LSE:RWA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.4%

RWA

10.9%

GB Professional Services

6.2%

GB Market


1 Year Return

-52.3%

RWA

1.1%

GB Professional Services

-22.7%

GB Market

Return vs Industry: RWA underperformed the UK Professional Services industry which returned 1.1% over the past year.

Return vs Market: RWA underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

RWAIndustryMarket
7 Day22.4%10.9%6.2%
30 Day-47.3%-11.6%-17.8%
90 Day-47.8%-15.1%-27.7%
1 Year-51.0%-52.3%3.4%1.1%-18.6%-22.7%
3 Year-27.3%-31.8%23.1%14.8%-13.4%-24.6%
5 Year-10.7%-19.3%73.1%52.6%1.3%-22.0%

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?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RWA (£2.9) is trading below our estimate of fair value (£3.77)

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 (5.7x) compared to the Professional Services industry average (15.1x).

PE vs Market: RWA is good value based on its PE Ratio (5.7x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: RWA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RWA is good value based on its PB Ratio (1.3x) compared to the GB Professional Services industry average (2.1x).


Next Steps

Future Growth

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

-5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWA's earnings are forecast to decline over the next 3 years (-5.7% per year).

Earnings vs Market: RWA's earnings are forecast to decline over the next 3 years (-5.7% per year).

High Growth Earnings: RWA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RWA's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: RWA's revenue is forecast to decline over the next 3 years (-0.9% 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 (17.6%).


Next Steps

Past Performance

How has Robert Walters performed over the past 5 years?

23.4%

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 (2.9%).


Past Earnings Growth Analysis

Earnings Trend: RWA's earnings have grown significantly by 23.4% 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 (-0.2%) over the past year, making it difficult to compare to the Professional Services industry average (12%).


Return on Equity

High ROE: RWA's Return on Equity (21.2%) is considered high.


Next Steps

Financial Health

How is Robert Walters's financial position?


Financial Position Analysis

Short Term Liabilities: RWA's short term assets (£324.7M) exceed its short term liabilities (£214.0M).

Long Term Liabilities: RWA's short term assets (£324.7M) exceed its long term liabilities (£59.4M).


Debt to Equity History and Analysis

Debt Level: RWA's debt to equity ratio (16.6%) is considered satisfactory.

Reducing Debt: RWA's debt to equity ratio has reduced from 30.7% to 16.6% over the past 5 years.

Debt Coverage: RWA's debt is well covered by operating cash flow (262.4%).

Interest Coverage: RWA's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet

Inventory Level: RWA has a low level of unsold assets or inventory.

Debt Coverage by Assets: RWA's debt is covered by short term assets (assets are 12.2x debt).


Next Steps

Dividend

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

5.34%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RWA's dividend (5.34%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: RWA's dividend (5.34%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


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 (30.6%), 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 (40.8% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Robert Walters (64yo)

no data

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 ($USD4.23M) is above average for companies of similar size in the UK market ($USD761.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Walters
Founderno dataUK£3.41m3.45% £7.2m
Alan Bannatyne
CFO & Executive Director13yrsUK£2.07m0.84% £1.7m
Marco Laveda
Managing Director Spain & Portugalno datano datano data
Matthew Bennett
Managing Director of Greater Chinano datano datano data
Sinead Hourigan
Managing Director of Brisbaneno datano datano data
Louise Campbell
Managing Director of Irelandno datano datano data
Nick Dunnett
Managing Director of Germany & Switzerland5.17yrsno datano data
Özlem Simsek
Managing Director of Belgiumno datano datano data
Toby Fowlston
Chief Executive Officer for Asia Pacific0.92yrno datano data
Oliver Harris
Chief Executive Officer of Resource Solutionsno datano datano data

5.2yrs

Average Tenure

Experienced Management: RWA's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Walters
Founderno dataUK£3.41m3.45% £7.2m
Alan Bannatyne
CFO & Executive Director13yrsUK£2.07m0.84% £1.7m
Brian McArthur-Muscroft
Senior Independent Director2yrsUK£73.00k0.010% £20.7k
Carol Hui
Independent Chairman2yrsUK£110.00k0.014% £29.0k
Tanith Dodge
Non-Executive Director3yrsUK£69.00k0.0084% £17.4k
Steven Cooper
Non-Executive Director1.42yrsUK£15.00k0.0084% £17.4k

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£208.156m
  • Shares outstanding: 71.78m
  • 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 Analysis2020/03/30 20:45
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.