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.


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

2.5%

RWA

-3.4%

GB Professional Services

0.2%

GB Market


1 Year Return

-24.6%

RWA

15.0%

GB Professional Services

1.7%

GB Market

Return vs Industry: RWA underperformed the UK Professional Services industry which returned 15% over the past year.

Return vs Market: RWA underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

RWAIndustryMarket
7 Day2.5%-3.4%0.2%
30 Day-9.3%-6.1%-1.7%
90 Day-1.0%-7.6%-3.1%
1 Year-22.6%-24.6%17.8%15.0%6.7%1.7%
3 Year55.4%45.8%39.0%28.9%17.7%3.1%
5 Year100.1%80.8%111.5%86.5%36.1%5.5%

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?

15.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RWA (£4.99) is trading below our estimate of fair value (£5.88)

Significantly Below Fair Value: RWA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RWA is good value based on its PE Ratio (9.8x) compared to the Professional Services industry average (20x).

PE vs Market: RWA is good value based on its PE Ratio (9.8x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: RWA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: RWA is overvalued based on its PB Ratio (2.4x) compared to the GB Professional Services industry average (2.8x).


Next Steps

Future Growth

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

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWA's forecast earnings growth (6.1% per year) is above the savings rate (1.2%).

Earnings vs Market: RWA's earnings (6.1% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: RWA's revenue (5.4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: RWA's revenue (5.4% 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 (18.6%).


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

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 12.5%.


Return on Equity

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


Return on Assets

ROA vs Industry: RWA has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: RWA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Robert Walters's financial position?


Financial Position Analysis

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

Long Term Liabilities: RWA's short term assets (324.3M) exceeds 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 11.835760x debt).


Next Steps

Dividend

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

2.95%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.4%industryaverage2.3%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RWA's dividend (2.95%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: RWA's dividend (2.95%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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 (34.8% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Robert Walters (64yo)

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

Compensation vs. Market: Robert's total compensation ($USD4.42M) is about average for companies of similar size in the UK market ($USD884.56K).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: RWA's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

Experienced Board: RWA's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: RWA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£2,28508 Oct 19
Steven Cooper
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500
Max PriceUK£4.57
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

Ownership Breakdown


Management Team

  • Robert Walters (64yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£3.41m
  • Alan Bannatyne (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 12.6yrs
    • Compensation: UK£2.07m
  • Oliver Harris

    Chief Executive Officer of Resource Solutions

    • Tenure: 0yrs
  • Marco Laveda

    Managing Director Spain & Portugal

    • Tenure: 0yrs
  • Matthew Bennett

    Managing Director of Greater China

    • Tenure: 0yrs
  • Toby Fowlston

    Chief Executive Officer for Asia Pacific

    • Tenure: 0.5yrs
  • Sinead Hourigan

    Managing Director of Brisbane

    • Tenure: 0yrs
  • Louise Campbell

    Managing Director of Ireland

    • Tenure: 0yrs
  • Nick Dunnett

    Managing Director of Germany & Switzerland

    • Tenure: 4.8yrs
  • Özlem Simsek

    Managing Director of Belgium

    • Tenure: 0yrs

Board Members

  • Brian McArthur-Muscroft (55yo)

    Senior Independent Director

    • Tenure: 1.6yrs
    • Compensation: UK£73.00k
  • Carol Hui (62yo)

    Independent Chairman

    • Tenure: 1.6yrs
    • Compensation: UK£110.00k
  • Robert Walters (64yo)

    Founder

    • Tenure: 0yrs
    • Compensation: UK£3.41m
  • Tanith Dodge (58yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: UK£69.00k
  • Alan Bannatyne (49yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 12.6yrs
    • Compensation: UK£2.07m
  • Steven Cooper

    Non-Executive Director

    • Tenure: 1yrs
    • 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£357.398m
  • 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 Analysis2019/10/21 20:35
End of Day Share Price2019/10/21 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.