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Watkin Jones

AIM:WJG
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WJG
AIM
£572M
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Watkin Jones plc engages in the development and the management of properties for residential occupation in the United Kingdom. The last earnings update was 2 days ago. More info.


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WJG Share Price and Events
7 Day Returns
-2.2%
AIM:WJG
-1.2%
GB Real Estate
1%
GB Market
1 Year Returns
4.2%
AIM:WJG
-24.6%
GB Real Estate
-6.3%
GB Market
WJG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Watkin Jones (WJG) -2.2% 0% 0% 4.2% 100% -
GB Real Estate -1.2% -2.7% -2.3% -24.6% -3% -11.4%
GB Market 1% -1.8% 1.5% -6.3% 14.4% 2%
1 Year Return vs Industry and Market
  • WJG outperformed the Real Estate industry which returned -24.6% over the past year.
  • WJG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.
Price Volatility
WJG
Industry
5yr Volatility vs Market

WJG Value

 Is Watkin Jones undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Watkin Jones to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Watkin Jones.

AIM:WJG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:WJG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 19%) (6.93%))
1.028
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.028 * 6.65%)
8.06%

Discounted Cash Flow Calculation for AIM:WJG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Watkin Jones is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:WJG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.06%)
2019 26.65 Analyst x2 24.66
2020 35.55 Analyst x2 30.44
2021 42.15 Analyst x2 33.40
2022 47.32 Est @ 12.27% 34.70
2023 51.56 Est @ 8.96% 34.99
2024 54.98 Est @ 6.64% 34.53
2025 57.74 Est @ 5.01% 33.56
2026 59.98 Est @ 3.88% 32.26
2027 61.83 Est @ 3.08% 30.77
2028 63.39 Est @ 2.53% 29.20
Present value of next 10 years cash flows £318.53
AIM:WJG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £63.39 × (1 + 1.23%) ÷ (8.06% – 1.23%)
£939.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £939.01 ÷ (1 + 8.06%)10
£432.53
AIM:WJG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £318.53 + £432.53
£751.05
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £751.05 / 255.03
£2.95
AIM:WJG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.95
Current discount Discount to share price of £2.25
= -1 x (£2.25 - £2.95) / £2.95
23.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Watkin Jones is available for.
Intrinsic value
24%
Share price is £2.25 vs Future cash flow value of £2.95
Current Discount Checks
For Watkin Jones to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Watkin Jones's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Watkin Jones's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Watkin Jones's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Watkin Jones's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:WJG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.17
AIM:WJG Share Price ** AIM (2019-05-22) in GBP £2.25
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PE Ratio Median Figure of 29 Publicly-Listed Real Estate Companies 12.62x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Watkin Jones.

AIM:WJG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:WJG Share Price ÷ EPS (both in GBP)

= 2.25 ÷ 0.17

13.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watkin Jones is overvalued based on earnings compared to the GB Real Estate industry average.
  • Watkin Jones is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Watkin Jones's expected growth come at a high price?
Raw Data
AIM:WJG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
5.4%per year
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PEG Ratio Median Figure of 16 Publicly-Listed Real Estate Companies 1.15x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

AIM:WJG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.16x ÷ 5.4%

2.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watkin Jones is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Watkin Jones's assets?
Raw Data
AIM:WJG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £0.63
AIM:WJG Share Price * AIM (2019-05-22) in GBP £2.25
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PB Ratio Median Figure of 36 Publicly-Listed Real Estate Companies 1.01x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.51x
AIM:WJG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:WJG Share Price ÷ Book Value per Share (both in GBP)

= 2.25 ÷ 0.63

3.56x

* Primary Listing of Watkin Jones.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watkin Jones is overvalued based on assets compared to the GB Real Estate industry average.
X
Value checks
We assess Watkin Jones's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Watkin Jones has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WJG Future Performance

