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John Wood Group

LSE:WG.
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WG.
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Energy
Company description

John Wood Group PLC, together with its subsidiaries, provides project, engineering, and technical services to the energy and industrial markets in the United Kingdom, the United States, and internationally. The last earnings update was 181 days ago. More info.


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  • John Wood Group has significant price volatility in the past 3 months.
WG. Share Price and Events
7 Day Returns
3.2%
LSE:WG.
3.3%
GB Energy Services
1.5%
GB Market
1 Year Returns
-15.7%
LSE:WG.
-16.5%
GB Energy Services
-3%
GB Market
WG. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
John Wood Group (WG.) 3.2% -4.6% -15.7% -15.7% -10.4% -30.9%
GB Energy Services 3.3% -8.7% -17% -16.5% -16.9% -54%
GB Market 1.5% 3% 2.7% -3% 20.8% -3.8%
1 Year Return vs Industry and Market
  • WG. underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3% over the past year.
Price Volatility
WG.
Industry
5yr Volatility vs Market

Value

 Is John Wood Group 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 John Wood Group 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 John Wood Group.

LSE:WG. Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
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:WG.
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.8%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 0.41
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.41 (1 + (1- 19%) (72.38%))
0.65
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 8.77%)
8.25%

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

The calculations below outline how an intrinsic value for John Wood Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:WG. DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 484.08 513.92 586.83 717.00 597.00
Source Analyst x6 Analyst x6 Analyst x4 Analyst x2 Analyst x1
Present Value
Discounted (@ 8.25%)
447.21 438.61 462.68 522.25 401.72
Present value of next 5 years cash flows $2,272.47
LSE:WG. DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $597.00 × (1 + 1.23%) ÷ (8.25% – 1.23%)
$8,610.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $8,610.58 ÷ (1 + 8.25%)5
$5,794.09
LSE:WG. Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $2,272.47 + $5,794.09
$8,066.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,066.56 / 672.51
$11.99
LSE:WG. Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:WG.)
0.773
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $11.99 x 0.773
£9.28
Value per share (GBP) From above. £9.28
Current discount Discount to share price of £5.23
= -1 x (£5.23 - £9.28) / £9.28
43.6%

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

Current Discount
Amount off the current price John Wood Group is available for.
Intrinsic value
44%
Share price is £5.23 vs Future cash flow value of £9.28
Current Discount Checks
For John Wood Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • John Wood Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • John Wood Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 John Wood Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are John Wood Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:WG. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $-0.15
LSE:WG. Share Price ** LSE (2019-02-18) in GBP £5.23
LSE:WG. Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.293 $6.76
Europe Energy Services Industry PE Ratio Median Figure of 23 Publicly-Listed Energy Services Companies 17.87x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 814 Publicly-Listed Companies 15.87x

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

** Primary Listing of John Wood Group.

LSE:WG. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:WG. Share Price ÷ EPS (both in USD)

= 6.76 ÷ -0.15

-44.28x

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

  • John Wood Group is loss making, we can't compare its value to the Europe Energy Services industry average.
  • John Wood Group is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does John Wood Group's expected growth come at a high price?
Raw Data
LSE:WG. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -44.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
40%per year
Europe Energy Services Industry PEG Ratio Median Figure of 19 Publicly-Listed Energy Services Companies 0.74x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 579 Publicly-Listed Companies 1.26x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for John Wood Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on John Wood Group's assets?
Raw Data
LSE:WG. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $7.25
LSE:WG. Share Price * LSE (2019-02-18) in GBP £5.23
LSE:WG. Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.293 $6.76
United Kingdom of Great Britain and Northern Ireland Energy Services Industry PB Ratio Median Figure of 16 Publicly-Listed Energy Services Companies 0.98x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,362 Publicly-Listed Companies 1.52x
LSE:WG. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:WG. Share Price ÷ Book Value per Share (both in USD)

= 6.76 ÷ 7.25

0.93x

* Primary Listing of John Wood Group.

