DWF Group
Market Cap
UK£264.4m
Last Updated
2020/03/30 01:23 UTC
Data Sources
Company Financials +
Executive Summary
DWF Group plc provides various legal services and complementary connected services in the United Kingdom and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and fair value.
Share Price & News
How has DWF Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DWF's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-11.3%
DWF
10.7%
GB Professional Services
6.0%
GB Market
1 Year Return
-25.9%
DWF
1.0%
GB Professional Services
-22.7%
GB Market
Return vs Industry: DWF underperformed the UK Professional Services industry which returned 1% over the past year.
Return vs Market: DWF underperformed the UK Market which returned -22.7% over the past year.
Shareholder returns
| DWF | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.3% | 10.7% | 6.0% |
| 30 Day | -32.7% | -14.4% | -20.3% |
| 90 Day | -26.8% | -15.9% | -28.1% |
| 1 Year | -23.8%-25.9% | 3.4%1.0% | -18.6%-22.7% |
| 3 Year | n/a | 23.1%14.8% | -13.4%-24.6% |
| 5 Year | n/a | 73.1%52.6% | 1.3%-22.0% |
Price Volatility Vs. Market
How volatile is DWF Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is DWF Group's (LON:DWF) P/E Ratio After Its Share Price Tanked?1 week ago | Simply Wall St
Does DWF Group (LON:DWF) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
Could The DWF Group plc (LON:DWF) Ownership Structure Tell Us Something Useful?Valuation
Is DWF Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DWF (£0.9) is trading below our estimate of fair value (£4.02)
Significantly Below Fair Value: DWF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DWF is poor value based on its PE Ratio (23.7x) compared to the Professional Services industry average (15.1x).
PE vs Market: DWF is poor value based on its PE Ratio (23.7x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: DWF is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: DWF is overvalued based on its PB Ratio (6x) compared to the GB Professional Services industry average (2.1x).
Next Steps
Future Growth
How is DWF Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
45.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DWF's forecast earnings growth (45.6% per year) is above the savings rate (0.5%).
Earnings vs Market: DWF's earnings (45.6% per year) are forecast to grow faster than the UK market (15.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DWF's revenue (11.1% per year) is forecast to grow faster than the UK market (2.6% per year).
High Growth Revenue: DWF's revenue (11.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if DWF's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has DWF Group performed over the past 5 years?
-49.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DWF has a large one-off loss of £5.4M impacting its October 31 2019 financial results.
Growing Profit Margin: DWF's current net profit margins (3%) are higher than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: DWF's earnings have declined by -49.6% per year over the past 5 years.
Accelerating Growth: DWF's earnings growth over the past year (47.9%) exceeds its 5-year average (-49.6% per year).
Earnings vs Industry: DWF earnings growth over the past year (47.9%) exceeded the Professional Services industry 12%.
Return on Equity
High ROE: Whilst DWF's Return on Equity (25.3%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is DWF Group's financial position?
Financial Position Analysis
Short Term Liabilities: DWF's short term assets (£190.8M) exceed its short term liabilities (£96.9M).
Long Term Liabilities: DWF's short term assets (£190.8M) exceed its long term liabilities (£140.2M).
Debt to Equity History and Analysis
Debt Level: DWF's debt to equity ratio (171.8%) is considered high.
Reducing Debt: DWF's debt to equity ratio has increased from 69% to 171.8% over the past 5 years.
Debt Coverage: DWF's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: DWF's interest payments on its debt are well covered by EBIT (8.6x coverage).
Balance Sheet
Inventory Level: DWF has a high level of physical assets or inventory.
Debt Coverage by Assets: DWF's debt is covered by short term assets (assets are 2.8x debt).
Next Steps
Dividend
What is DWF Group's current dividend yield, its reliability and sustainability?
2.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DWF's dividend (2.78%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).
