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RWS Holdings

AIM:RWS
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RWS
AIM
£2B
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

RWS Holdings plc engages in the translation, intellectual property (IP) support, life sciences language, and localization businesses. The last earnings update was 39 days ago. More info.


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RWS Share Price and Events
7 Day Returns
2.3%
AIM:RWS
0.7%
GB Professional Services
0.2%
GB Market
1 Year Returns
40.7%
AIM:RWS
8.9%
GB Professional Services
-2%
GB Market
RWS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RWS Holdings (RWS) 2.3% -2.9% 9% 40.7% 141.8% 291%
GB Professional Services 0.7% 0.1% 9% 8.9% 44.5% 94.5%
GB Market 0.2% 1.3% 0.1% -2% 11.2% 6.3%
1 Year Return vs Industry and Market
  • RWS outperformed the Professional Services industry which returned 8.9% over the past year.
  • RWS outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.
Price Volatility
RWS
Industry
5yr Volatility vs Market
Related Companies

RWS Value

 Is RWS Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RWS Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RWS Holdings.

AIM:RWS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:RWS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 19%) (5.27%))
0.925
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.925 * 6.65%)
7.38%

Discounted Cash Flow Calculation for AIM:RWS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RWS Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:RWS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.38%)
2020 61.00 Analyst x1 56.81
2021 63.00 Analyst x1 54.64
2022 64.66 Est @ 2.63% 52.22
2023 66.08 Est @ 2.21% 49.71
2024 67.35 Est @ 1.91% 47.18
2025 68.50 Est @ 1.71% 44.69
2026 69.57 Est @ 1.56% 42.27
2027 70.59 Est @ 1.46% 39.94
2028 71.57 Est @ 1.39% 37.72
2029 72.53 Est @ 1.34% 35.60
Present value of next 10 years cash flows £460.79
AIM:RWS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £72.53 × (1 + 1.23%) ÷ (7.38% – 1.23%)
£1,193.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,193.90 ÷ (1 + 7.38%)10
£585.98
AIM:RWS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £460.79 + £585.98
£1,046.76
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,046.76 / 273.54
£3.83
AIM:RWS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £3.83
Current discount Discount to share price of £6.33
= -1 x (£6.33 - £3.83) / £3.83
-65.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of RWS Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RWS Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RWS Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:RWS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.14
AIM:RWS Share Price ** AIM (2019-07-19) in GBP £6.33
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 32 Publicly-Listed Professional Services Companies 19.54x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RWS Holdings.

AIM:RWS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:RWS Share Price ÷ EPS (both in GBP)

= 6.33 ÷ 0.14

46.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RWS Holdings is overvalued based on earnings compared to the GB Professional Services industry average.
  • RWS Holdings is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does RWS Holdings's expected growth come at a high price?
Raw Data
AIM:RWS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
7.6%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Professional Services Companies 1.52x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

AIM:RWS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.86x ÷ 7.6%

6.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RWS Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on RWS Holdings's assets?
Raw Data
AIM:RWS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £1.31
AIM:RWS Share Price * AIM (2019-07-19) in GBP £6.33
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 44 Publicly-Listed Professional Services Companies 2.42x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
AIM:RWS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:RWS Share Price ÷ Book Value per Share (both in GBP)

= 6.33 ÷ 1.31

4.82x

* Primary Listing of RWS Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RWS Holdings is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess RWS Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. RWS Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RWS Future Performance

 How is RWS Holdings expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RWS Holdings expected to grow at an attractive rate?
  • RWS Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • RWS Holdings's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • RWS Holdings's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:RWS Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:RWS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 7.6%
AIM:RWS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 5.3%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:RWS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:RWS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 432 1
2022-09-30 411 1
2021-09-30 391 79 44 2
2020-09-30 371 74 41 2
2019-09-30 351 68 37 2
AIM:RWS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 339 61 37
2018-12-31 322 52 33
2018-09-30 306 44 28
2018-06-30 267 36 27
2018-03-31 227 29 26
2017-12-31 196 29 26
2017-09-30 164 28 25
2017-06-30 153 27 23
2017-03-31 142 26 22
2016-12-31 132 25 21
2016-09-30 122 24 19
2016-06-30 114 22 18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RWS Holdings's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
  • RWS Holdings's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:RWS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from RWS Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:RWS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.16 0.16 0.16 1.00
2020-09-30 0.15 0.15 0.15 1.00
2019-09-30 0.13 0.13 0.13 1.00
AIM:RWS Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.14
2018-12-31 0.12
2018-09-30 0.10
2018-06-30 0.11
2018-03-31 0.11
2017-12-31 0.11
2017-09-30 0.11
2017-06-30 0.11
2017-03-31 0.10
2016-12-31 0.10
2016-09-30 0.09
2016-06-30 0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if RWS Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess RWS Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RWS Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RWS Past Performance