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

  • John Wood Group is good value based on assets compared to the GB Energy Services industry average.
X
Value checks
We assess John Wood Group's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. John Wood Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

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

Future Performance

 How is John Wood Group expected to perform in the next 1 to 3 years based on estimates from 12 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!
Annual Growth Rate
40%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is John Wood Group expected to grow at an attractive rate?
  • John Wood Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • John Wood Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • John Wood Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:WG. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:WG. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 40%
LSE:WG. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.6%
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 35.2%
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*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:WG. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:WG. Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,167 1
2022-12-31 12,545 868 459 2
2021-12-31 12,343 825 400 4
2020-12-31 11,891 730 356 12
2019-12-31 11,381 614 243 12
2018-12-31 10,839 608 74 12
LSE:WG. Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 8,367 415 -90
2018-03-31 6,881 283 -61
2017-12-31 5,394 150 -32
2017-09-30 4,649 154 -20
2017-06-30 3,904 158 -8
2017-03-31 4,012 174 10
2016-12-31 4,121 190 28
2016-06-30 4,505 370 -11
2016-03-31 4,753 418 27
2015-12-31 5,001 466 66

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • John Wood Group's earnings are expected to grow significantly at over 20% yearly.
  • John Wood Group's revenue is expected to grow by 4.6% 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:WG. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from John Wood Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:WG. Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.07 1.07 1.07 1.00
2022-12-31 0.67 1.03 0.30 2.00
2021-12-31 0.67 0.90 0.24 3.00
2020-12-31 0.56 0.82 0.36 8.00
2019-12-31 0.40 0.70 0.26 8.00
2018-12-31 0.17 0.58 0.05 7.00
LSE:WG. Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 -0.15
2018-03-31 -0.12
2017-12-31 -0.07
2017-09-30 -0.05
2017-06-30 -0.02
2017-03-31 0.03
2016-12-31 0.07
2016-06-30 -0.03
2016-03-31 0.07
2015-12-31 0.18

*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.
  • John Wood Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess John Wood Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. 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)
  3. 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)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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.
John Wood Group has a total score of 4/6, 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.

Past Performance

  How has John Wood Group performed over the past 5 years?

  • John Wood Group's last earnings update was 181 days ago.
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 John Wood Group's growth in the last year to its industry (Energy Services).
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.
  • John Wood Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare John Wood Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare John Wood Group's 1-year growth to the Europe Energy Services industry average as it is not currently profitable.
Earnings and Revenue History
John Wood Group'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 John Wood Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:WG. Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 8,366.60 -89.80 612.80
2018-03-31 6,880.50 -61.10 488.00
2017-12-31 5,394.40 -32.40 363.20
2017-09-30 4,648.95 -20.35 314.45
2017-06-30 3,903.50 -8.30 265.70
2017-03-31 4,012.05 9.75 287.30
2016-12-31 4,120.60 27.80 308.90
2016-06-30 4,505.00 -11.00 347.20
2016-03-31 4,752.80 27.25 371.15
2015-12-31 5,000.60 65.50 395.10
2015-06-30 6,006.60 299.70 456.00
2015-03-31 6,290.35 323.80 475.90
2014-12-31 6,574.10 347.90 495.80
2014-09-30 6,381.50 318.95 555.60
2014-06-30 6,188.90 290.00 615.40
2014-03-31 5,971.05 275.00 603.05
2013-12-31 5,753.20 260.00 590.70
2013-09-30 5,657.00 251.75 580.95
2013-06-30 5,560.80 243.50 571.20
2013-03-31 5,839.60 229.50 604.75
2012-12-31 6,118.40 215.50 638.30
2012-09-30 6,332.80 166.30 646.80
2012-06-30 6,547.20 117.10 655.30
2012-03-31 6,107.00 81.60 647.90

*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.
  • It is difficult to establish if John Wood Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if John Wood Group has efficiently used its assets last year compared to the Europe Energy Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if John Wood Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess John Wood Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
John Wood Group has a total score of 0/6, 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.

Health

 How is John Wood Group'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 John Wood Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • John Wood Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • John Wood Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of John Wood Group'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x 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 John Wood Group Company Filings, last reported 7 months ago.

LSE:WG. Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 4,857.50 3,290.00 1,701.00
2018-03-31 4,857.50 3,290.00 1,701.00
2017-12-31 4,972.00 2,929.30 1,256.70
2017-09-30 4,972.00 2,929.30 1,256.70
2017-06-30 2,199.20 999.30 491.70
2017-03-31 2,199.20 999.30 491.70
2016-12-31 2,208.20 928.60 579.50
2016-06-30 2,337.30 930.00 552.40
2016-03-31 2,337.30 930.00 552.40
2015-12-31 2,421.00 1,171.70 851.30
2015-06-30 2,578.30 505.40 229.80
2015-03-31 2,578.30 505.40 229.80
2014-12-31 2,559.30 509.70 156.60
2014-09-30 2,559.30 509.70 156.60
2014-06-30 2,559.90 598.60 147.70
2014-03-31 2,559.90 598.60 147.70
2013-12-31 2,416.30 470.30 145.00
2013-09-30 2,416.30 470.30 145.00
2013-06-30 2,269.10 372.70 155.00
2013-03-31 2,269.10 372.70 155.00
2012-12-31 2,235.30 326.80 172.30
2012-09-30 2,235.30 326.80 172.30
2012-06-30 2,075.10 287.50 180.10
2012-03-31 2,075.10 287.50 180.10
  • John Wood Group's level of debt (67.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (16.5% vs 67.7% today).
  • Debt is not well covered by operating cash flow (12.6%, less than 20% of total debt).
  • John Wood Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess John Wood Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. John Wood Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

