LSE:RWA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Risks

  • Robert Walters has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-7.6%

LSE:RWA

-0.3%

GB Professional Services

0.4%

GB Market


1 Year Return

-34.5%

LSE:RWA

10.3%

GB Professional Services

-6.2%

GB Market

RWA underperformed the Professional Services industry which returned 10.3% over the past year.

RWA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

RWAIndustryMarket
7 Day-7.6%-0.3%0.4%
30 Day-1.5%-1.2%-5.2%
90 Day-21.3%3.9%-2.3%
1 Year-33.0%-34.5%12.8%10.3%-1.7%-6.2%
3 Year60.6%50.9%51.0%40.5%16.8%2.9%
5 Year79.2%62.4%115.4%90.1%24.2%-2.3%

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 based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Robert Walters's share price is below the future cash flow value, and at a moderate discount (> 20%).

Robert Walters's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Robert Walters is good value based on earnings compared to the GB Professional Services industry average.

Robert Walters is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Robert Walters is poor value based on expected growth next year.


Price Based on Value of Assets

Robert Walters is good value based on assets compared to the GB Professional Services industry average.


Next Steps

Future Growth

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

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Robert Walters's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

Robert Walters's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

Robert Walters's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Robert Walters's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Robert Walters's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Robert Walters is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Robert Walters performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Robert Walters has delivered over 20% year on year earnings growth in the past 5 years.

Robert Walters's 1-year earnings growth is less than its 5-year average (7.1% vs 27.7%)

Robert Walters's earnings growth has not exceeded the GB Professional Services industry average in the past year (7.1% vs 7.1%).


Return on Equity

Robert Walters has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Robert Walters used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

Robert Walters's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Robert Walters's financial position?


Financial Position Analysis

Robert Walters is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Robert Walters's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Robert Walters's level of debt (18.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1% vs 18.5% today).

Debt is well covered by operating cash flow (270.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 24.9x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.47%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Robert Walters before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Robert Walters's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).

Robert Walters's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.65%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of Robert Walters's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Robert Walters (64yo)

0.0yrs

Tenure

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

Robert's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Robert's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

The tenure for the Robert Walters management team is about average.


Board Age and Tenure

2.0yrs

Average Tenure

58yo

Average Age

The average tenure for the Robert Walters board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Robert Walters individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£2,72511 Jul 19
Steven Cooper
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500
Max PriceUK£5.45
BuyUK£39,48005 Jun 19
Tanith Dodge
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares6,000
Max PriceUK£6.58
SellUK£520,66813 Mar 19
Alan Bannatyne
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Executive Director
Shares86,778
Max PriceUK£6.00
BuyUK£149,06004 Dec 18
Robert Walters
EntityIndividual
Role
Chief Executive Officer
Founder
Shares29,000
Max PriceUK£5.14
BuyUK£75,66119 Nov 18
Robert Walters
EntityIndividual
Role
Chief Executive Officer
Founder
Shares13,535
Max PriceUK£5.59
BuyUK£32,25018 Oct 18
Steven Cooper
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max PriceUK£6.45

Ownership Breakdown


Management Team

  • Robert Walters (64yo)

    Founder

    • Tenure: 0.0yrs
    • Compensation: UK£3.41m
  • Alan Bannatyne (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 12.4yrs
    • Compensation: UK£2.07m
  • Oliver Harris

    Chief Executive Officer of Resource Solutions

    • Tenure: 0.0yrs
  • Marco Laveda

    Managing Director Spain & Portugal

    • Tenure: 0.0yrs
  • Matthew Bennett

    Managing Director of Greater China

    • Tenure: 0.0yrs
  • Toby Fowlston

    Chief Executive Officer for Asia Pacific

    • Tenure: 0.3yrs
  • Sinead Hourigan

    Managing Director of Brisbane

    • Tenure: 0.0yrs
  • Louise Campbell

    Managing Director of Ireland

    • Tenure: 0.0yrs
  • Nick Dunnett

    Managing Director of Germany & Switzerland

    • Tenure: 4.6yrs
  • Özlem Simsek

    Managing Director of Belgium

    • Tenure: 0.0yrs

Board Members

  • Brian McArthur-Muscroft (55yo)

    Senior Independent Director

    • Tenure: 1.4yrs
    • Compensation: UK£73.00k
  • Carol Hui (62yo)

    Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£110.00k
  • Robert Walters (64yo)

    Founder

    • Tenure: 0.0yrs
    • Compensation: UK£3.41m
  • Tanith Dodge (58yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£69.00k
  • Alan Bannatyne (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 12.4yrs
    • Compensation: UK£2.07m
  • Steven Cooper

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£15.00k

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£365.276m
  • Shares outstanding: 71.62m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 20:37
End of Day Share Price2019/08/23 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.