J D Wetherspoon

LSE:JDW

Snowflake Description

Acceptable track record with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

JDW

LSE

£1B

Market Cap

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Last updated 2019/05/23 20:37

Company description

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The last earnings update was 69 days ago. More info.

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JDW Share Price and Events

7 Day Returns

0.4%

LSE:JDW

0.3%

GB Hospitality

0.5%

GB Market

1 Year Returns

7.3%

LSE:JDW

-8.7%

GB Hospitality

-5.4%

GB Market

JDW Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
J D Wetherspoon (JDW)	0.4%	-2.2%	1%	7.3%	78%	65%
GB Hospitality	0.3%	-0.1%	-2.9%	-8.7%	9.7%	28.7%
GB Market	0.5%	-1.7%	2.1%	-5.4%	13.8%	1.8%

1 Year Return vs Industry and Market

JDW outperformed the Hospitality industry which returned -8.7% over the past year.
JDW outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.

Price Volatility

JDW

Industry

5yr Volatility vs Market

Related Companies

JDW Value

Is J D Wetherspoon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of J D Wetherspoon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for J D Wetherspoon.

LSE:JDW Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 13 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	9.5%
Perpetual Growth Rate	10-Year GB Government Bond Rate	1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:JDW
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year GB Govt Bond Rate	1.2%
Equity Risk Premium	S&P Global	6.7%
Hospitality Unlevered Beta	Simply Wall St/ S&P Global	0.93
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.927 (1 + (1- 19%) (58.46%))	1.245
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.25
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 1.23% + (1.245 * 6.65%)	9.51%

Discounted Cash Flow Calculation for LSE:JDW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for J D Wetherspoon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:JDW DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (GBP, Millions)	Source	Present Value Discounted (@ 9.51%)
2019	100.17	Analyst x7	91.48
2020	84.50	Analyst x10	70.46
2021	89.37	Analyst x8	68.05
2022	89.42	Est @ 0.06%	62.18
2023	89.79	Est @ 0.41%	57.02
2024	90.38	Est @ 0.65%	52.41
2025	91.12	Est @ 0.83%	48.25
2026	91.99	Est @ 0.95%	44.48
2027	92.93	Est @ 1.03%	41.04
2028	93.95	Est @ 1.09%	37.88
Present value of next 10 years cash flows			£573.24

LSE:JDW DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = £93.95 × (1 + 1.23%) ÷ (9.51% – 1.23%)	£1,148.40
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = £1,148.40 ÷ (1 + 9.51%)¹⁰	£463.05

LSE:JDW Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = £573.24 + £463.05	£1,036.30
Equity Value per Share (GBP)	= Total value / Shares Outstanding = £1,036.30 / 103.10	£10.05

LSE:JDW Discount to Share Price
	Calculation	Result
Value per share (GBP)	From above.	£10.05
Current discount	Discount to share price of £13.22 = -1 x (£13.22 - £10.05) / £10.05	-31.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

The current share price of J D Wetherspoon is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for J D Wetherspoon's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are J D Wetherspoon's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

LSE:JDW PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2019-01-27) in GBP	£0.61
LSE:JDW Share Price **	LSE (2019-05-23) in GBP	£13.22
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio	Median Figure of 34 Publicly-Listed Hospitality Companies	18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio	Median Figure of 789 Publicly-Listed Companies	16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of J D Wetherspoon.

LSE:JDW PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= LSE:JDW Share Price ÷ EPS (both in GBP) = 13.22 ÷ 0.61	21.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

J D Wetherspoon is overvalued based on earnings compared to the GB Hospitality industry average.
J D Wetherspoon is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.

Price based on expected Growth

Does J D Wetherspoon's expected growth come at a high price?

Raw Data

LSE:JDW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	21.58x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts	6.2%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio	Median Figure of 28 Publicly-Listed Hospitality Companies	2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio	Median Figure of 574 Publicly-Listed Companies	1.46x

*Line of best fit is calculated by linear regression .

LSE:JDW PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 21.58x ÷ 6.2%	3.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

J D Wetherspoon is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on J D Wetherspoon's assets?