Dividends

 What is John Wood Group'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
Dividend payments
5.07%
Current annual income from John Wood Group dividends. Estimated to be 5.46% next year.
If you bought £2,000 of John Wood Group shares you are expected to receive £101 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?
  • John Wood Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • John Wood Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.25%).
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:WG. 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 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 710 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
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:WG. Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.42 2.00
2021-12-31 0.40 3.00
2020-12-31 0.37 13.00
2019-12-31 0.35 13.00
2018-12-31 0.35 13.00
LSE:WG. Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-03-20 0.343 4.187
2017-04-10 0.333 3.769
2016-08-16 0.313 3.177
2016-02-23 0.303 3.374
2015-02-17 0.275 2.914
2014-04-08 0.220 1.956
2014-02-18 0.220 1.756
2013-03-05 0.170 1.366
2012-08-21 0.170 1.324
2012-03-06 0.135 1.170
2011-08-23 0.115 1.176
2011-02-21 0.141 1.147
2010-03-02 0.129 1.605
2009-08-24 0.120 1.782
2009-03-03 0.116 2.274
2009-02-19 0.100 2.802

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of John Wood Group's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess John Wood Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can John Wood Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. John Wood Group has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of John Wood Group'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
Robin Watson
COMPENSATION $1,430,000
AGE 50
TENURE AS CEO 3.1 years
CEO Bio

Mr. Robin Watson serves as Chief Operating Officer of Wood Group Mustang, Inc. Mr. Watson served as Chief Executive Officer GE Oil & Gas Pressure Control Canada Inc. since January 1, 2016. He has been Group Chief Operating Officer at Production Services Network (UK) Ltd. since April 2015. He has been the Chief Executive of John Wood Group PLC since January 1, 2016 and served as its Chief Operating Officer since April 2015. He has more than 30 years of engineering and industry experience, with the past 11 years spent in a variety of executive positions and being actively engaged with various industry and governmental representative bodies, including as Board Member of Oil and Gas UK and the Oil and Gas Contractors Council, member of the industry's 'Step Change in Safety' Leadership Team and work-group co-chair. He served as the Chief Operating Officer of GE Oil & Gas Pressure Control Canada Inc. from 2015 to December 31, 2015. He served as Head of Wood Group PSN in the UK at John Wood Group PLC. He was the Chief Executive Officer at Wood Group PSN, Inc. from 2012 to April 2015 and Managing Director of Wood Group PSN in the UK, having joined Wood Group in 2010. Mr. Watson served as the Chief Executive Officer of Production Services Network Limited. He served as Managing Director of UK at Production Services Network (UK) Ltd. since August 2011. He served as the Managing Director of Asset Operations Business at Wood Group Engineering (North Sea) Ltd. since October 22, 2010. He was responsible for Wood Group's significant Hess and TAQA Northern North Sea accounts, the Glasgow engineering office and the operations functional support team. He managed duty holder deals with customers such as Centrica, Ithaca and Premier Oil and major North Sea deals with Hess, Talisman and TAQA. Prior to joining Wood Group, he was with Petrofac and Mobil Oil, working both in the UK and internationally. He served as the Head of production for Energy Development Business at Petrofac. He has been an Executive Director of John Wood Group PLC since January 1, 2013. He served as a Director of The United Kingdom Offshore Oil & Gas Industry Association Lim. He was on the Scottish Business Board from 2011 to 2015. He holds a position of visiting professor at the Robert Gordon University and is a 'Global Scot, as accredited by Scotland's First Minister (the leader of the Scottish government). He is passionate about helping the communities in which he works and has a proud track record of community involvement throughout his career. His most recent personal accolades came in 2014, winning the Institute of Director's (IoD) 'Global Director of the Year' award and the IoD Scotland's overall 'Director of the Year' award. Mr. Watson is a Chartered Mechanical Engineer, a Fellow of both the Institution of Mechanical Engineers and the Energy Institute and holds a Masters of Business Administration (MBA) and an Honors' Degree in Offshore & Mechanical Engineering.

