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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


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

RWSIndustryMarket
7 Day-4.0%-3.6%-1.2%
30 Day-7.8%-2.6%0.6%
90 Day0.08%1.8%5.3%
1 Year10.9%9.1%15.7%13.5%33.1%27.6%
3 Year91.2%82.4%30.1%22.0%11.1%-1.6%
5 Year221.7%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 18:47
End of Day Share Price2021/05/14 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.