Raw Data

LSE:JDW PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2019-01-27) in GBP	£3.02
LSE:JDW Share Price *	LSE (2019-05-23) in GBP	£13.22
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio	Median Figure of 54 Publicly-Listed Hospitality Companies	1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio	Median Figure of 1,369 Publicly-Listed Companies	1.5x

LSE:JDW PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= LSE:JDW Share Price ÷ Book Value per Share (both in GBP) = 13.22 ÷ 3.02	4.37x

* Primary Listing of J D Wetherspoon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

J D Wetherspoon is overvalued based on assets compared to the GB Hospitality industry average.

Value checks

We assess J D Wetherspoon's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

JDW Future Performance

How is J D Wetherspoon expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

6.2%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is J D Wetherspoon expected to grow at an attractive rate?

J D Wetherspoon's earnings growth is expected to exceed the low risk savings rate of 1.2%.

Growth vs Market Checks

J D Wetherspoon's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
J D Wetherspoon's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Annual Growth Rates Comparison

Raw Data

LSE:JDW Future Growth Rates Data Sources
Data Point	Source	Value (per year)
LSE:JDW Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts	6.2%
LSE:JDW Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts	3.9%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate	Market Cap Weighted Average	12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate	Market Cap Weighted Average	5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate	Market Cap Weighted Average	10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate	Market Cap Weighted Average	5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

LSE:JDW Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 13 Analyst Estimates (S&P Global)	See Below

All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JDW Future Estimates Data
Date (Data in GBP Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2023-07-31
2022-07-31	2,022	202	89	2
2021-07-31	1,942	181	87	13
2020-07-31	1,867	175	82	13
2019-07-31	1,798	173	80	13

LSE:JDW Past Financials Data
Date (Data in GBP Millions)	Revenue	Cash Flow	Net Income *
2019-01-27	1,753	204	63
2018-10-27	1,723	190	65
2018-07-29	1,694	176	67
2018-04-29	1,692	175	67
2018-01-28	1,690	173	68
2017-10-28	1,675	175	62
2017-07-30	1,661	177	57
2017-04-29	1,634	159	53
2017-01-22	1,606	141	51
2016-10-22	1,601	136	51
2016-07-24	1,595	131	51
2016-04-24	1,578	150	50

*GAAP earnings excluding extraordinary items.

High Growth Checks

J D Wetherspoon's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
J D Wetherspoon's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

LSE:JDW Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 13 Analyst Estimates (S&P Global)	See Below

All data from J D Wetherspoon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JDW Future Estimates Data
Date (Data in GBP Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2023-07-31
2022-07-31	0.85	0.85	0.85	1.00
2021-07-31	0.80	0.81	0.79	5.00
2020-07-31	0.78	0.82	0.76	6.00
2019-07-31	0.76	0.79	0.72	6.00

LSE:JDW Past Financials Data
Date (Data in GBP Millions)	EPS *
2019-01-27	0.61
2018-10-27	0.63
2018-07-29	0.65
2018-04-29	0.64
2018-01-28	0.64
2017-10-28	0.58
2017-07-30	0.52
2017-04-29	0.48
2017-01-22	0.45
2016-10-22	0.45
2016-07-24	0.45
2016-04-24	0.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

J D Wetherspoon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Future performance checks

We assess J D Wetherspoon's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
J D Wetherspoon has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JDW Past Performance

How has J D Wetherspoon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare J D Wetherspoon's growth in the last year to its industry (Hospitality).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

J D Wetherspoon's year on year earnings growth rate has been positive over the past 5 years.
J D Wetherspoon's 1-year earnings growth is negative, it can't be compared to the 5-year average.
J D Wetherspoon's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.

Earnings and Revenue History

J D Wetherspoon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from J D Wetherspoon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:JDW Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions)	Revenue	Net Income *	G+A Expenses
2019-01-27	1,753.03	63.22	42.99
2018-10-27	1,723.43	64.96	42.99
2018-07-29	1,693.82	66.71	42.99
2018-04-29	1,691.76	67.21	44.02
2018-01-28	1,689.71	67.71	45.06
2017-10-28	1,675.23	62.15	45.06
2017-07-30	1,660.75	56.58	45.06
2017-04-29	1,633.57	53.39	48.27
2017-01-22	1,606.38	50.72	51.48
2016-10-22	1,600.79	50.96	51.48
2016-07-24	1,595.20	51.21	51.48
2016-04-24	1,577.50	49.50	52.07
2016-01-24	1,559.81	47.80	52.66
2015-10-24	1,536.86	46.31	52.66
2015-07-26	1,513.92	44.82	52.66
2015-04-26	1,492.20	43.86	52.60
2015-01-25	1,470.47	42.90	52.54
2014-10-25	1,439.90	42.01	52.54
2014-07-27	1,409.33	41.12	52.54
2014-04-27	1,373.55	44.08	52.45
2014-01-26	1,337.76	47.03	52.37
2013-10-26	1,309.35	46.61	52.37
2013-07-28	1,280.93	46.19	52.37
2013-04-28	1,267.54	46.34	48.39
2013-01-27	1,254.15	46.48	44.41
2012-10-27	1,225.64	45.53	44.41
2012-07-29	1,197.13	44.57	44.41