CEO Compensation
  • Robin's compensation has increased whilst company is loss making.
  • Robin's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the John Wood Group management team in years:

3.8
Average Tenure
  • The tenure for the John Wood Group management team is about average.
Management Team

Robin Watson

TITLE
CEO & Executive Director
COMPENSATION
$1M
AGE
50
TENURE
3.1 yrs

David Kemp

TITLE
CFO & Executive Director
COMPENSATION
$845K
AGE
47
TENURE
3.8 yrs

Darren Martin

TITLE
Chief Technology Officer
TENURE
0.6 yrs

Andrew Rose

TITLE
Head of Investor Relations

Martin McIntyre

TITLE
General Counsel & Company Secretary
TENURE
3.1 yrs

Sue MacDonald

TITLE
Executive President of People & Organisation

Tony Dinozzi

TITLE
Group Head of M&A
TENURE
19.1 yrs

Carl Catfield

TITLE
Group Head of Treasury & Taxation
TENURE
12.5 yrs

Nina Schofield

TITLE
Executive President of HSSEA
TENURE
4.5 yrs

Bob MacDonald

TITLE
Chief Executive Officer of Specialist Technical Solutions
Board of Directors Tenure

Average tenure and age of the John Wood Group board of directors in years:

4.8
Average Tenure
57
Average Age
  • The tenure for the John Wood Group board of directors is about average.
Board of Directors

Ian Marchant

TITLE
Chairman
COMPENSATION
$275K
AGE
57
TENURE
4.8 yrs

Robin Watson

TITLE
CEO & Executive Director
COMPENSATION
$1M
AGE
50
TENURE
6.1 yrs

Roy Franklin

TITLE
Deputy Chair & Senior Independent Director
COMPENSATION
$14K
AGE
65
TENURE
1.3 yrs

David Kemp

TITLE
CFO & Executive Director
COMPENSATION
$845K
AGE
47
TENURE
3.8 yrs

Jeremy Wilson

TITLE
Non-Executive Director
COMPENSATION
$61K
AGE
53
TENURE
7.5 yrs

Tom Botts

TITLE
Non-Executive Director
COMPENSATION
$61K
AGE
63
TENURE
6.1 yrs

Jann Brown

TITLE
Non-executive Director
COMPENSATION
$64K
AGE
62
TENURE
4.8 yrs

Mary Shafer-Malicki

TITLE
Non-Executive Director
COMPENSATION
$56K
AGE
57
TENURE
6.7 yrs

Jacqui Ferguson

TITLE
Non-Executive Director
COMPENSATION
$56K
TENURE
2.2 yrs

Linda Adamany

TITLE
Non-Executive Director
COMPENSATION
$17K
AGE
66
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
28. Jun 18 Buy Janice Brown Individual 28. Jun 18 28. Jun 18 1,271 £6.49 £8,249
05. Apr 18 Sell Ian McHoul Individual 04. Apr 18 04. Apr 18 -40,000 £5.28 £-211,200
28. Mar 18 Buy Janice Brown Individual 28. Mar 18 28. Mar 18 1,443 £5.31 £7,662
X
Management checks
We assess John Wood Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. John Wood Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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.

News

Simply Wall St News

How Many Insiders Sold John Wood Group PLC (LON:WG.) Shares?

So we'll take a look at whether insiders have been buying or selling shares in John Wood Group PLC (LON:WG.). … The Last 12 Months Of Insider Transactions At John Wood Group. … In the last twelve months, the biggest single sale by an insider was when Ian McHoul sold UK£211k worth of shares at a price of UK£5.28 per share.

Simply Wall St -

Does John Wood Group PLC's (LON:WG.) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Robin Watson's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that John Wood Group PLC has a market cap of UK£3.7b, and is paying total annual CEO compensation of US$1.4m.

Simply Wall St -

Does John Wood Group PLC's (LON:WG.) Debt Level Pose A Problem?

Mid-caps stocks, like John Wood Group PLC (LON:WG.) with a market capitalization of UK£4.3b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … WG.’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … See our latest analysis for John Wood Group

Simply Wall St -

Is John Wood Group PLC's (LON:WG.) CEO Incentives Align With Yours?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Robin Watson's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Robin Watson is paid less than the average compensation paid by similar sized companies.