High Dividend: DWF's dividend (2.78%) is low compared to the top 25% of dividend payers in the UK market (7.3%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether DWF's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if DWF's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.3%), DWF's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DWF's dividends in 3 years are forecast to be covered by earnings (67.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Andrew Leaitherland
13.83s
Tenure
UK£506,668
Compensation
Mr. Andrew R. Leaitherland has been Chief Executive Officer of DWF Group Plc since May 2006 and serves as its Director since September 10, 2018 and Member of Executive Board. Mr. Leaitherland was Managing ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD628.90K) is below average for companies of similar size in the UK market ($USD1.02M).
Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Member of Executive Board & Director | 13.83yrs | UK£506.67k | 2.41% £6.4m | |
| CFO, Member of Executive Board & Director | 1.5yrs | UK£2.11m | 0.38% £1.0m | |
| CEO of International Division & Member of Executive Board | 2.42yrs | no data | 1.11% £2.9m | |
| General Counsel | no data | no data | no data | |
| Director of Human Resources & Member of Executive Board | no data | no data | no data | |
| Chief Information Officer & Member of Executive Board | no data | no data | no data | |
| CEO of Commercial Services Division | 5.58yrs | no data | 1.27% £3.4m | |
| Head of Connected Services & Member of Executive Board | 2.67yrs | no data | 0.051% £135.1k | |
| Marketing & Client Development Director and Member of Executive Board | no data | no data | no data | |
| Partner | 1.83yrs | no data | 1.27% £3.4m |
3.3yrs
Average Tenure
Experienced Management: DWF's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Member of Executive Board & Director | 13.83yrs | UK£506.67k | 2.41% £6.4m | |
| CFO, Member of Executive Board & Director | 1.5yrs | UK£2.11m | 0.38% £1.0m | |
| Independent Non-Executive Director | 1.33yrs | UK£7.92k | 0.14% £368.9k | |
| Chairman | no data | UK£24.36k | 0.90% £2.4m | |
| Independent Non-Executive Director | 1.33yrs | UK£8.83k | 0.0056% £14.8k | |
| Partner Director | 1.33yrs | no data | 0.90% £2.4m | |
| Senior Independent Director | 1.33yrs | UK£9.14k | 0.14% £368.9k | |
| Independent Non-Executive Director | 1.25yrs | UK£8.83k | no data | |
| Independent Non-Executive Director | 1.33yrs | UK£8.83k | 0.017% £44.3k |
1.3yrs
Average Tenure
57yo
Average Age
Experienced Board: DWF's board of directors are not considered experienced ( 1.3 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: DWF insiders have bought more shares than they have sold 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
DWF Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: DWF Group plc
- Ticker: DWF
- Exchange: LSE
- Founded: 2018
- Industry: Research and Consulting Services
- Sector: Commercial Services
- Market Cap: UK£264.398m
- Shares outstanding: 293.78m
- Website: https://www.dwf.law
Number of Employees
Location
- DWF Group plc
- 20 Fenchurch Street
- London
- Greater London
- EC3M 3AG
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DWF | LSE (London Stock Exchange) | Yes | Share Capital | GB | GBP | Mar 2019 |
Biography
DWF Group plc provides various legal services and complementary connected services in the United Kingdom and internationally. The company operates through four divisions: Commercial Services, Insurance Services, International, and Connected Services. It offers a range of complex legal services and managed services covering areas, such as business restructuring, commercial and competition, tax and private capital, employment, finance, pensions, real estate, debt recovery, asset management, and housing and planning. The company also provides legal services and managed services predominantly to insurers and their insureds covering catastrophic personal injury, occupational health and casualty, motor, fraud, and resolution law, as well as professional indemnity and commercial insurance practice groups. In addition, it offers a digital claims platform and software solutions, as well as services in the areas of specialist lawyers and barristers, forensic accountants, and investigators. The company was incorporated in 2018 and is based in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 01:23 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/04/30 |
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.