RWS Holdings
Market Cap
UK£2.5b
Last Updated
2021/05/15 18:47 UTC
Data Sources
Company Financials +
Executive Summary
RWS Holdings plc engages in the translation, intellectual property (IP) support, life sciences language, and localization businesses. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has RWS Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RWS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RWS's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-4.0%
RWS
-3.6%
GB Professional Services
-1.2%
GB Market
1 Year Return
9.1%
RWS
13.5%
GB Professional Services
27.6%
GB Market
Return vs Industry: RWS underperformed the UK Professional Services industry which returned 13.5% over the past year.
Return vs Market: RWS underperformed the UK Market which returned 27.6% over the past year.
Shareholder returns
| RWS | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.0% | -3.6% | -1.2% |
| 30 Day | -7.8% | -2.6% | 0.6% |
| 90 Day | 0.08% | 1.8% | 5.3% |
| 1 Year | 10.9%9.1% | 15.7%13.5% | 33.1%27.6% |
| 3 Year | 91.2%82.4% | 30.1%22.0% | 11.1%-1.6% |
| 5 Year | 221.7%197.0% | 86.9%67.3% | 48.7%20.7% |
Long-Term Price Volatility Vs. Market
How volatile is RWS Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Why RWS Holdings plc (LON:RWS) Should Be In Your Dividend Portfolio1 month ago | Simply Wall St
Calculating The Fair Value Of RWS Holdings plc (LON:RWS)2 months ago | Simply Wall St
RWS Holdings plc's (LON:RWS) Stock Is Going Strong: Is the Market Following Fundamentals?Valuation
Is RWS Holdings undervalued compared to its fair value and its price relative to the market?
22.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RWS (£6.39) is trading below our estimate of fair value (£8.27)
Significantly Below Fair Value: RWS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RWS is poor value based on its PE Ratio (37.8x) compared to the UK Professional Services industry average (37.3x).
PE vs Market: RWS is poor value based on its PE Ratio (37.8x) compared to the UK market (25.6x).
Price to Earnings Growth Ratio
PEG Ratio: RWS is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: RWS is overvalued based on its PB Ratio (4.3x) compared to the GB Professional Services industry average (2.9x).
Future Growth
How is RWS Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
24.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RWS's forecast earnings growth (24.8% per year) is above the savings rate (0.9%).
Earnings vs Market: RWS's earnings (24.8% per year) are forecast to grow faster than the UK market (17.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RWS's revenue (14% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: RWS's revenue (14% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RWS's Return on Equity is forecast to be low in 3 years time (10.1%).
Past Performance
How has RWS Holdings performed over the past 5 years?
23.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RWS has high quality earnings.
Growing Profit Margin: RWS's current net profit margins (13.1%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: RWS's earnings have grown significantly by 23.5% per year over the past 5 years.
Accelerating Growth: RWS's earnings growth over the past year (2.9%) is below its 5-year average (23.5% per year).
Earnings vs Industry: RWS earnings growth over the past year (2.9%) exceeded the Professional Services industry -10.4%.
Return on Equity
High ROE: RWS's Return on Equity (11.4%) is considered low.
Financial Health
How is RWS Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: RWS's short term assets (£134.1M) exceed its short term liabilities (£64.5M).
Long Term Liabilities: RWS's short term assets (£134.1M) exceed its long term liabilities (£117.2M).
Debt to Equity History and Analysis
Debt Level: RWS's debt to equity ratio (16.3%) is considered satisfactory.
Reducing Debt: RWS's debt to equity ratio has increased from 0.8% to 16.3% over the past 5 years.
Debt Coverage: RWS's debt is well covered by operating cash flow (119.3%).
Interest Coverage: RWS's interest payments on its debt are well covered by EBIT (20.8x coverage).
Balance Sheet
Dividend
What is RWS Holdings's current dividend yield, its reliability and sustainability?
1.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RWS's dividend (1.41%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: RWS's dividend (1.41%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
Stability and Growth of Payments
Stable Dividend: RWS's dividends per share have been stable in the past 10 years.
Growing Dividend: RWS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (53.3%), RWS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RWS's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Richard Thompson (58 yo)
4.17yrs
Tenure
UK£573,000
Compensation
Mr. Richard J. Thompson has been the Chief Executive Officer of RWS Holdings plc since March 31, 2017. Mr. Thompson has been Group Finance Director of Torex Retail Solutions Ltd. (formerly known as Torex R...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD807.43K) is below average for companies of similar size in the UK market ($USD1.68M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RWS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
Experienced Board: RWS's board of directors are not considered experienced ( 0.5 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 been diluted in the past year, with total shares outstanding growing by 41.5%.
Top Shareholders
Company Information
RWS Holdings plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: RWS Holdings plc
- Ticker: RWS
- Exchange: AIM
- Founded: 1958
- Industry: Research and Consulting Services
- Sector: Commercial Services
- Market Cap: UK£2.485b
- Shares outstanding: 389.19m
- Website: https://www.rws.com
Number of Employees
Location
- RWS Holdings plc
- Europa House
- Chiltern Park
- Chalfont St Peter
- Buckinghamshire
- SL9 9FG
- United Kingdom
Listings
Biography
RWS Holdings plc engages in the translation, intellectual property (IP) support, life sciences language, and localization businesses. The company operates through IP Services, Life Sciences, and Moravia se...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/15 18:47 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.