Simply Wall St -

Does John Wood Group PLC's (LON:WG.) Debt Level Pose A Problem?

Stocks with market capitalization between $2B and $10B, such as John Wood Group PLC (LON:WG.) with a size of US$4.43b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Don’t forget that this is a general and concentrated examination of John Wood Group’s financial health, so you should conduct further analysis. … View out our latest analysis for John Wood Group

Simply Wall St -

Is John Wood Group PLC (LON:WG.) A Smart Pick For Income Investors?

See our latest analysis for John Wood Group How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … Historical Dividend Yield May 16th 18 How well does John Wood Group fit our criteria? … Relative to peers, John Wood Group has a yield of 3.54%, which is high for Energy Services stocks but still below the market's top dividend payers.Next Steps: Taking all the above into account, John Wood Group is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative.

Simply Wall St -

Is John Wood Group PLC's (LON:WG.) Balance Sheet A Threat To Its Future?

Check out our latest analysis for John Wood Group How does WG.’s operating cash flow stack up against its debt? … has generated US$150.40M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 5.13%, signalling that WG.’s current level of operating cash is not high enough to cover debt. … Next Steps: WG.’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

What You Must Know About John Wood Group PLC's (LON:WG.) Major Investors

Today, I will be analyzing John Wood Group PLC’s (LSE:WG.) recent ownership structure, an important but not-so-popular subject among individual investors. … Ownership_summary Mar 29th 18 Institutional Ownership WG.'s 88.72% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital.

Simply Wall St -

Is There Now An Opportunity In John Wood Group PLC (LON:WG.)?

Let’s take a look at John Wood Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Great news for investors – John Wood Group is still trading at a fairly cheap price. … Another thing to keep in mind is that John Wood Group’s share price is quite stable relative to the rest of the market, as indicated by its low beta.

Simply Wall St -

How Does John Wood Group PLC (LON:WG.) Affect Your Portfolio Returns?

Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few. … WG.’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

Simply Wall St -

Company Info

Map
Description

John Wood Group PLC, together with its subsidiaries, provides project, engineering, and technical services to the energy and industrial markets in the United Kingdom, the United States, and internationally. It operates in five segments: Asset Solutions Europe, Africa, Asia, Australia; Assets Solutions Americas; Specialist Technical Solutions; Environment and Infrastructure Solutions; and Investment Services. The company offers project and modification services, including onshore, engineering, project management, repair order, construction, commissioning, fabrication, and other solutions; and operations and maintenance services. It also provides industrial services, such as access and containment, rope access, rope access training, insulation, painting and protective coating, safezone positive pressure habitat, heat treatment, composite wrap, industrial cleaning, asbestos remediation, building construction and civil engineering, passive fire protection, and mechanical and piping support services, as well as electrical, control, and instrumentation services. In addition, the company offers pipeline services comprising surveying, environmental permitting, pipeline mapping, MAOP validation, land and right-of-way, management and inspection, asset integrity, GIS, pipeline engineering, and pipeline construction management services; and decommissioning services. Further, it provides subsea services that include pipeline services, risers and floating systems, systems and controls, subsea services, subsea support, subsea structures, flow assurance, subsea EPF, marine terminals, and subsea power cables; automation and control services; and asset integrity solutions. Additionally, the company offers clean energy services to onshore and offshore wind, solar, wave and tidal, and hydro projects; and digital solutions, as well as conducts various studies. John Wood Group PLC is based in Aberdeen, the United Kingdom.

Details
Name: John Wood Group PLC
WG.
Exchange: LSE
Founded:
£3,515,872,582
672,508,145
Website: http://www.woodplc.com
Address: John Wood Group PLC
15 Justice Mill Lane,
Aberdeen,
Aberdeenshire, AB11 6EQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE WG. Ordinary Shares London Stock Exchange GB GBP 29. May 2002
OTCPK WDGJ.F Ordinary Shares Pink Sheets LLC US USD 29. May 2002
DB JWG1 Ordinary Shares Deutsche Boerse AG DE EUR 29. May 2002
BATS-CHIXE WGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 29. May 2002
OTCPK WDGJ.Y UNSPONSORED ADR Pink Sheets LLC US USD 17. Oct 2008
Number of employees
Current staff
Staff numbers
59,200
John Wood Group employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 20:39
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/07
Last earnings filing: 2018/08/21
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


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.