Watkin Jones Plc engages in the development and the management of properties for residential occupation in the United Kingdom. More Details
Excellent balance sheet with moderate growth potential.
Share Price & News
How has Watkin Jones's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WJG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WJG's weekly volatility (4%) has been stable over the past year.
7 Day Return
GB Real Estate
1 Year Return
GB Real Estate
Return vs Industry: WJG exceeded the UK Real Estate industry which returned 30.5% over the past year.
Return vs Market: WJG exceeded the UK Market which returned 18.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Watkin Jones's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StWhy It Might Not Make Sense To Buy Watkin Jones Plc (LON:WJG) For Its Upcoming Dividend
1 month ago | Simply Wall StWatkin Jones Plc's (LON:WJG) Stock Been Rising: Are Strong Financials Guiding The Market?
2 months ago | Simply Wall StHow Much Are Watkin Jones Plc (LON:WJG) Insiders Spending On Buying Shares?
Is Watkin Jones undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WJG (£2.3) is trading below our estimate of fair value (£5.89)
Significantly Below Fair Value: WJG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WJG is poor value based on its PE Ratio (29x) compared to the UK Real Estate industry average (19x).
PE vs Market: WJG is poor value based on its PE Ratio (29x) compared to the UK market (23.9x).
Price to Earnings Growth Ratio
PEG Ratio: WJG is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: WJG is overvalued based on its PB Ratio (3.5x) compared to the GB Real Estate industry average (1x).
How is Watkin Jones forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WJG's forecast earnings growth (19.4% per year) is above the savings rate (0.9%).
Earnings vs Market: WJG's earnings (19.4% per year) are forecast to grow faster than the UK market (17% per year).
High Growth Earnings: WJG's earnings are forecast to grow, but not significantly.
Revenue vs Market: WJG's revenue (13.4% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: WJG's revenue (13.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WJG's Return on Equity is forecast to be low in 3 years time (15.2%).
How has Watkin Jones performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WJG has a large one-off loss of £20.8M impacting its March 31 2021 financial results.
Growing Profit Margin: WJG's current net profit margins (5.8%) are lower than last year (10.6%).
Past Earnings Growth Analysis
Earnings Trend: WJG's earnings have grown by 9.9% per year over the past 5 years.
Accelerating Growth: WJG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WJG had negative earnings growth (-52.6%) over the past year, making it difficult to compare to the Real Estate industry average (13.6%).
Return on Equity
High ROE: WJG's Return on Equity (11.9%) is considered low.
How is Watkin Jones's financial position?
Financial Position Analysis
Short Term Liabilities: WJG's short term assets (£339.9M) exceed its short term liabilities (£114.6M).
Long Term Liabilities: WJG's short term assets (£339.9M) exceed its long term liabilities (£186.5M).
Debt to Equity History and Analysis
Debt Level: WJG's debt to equity ratio (33.5%) is considered satisfactory.
Reducing Debt: WJG's debt to equity ratio has increased from 19% to 33.5% over the past 5 years.
Debt Coverage: WJG's debt is well covered by operating cash flow (33%).
Interest Coverage: WJG's interest payments on its debt are well covered by EBIT (9.9x coverage).
What is Watkin Jones's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WJG's dividend (2.27%) is higher than the bottom 25% of dividend payers in the UK market (1.3%).
High Dividend: WJG's dividend (2.27%) is low compared to the top 25% of dividend payers in the UK market (3.97%).
Stability and Growth of Payments
Stable Dividend: WJG has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: WJG's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (125.8%), WJG's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WJG's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Simpson (45 yo)
Mr. Richard C. Simpson has been the Chief Executive Officer at Watkin Jones Plc since January 1, 2019 and has been its Director since January 2, 2019. Mr. Simpson served as Group Property Director of The U...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD745.39K) is about average for companies of similar size in the UK market ($USD970.52K).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Experienced Management: WJG's management team is seasoned and experienced (11.5 years average tenure).
Experienced Board: WJG's board of directors are considered experienced (5.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Watkin Jones Plc's company bio, employee growth, exchange listings and data sources
- Name: Watkin Jones Plc
- Ticker: WJG
- Exchange: AIM
- Founded: 1791
- Industry: Real Estate Development
- Sector: Real Estate
- Market Cap: UK£578.498m
- Shares outstanding: 253.17m
- Website: https://www.watkinjonesplc.com
Number of Employees
- Watkin Jones Plc
- 7-9 Swallow Street
- Greater London
- W1B 4DE
- United Kingdom
Watkin Jones Plc engages in the development and the management of properties for residential occupation in the United Kingdom. The company operates through Student Accommodation, Build to Rent, Residential...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/28 19:44|
|End of Day Share Price||2021/07/28 00:00|
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.