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RWA

Robert WaltersLSE:RWA Stock Report

Last Price

UK£7.72

Market Cap

UK£561.5m

7D

-10.4%

1Y

43.0%

Updated

21 Jan, 2022

Data

Company Financials +
RWA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends4/6

RWA Stock Overview

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

Robert Walters Competitors

Hays

LSE:HAS

UK£2.5b

PageGroup

LSE:PAGE

UK£1.9b

SThree

LSE:STEM

UK£564.2m

Impellam Group

AIM:IPEL

UK£232.2m

Price History & Performance

Summary of all time highs, changes and price drops for Robert Walters
Historical stock prices
Current Share PriceUK£7.72
52 Week HighUK£8.92
52 Week LowUK£5.10
Beta1.35
1 Month Change-2.28%
3 Month Change-3.50%
1 Year Change42.96%
3 Year Change47.05%
5 Year Change113.26%
Change since IPO321.86%

Recent News & Updates

Dec 21
Is Robert Walters (LON:RWA) Using Too Much Debt?

Is Robert Walters (LON:RWA) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Nov 25
An Intrinsic Calculation For Robert Walters plc (LON:RWA) Suggests It's 27% Undervalued

An Intrinsic Calculation For Robert Walters plc (LON:RWA) Suggests It's 27% Undervalued

How far off is Robert Walters plc ( LON:RWA ) from its intrinsic value? Using the most recent financial data, we'll...

Oct 31
Robert Walters' (LON:RWA) Returns On Capital Not Reflecting Well On The Business

Robert Walters' (LON:RWA) Returns On Capital Not Reflecting Well On The Business

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Oct 12
Is Robert Walters plc (LON:RWA) Potentially Undervalued?

Is Robert Walters plc (LON:RWA) Potentially Undervalued?

While Robert Walters plc ( LON:RWA ) might not be the most widely known stock at the moment, it received a lot of...

Shareholder Returns

RWAGB Professional ServicesGB Market
7D-10.4%0.6%-1.3%
1Y43.0%16.2%7.8%

Return vs Industry: RWA exceeded the UK Professional Services industry which returned 18.8% over the past year.

Return vs Market: RWA exceeded the UK Market which returned 8.7% over the past year.

Price Volatility

Is RWA's price volatile compared to industry and market?
RWA volatility
RWA Average Weekly Movement5.7%
Professional Services Industry Average Movement4.2%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RWA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RWA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19853,230Robert Waltershttps://www.robertwaltersgroup.com

Robert Walters plc, together with its subsidiaries, provides professional recruitment consultancy services worldwide. The company offers permanent, 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.

Robert Walters Fundamentals Summary

How do Robert Walters's earnings and revenue compare to its market cap?
RWA fundamental statistics
Market CapUK£561.45m
Earnings (TTM)UK£18.00m
Revenue (TTM)UK£910.20m

31.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RWA income statement (TTM)
RevenueUK£910.20m
Cost of RevenueUK£600.10m
Gross ProfitUK£310.10m
ExpensesUK£292.10m
EarningsUK£18.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 08, 2022

Earnings per share (EPS)0.25
Gross Margin34.07%
Net Profit Margin1.98%
Debt/Equity Ratio5.5%

How did RWA perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

32.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RWA (£7.72) is trading below our estimate of fair value (£11.44)

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


Price To Earnings Ratio

PE vs Industry: RWA is good value based on its PE Ratio (31.2x) compared to the UK Professional Services industry average (33.9x).

PE vs Market: RWA is poor value based on its PE Ratio (31.2x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: RWA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: RWA is overvalued based on its PB Ratio (3.3x) compared to the GB Professional Services industry average (3.1x).


Future Growth

How is Robert Walters forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWA's forecast earnings growth (23.7% per year) is above the savings rate (0.9%).

Earnings vs Market: RWA's earnings (23.7% per year) are forecast to grow faster than the UK market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RWA's revenue (12.5% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: RWA's revenue (12.5% 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 low in 3 years time (19%).


Past Performance

How has Robert Walters performed over the past 5 years?

-3.9%

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%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: RWA's earnings have declined by 3.9% per year over the past 5 years.

Accelerating Growth: RWA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RWA had negative earnings growth (-16.7%) over the past year, making it difficult to compare to the Professional Services industry average (5.2%).


Return on Equity

High ROE: RWA's Return on Equity (10.5%) is considered low.


Financial Health

How is Robert Walters's financial position?


Financial Position Analysis

Short Term Liabilities: RWA's short term assets (£296.9M) exceed its short term liabilities (£172.6M).

Long Term Liabilities: RWA's short term assets (£296.9M) exceed its long term liabilities (£51.1M).


Debt to Equity History and Analysis

Debt Level: RWA has more cash than its total debt.

Reducing Debt: RWA's debt to equity ratio has reduced from 28.4% to 5.5% over the past 5 years.

Debt Coverage: RWA's debt is well covered by operating cash flow (563.8%).

Interest Coverage: RWA's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet


Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RWA's dividend (2.01%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: RWA's dividend (2.01%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

Stable Dividend: RWA's dividend payments have been volatile 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 reasonable payout ratio (65.9%), RWA's dividend payments are 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?

10.9yrs

Average management tenure


CEO

Robert Walters (66 yo)

37yrs

Tenure

UK£765,000

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 ($USD1.04M) is about average for companies of similar size in the UK market ($USD1.06M).

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


Leadership Team

Experienced Management: RWA's management team is seasoned and experienced (10.9 years average tenure).


Board Members

Experienced Board: RWA's board of directors are considered experienced (4.9 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.


Top Shareholders

Company Information

Robert Walters plc's 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
  • Implied Market Cap: UK£561.454m
  • Shares outstanding: 72.73m
  • Website: https://www.robertwaltersgroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:16
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.