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Whilst J D Wetherspoon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
J D Wetherspoon used its assets more efficiently than the GB Hospitality industry average last year based on Return on Assets.
J D Wetherspoon has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess J D Wetherspoon's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
J D Wetherspoon has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JDW Health

How is J D Wetherspoon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up J D Wetherspoon's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

J D Wetherspoon's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
J D Wetherspoon's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of J D Wetherspoon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from J D Wetherspoon Company Filings, last reported 3 months ago.

LSE:JDW Past Debt and Equity Data
Date (Data in GBP Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2019-01-27	312.10	796.78	37.35
2018-10-27	312.10	796.78	37.35
2018-07-29	286.56	828.37	63.09
2018-04-29	286.56	828.37	63.09
2018-01-28	232.97	863.10	63.74
2017-10-28	232.97	863.10	63.74
2017-07-30	258.43	797.22	50.64
2017-04-29	228.82	797.22	50.64
2017-01-22	224.98	775.47	28.73
2016-10-22	224.98	775.47	28.73
2016-07-24	207.45	760.37	46.14
2016-04-24	207.45	760.37	46.14
2016-01-24	236.85	703.98	29.35
2015-10-24	236.85	703.98	29.35
2015-07-26	222.89	673.26	32.18
2015-04-26	222.89	673.26	32.18
2015-01-25	219.62	682.65	28.69
2014-10-25	219.62	682.65	28.69
2014-07-27	227.17	620.76	32.32
2014-04-27	227.17	620.76	32.32
2014-01-26	234.47	562.21	27.03
2013-10-26	234.47	562.21	27.03
2013-07-28	214.92	548.10	29.84
2013-04-28	214.92	548.10	29.84
2013-01-27	193.87	552.82	26.14
2012-10-27	193.87	552.82	26.14
2012-07-29	169.64	556.68	28.04

J D Wetherspoon's level of debt (255.3%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (240.5% vs 255.3% today).
Debt is well covered by operating cash flow (25.6%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).

Financial health checks

We assess J D Wetherspoon's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

JDW Dividends

What is J D Wetherspoon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

0.91%

Current annual income from J D Wetherspoon dividends. Estimated to be 0.91% next year.

If you bought £2,000 of J D Wetherspoon shares you are expected to receive £18 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

J D Wetherspoon's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
J D Wetherspoon's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

LSE:JDW Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 13 Analyst Estimates (S&P Global)	See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield	Market Cap Weighted Average of 32 Stocks	3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield	Market Cap Weighted Average of 706 Stocks	4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield	10th Percentile	1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield	25th Percentile	2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield	75th Percentile	5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:JDW Future Dividends Estimate Data
Date (Data in £)	Dividend per Share (annual)	Avg. No. Analysts
2023-07-31	0.12	1.00
2022-07-31	0.12	2.00
2021-07-31	0.12	14.00
2020-07-31	0.12	15.00
2019-07-31	0.12	15.00

LSE:JDW Past Annualized Dividends Data
Date (Data in £)	Dividend per share (annual)	Avg. Yield (%)
2018-09-14	0.120	0.968
2017-09-14	0.120	0.978
2016-09-12	0.120	1.264
2016-09-09	0.120	1.268
2015-10-14	0.120	1.631
2015-09-11	0.120	1.648
2014-10-14	0.120	1.539
2014-09-12	0.120	1.517
2013-09-13	0.120	1.551
2012-10-16	0.120	2.079
2012-09-14	0.120	2.481
2011-10-05	0.120	2.862
2011-09-09	0.120	3.040
2011-03-10	0.080	1.859
2010-10-13	0.120	2.788
2010-09-10	0.120	2.745
2010-03-11	0.120	2.668
2009-09-11	0.000	0.000
2009-07-27	0.000	0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

J D Wetherspoon is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
J D Wetherspoon is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.

