares 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

Goodwin PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Goodwin PLC
  • Ticker: GDWN
  • Exchange: LSE
  • Founded: 1883
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£241.145m
  • Shares outstanding: 7.36m
  • Website: https://www.goodwin.co.uk

Number of Employees


Location

  • Goodwin PLC
  • Ivy House Foundry
  • Hanley
  • Stoke-On-Trent
  • Staffordshire
  • ST1 3NR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDWNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
GDWBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992
GDWNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Goodwin PLC, together with its subsidiaries, provides mechanical and refractory engineering solutions primarily in the United Kingdom, rest of Europe, the United States, the Pacific Basin, and internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:05
End of Day Share Price2020/10/20 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.