John Wood Group
Market Cap
UK£2.6b
Last Updated
2020/01/27 20:44 UTC
Data Sources
Company Financials +
Executive Summary
John Wood Group PLC, together with its subsidiaries, provides project, engineering, and technical services in energy, industry, and built environment worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer 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
-6.2%
WG.
-7.1%
GB Energy Services
-3.0%
GB Market
1 Year Return
-27.5%
WG.
-26.1%
GB Energy Services
11.0%
GB Market
Return vs Industry: WG. underperformed the UK Energy Services industry which returned -22.6% over the past year.
Return vs Market: WG. underperformed the UK Market which returned 12.7% over the past year.
Shareholder returns
| WG. | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.2% | -7.1% | -3.0% |
| 30 Day | -3.9% | -7.1% | -2.4% |
| 90 Day | 9.3% | -2.9% | 3.9% |
| 1 Year | -22.9%-27.5% | -22.6%-26.1% | 16.8%11.0% |
| 3 Year | -48.2%-55.0% | -51.3%-56.7% | 20.0%4.7% |
| 5 Year | -22.4%-37.0% | -29.6%-41.2% | 38.9%6.8% |
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
2 months ago | Simply Wall St
Should You Worry About John Wood Group PLC’s (LON:WG.) ROCE?2 months ago | Simply Wall St
Is John Wood Group PLC (LON:WG.) A Good Dividend Stock?3 months ago | Simply Wall St
Is John Wood Group PLC (LON:WG.) Trading At A 42% Discount?Valuation
Is John Wood Group undervalued compared to its fair value and its price relative to the market?
19.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WG. (£3.79) is trading below our estimate of fair value (£7.27)
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 (56.8x) compared to the Energy Services industry average (10.3x).
PE vs Market: WG. is poor value based on its PE Ratio (56.8x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: WG. is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: WG. is good value based on its PB Ratio (0.8x) compared to the GB Energy Services industry average (0.9x).
Next Steps
Future Growth
How is John Wood Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
18.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WG.'s forecast earnings growth (30.2% per year) is above the savings rate (0.5%).
Earnings vs Market: WG.'s earnings (30.2% per year) are forecast to grow faster than the UK market (11.7% per year).
High Growth Earnings: WG.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: WG.'s revenue (3.3% per year) is forecast to grow slower than the UK market (3.6% per year).
High Growth Revenue: WG.'s revenue (4.1% 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 (8.7%).
Next Steps
Past Performance
How has John Wood Group performed over the past 5 years?
-69.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WG. has a large one-off loss of $111.0M impacting its June 30 2019 financial results.
Growing Profit Margin: WG. became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WG.'s earnings have declined by -69.5% per year over the past 5 years.
Accelerating Growth: WG. has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: WG. has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (86.1%).
Return on Equity
High ROE: WG.'s Return on Equity (1.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is John Wood Group's financial position?
Financial Position Analysis
Short Term Liabilities: WG.'s short term assets ($4.2B) exceed its short term liabilities ($4.0B).
Long Term Liabilities: WG.'s short term assets ($4.2B) exceed its long term liabilities ($3.6B).
Debt to Equity History and Analysis
Debt Level: WG.'s debt to equity ratio (68.1%) is considered high.
Reducing Debt: WG.'s debt to equity ratio has increased from 23.3% to 68.1% over the past 5 years.
Debt Coverage: WG.'s debt is not well covered by operating cash flow (9.6%).
Interest Coverage: WG.'s interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Inventory Level: WG. has a low level of unsold assets or inventory.
Debt Coverage by Assets: WG.'s debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is John Wood Group's current dividend yield, its reliability and sustainability?
7.07%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WG.'s dividend (7.11%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: WG.'s dividend (7.11%) is in the top 25% of dividend payers in the UK market (4.95%)
Stability and Growth of Payments
Stable Dividend: WG.'s dividend payments have been volatile in the past 10 years.
Growing Dividend: WG.'s dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (405%), WG.'s dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WG.'s dividends in 3 years are forecast to be covered by earnings (62.1% payout ratio).
Next Steps
Management
What is the CEO of John Wood Group's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Robin Watson (51yo)
4yrs
Tenure
US$1,875,000
Compensation
Mr. Robin Watson serves as Chief Operating Officer at Wood Group Mustang, Inc. Mr. Watson served as Chief Executive Officer GE Oil & Gas Pressure Control Canada Inc. since January 1, 2016. He has been Grou ...
CEO Compensation Analysis
Compensation vs Market: Robin's total compensation ($USD2.44M) is about average for companies of similar size in the UK market ($USD2.25M).