  How has RWS Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RWS Holdings's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RWS Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • RWS Holdings's 1-year earnings growth exceeds its 5-year average (39.5% vs 18.4%)
  • RWS Holdings's earnings growth has exceeded the GB Professional Services industry average in the past year (39.5% vs 12.2%).
Earnings and Revenue History
RWS Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RWS Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:RWS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 338.82 36.94 78.80
2018-12-31 322.43 32.60 76.75
2018-09-30 306.04 28.26 74.70
2018-06-30 266.52 27.37 63.84
2018-03-31 226.99 26.49 52.97
2017-12-31 195.51 25.52 45.38
2017-09-30 164.04 24.56 37.79
2017-06-30 152.89 23.20 35.53
2017-03-31 141.75 21.84 33.28
2016-12-31 131.87 20.58 29.47
2016-09-30 121.99 19.33 25.67
2016-06-30 114.34 17.88 22.89
2016-03-31 106.69 16.42 20.10
2015-12-31 100.95 15.98 18.39
2015-09-30 95.22 15.53 16.68
2015-06-30 93.63 15.45 16.72
2015-03-31 92.05 15.36 16.76
2014-12-31 92.80 15.28 16.97
2014-09-30 93.56 15.20 17.19
2014-06-30 90.59 15.24 17.03
2014-03-31 87.63 15.28 16.87
2013-12-31 82.52 15.60 14.93
2013-09-30 77.40 15.92 12.98
2013-06-30 74.60 15.22 12.26
2013-03-31 71.80 14.53 11.54
2012-12-31 70.31 13.60 12.29
2012-09-30 68.83 12.67 13.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RWS Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RWS Holdings used its assets less efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • RWS Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RWS Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RWS Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RWS Health

 How is RWS Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RWS Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RWS Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RWS Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RWS Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RWS Holdings Company Filings, last reported 3 months ago.

AIM:RWS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 358.96 91.27 27.41
2018-12-31 358.96 91.27 27.41
2018-09-30 355.28 103.27 38.16
2018-06-30 355.28 103.27 38.16
2018-03-31 325.26 107.09 24.31
2017-12-31 325.26 107.09 24.31
2017-09-30 158.89 40.30 20.06
2017-06-30 158.89 40.30 20.06
2017-03-31 152.28 48.00 16.19
2016-12-31 152.28 48.00 16.19
2016-09-30 108.70 29.42 27.91
2016-06-30 108.70 29.42 27.91
2016-03-31 93.69 29.69 16.56
2015-12-31 93.69 29.69 16.56
2015-09-30 85.69 0.00 30.57
2015-06-30 85.69 0.00 30.57
2015-03-31 80.00 0.00 21.47
2014-12-31 80.00 0.00 21.47
2014-09-30 78.43 0.00 22.48
2014-06-30 78.43 0.00 22.48
2014-03-31 71.86 0.00 14.91
2013-12-31 71.86 0.00 14.91
2013-09-30 71.71 0.00 18.31
2013-06-30 71.71 0.00 18.31
2013-03-31 65.53 0.00 28.04
2012-12-31 65.53 0.00 28.04
2012-09-30 63.23 0.00 25.10
  • RWS Holdings's level of debt (25.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 25.4% today).
  • Debt is well covered by operating cash flow (66.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.5x coverage).
X
Financial health checks
We assess RWS Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RWS Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RWS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.18%
Current annual income from RWS Holdings dividends. Estimated to be 1.48% next year.
If you bought £2,000 of RWS Holdings shares you are expected to receive £24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RWS Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • RWS Holdings's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:RWS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:RWS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30 0.10 1.00
2021-09-30 0.10 3.00
2020-09-30 0.09 3.00
2019-09-30 0.08 3.00
AIM:RWS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-12-11 0.075 1.418
2018-01-23 0.065 1.485
2017-12-06 0.065 1.433
2016-12-06 0.056 1.501
2016-03-18 0.049 2.000
2015-12-08 0.049 2.417
2014-12-09 0.046 3.018
2014-12-08 0.046 2.840
2014-01-20 0.041 2.432
2013-12-09 0.041 2.201
2013-06-10 0.036 2.398
2012-12-13 0.035 2.757
2011-12-14 0.031 3.003
2011-12-13 0.031 3.231
2010-12-14 0.027 3.308
2010-12-13 0.027 4.729
2009-12-14 0.023 4.012
2009-11-30 0.023 3.763
2008-12-11 0.021 3.718

