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WG.

John Wood GroupLSE:WG. Stock Report

Market Cap

UK£1.5b

7D

-6.8%

1Y

3.5%

Updated

16 Oct, 2021

Data

Company Financials +
WG. fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health0/6
Dividends0/6

WG. Overview

John Wood Group PLC, together with its subsidiaries, provides consulting, project management, and engineering solutions to energy and built environment worldwide.

John Wood Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for John Wood Group
Historical stock prices
Current Share PriceUK£2.23
52 Week HighUK£1.97
52 Week LowUK£3.67
Beta2.17
1 Month Change4.64%
3 Month Change4.74%
1 Year Change3.53%
3 Year Change-69.46%
5 Year Change-72.18%
Change since IPO-21.13%

Recent News & Updates

Oct 01
John Wood Group (LON:WG.) Seems To Be Using A Lot Of Debt

John Wood Group (LON:WG.) Seems To Be Using A Lot Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 15
Calculating The Fair Value Of John Wood Group PLC (LON:WG.)

Calculating The Fair Value Of John Wood Group PLC (LON:WG.)

Today we will run through one way of estimating the intrinsic value of John Wood Group PLC ( LON:WG. ) by taking the...

Shareholder Returns

WG.GB Energy ServicesGB Market
7D-6.8%-4.7%1.7%
1Y3.5%15.0%22.9%

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

Return vs Market: WG. underperformed the UK Market which returned 22.9% over the past year.

Price Volatility

Is WG.'s price volatile compared to industry and market?
WG. volatility
WG. Beta2.17
Industry Beta1.78
Market Beta1

Stable Share Price: WG. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WG.'s weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191238,100Robin Watsonhttps://www.woodplc.com

John Wood Group PLC, together with its subsidiaries, provides consulting, project management, and engineering solutions to energy and built environment worldwide. It operates through four segments: Asset Solutions Europe, Africa, Asia, Australia; Assets Solutions Americas; Technical Consulting Solutions; and Investment Services. The company offers operations solutions, including maintenance, modifications, commissioning and decommissioning, and aftermarket services, as well as industrial services, such as painting, insulation, scaffolding, rope access, E&I, asbestos removal, and civil and earthworks services; engineering, procurement, and construction management; plant operations and life extension; technology solutions; supervision and management services; fabrication and inspection services; and construction and field services.

John Wood Group Fundamentals Summary

How do John Wood Group's earnings and revenue compare to its market cap?
WG. fundamental statistics
Market CapUS$2.07b
Earnings (TTM)-US$226.40m
Revenue (TTM)US$6.63b

0.3x

P/S Ratio

-9.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WG. income statement (TTM)
RevenueUS$6.63b
Cost of RevenueUS$5.97b
Gross ProfitUS$656.90m
ExpensesUS$883.30m
Earnings-US$226.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.34
Gross Margin9.91%
Net Profit Margin-3.41%
Debt/Equity Ratio41.2%

How did WG. perform over the long term?

See historical performance and comparison

Valuation

Is John Wood Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WG. (£2.23) is trading below our estimate of fair value (£5.33)

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


Price To Earnings Ratio

PE vs Industry: WG. is unprofitable, so we can't compare its PE Ratio to the European Energy Services industry average.

PE vs Market: WG. is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WG.'s PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WG. is good value based on its PB Ratio (0.5x) compared to the GB Energy Services industry average (1x).


Future Growth

How is John Wood Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

48.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WG. is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: WG. is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WG.'s is expected to become profitable in the next 3 years.

Revenue vs Market: WG.'s revenue (6.6% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: WG.'s revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WG.'s Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

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

-39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WG. is currently unprofitable.

Growing Profit Margin: WG. is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WG. is unprofitable, and losses have increased over the past 5 years at a rate of 39.6% per year.

Accelerating Growth: Unable to compare WG.'s earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WG. is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (32.3%).


Return on Equity

High ROE: WG. has a negative Return on Equity (-5.37%), as it is currently unprofitable.


Financial Health

How is John Wood Group's financial position?


Financial Position Analysis

Short Term Liabilities: WG.'s short term assets ($2.3B) do not cover its short term liabilities ($3.1B).

Long Term Liabilities: WG.'s short term assets ($2.3B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: WG.'s debt to equity ratio (41.2%) is considered high.

Reducing Debt: WG.'s debt to equity ratio has increased from 39.8% to 41.2% over the past 5 years.

Debt Coverage: WG.'s debt is not well covered by operating cash flow (7%).

Interest Coverage: WG.'s interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is John Wood Group current dividend yield, its reliability and sustainability?

2.91%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WG.'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?

5.8yrs

Average management tenure


CEO

Robin Watson (53 yo)

5.75yrs

Tenure

US$1,657,474

Compensation

Mr. Robin Watson serves as Chief Operating Officer at 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 Grou...


CEO Compensation Analysis

Compensation vs Market: Robin's total compensation ($USD1.66M) is about average for companies of similar size in the UK market ($USD1.45M).

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


Leadership Team

Experienced Management: WG.'s management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: WG.'s board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

John Wood Group PLC's employee growth, exchange listings and data sources


Key Information

  • Name: John Wood Group PLC
  • Ticker: WG.
  • Exchange: LSE
  • Founded: 1912
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£1.503b
  • Shares outstanding: 673.56m
  • Website: https://www.woodplc.com

Number of Employees


Location

  • John Wood Group PLC
  • 15 Justice Mill Lane
  • Aberdeen
  • Aberdeenshire
  • AB11 6EQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 18:06
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.