 How is Watkin Jones expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Watkin Jones expected to grow at an attractive rate?
  • Watkin Jones's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Watkin Jones's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Watkin Jones's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:WJG Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:WJG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 5.4%
AIM:WJG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 8.2%
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 20%
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Revenue Growth Rate Market Cap Weighted Average -4.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:WJG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:WJG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 533 2
2022-09-30 505 49 2
2021-09-30 482 48 49 4
2020-09-30 442 41 46 4
2019-09-30 391 28 41 4
AIM:WJG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 364 -1 44
2018-12-31 363 26 44
2018-09-30 363 54 44
2018-06-30 345 50 41
2018-03-31 327 46 38
2017-12-31 314 33 37
2017-09-30 302 19 36
2017-06-30 278 7 36
2017-03-31 255 -5 35
2016-12-31 261 5 20
2016-09-30 267 15 5
2016-06-30 277 29 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Watkin Jones's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
  • Watkin Jones's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:WJG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Watkin Jones Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:WJG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30
2021-09-30 0.20 0.21 0.19 2.00
2020-09-30 0.18 0.19 0.18 2.00
2019-09-30 0.16 0.16 0.16 2.00
AIM:WJG Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.17
2018-12-31 0.17
2018-09-30 0.17
2018-06-30 0.16
2018-03-31 0.15
2017-12-31 0.14
2017-09-30 0.14
2017-06-30 0.14
2017-03-31 0.14
2016-12-31 0.08
2016-09-30
2016-06-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Watkin Jones is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Watkin Jones's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Watkin Jones has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WJG Past Performance

  How has Watkin Jones performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Watkin Jones's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Watkin Jones has delivered over 20% year on year earnings growth in the past 5 years.
  • Watkin Jones's 1-year earnings growth is less than its 5-year average (15% vs 34%)
  • Watkin Jones's earnings growth has exceeded the GB Real Estate industry average in the past year (15% vs 1.6%).
Earnings and Revenue History
Watkin Jones's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Watkin Jones Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:WJG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 363.84 43.63 23.74
2018-12-31 363.45 43.92 23.28
2018-09-30 363.05 44.21 22.82
2018-06-30 344.81 41.07 22.33
2018-03-31 326.56 37.94 21.85
2017-12-31 314.24 36.87 21.35
2017-09-30 301.91 35.80 20.85
2017-06-30 278.34 35.60 19.98
2017-03-31 254.77 35.39 19.11
2016-12-31 260.87 20.24 17.52
2016-09-30 266.98 5.09 15.93
2016-06-30 276.65 5.70 14.01
2016-03-31 286.32 6.31 12.09
2015-12-31 265.28 16.46 11.84
2015-09-30 244.25 26.61 11.59
2014-09-30 227.33 11.13 10.81
2013-09-30 121.38 5.11 8.84
2012-09-30 145.56 6.37 9.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Watkin Jones has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Watkin Jones used its assets more efficiently than the GB Real Estate industry average last year based on Return on Assets.
  • Watkin Jones's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Watkin Jones's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Watkin Jones has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WJG Health

 How is Watkin Jones's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Watkin Jones's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Watkin Jones is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Watkin Jones's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Watkin Jones's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Watkin Jones Company Filings, last reported 1 month ago.

AIM:WJG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 161.15 39.61 57.91
2018-12-31 161.15 39.61 57.91
2018-09-30 153.02 26.48 107.33
2018-06-30 153.02 26.48 107.33
2018-03-31 134.29 23.27 61.61
2017-12-31 134.29 23.27 61.61
2017-09-30 126.23 24.34 66.24
2017-06-30 126.23 24.34 66.24
2017-03-31 113.09 13.47 25.11
2016-12-31 113.09 13.47 25.11
2016-09-30 102.73 15.08 48.17
2016-06-30 102.73 15.08 48.17
2016-03-31 88.75 17.30 32.60
2015-12-31 88.75 17.30 32.60
2015-09-30 113.05 20.23 60.13
2014-09-30 90.76 16.12 26.91
2013-09-30 81.02 42.77 7.47
2012-09-30 75.92 35.12 7.64
  • Watkin Jones's level of debt (24.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (34.2% vs 24.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 97.9x coverage).
X
Financial health checks
We assess Watkin Jones's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Watkin Jones has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WJG Dividends

 What is Watkin Jones's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.38%
Current annual income from Watkin Jones dividends. Estimated to be 4.08% next year.
If you bought £2,000 of Watkin Jones shares you are expected to receive £68 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Watkin Jones's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Watkin Jones's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.25%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:WJG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 3.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:WJG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 0.11 1.00
2022-09-30 0.10 2.00
2021-09-30 0.10 4.00
2020-09-30 0.09 4.00
2019-09-30 0.08 4.00
AIM:WJG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-01-15 0.076 3.392
2019-01-14 0.076 3.511
2018-01-22 0.066 3.288
2018-01-15 0.066 3.179
2017-06-05 0.049 2.339
2017-01-24 0.053 3.438
2017-01-18 0.053 4.061
2016-06-09 0.027 2.327

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Watkin Jones has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Watkin Jones only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Watkin Jones's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Watkin Jones's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Watkin Jones afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Watkin Jones has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WJG Management