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of RWS Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess RWS Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RWS Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RWS Holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RWS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Thompson
COMPENSATION £552,000
AGE 57
TENURE AS CEO 2.3 years
CEO Bio

Mr. Richard J. Thompson has been the Chief Executive Officer of RWS Holdings plc since April 1, 2017. Mr. Thompson has been Group Finance Director of Torex Retail Solutions Ltd. (formerly known as Torex Retail Ltd.) since July 1 2004. He served as Deputy Chief Executive Officer of RWS Holdings plc from 2015 to April 1, 2017, Chief Financial Officer from 2012 to April 1, 2017 and also served as its Finance Director until April 1, 2017. Mr. Thompson served as Company Secretary at RWS Holdings plc from November 28, 2012 to April 1, 2017. He is responsible for all areas of finance, legal and administration within the Actix business. He is an Experienced Finance Director with a proven track record in both operational and group finance roles within publicly listed companies. He served as Group Finance Director of Torex Retail PLC. Mr. Thompson served as Chief Financial Officer of Actix Limited. From October 2001 to December 2003, he served as Finance Director of Project Telecommunications Ltd. ('PTL'), the major subsidiary of a rapidly growing listed telecoms company, with a group turnover of circa £300m. Mr. Thompson was responsible for all aspects of PTL's finance function reporting to the Group Finance Director, one of Torex Retail Ltd.'s founders. He was the Group FD for an AIM listed, global software company. He has been a Director of RWS Holdings plc since November 28, 2012. He has been a Director of Torex Retail Solutions Ltd. since July 1 2004. He served as Director of Torex Retail Plc. from July 1, 2004 to 31 October 2005. PTL was acquired by Vodafone PLC in January 2004 and Mr. Thompson has overseen the successful transfer of PTL's finance function to Vodafone's head office. Prior to joining PTL, he worked for 12 years with the Courtaulds Textiles Group in a number of senior financial roles, including 4 years in China and the US. Mr. Thompson is a Chartered Accountant with Panell Kerr Forster.

CEO Compensation
  • Richard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Richard's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the RWS Holdings management team in years:

1.7
Average Tenure
57
Average Age
  • The average tenure for the RWS Holdings management team is less than 2 years, this suggests a new team.
Management Team

Andrew Brode

TITLE
Executive Chairman
COMPENSATION
£266K
AGE
79

Richard Thompson

TITLE
CEO & Executive Director
COMPENSATION
£552K
AGE
57
TENURE
2.3 yrs

Des Glass

TITLE
CFO, Company Secretary & Director
COMPENSATION
£249K
AGE
50
TENURE
1.7 yrs

Joe Lugo

TITLE
Chief Operating Officer
TENURE
1.3 yrs

Charles Sitch

TITLE
Managing Director of IP Services
TENURE
2.3 yrs

Neil Simpkin

TITLE
Managing Director of IP Services
TENURE
2.3 yrs

Stuart Carter

TITLE
Managing Director of Language Solutions
TENURE
1.8 yrs

Jon Hart

TITLE
Managing Director of Life Sciences
TENURE
0.2 yrs

Paul Danter

TITLE
Managing Director of RWS Moravia
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the RWS Holdings board of directors in years:

5.5
Average Tenure
57
Average Age
  • The tenure for the RWS Holdings board of directors is about average.
Board of Directors

Andrew Brode

TITLE
Executive Chairman
COMPENSATION
£266K
AGE
79
TENURE
14.5 yrs

Richard Thompson

TITLE
CEO & Executive Director
COMPENSATION
£552K
AGE
57
TENURE
6.7 yrs

David Shrimpton

TITLE
Non Executive Deputy Chairman & Senior Independent Non-Executive Director
COMPENSATION
£40K
AGE
75
TENURE
5.5 yrs

Des Glass

TITLE
CFO, Company Secretary & Director
COMPENSATION
£249K
AGE
50
TENURE
1.7 yrs

Liz Lucas

TITLE
Non-Executive Director
COMPENSATION
£50K
AGE
62
TENURE
15.7 yrs

Lara Boro

TITLE
Independent Non-Executive Director
COMPENSATION
£40K
AGE
52
TENURE
1.8 yrs

Tomas Kratochvíl

TITLE
Independent Non-Executive Director
COMPENSATION
£25K
AGE
52
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess RWS Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RWS Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RWS News

Simply Wall St News

Will RWS Holdings plc's (LON:RWS) Earnings Grow In The Year Ahead?

