LSE:GDWN

Stock Analysis Report

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.

Rewards

Earnings grew by 35.3% over the past year

Pays a reliable dividend of 2.76%

Risk Analysis

Earnings have declined by -18.81% per year over past 5 years



Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.

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

1.5%

GDWN

2.1%

GB Machinery

2.3%

GB Market


1 Year Return

27.0%

GDWN

25.4%

GB Machinery

10.7%

GB Market

Return vs Industry: GDWN exceeded the UK Machinery industry which returned 25.4% over the past year.

Return vs Market: GDWN exceeded the UK Market which returned 10.7% over the past year.


Shareholder returns

GDWNIndustryMarket
7 Day1.5%2.1%2.3%
30 Day3.9%5.1%2.5%
90 Day1.2%6.1%3.0%
1 Year30.7%27.0%29.0%25.4%16.4%10.7%
3 Year111.0%93.3%39.6%28.8%21.3%5.8%
5 Year64.3%45.0%53.5%32.1%41.0%8.7%

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?

21.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDWN (£34.8) is trading above our estimate of fair value (£11.65)

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 (21.8x) compared to the Machinery industry average (19x).

PE vs Market: GDWN is poor value based on its PE Ratio (21.8x) compared to the UK market (17.6x).


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 (2.4x) compared to the GB Machinery industry average (1.9x).


Next Steps

Future Growth

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

10.5%

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?

-18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDWN has high quality earnings.

Growing Profit Margin: GDWN's current net profit margins (9.1%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: GDWN's earnings have declined by -18.8% per year over the past 5 years.

Accelerating Growth: GDWN's earnings growth over the past year (35.3%) exceeds its 5-year average (-18.8% per year).

Earnings vs Industry: GDWN earnings growth over the past year (35.3%) exceeded the Machinery industry 3%.


Return on Equity

High ROE: GDWN's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Goodwin's financial position?


Financial Position Analysis

Short Term Liabilities: GDWN's short term assets (£91.7M) exceed its short term liabilities (£58.1M).

Long Term Liabilities: GDWN's short term assets (£91.7M) exceed its long term liabilities (£22.1M).


Debt to Equity History and Analysis

Debt Level: GDWN's debt to equity ratio (26.2%) is considered satisfactory.

Reducing Debt: GDWN's debt to equity ratio has increased from 11.5% to 26.2% over the past 5 years.

Debt Coverage: GDWN's debt is well covered by operating cash flow (39.2%).

Interest Coverage: GDWN's interest payments on its debt are well covered by EBIT (35.8x coverage).


Balance Sheet

Inventory Level: GDWN has a high level of physical assets or inventory.

Debt Coverage by Assets: GDWN's debt is covered by short term assets (assets are 3.2x debt).


Next Steps

Dividend

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

2.76%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.9%markettop25%5.1%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GDWN's dividend (2.76%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: GDWN's dividend (2.76%) is low compared to the top 25% of dividend payers in the UK market (5.06%).


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: With its reasonable payout ratio (60.2%), GDWN's dividend 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

What is the CEO of Goodwin's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

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


Management Age and Tenure

0.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: GDWN's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

7.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: GDWN's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

Insider Buying: GDWN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£276,65508 Oct 19
Timothy John Goodwin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares8,019
Max PriceUK£34.50
SellUK£276,65508 Oct 19
Simon Goodwin
EntityIndividual
Role
Member of the Board of Directors
MD of the Goodwin PLC Refractory Engineering Division & Executive Director
Shares8,019
Max PriceUK£34.50
BuyUK£1,106,62208 Oct 19
J. M.Securities Limited
EntityCompany
Shares32,076
Max PriceUK£34.50
SellUK£276,65508 Oct 19
Matthew Goodwin
EntityIndividual
Role
Member of the Board of Directors
MD of the Goodwin PLC Mechanical Engineering Division & Executive Director
Shares8,019
Max PriceUK£34.50
SellUK£276,65508 Oct 19
Bernard Rafe Goodwin
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares8,019
Max PriceUK£34.50
BuyUK£20,16103 May 19
Timothy John Goodwin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares635
Max PriceUK£31.75
BuyUK£45,93103 May 19
Matthew Goodwin
EntityIndividual
Role
Member of the Board of Directors
MD of the Goodwin PLC Mechanical Engineering Division & Executive Director
Shares1,448
Max PriceUK£31.72
BuyUK£38,55503 May 19
Bernard Rafe Goodwin
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares1,213
Max PriceUK£31.79
BuyUK£38,83203 May 19
Richard Goodwin
EntityIndividual
Shares1,225
Max PriceUK£31.70
BuyUK£26,10803 May 19
Simon Goodwin
EntityIndividual
Role
Member of the Board of Directors
MD of the Goodwin PLC Refractory Engineering Division & Executive Director
Shares821
Max PriceUK£31.80
BuyUK£22,01208 Apr 19
Timothy John Goodwin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares750
Max PriceUK£29.35
BuyUK£19,87208 Apr 19
Bernard Rafe Goodwin
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares658
Max PriceUK£30.20
BuyUK£19,98008 Apr 19
Simon Goodwin
EntityIndividual
Role
Member of the Board of Directors
MD of the Goodwin PLC Refractory Engineering Division & Executive Director
Shares666
Max PriceUK£30.00
BuyUK£20,00108 Apr 19
Matthew Goodwin
EntityIndividual
Role
Member of the Board of Directors
MD of the Goodwin PLC Mechanical Engineering Division & Executive Director
Shares681
Max PriceUK£29.37

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Connolly (68yo)

    Executive Director

    • Tenure: 13yrs
    • Compensation: UK£2.18m
  • Matthew Goodwin (48yo)

    MD of the Goodwin PLC Mechanical Engineering Division & Executive Director

    • Tenure: 13yrs
    • Compensation: UK£2.19m
  • Simon Goodwin

    MD of the Goodwin PLC Refractory Engineering Division & Executive Director

    • Tenure: 9yrs
    • Compensation: UK£2.17m
  • Steven Birks (67yo)

    Executive Director

    • Tenure: 7.1yrs
    • Compensation: UK£2.08m
  • Bernard Rafe Goodwin (33yo)

    Executive Director

    • Tenure: 7.1yrs
    • Compensation: UK£2.08m
  • Timothy John Goodwin

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: UK£2.09m
  • Jenny Martin

    Company Secretary

    • Tenure: 0.9yrs

Board Members

  • John Connolly (68yo)

    Executive Director

    • Tenure: 13yrs
    • Compensation: UK£2.18m
  • Matthew Goodwin (48yo)

    MD of the Goodwin PLC Mechanical Engineering Division & Executive Director

    • Tenure: 13yrs
    • Compensation: UK£2.19m
  • Simon Goodwin

    MD of the Goodwin PLC Refractory Engineering Division & Executive Director

    • Tenure: 9yrs
    • Compensation: UK£2.17m
  • Steven Birks (67yo)

    Executive Director

    • Tenure: 7.1yrs
    • Compensation: UK£2.08m
  • Bernard Rafe Goodwin (33yo)

    Executive Director

    • Tenure: 7.1yrs
    • Compensation: UK£2.08m
  • Timothy John Goodwin

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: UK£2.09m
  • Jennifer Kelly

    Non Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£52.00k

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£256.239m
  • 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 Analysis2019/12/15 20:33
End of Day Share Price2019/12/13 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.