 What is the CEO of Watkin Jones's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Simpson
AGE 42
TENURE AS CEO 0.3 years
CEO Bio

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 Unite Group plc from October 22, 2016 to May 2018 and its Executive Director since January 1, 2012 until May 2018. At Unite Group, Mr. Simpson sets the strategic direction for all aspects of the property portfolio, oversees the fund management of Unite's co-investment vehicles and leads the property development activities. He served as a Managing Director of Development of The Unite Group plc. Mr. Simpson served as Managing Director of Property of The Unite Group plc since September 2011 until October 22, 2016. He joined Unite Group in 2005 and has held a variety of senior roles within the Group. He has been a Non-Executive of CityWest Homes from January 2017. He was a Director of LDC (AIB Warehouse) Limited; LDC (Alscot Road) Limited; LDC (Brunel House) Limited; LDC (Capital Cities) Limited; LDC (Causewayend) Limited; LDC (Chaucer House) Limited; LDC (Constitution Street) Limited; LDC (Cowley) Limited; LDC (Far Gosford) Limited; LDC (Ferry Lane) Limited; LDC (Ferry Lane 2) Holdings Limited; LDC (Finance) Limited; LDC (Greetham Street) Limited; LDC (Hampton Street) Limited; LDC (Holdings) Limited; LDC (Imperial Wharf) Limited; LDC (International House) Limited; LDC (Loughborough) Limited; LDC (Millennium View) Limited; LDC (New Wakefield Street) Limited; LDC (Newgate) Limited; LDC (Old Hospital) Limited; LDC (Portfolio) Limited; LDC (Portfolio One) Limited; LDC (Portfolio Four) Limited; LDC (Portfolio 100) Limited; LDC (Radmarsh Road) Limited; LDC (River Street) Limited; LDC (Skelhorne) Limited; LDC (St Leonards) Limited; LDC (St Vincent's) Limited; LDC (Stratford) Holdings Limited; LDC (Swindon NHS) Limited; LDC (Tara House) Limited; LDC (Thurso Street) GP1 Limited; LDC (Thurso Street) GP2 Limited; LDC (Thurso Street) GP3 Limited; LDC (Thurso Street) GP4 Limited; LDC (Tower North) Limited; LDC (William Morris II) Limited; LSAV (GP) Limited; LSAV (Rent Collection) Limited; Unite Accommodation Management 2 Limited; Unite Accommodation Management 4 Limited; Unite Accommodation Management 17 Limited; Unite Accommodation Management One Hundred Limited; Unite Construction (Stapleton) Limited; Unite Construction (Wembley) Limited; Unite Finance One (Accommodation Services) Limited; Unite Finance One (Property) Limited; Unite Integrated Solutions plc; Unite Rent Collection Limited; USAF GP No.14 Limited; USAF GP No.15 Limited; USAF GP No.18 Limited; USAF Holdings H Limited; USAF Holdings I Limited; USAF Holdings J Limited; USAF Management 14 Limited; USAF Management 18 Limited; USAF Management GP No. 14 Limited; USAF Management GP No. 15 Limited; USAF Management GP No. 16 Limited; USAF Management GP No. 17 Limited; USAF Nominee No. 14 Limited; USAF Nominee No. 14A Limited; USAF Nominee No. 18 Limited and USAF Nominee No. 18A Limited. He is a qualified chartered surveyor and a fellow of the Royal Institution of Chartered Surveyors. He was Chair of the British Property Federation's cross-sector Student Accommodation Committee from 2013-2015.

CEO Compensation
  • Insufficient data for Richard to compare compensation growth.
  • Insufficient data for Richard to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Watkin Jones management team in years:

11.8
Average Tenure
  • The average tenure for the Watkin Jones management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Philip Byrom

TITLE
CFO & Director
COMPENSATION
£473K
TENURE
17.3 yrs

Richard Simpson

TITLE
CEO & Director
AGE
42
TENURE
0.3 yrs

Alex Pease

TITLE
Investment Director

Geraint Morgan

TITLE
Managing Director of Student Accommodation South West & South Wales

Berwyn Evans

TITLE
Managing Director of Homes Division
TENURE
14.3 yrs

Graham Davies

TITLE
Managing Director of Student Accommodation North West & Midlands

Andrew McDonough

TITLE
Managing Director of Student Accommodation North & South

Jim Davies

TITLE
Managing Director of Newmark Developments
TENURE
9.3 yrs

Rebecca Hopewell

TITLE
Chief Executive Officer of Fresh Property Group
Board of Directors Tenure

Average tenure and age of the Watkin Jones board of directors in years:

