John Wood Group
Market Cap
UK£1.3b
Last Updated
2020/04/06 20:48 UTC
Data Sources
Company Financials +
Executive Summary
John Wood Group PLC, together with its subsidiaries, provides project management, engineering, consulting, and technical services to energy and built environment worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Good value with moderate growth potential.
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.'s share price has been volatile over the past 3 months.
Market Performance
7 Day Return
23.4%
WG.
12.0%
GB Energy Services
0.1%
GB Market
1 Year Return
-64.5%
WG.
-59.3%
GB Energy Services
-23.6%
GB Market
Return vs Industry: WG. underperformed the UK Energy Services industry which returned -61.5% over the past year.
Return vs Market: WG. underperformed the UK Market which returned -25.9% over the past year.
Shareholder returns
| WG. | Industry | Market | |
|---|---|---|---|
| 7 Day | 23.4% | 12.0% | 0.1% |
| 30 Day | -41.0% | -32.1% | -15.5% |
| 90 Day | -53.0% | -48.1% | -27.0% |
| 1 Year | -62.3%-64.5% | -57.4%-59.3% | -19.8%-23.6% |
| 3 Year | -73.3%-76.3% | -71.8%-74.6% | -13.5%-24.3% |
| 5 Year | -66.4%-72.1% | -68.1%-73.2% | -1.6%-23.5% |
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 weeks ago | Simply Wall St
Investors Who Bought John Wood Group (LON:WG.) Shares Three Years Ago Are Now Down 82%1 month ago | Simply Wall St
Is John Wood Group PLC (LON:WG.) Struggling With Its 4.3% Return On Capital Employed?1 month ago | Simply Wall St
Calculating The Intrinsic Value Of John Wood Group PLC (LON:WG.)Valuation
Is John Wood Group undervalued compared to its fair value and its price relative to the market?
36.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WG. (£1.72) is trading below our estimate of fair value (£3.06)
Significantly Below Fair Value: WG. is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WG. is poor value based on its PE Ratio (19.6x) compared to the Energy Services industry average (8.6x).
PE vs Market: WG. is poor value based on its PE Ratio (19.6x) compared to the UK market (12.3x).
Price to Earnings Growth Ratio
PEG Ratio: WG. is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: WG. is good value based on its PB Ratio (0.3x) compared to the GB Energy Services industry average (0.5x).
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?
24.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WG.'s forecast earnings growth (25.8% per year) is above the savings rate (0.5%).
Earnings vs Market: WG.'s earnings (25.8% per year) are forecast to grow faster than the UK market (15.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WG.'s revenue is expected to decline over the next 3 years (-1.6% per year).
High Growth Revenue: WG.'s revenue is forecast to decline over the next 3 years (-1.6% 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 (6.2%).
Next Steps
Past Performance
How has John Wood Group performed over the past 5 years?
-59.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WG. has a large one-off loss of $96.9M impacting its December 31 2019 financial results.
Growing Profit Margin: WG. became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WG.'s earnings have declined by -59.6% 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 (0.7%).
Return on Equity
High ROE: WG.'s Return on Equity (1.6%) 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 ($4.7B) do not cover its short term liabilities ($5.0B).
Long Term Liabilities: WG.'s short term assets ($4.7B) exceed its long term liabilities ($3.0B).
Debt to Equity History and Analysis
Debt Level: WG.'s debt to equity ratio (75%) is considered high.
Reducing Debt: WG.'s debt to equity ratio has increased from 19.9% to 75% over the past 5 years.
Debt Coverage: WG.'s debt is not well covered by operating cash flow (19.8%).
Interest Coverage: WG.'s interest payments on its debt are not well covered by EBIT (2.4x coverage).
Balance Sheet
Next Steps
Dividend
What is John Wood Group's current dividend yield, its reliability and sustainability?
10.17%
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 payouts.
High Dividend: Unable to evaluate WG.'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 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?
4.6yrs
Average management tenure
CEO
Robin Watson (51yo)
4.25s
Tenure
US$1,875,000
Compensation
Mr. Robin Watson serves as Chief Operating Officer at Wood Group Mustang, Inc. Mr. Watson served as Chief Executive Officer GE Oil & Gas Pressure Control Canada Inc. since January 1, 2016. He has been Grou ...
CEO Compensation Analysis
Compensation vs Market: Robin's total compensation ($USD2.30M) is about average for companies of similar size in the UK market ($USD1.85M).
Compensation vs Earnings: Robin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.25yrs | US$1.88m | 0.049% $620.4k | |
| CFO & Executive Director | 4.92yrs | US$1.13m | 0.0098% $124.9k | |
| Chief Technology Officer | 1.75yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Company Secretary | 4.25yrs | no data | no data | |
| President of Corporate Development | 0.42yr | no data | no data | |
| Executive President of People & Organisation | no data | no data | 0.012% $153.6k | |
| Group Head of M&A | 20.25yrs | no data | no data | |
| Group Head of Treasury & Taxation | 13.67yrs | no data | no data | |
| Executive President of HSSEA | 5.67yrs | no data | 0.012% $154.8k |
4.6yrs
Average Tenure
Experienced Management: WG.'s management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.25yrs | US$1.88m | 0.049% $620.4k | |
| CFO & Executive Director | 4.92yrs | US$1.13m | 0.0098% $124.9k | |
| Senior Independent Director | 0.58yr | US$60.50k | 0.0030% $38.0k | |
| Independent Chairman of the Board | 0.58yr | US$60.50k | 0.0022% $28.4k | |
| Independent Non-Executive Director | 7.83yrs | US$55.50k | 0.00051% $6.5k | |
| Independent Non-Executive Director | 0.92yr | no data | 0.00030% $3.8k | |
| Independent Non-Executive Director | 7.25yrs | US$60.50k | 0.0013% $16.2k | |
| Independent Non-Executive Director | 3.33yrs | US$55.50k | 0.00060% $7.6k | |
| Independent Non-Executive Director | 0.083yr | no data | no data |
3.3yrs
Average Tenure
54yo
Average Age
Experienced Board: WG.'s board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WG. insiders have bought and sold the same number of shares 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£1.274b
- Shares outstanding: 671.31m
- Website: https://www.woodplc.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 management, engineering, consulting, and technical services 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 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 | 2020/04/06 20:48 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.