LSE:JDW

Stock Analysis Report

Executive Summary

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland.


Snowflake Analysis

Fair value with limited growth.


Similar Companies

Share Price & News

How has J D Wetherspoon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JDW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.5%

JDW

11.1%

GB Hospitality

6.0%

GB Market


1 Year Return

-35.1%

JDW

-26.1%

GB Hospitality

-22.7%

GB Market

Return vs Industry: JDW underperformed the UK Hospitality industry which returned -26.1% over the past year.

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


Shareholder returns

JDWIndustryMarket
7 Day21.5%11.1%6.0%
30 Day-37.9%-29.2%-20.3%
90 Day-49.8%-34.7%-28.1%
1 Year-34.5%-35.1%-24.0%-26.1%-18.6%-22.7%
3 Year-7.4%-10.0%-16.1%-24.6%-13.4%-24.6%
5 Year20.2%13.2%-3.5%-18.7%1.3%-22.0%

Price Volatility Vs. Market

How volatile is J D Wetherspoon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is J D Wetherspoon undervalued compared to its fair value and its price relative to the market?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JDW (£8.51) is trading below our estimate of fair value (£12.34)

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


Price To Earnings Ratio

PE vs Industry: JDW is good value based on its PE Ratio (14.3x) compared to the Hospitality industry average (17.2x).

PE vs Market: JDW is poor value based on its PE Ratio (14.3x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: JDW is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: JDW is overvalued based on its PB Ratio (2.8x) compared to the GB Hospitality industry average (1x).


Next Steps

Future Growth

How is J D Wetherspoon forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JDW's forecast earnings growth (6.5% per year) is above the savings rate (0.5%).

Earnings vs Market: JDW's earnings (6.5% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: JDW's revenue (5.1% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: JDW's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JDW's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

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

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JDW has high quality earnings.

Growing Profit Margin: JDW's current net profit margins (3.3%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: JDW's earnings have grown by 9.9% per year over the past 5 years.

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

Earnings vs Industry: JDW had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Hospitality industry average (-3.5%).


Return on Equity

High ROE: JDW's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is J D Wetherspoon's financial position?


Financial Position Analysis

Short Term Liabilities: JDW's short term assets (£95.2M) do not cover its short term liabilities (£381.6M).

Long Term Liabilities: JDW's short term assets (£95.2M) do not cover its long term liabilities (£1.5B).


Debt to Equity History and Analysis

Debt Level: JDW's debt to equity ratio (286.1%) is considered high.

Reducing Debt: JDW's debt to equity ratio has reduced from 309.1% to 286.1% over the past 5 years.

Debt Coverage: JDW's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: JDW's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: JDW has a high level of physical assets or inventory.

Debt Coverage by Assets: JDW's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

1.41%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate JDW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JDW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JDW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JDW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JDW is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JDW's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

16.2yrs

Average management tenure


CEO

John Hutson (54yo)

no data

Tenure

UK£1,035,000

Compensation

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.  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.28M) is about average for companies of similar size in the UK market ($USD1.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Hutson
CEO, Director & Member of Management Boardno dataUK£1.04m0.13% £1.1m
Ben Whitley
Finance Director4.33yrsUK£358.00k0.0071% £62.2k
Su Cacioppo
Executive Director12yrsUK£589.00k0.025% £216.3k
Martin Geoghegan
Operations Director & Member of Management Board16.17yrsUK£342.00k0.028% £246.3k
David Capstick
IT & Property Director and Member of Management Board17.17yrsno data0.045% £392.2k
Miles Slade
Retail Director & Member of Management Board no datano datano data
James Ullman
Audit Director & Member of Management Board3.17yrsno data0.028% £242.9k
Nigel Connor
Company Secretary & Head of Legalno datano data0.0023% £19.8k

16.2yrs

Average Tenure

50yo

Average Age

Experienced Management: JDW's management team is seasoned and experienced (16.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Hutson
CEO, Director & Member of Management Boardno dataUK£1.04m0.13% £1.1m
Ben Whitley
Finance Director4.33yrsUK£358.00k0.0071% £62.2k
Su Cacioppo
Executive Director12yrsUK£589.00k0.025% £216.3k
Harry Michael Morley
Non-Executive Director3.42yrsUK£53.00k0.0019% £17.0k
Timothy Martin
Non-Executive Chairman37.17yrsUK£341.00k32.06% £279.2m
Debra van Gene
Non-Executive Director14yrsUK£53.00k0.00098% £8.5k
Richard Beckett
Non-Executive Director10.92yrsUK£53.00k0.0019% £17.0k

12.0yrs

Average Tenure

54yo

Average Age

Experienced Board: JDW's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: JDW 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

J D Wetherspoon plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: J D Wetherspoon plc
  • Ticker: JDW
  • Exchange: LSE
  • Founded: 1979
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£871.074m
  • Shares outstanding: 102.42m
  • Website: https://www.jdwetherspoon.com

Number of Employees


Location

  • J D Wetherspoon plc
  • Wetherspoon House
  • Central Park
  • Watford
  • Hertfordshire
  • WD24 4QL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JDWP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1992
JDWLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1992
JDWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1992
0QWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1992
JDWP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1997

Biography

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. As of July 29, 2018, it operated 883 pubs. The company was founded in 1979 and is based in Watford, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 20:50
End of Day Share Price2020/03/27 00:00
Earnings2020/01/26
Annual Earnings2019/07/28


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.