3.2
Average Tenure
56.5
Average Age
  • The tenure for the Watkin Jones board of directors is about average.
Board of Directors

Grenville Turner

TITLE
Independent Non-Executive Chairman
COMPENSATION
£125K
AGE
60
TENURE
3.3 yrs

Philip Byrom

TITLE
CFO & Director
COMPENSATION
£473K
TENURE
3.2 yrs

Richard Simpson

TITLE
CEO & Director
AGE
42
TENURE
0.3 yrs

Simon Laffin

TITLE
Independent Non-Executive Director
COMPENSATION
£52K
AGE
59
TENURE
3.3 yrs

Liz Reilly

TITLE
Independent Non-Executive Director
AGE
54
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Watkin Jones insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
26. Feb 19 Sell Philip Byrom Individual 22. Feb 19 26. Feb 19 -567,891 £2.26 £-1,278,058
X
Management checks
We assess Watkin Jones's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Watkin Jones has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WJG News

Simply Wall St News

Here's What Watkin Jones Plc's (LON:WJG) P/E Is Telling Us

We'll show how you can use Watkin Jones Plc's (LON:WJG) P/E ratio to inform your assessment of the investment opportunity. … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Calculating The Intrinsic Value Of Watkin Jones Plc (LON:WJG)

This is done using the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.

Simply Wall St -

Should You Be Holding Watkin Jones Plc (LON:WJG)?

Watkin Jones Plc (LON:WJG) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company with great financial health as well as a.

Simply Wall St -

Should You Buy Watkin Jones Plc (LON:WJG) For Its Dividend?

Watkin Jones Plc (LON:WJG) has recently paid dividends to shareholders, and currently yields 3.5%. … Let's dig deeper into whether Watkin Jones should have a place in your portfolio. … See our latest analysis for Watkin Jones

Simply Wall St -

Want To Invest In Watkin Jones Plc (LON:WJG)? Here's How It Performed Lately

Today I will examine Watkin Jones Plc's (LON:WJG) latest earnings update (30 September 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of WJG's industry performed. … Were WJG's earnings stronger than its past performances and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 35%, indicating the rate at which WJG is growing has slowed down

Simply Wall St -

If You Had Bought Watkin Jones Shares A Year Ago You'd Have Made 11%

For example, the Watkin Jones Plc (LON:WJG) share price is up 11% in the last year, clearly besting than the market return of around -3.4% (not including dividends). … So it seems like the market has cooled on Watkin Jones, despite the growth. … We know that Watkin Jones has improved its bottom line lately, but is it going to grow revenue

Simply Wall St -

How Financially Strong Is Watkin Jones Plc (LON:WJG)?

Investors are always looking for growth in small-cap stocks like Watkin Jones Plc (LON:WJG), with a market cap of UK£590m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Despite Its High P/E Ratio, Is Watkin Jones Plc (LON:WJG) Still Undervalued?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Watkin Jones has a price to earnings ratio of 13.4, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Watkin Jones Plc (LON:WJG): Earnings Growth Remains Elusive

On 30 September 2018, Watkin Jones Plc (LON:WJG) announced its latest earnings update. … with earnings expected to decline by -6.2% in the upcoming year

Simply Wall St -

Watkin Jones Plc (LON:WJG) Is Trading At A 25.25% Discount

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

WJG Company Info

Description

Watkin Jones plc engages in the development and the management of properties for residential occupation in the United Kingdom. It develops and constructs multi occupancy property assets focusing on student accommodations. The company operates through Student Accommodation, Build To Rent, Residential, and Accommodation Management segments. It is also involved in the management of student accommodation property; development of traditional residential property; and development of build to rent accommodation. The company was formerly known as Watkin Jones Limited and changed its name to Watkin Jones plc in March 2016. Watkin Jones plc was founded in 1791 and is headquartered in Bangor, the United Kingdom.

Details
Name: Watkin Jones Plc
WJG
Exchange: AIM
Founded: 1791
£571,896,533
255,026,325
Website: http://www.watkinjonesplc.com
Address: Watkin Jones Plc
Llandygai Industrial Estate,
Bangor,
Gwynedd, LL57 4YH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM WJG Ordinary Shares London Stock Exchange AIM Market GB GBP 23. Mar 2016
Number of employees
Current staff
Staff numbers
722
Watkin Jones employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 00:48
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/21
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.