Workspace Group (LSE:WKP) - Share price, News & Analysis

WKP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	3/6
Dividends	4/6

WKP Stock Overview

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

Rewards

Trading at 26% below our estimate of its fair value

Earnings are forecast to grow 64.23% per year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

Workspace Group Competitors

Derwent London

LSE:DLN

UK£3.4b

Great Portland Estates

LSE:GPE

UK£1.6b

Regional REIT

LSE:RGL

UK£442.0m

McKay Securities

LSE:MCKS

UK£256.9m

Price History & Performance

Summary of all time highs, changes and price drops for Workspace Group
Historical stock prices
Current Share Price	UK£6.67
52 Week High	UK£9.79
52 Week Low	UK£5.93
Beta	1.01
1 Month Change	-4.65%
3 Month Change	-11.60%
1 Year Change	-24.42%
3 Year Change	-26.62%
5 Year Change	-22.62%
Change since IPO	98.51%

Shareholder Returns

	WKP	GB REITs	GB Market
7D	3.1%	2.0%	0.8%
1Y	-24.4%	-0.8%	-5.0%

Return vs Industry: WKP underperformed the UK REITs industry which returned 1.5% over the past year.

Return vs Market: WKP underperformed the UK Market which returned -2.5% over the past year.

Price Volatility

Is WKP's price volatile compared to industry and market?
WKP volatility
WKP Average Weekly Movement	5.1%
REITs Industry Average Movement	3.6%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: WKP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WKP's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	210	Graham Clemett	https://www.workspace.co.uk

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 London’s brightest businesses, including fast growing and established brands across a wide range of sectors.

Workspace Group Fundamentals Summary

How do Workspace Group's earnings and revenue compare to its market cap?
WKP fundamental statistics
Market Cap	UK£1.28b
Earnings (TTM)	-UK£121.90m
Revenue (TTM)	UK£128.00m

10.0x

P/S Ratio

-10.5x

P/E Ratio

Is WKP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WKP income statement (TTM)
Revenue	UK£128.00m
Cost of Revenue	UK£42.00m
Gross Profit	UK£86.00m
Other Expenses	UK£207.90m
Earnings	-UK£121.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 08, 2022

Earnings per share (EPS)	-0.64
Gross Margin	67.19%
Net Profit Margin	-95.23%
Debt/Equity Ratio	35.3%

How did WKP perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

52%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

26.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WKP (£6.67) is trading below our estimate of fair value (£9.02)

Significantly Below Fair Value: WKP is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: WKP is unprofitable, so we can't compare its PE Ratio to the UK REITs industry average.

PE vs Market: WKP is unprofitable, so we can't compare its PE Ratio to the UK market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WKP's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: WKP is good value based on its PB Ratio (0.8x) compared to the GB REITs industry average (0.9x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

64.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WKP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: WKP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WKP's is expected to become profitable in the next 3 years.

Revenue vs Market: WKP's revenue (5.3% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: WKP's revenue (5.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if WKP's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Workspace Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-53.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WKP is currently unprofitable.

Growing Profit Margin: WKP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: WKP is unprofitable, and losses have increased over the past 5 years at a rate of 53.4% per year.

Accelerating Growth: Unable to compare WKP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WKP is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (129.6%).

Return on Equity

High ROE: WKP has a negative Return on Equity (-7.21%), as it is currently unprofitable.

Financial Health

How is Workspace Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: WKP's short term assets (£103.1M) exceed its short term liabilities (£100.3M).

Long Term Liabilities: WKP's short term assets (£103.1M) do not cover its long term liabilities (£623.0M).

Debt to Equity History and Analysis

Debt Level: WKP's net debt to equity ratio (30.9%) is considered satisfactory.

Reducing Debt: WKP's debt to equity ratio has increased from 16.6% to 35.3% over the past 5 years.

Debt Coverage: WKP's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: WKP's interest payments on its debt are well covered by EBIT (3x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WKP's dividend (2.1%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: WKP's dividend (2.1%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

Stable Dividend: WKP's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.6%), WKP's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.3%), WKP's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure

CEO

Graham Clemett (60 yo)

2.92yrs

Tenure

UK£764,400

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 ($USD955.68K) is below average for companies of similar size in the UK market ($USD1.89M).

Compensation vs Earnings: Graham's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: WKP's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: WKP's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.

Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31