LSE:WG.

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has John Wood Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WG. has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

WG.

4.0%

GB Energy Services

-1.0%

GB Market


1 Year Return

-37.1%

WG.

-48.2%

GB Energy Services

-14.8%

GB Market

Return vs Industry: WG. exceeded the UK Energy Services industry which returned -48.8% over the past year.

Return vs Market: WG. underperformed the UK Market which returned -14.5% over the past year.


Shareholder returns

WG.IndustryMarket
7 Day4.4%4.0%-1.0%
30 Day-4.6%-5.1%-1.6%
90 Day-1.6%-10.5%-3.6%
1 Year-37.1%-37.1%-48.0%-48.2%-11.6%-14.8%
3 Year-64.8%-68.2%-63.2%-66.2%-8.9%-20.2%
5 Year-55.2%-62.5%-66.4%-71.5%16.2%-10.0%

Price Volatility Vs. Market

How volatile is John Wood Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WG. (£2.22) is trading below our estimate of fair value (£2.27)

Significantly Below Fair Value: WG. is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WG. is poor value based on its PE Ratio (44.6x) compared to the XE Energy Services industry average (17.7x).

PE vs Market: WG. is poor value based on its PE Ratio (44.6x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: WG. is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WG.'s PB Ratio (0.5x) is in line with the GB Energy Services industry average.


Next Steps

Future Growth

How is John Wood Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

46.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WG.'s forecast earnings growth (46% per year) is above the savings rate (1.2%).

Earnings vs Market: WG.'s earnings (46% per year) are forecast to grow faster than the UK market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WG.'s revenue (2.4% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: WG.'s revenue (2.4% 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 (6.8%).


Next Steps

Past Performance

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

-23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WG. has a large one-off loss of $108.3M impacting its June 30 2020 financial results.

Growing Profit Margin: WG.'s current net profit margins (0.5%) are lower than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: WG.'s earnings have declined by 23.3% per year over the past 5 years.

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

Earnings vs Industry: WG. had negative earnings growth (-25.6%) over the past year, making it difficult to compare to the Energy Services industry average (-28.6%).


Return on Equity

High ROE: WG.'s Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is John Wood Group's financial position?


Financial Position Analysis

Short Term Liabilities: WG.'s short term assets ($2.9B) do not cover its short term liabilities ($3.1B).

Long Term Liabilities: WG.'s short term assets ($2.9B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: WG.'s debt to equity ratio (44.4%) is considered high.

Reducing Debt: WG.'s debt to equity ratio has increased from 19.9% to 44.4% over the past 5 years.

Debt Coverage: WG.'s debt is well covered by operating cash flow (35.5%).

Interest Coverage: WG.'s interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.16%

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?

4.8yrs

Average management tenure


CEO

Robin Watson (52 yo)

4.75yrs

Tenure

US$1,690,000

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 ($USD2.90M) is above average for companies of similar size in the UK market ($USD1.73M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robin Watson
CEO & Executive Director4.75yrsUS$1.69m0.052%
$ 773.3k
David Kemp
CFO & Executive Director5.42yrsUS$1.00m0.012%
$ 176.2k
Darren Martin
Chief Technology Officer2.25yrsno datano data
Andrew Rose
Head of Investor Relationsno datano datano data
Martin McIntyre
General Counsel & Company Secretary4.75yrsno datano data
Sue MacDonald
Executive President of People & Organisationno datano data0.014%
$ 201.4k
Tony Dinozzi
Group Head of M&A20.75yrsno datano data
Carl Catfield
Group Head of Treasury & Taxation14.17yrsno datano data
Nina Schofield
Executive President of HSSEA6.17yrsno data0.013%
$ 187.4k
Grant Angus
Chief Financial Officer for Specialist Technical Solutions Business3.5yrsno datano data
Andrew Stewart
Executive President of Strategy & Development of Global Business - Australia1yrno datano data
Joe Sczurko
Chief Executive Officer of Technical Consulting Solutions2.75yrsno datano data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Management: WG.'s management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robin Watson
CEO & Executive Director4.75yrsUS$1.69m0.052%
$ 773.3k
David Kemp
CFO & Executive Director5.42yrsUS$1.00m0.012%
$ 176.2k
Roy Franklin
Independent Chairman of the Board1.08yrsUS$138.40k0.0022%
$ 33.2k
Nigel Mills
Senior Independent Director0.33yrno datano data
Mary Shafer-Malicki
Independent Non-Executive Director8.33yrsUS$57.00k0.00051%
$ 7.6k
Adrian R. Marsh
Independent Non-Executive Director1.42yrsUS$39.80k0.00030%
$ 4.5k
Thomas Botts
Independent Non-Executive Director7.75yrsUS$67.00k0.0013%
$ 18.9k
Jacqueline Ferguson
Independent Non-Executive Director3.83yrsUS$57.00k0.00097%
$ 14.5k
Birgitte Madsen
Independent Non-Executive Director0.58yrno datano data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: WG.'s board of directors are considered experienced (3.8 years average tenure).


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: John Wood Group PLC
  • Ticker: WG.
  • Exchange: LSE
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£1.490b
  • Shares outstanding: 671.39m
  • Website: https://www.woodplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDGJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2002
WG.LSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2002
JWG1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2002
WGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2002
WDGJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

John Wood Group PLC, together with its subsidiaries, provides project management, engineering, consulting, and technical services to energy and built environment worldwide. It operates through four segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 22:08
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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