LSE:WKP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Established in 1987, and listed on the London Stock Exchange since 1993, Workspace owns and manages some 4 million sq. More Details


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

WKP

-1.8%

GB REITs

-2.0%

GB Market


1 Year Return

-41.0%

WKP

-22.1%

GB REITs

-17.2%

GB Market

Return vs Industry: WKP underperformed the UK REITs industry which returned -20.6% over the past year.

Return vs Market: WKP underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

WKPIndustryMarket
7 Day-0.7%-1.8%-2.0%
30 Day25.2%2.2%-0.5%
90 Day4.1%-20.0%-4.4%
1 Year-38.2%-41.0%-24.8%-22.1%-14.1%-17.2%
3 Year-23.7%-31.8%-12.7%-12.0%-10.3%-21.4%
5 Year-25.9%-36.8%-17.3%-21.6%13.4%-12.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WKP (£6.04) is trading below our estimate of fair value (£6.06)

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


Price To Earnings Ratio

PE vs Industry: WKP is good value based on its PE Ratio (15.1x) compared to the GB REITs industry average (16.4x).

PE vs Market: WKP is good value based on its PE Ratio (15.1x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: WKP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: WKP is good value based on its PB Ratio (0.5x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is Workspace Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WKP's forecast earnings growth (9.3% per year) is above the savings rate (1.2%).

Earnings vs Market: WKP's earnings (9.3% per year) are forecast to grow slower than the UK market (24.1% per year).

High Growth Earnings: WKP's earnings are forecast to grow, but not significantly.

Revenue vs Market: WKP's revenue is expected to decline over the next 3 years (-4.3% per year).

High Growth Revenue: WKP's revenue is forecast to decline over the next 3 years (-4.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WKP's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Workspace Group performed over the past 5 years?

-27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WKP has high quality earnings.

Growing Profit Margin: WKP's current net profit margins (44.7%) are lower than last year (91.9%).


Past Earnings Growth Analysis

Earnings Trend: WKP's earnings have declined by 27.2% per year over the past 5 years.

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

Earnings vs Industry: WKP had negative earnings growth (-47.5%) over the past year, making it difficult to compare to the REITs industry average (-20.8%).


Return on Equity

High ROE: WKP's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Workspace Group's financial position?


Financial Position Analysis

Short Term Liabilities: WKP's short term assets (£115.4M) exceed its short term liabilities (£92.1M).

Long Term Liabilities: WKP's short term assets (£115.4M) do not cover its long term liabilities (£645.4M).


Debt to Equity History and Analysis

Debt Level: WKP's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: WKP's debt to equity ratio has increased from 27.3% to 31.3% over the past 5 years.

Debt Coverage: WKP's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: WKP's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

5.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WKP's dividend (5.99%) is higher than the bottom 25% of dividend payers in the UK market (1.84%).

High Dividend: WKP's dividend (5.99%) is in the top 25% of dividend payers in the UK market (5.29%)


Stability and Growth of Payments

Stable Dividend: WKP's dividends per share have been stable in the past 10 years.

Growing Dividend: WKP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), WKP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WKP's dividends in 3 years are forecast to be covered by earnings (80.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Graham Clemett (59 yo)

1.33yrs

Tenure

UK£1,633,300

Compensation

Mr. Graham Clemett, BSc., ACA, has been the Chief Executive Officer of Workspace Group plc since September 24, 2019 and served as its Interim Chief Executive Officer since June 2019 until September 24, 201 ...


CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD2.14M) is about average for companies of similar size in the UK market ($USD1.73M).

Compensation vs Earnings: Graham's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Graham Clemett
CEO & Director1.33yrsUK£1.63m0.071%
£ 771.4k
David Benson
CFO & Director0.50yrno datano data
Richard Swayne
Investment Directorno datano datano data
Kate Ankers
Chief Accountantno datano datano data
Cynthia Alers
Interim Head of Investor Relationsno datano datano data
Clare Marland
Head of Corporate Communicationsno datano datano data
Charles Fraser
Head of Salesno datano datano data
Claire Dracup
Head of People0.50yrno datano data
Simon Webb
Head of Professional Servicesno datano datano data
Angus Boag
Development Directorno datano data0.34%
£ 3.7m
Vivienne Frankham
Head of Financeno datano datano data
Mike Webber
Head of Financial Planning & Analysisno datano datano data

0.5yrs

Average Tenure

Experienced Management: WKP's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Graham Clemett
CEO & Director1.33yrsUK£1.63m0.071%
£ 771.4k
David Benson
CFO & Director0.50yrno datano data
Stephen Hubbard
Independent Non-Executive Chairman0.25yrUK£51.00k0.013%
£ 142.8k
Christopher Girling
Senior Independent Non-Executive Director6.25yrsUK£61.80kno data
Damon Russell
Independent Non-Executive Director7.42yrsUK£51.00kno data
Suzi Williams
Independent Non-Executive Director0.75yrUK£10.20kno data
Maria Moloney
Independent Non-Executive Director8.42yrsUK£61.80k0.0011%
£ 12.2k

6.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: WKP's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WKP 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

Workspace Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Workspace Group plc
  • Ticker: WKP
  • Exchange: LSE
  • Founded: 1987
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: UK£1.093b
  • Shares outstanding: 180.93m
  • Website: https://www.workspace.co.uk

Number of Employees


Location

  • Workspace Group plc
  • Canterbury Court, Kennington Park
  • Business Centre, 1-3 Brixton Road
  • London
  • East Lothian
  • SW9 6DE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WKPLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 1993
WRX1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1993
WKPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1993
WKPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 1993

Biography

Established in 1987, and listed on the London Stock Exchange since 1993, Workspace owns and manages some 4 million sq. ft. of business space in London. We are home to thousands of businesses, including fas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 20:39
End of Day Share Price2020/10/27 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.