Current Payout to shareholders

What portion of J D Wetherspoon's earnings are paid to the shareholders as a dividend.

No need to calculate the sustainability of J D Wetherspoon's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.

Future Payout to shareholders

No need to calculate the sustainability of J D Wetherspoon's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.

Income/ dividend checks

We assess J D Wetherspoon's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can J D Wetherspoon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

JDW Management

What is the CEO of J D Wetherspoon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

John Hutson

COMPENSATION	£1,490,000
AGE	53

CEO Bio

Mr. John Hutson serves as the Chief Executive Officer of JD Wetherspoon PLC. Mr. Hutson served as Managing Director of JD Wetherspoon plc and also served as its Chief Operating Officer since October 2010. Mr. Hutson joined J D Wetherspoon PLC in 1991 and previously served with Allied Domeq. He has been a Director of JD Wetherspoon Plc since 1996. He serves as Member of Management Board at JD Wetherspoon PLC. Mr. Hutson is a graduate of Exeter University.

CEO Compensation

John's compensation has been consistent with company performance over the past year, both up more than 20%.
John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Management Team Tenure

Average tenure and age of the J D Wetherspoon management team in years:

15.3

Average Tenure

Average Age

The average tenure for the J D Wetherspoon management team is over 5 years, this suggests they are a seasoned and experienced team.

49

TENURE

15.3 yrs

Su Cacioppo

TITLE

Executive Director

COMPENSATION

£841K

AGE

51

David Capstick

47

TENURE

2.3 yrs

Nigel Connor

TITLE

Company Secretary & Head of Legal

AGE

49

Board of Directors Tenure

Average tenure and age of the J D Wetherspoon board of directors in years:

10.6

Average Tenure

54.5

Average Age

The average tenure for the J D Wetherspoon board of directors is over 10 years, this suggests they are a seasoned and experienced board.

6.5 yrs

Who owns this company?

Recent Insider Trading

J D Wetherspoon insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (£)	Value (£)
15. May 19	Sell	James Ullman	Individual	15. May 19	15. May 19	-1,000	£13.36	£-13,360
24. Apr 19	Sell	Martin Geoghegan	Individual	24. Apr 19	24. Apr 19	-2,500	£0.14	£-340
08. Apr 19	Sell	John Hutson	Individual	08. Apr 19	08. Apr 19	-5,000	£13.33	£-66,628
01. Apr 19	Sell	John Hutson	Individual	01. Apr 19	01. Apr 19	-5,000	£13.05	£-65,250
18. Mar 19	Sell	Nigel Connor	Individual	18. Mar 19	18. Mar 19	-1,613	£13.10	£-21,130
04. Oct 18	Sell	Nigel Connor	Individual	02. Oct 18	02. Oct 18	-3,448	£12.91	£-44,503

Management checks

We assess J D Wetherspoon's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JDW News

Simply Wall St News

Why J D Wetherspoon plc (LON:JDW) Looks Like A Quality Company

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for J D Wetherspoon: 20% = UK£63m ÷ UK£312m (Based on the trailing twelve months to January 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining J D Wetherspoon's Debt And Its 20% Return On Equity J D Wetherspoon does use a significant amount of debt to increase returns. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St - 1 day ago – Full article

Estimating The Intrinsic Value Of J D Wetherspoon plc (LON:JDW)

In this article we are going to estimate the intrinsic value of J D Wetherspoon plc (LON:JDW). … I will use the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

Simply Wall St - 4 weeks ago – Full article

Read This Before Buying J D Wetherspoon plc (LON:JDW) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in J D Wetherspoon plc (LON:JDW). … So we know that an insider sold shares at around the present share price of UK£13.27. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price.

Simply Wall St - 1 month ago – Full article

Is J D Wetherspoon plc's (LON:JDW) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does John Hutson's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that J D Wetherspoon plc has a market cap of UK£1.3b, and is paying total annual CEO compensation of UK£1.5m.

