DWF Group (LSE:DWF) - Share price, News & Analysis

DWF fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	0/6
Financial Health	5/6
Dividends	2/6

DWF Stock Overview

DWF Group plc provides various legal services and complementary connected services in the United Kingdom, the Middle East, Rest of Europe, and internationally.

Rewards

Trading at 60.2% below our estimate of its fair value

Earnings are forecast to grow 60.31% per year

Risk Analysis

Has a high level of debt

Dividend of 4.17% is not well covered by earnings

DWF Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DWF Group
Historical stock prices
Current Share Price	UK£1.08
52 Week High	UK£1.31
52 Week Low	UK£0.93
Beta	0.54
1 Month Change	-8.48%
3 Month Change	-4.85%
1 Year Change	11.00%
3 Year Change	-10.00%
5 Year Change	n/a
Change since IPO	-12.20%

Shareholder Returns

	DWF	GB Professional Services	GB Market
7D	-2.7%	-1.9%	1.1%
1Y	11.0%	4.7%	-2.5%

Return vs Industry: DWF exceeded the UK Professional Services industry which returned 4.7% over the past year.

Return vs Market: DWF exceeded the UK Market which returned -2.5% over the past year.

Price Volatility

Is DWF's price volatile compared to industry and market?
DWF volatility
DWF Average Weekly Movement	3.6%
Professional Services Industry Average Movement	5.1%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: DWF is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DWF's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2018	3,861	Nigel Knowles	https://www.dwfgroup.com

DWF Group plc provides various legal services and complementary connected services in the United Kingdom, the Middle East, Rest of Europe, 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.

DWF Group Fundamentals Summary

How do DWF Group's earnings and revenue compare to its market cap?
DWF fundamental statistics
Market Cap	UK£321.76m
Earnings (TTM)	-UK£14.51m
Revenue (TTM)	UK£408.49m

0.8x

P/S Ratio

-22.0x

P/E Ratio

Is DWF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DWF income statement (TTM)
Revenue	UK£408.49m
Cost of Revenue	UK£166.23m
Gross Profit	UK£242.26m
Other Expenses	UK£256.77m
Earnings	-UK£14.51m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.049
Gross Margin	59.31%
Net Profit Margin	-3.55%
Debt/Equity Ratio	233.8%

How did DWF perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

-92%

Payout Ratio

Valuation

Is DWF Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DWF (£1.08) is trading below our estimate of fair value (£2.71)

Significantly Below Fair Value: DWF is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: DWF is unprofitable, so we can't compare its PE Ratio to the UK Professional Services industry average.

PE vs Market: DWF is unprofitable, so we can't compare its PE Ratio to the UK market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DWF's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: DWF is overvalued based on its PB Ratio (7.4x) compared to the GB Professional Services industry average (2.6x).

Future Growth

How is DWF Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

60.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DWF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: DWF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DWF's is expected to become profitable in the next 3 years.

Revenue vs Market: DWF's revenue (5% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: DWF's revenue (5% 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

Past Performance

How has DWF Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-79.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DWF is currently unprofitable.

Growing Profit Margin: DWF is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: DWF is unprofitable, and losses have increased over the past 5 years at a rate of 79.4% per year.

Accelerating Growth: Unable to compare DWF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DWF is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (41.4%).

Return on Equity

High ROE: DWF has a negative Return on Equity (-33.49%), as it is currently unprofitable.

Financial Health

How is DWF Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DWF's short term assets (£208.0M) exceed its short term liabilities (£142.6M).

Long Term Liabilities: DWF's short term assets (£208.0M) exceed its long term liabilities (£154.1M).

Debt to Equity History and Analysis

Debt Level: DWF's net debt to equity ratio (178.1%) is considered high.

Reducing Debt: DWF's debt to equity ratio has reduced from 473.1% to 233.8% over the past 5 years.

Debt Coverage: DWF's debt is well covered by operating cash flow (29.2%).

Interest Coverage: DWF's interest payments on its debt are well covered by EBIT (3.8x coverage).

Balance Sheet

Dividend

What is DWF Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.17%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DWF's dividend (4.17%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: DWF's dividend (4.17%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DWF has been paying a dividend for less than 10 years.

Growing Dividend: DWF's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: DWF is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (66.2%), DWF's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure

CEO

Nigel Knowles (64 yo)

2yrs

Tenure

UK£200,000

Compensation

Sir Nigel Knowles serves as Independent Chair of the Board at Morses Club PLC since March 01, 2022. He has been Group Chief Executive Officer at DWF Group plc since May 29, 2020 and serves as its Director....

Leadership Team

Experienced Management: DWF's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: DWF's board of directors are considered experienced (3.5 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/10/31
Annual Earnings	2021/04/30