LSE:RWA

Stock Analysis Report

Executive Summary

Robert Walters plc, together with its subsidiaries, provides professional recruitment consultancy solutions worldwide.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Robert Walters's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RWA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

RWA

0.2%

GB Professional Services

0.2%

GB Market


1 Year Return

11.0%

RWA

22.1%

GB Professional Services

6.4%

GB Market

Return vs Industry: RWA underperformed the UK Professional Services industry which returned 24.1% over the past year.

Return vs Market: RWA exceeded the UK Market which returned 7.1% over the past year.


Shareholder returns

RWAIndustryMarket
7 Day-1.7%0.2%0.2%
30 Day-0.3%3.3%-1.4%
90 Day20.0%10.8%3.8%
1 Year14.0%11.0%24.9%22.1%11.9%6.4%
3 Year54.6%45.1%58.1%47.5%18.6%3.8%
5 Year84.7%66.9%116.4%91.1%34.8%4.0%

Price Volatility Vs. Market

How volatile is Robert Walters's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Robert Walters undervalued compared to its fair value and its price relative to the market?

11.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RWA (£5.94) is trading above our estimate of fair value (£4.73)

Significantly Below Fair Value: RWA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RWA is good value based on its PE Ratio (11.7x) compared to the Professional Services industry average (21.6x).

PE vs Market: RWA is good value based on its PE Ratio (11.7x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: RWA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RWA is good value based on its PB Ratio (2.8x) compared to the GB Professional Services industry average (3x).


Next Steps

Future Growth

How is Robert Walters forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWA's forecast earnings growth (6.5% per year) is above the savings rate (0.5%).

Earnings vs Market: RWA's earnings (6.5% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: RWA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RWA's revenue (3.9% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: RWA's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RWA's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Robert Walters performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RWA has high quality earnings.

Growing Profit Margin: RWA's current net profit margins (2.9%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: RWA's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: RWA's earnings growth over the past year (7.1%) is below its 5-year average (27.7% per year).

Earnings vs Industry: RWA earnings growth over the past year (7.1%) underperformed the Professional Services industry 16%.


Return on Equity

High ROE: RWA's Return on Equity (24.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Robert Walters's financial position?


Financial Position Analysis

Short Term Liabilities: RWA's short term assets (£324.3M) exceed its short term liabilities (£224.4M).

Long Term Liabilities: RWA's short term assets (£324.3M) exceed its long term liabilities (£66.7M).


Debt to Equity History and Analysis

Debt Level: RWA's debt to equity ratio (18.5%) is considered satisfactory.

Reducing Debt: RWA's debt to equity ratio has increased from 1% to 18.5% over the past 5 years.

Debt Coverage: RWA's debt is well covered by operating cash flow (270.4%).

Interest Coverage: RWA's interest payments on its debt are well covered by EBIT (24.9x coverage).


Balance Sheet

Inventory Level: RWA has a high level of physical assets or inventory.

Debt Coverage by Assets: RWA's debt is covered by short term assets (assets are 11.8x debt).


Next Steps

Dividend

What is Robert Walters's current dividend yield, its reliability and sustainability?

2.47%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.8%markettop25%5.1%industryaverage2.0%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: RWA's dividend (2.47%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: RWA's dividend (2.47%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: RWA's dividends per share have been stable in the past 10 years.

Growing Dividend: RWA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), RWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RWA's dividends in 3 years are forecast to be well covered by earnings (34.6% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Robert Walters (64yo)

UK£3,408,000

Compensation

Mr. Robert C. Walters Founded Robert Walters PLC in 1985 and serves as its Chief Executive Officer. Mr. Walters joined Michael Page International PLC in 1978, initially working in its commerce division and ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD4.39M) is above average for companies of similar size in the UK market ($USD826.57K).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Walters
Founder0yrsUK£3.41m3.42% £15.1m
Alan Bannatyne
CFO & Executive Director12.9yrsUK£2.07m0.81% £3.6m
Marco Laveda
Managing Director Spain & Portugal0yrsno datano data
Matthew Bennett
Managing Director of Greater China0yrsno datano data
Sinead Hourigan
Managing Director of Brisbane0yrsno datano data
Louise Campbell
Managing Director of Ireland0yrsno datano data
Nick Dunnett
Managing Director of Germany & Switzerland5.1yrsno datano data
Özlem Simsek
Managing Director of Belgium0yrsno datano data
Toby Fowlston
Chief Executive Officer for Asia Pacific0.8yrsno datano data
Oliver Harris
Chief Executive Officer of Resource Solutions0yrsno datano data

5.1yrs

Average Tenure

Experienced Management: RWA's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Walters
Founder0yrsUK£3.41m3.42% £15.1m
Alan Bannatyne
CFO & Executive Director12.9yrsUK£2.07m0.81% £3.6m
Brian McArthur-Muscroft
Senior Independent Director1.9yrsUK£73.00k0.010% £43.8k
Carol Hui
Independent Chairman1.9yrsUK£110.00k0.014% £61.4k
Tanith Dodge
Non-Executive Director3yrsUK£69.00k0.0084% £36.8k
Steven Cooper
Non-Executive Director1.3yrsUK£15.00k0.0084% £36.8k

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: RWA's board of directors are not considered experienced ( 2.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Robert Walters plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Robert Walters plc
  • Ticker: RWA
  • Exchange: LSE
  • Founded: 1985
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£440.540m
  • Shares outstanding: 71.75m
  • Website: https://www.robertwalters.com

Number of Employees


Location

  • Robert Walters plc
  • 11 Slingsby Place
  • St Martin's Courtyard
  • London
  • Greater London
  • WC2E 9AB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWALSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2000
RWAlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2000

Biography

Robert Walters plc, together with its subsidiaries, provides professional recruitment consultancy solutions worldwide. The company offers permanent, temporary, contract, and interim recruitment services in the fields of accounting and finance, banking and financial services, engineering, human resources, information technology, legal, sales and marketing, secretarial and support, and supply chain and procurement. It also provides recruitment process outsourcing and managed services. The company was founded in 1985 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 20:42
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.