Simply Wall St - 1 month ago – Full article

Don't Sell J D Wetherspoon plc (LON:JDW) Before You Read This

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St - 2 months ago – Full article

J D Wetherspoon plc (LON:JDW): What Does The Future Look Like?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In July 2018, J D Wetherspoon plc (LON:JDW) released its latest earnings announcement, whicha

Simply Wall St - 3 months ago – Full article

A Closer Look At J D Wetherspoon plc's (LON:JDW) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows J D Wetherspoon has a return on equity of 23% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 3 months ago – Full article

What Should You Know About J D Wetherspoon plc's (LON:JDW) Future?

Based on J D Wetherspoon plc's (LON:JDW) earnings update in July 2018,. … with profits predicted to increase by 17% next year … the past 5-year average growth rate of 9.1%

Simply Wall St - 4 months ago – Full article

An Intrinsic Calculation For J D Wetherspoon plc (LON:JDW) Shows It's 32.62% Undervalued

In this article I am going to calculate the intrinsic value of J D Wetherspoon plc (LON:JDW). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St - 4 months ago – Full article

Should You Buy J D Wetherspoon plc (LON:JDW) For Its Dividend?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, J D Wetherspoon plc (LON:JDW) has paid dividends to shareholders, and these days it yields 1.1%. … Let's dig deeper into whether J D Wetherspoon should have a place in your portfolio.

Simply Wall St - 5 months ago – Full article

JDW Company Info

Description

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. As of July 24, 2017, it operated 895 pubs. The company was founded in 1979 and is headquartered in Watford, the United Kingdom.

Details

Name:	J D Wetherspoon plc
Ticker:	JDW
Exchange:	LSE
Founded:	1979
Market Cap:	£1,362,999,106
Shares outstanding:	103,101,294
Website:	http://www.jdwetherspoon.com
Address:	J D Wetherspoon plc Wetherspoon House, Central Park, Watford, Hertfordshire, WD24 4QL, United Kingdom

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
LSE	JDW	Ordinary Shares	London Stock Exchange	GB	GBP	02. Nov 1992
OTCPK	JDWP.F	Ordinary Shares	Pink Sheets LLC	US	USD	02. Nov 1992
DB	0QW	Ordinary Shares	Deutsche Boerse AG	DE	EUR	02. Nov 1992
BATS-CHIXE	JDWL	Ordinary Shares	BATS 'Chi-X Europe'	GB	GBP	02. Nov 1992
OTCPK	JDWP.Y	SPONSORED ADR	Pink Sheets LLC	US	USD	02. Jul 1997

Number of employees

Current staff

40,667

J D Wetherspoon employees.

Industry

Industry:	Restaurants
Sector:	Consumer Services

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/05/23 20:37
End of day share price update:	2019/05/23 00:00
Last estimates confirmation:	2019/05/09
Last earnings filing:	2019/03/15
Last earnings reported:	2019/01/27
Last annual earnings reported:	2018/07/29

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)

J D Wetherspoon

JDW Share Price and Events

7 Day Returns

1 Year Returns

JDW Shareholder Return

1 Year Return vs Industry and Market

Price Volatility

Related Companies

Greggs

Millennium & Copthorne Hotels

Darden Restaurants

JDW Value

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

PRICE RELATIVE TO MARKET

Price based on past earnings

Price based on expected Growth

Price based on value of assets

Value checks

JDW Future Performance

Earnings growth vs Low Risk Savings

Growth vs Market Checks

Annual Growth Rates Comparison

Analysts growth expectations

High Growth Checks

Past and Future Earnings per Share

Performance in 3 years

Future performance checks

JDW Past Performance

Past earnings growth

Past Earnings growth analysis

Earnings and Revenue History

Performance last year

Past performance checks

JDW Health

Net Worth

Balance sheet

Assets

Liabilities and shares

Historical Debt

Financial health checks

JDW Dividends

Annual Dividend Income

Dividend Amount

Annualized Historical and Future Dividends

Current Payout to shareholders

Future Payout to shareholders

Income/ dividend checks

JDW Management

CEO

CEO Bio

CEO Compensation

Management Team Tenure

Management Team

John Hutson

CEO, Director & Member of Management Board

£1M

53

Ben Whitley

Finance Director

£469K

40

Martin Geoghegan

Operations Director & Member of Management Board

£342K

49

15.3 yrs

Su Cacioppo

Executive Director

£841K

51

David Capstick

IT & Property Director and Member of Management Board

57

16.3 yrs

Miles Slade

Retail Director & Member of Management Board

38

James Ullman

Audit Director & Member of Management Board

47