Compensation vs Earnings: Robin's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.3yrs
Average Tenure
Experienced Management: WG.'s management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
3.9yrs
Average Tenure
53yo
Average Age
Experienced Board: WG.'s board of directors are considered experienced (3.9 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 10,000 |
| Max Price | UK£3.62 |
| Entity | Individual |
| Role | Lead Director Senior Independent Director |
| Shares | 10,000 |
| Max Price | UK£3.59 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 636 |
| Max Price | UK£4.52 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Director |
| Shares | 1,515 |
| Max Price | UK£4.12 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 959 |
| Max Price | UK£4.12 |
| Entity | Individual |
| Shares | 687 |
| Max Price | UK£4.12 |
| Entity | Individual |
| Role | Senior Key Executive Executive President of HSSEA |
| Shares | 185 |
| Max Price | UK£4.12 |
| Entity | Individual |
| Role | Head of Human Resources Executive President of People & Organisation |
| Shares | 323 |
| Max Price | UK£4.12 |
| Entity | Individual |
| Shares | 808 |
| Max Price | UK£4.12 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14%.
Management Team
Tony Dinozzi
Group Head of M&A
- Tenure: 20yrs
Robin Watson (51yo)
CEO & Executive Director
- Tenure: 4yrs
- Compensation: US$1.88m
David Kemp (48yo)
CFO & Executive Director
- Tenure: 4.7yrs
- Compensation: US$1.13m
Nina Schofield
Executive President of HSSEA
- Tenure: 5.4yrs
Sue MacDonald
Executive President of People & Organisation
Carl Catfield
Group Head of Treasury & Taxation
- Tenure: 13.4yrs
Martin McIntyre
General Counsel & Company Secretary
- Tenure: 4yrs
Andrew Rose
Head of Investor Relations
Ann Massey
President of Corporate Development
- Tenure: 0.2yrs
Darren Martin
Chief Technology Officer
- Tenure: 1.5yrs
Board Members
Jeremy Wilson (54yo)
Senior Independent Director
- Tenure: 0.3yrs
- Compensation: US$60.50k
Roy Franklin (66yo)
Independent Chairman of the Board
- Tenure: 0.3yrs
- Compensation: US$60.50k
Robin Watson (51yo)
CEO & Executive Director
- Tenure: 4yrs
- Compensation: US$1.88m
Mary Shafer-Malicki (58yo)
Non-Executive Director
- Tenure: 7.6yrs
- Compensation: US$55.50k
David Kemp (48yo)
CFO & Executive Director
- Tenure: 4.7yrs
- Compensation: US$1.13m
Adrian R. Marsh (52yo)
Non-Executive Director
- Tenure: 0.7yrs
Tom Botts (64yo)
Non-Executive Director
- Tenure: 7yrs
- Compensation: US$60.50k
Jacqui Ferguson (49yo)
Non-Executive Director
- Tenure: 3.1yrs
- Compensation: US$55.50k
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£2.554b
- Shares outstanding: 673.84m
- Website: https://www.woodgroup.com
Number of Employees
Location
- John Wood Group PLC
- 15 Justice Mill Lane
- Aberdeen
- Aberdeenshire
- AB11 6EQ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WDGJ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 2002 |
| WG. | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | May 2002 |
| JWG1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 2002 |
| WGL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | May 2002 |
| WDGJ.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2008 |
Biography
John Wood Group PLC, together with its subsidiaries, provides project, engineering, and technical services in energy, industry, and built environment worldwide. It operates through five segments: Asset Solutions Europe, Africa, Asia, Australia; Assets Solutions Americas; Specialist Technical Solutions; Environment and Infrastructure Solutions; and Investment Services. The company offers engineering, fabrication and construction, and bundled services; commissioning and decommissioning services; and operations and maintenance services. It also provides scaffolding, rope access, thermal insulation and industrial painting, specialist construction and civils, asbestos remediation, mechanical, and piping support services, as well as electrical, control, and instrumentation. In addition, the company offers project management, EPC/EPCM project, and construction and field services; environment and infrastructure solutions, including environmental studies, permitting and compliance, environmental remediation, public infrastructure, geotechnical and materials, and engineering and construction services. Further, it provides clean energy solutions, such as engineering, design, and project management; analytics, technology, and laboratories; safety licensing and regulatory; and plant operations and life extension services. Additionally, the company offers mineral resources and project assessments, mine planning and design, mineral processing and metallurgy, and material handling; and information management, IoT and connected devices, software and applications and analytics, visualization, and digital project delivery, as well as automation and control, and consulting solutions. The company also provides subsea and export systems comprising operational support and integrity; engineer, procure, and fabricate; flow assurance; subsea, umbilical, riser, and flowline; and pipelines and marine terminals. John Wood Group PLC is based in Aberdeen, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/27 20:44 |
| End of Day Share Price | 2020/01/27 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.