Looking at RWS Holdings plc's (LON:RWS) earnings update in September 2018,. … with earnings expected to grow by 27% in the upcoming year … the past 5-year average growth rate of 14%

Simply Wall St -

Why We’re Not Keen On RWS Holdings plc’s (LON:RWS) 9.5% Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Can RWS Holdings plc (LON:RWS) Improve Its Returns?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.081. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

RWS Holdings plc (LON:RWS)'s Return on Capital

Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand RWS Holdings’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

What You Must Know About RWS Holdings plc's (LON:RWS) Return on Equity

and want to learn about Return on Equity using a real-life example. … RWS Holdings plc (LON:RWS) generated a below-average return on equity of 8.14% in the past 12 months, while its industry returned 19.09%. … Knowing these components can change your views on RWS's below-average returns.

Simply Wall St -

Should You Be Tempted To Sell RWS Holdings plc (LON:RWS) At Its Current PE Ratio?

However, a static multiple such as PE is never conclusive on its own. … This is because there are many company-specific factors like future prospects and capital structure, which are unaccounted for … In this article, I am going to take you through some key things to consider in order to identify which multiple is the most relevant for

Simply Wall St -

RWS Holdings plc (LON:RWS): Ex-Dividend Is In 2 Days, Should You Buy?

To qualify for the dividend check of UK£0.015 per share, investors must have owned the shares prior to 28 June 2018, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

RWS Holdings plc (LON:RWS): Is Now A Good Time To Buy?

Looking at RWS Holdings plc’s (LON:RWS) fundamentals some investors are wondering if its last closing price of £3.93 represents a good value for money for this high growth stock. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … RWS Holdings's growth potential is very attractive

Simply Wall St -

Does RWS Holdings plc's (LON:RWS) PE Ratio Warrant A Sell?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between RWS Holdings plc (LON:RWS)’s fundamentals and stock market performance. … While this makes RWS appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Looking At RWS Holdings plc (LON:RWS) From All Angles

RWS Holdings plc (LON:RWS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … company with a

Simply Wall St -

RWS Company Info

Description

RWS Holdings plc engages in the translation, intellectual property (IP) support, life sciences language, and localization businesses. The company operates through four segments: Patent Translation & Filing, Patent Information, Life Sciences, and Language Solutions. The Patent Translation & Filing segment undertakes patent translation and filing services of patent activities, as well as IP translations for litigation and information purposes, including prior-art documents, office actions, opposition proceedings and correspondence, and written opinions of international searching authorities. The Patent Information segment provides solutions to assist strategic decision-making across the intellectual property (IP) lifecycle. The Life Sciences segment offers a full suite of language services, including language solutions for clinical trial management; linguistic validation of clinical outcomes assessments; and regulatory affairs expertise, medical device documentation, and marketing and communications services, as well as e-learning and training programs for the life sciences industry. The Language Solutions segment provides translation and interpreting services in various sectors, such as automotive, chemical, defense, energy, engineering, finance, insurance, legal, and manufacturing sectors. This segment also offers terminology and professional services. It primarily operates in the United Kingdom, the United States, Continental Europe, Asia, and Australia. RWS Holdings plc was founded in 1958 and is headquartered in Chalfont St Peter, the United Kingdom.

Details
Name: RWS Holdings plc
RWS
Exchange: AIM
Founded: 1958
£1,731,528,911
273,543,272
Website: http://www.rws.com
Address: RWS Holdings plc
Europa House,
Chiltern Park,
Chalfont St Peter,
Buckinghamshire, SL9 9FG,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM RWS Ordinary Shares London Stock Exchange AIM Market GB GBP 17. Nov 2003
BST RWJ1 Ordinary Shares Boerse-Stuttgart DE EUR 17. Nov 2003
Number of employees
Current staff
Staff numbers
2,468
RWS Holdings employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 20:46
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/06/11
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.