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TheWorks.co.uk

LSE:WRKS
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WRKS
LSE
£42M
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

TheWorks.co.uk plc engages in the retail sale of gifts, arts, crafts, toys, books, and stationery products in the United Kingdom and Ireland. The last earnings update was 11 days ago. More info.


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  • TheWorks.co.uk has significant price volatility in the past 3 months.
WRKS Share Price and Events
7 Day Returns
-3.2%
LSE:WRKS
-0.3%
GB Specialty Retail
-0.6%
GB Market
1 Year Returns
-
LSE:WRKS
-10.9%
GB Specialty Retail
-2.2%
GB Market
WRKS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TheWorks.co.uk (WRKS) -3.2% 5.1% -46% - - -
GB Specialty Retail -0.3% 2.3% -0.4% -10.9% -11.1% -18.4%
GB Market -0.6% 1.1% 0.4% -2.2% 11.5% 6.7%
1 Year Return vs Industry and Market
  • No trading data on WRKS.
  • No trading data on WRKS.
Price Volatility
Industry
5yr Volatility vs Market

WRKS Value

 Is TheWorks.co.uk 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 TheWorks.co.uk 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 TheWorks.co.uk.

LSE:WRKS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
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 LSE:WRKS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.838 (1 + (1- 19%) (1.51%))
0.898
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.898 * 6.65%)
7.2%

Discounted Cash Flow Calculation for LSE:WRKS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TheWorks.co.uk 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.

LSE:WRKS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.2%)
2020 4.20 Analyst x1 3.92
2021 4.75 Analyst x2 4.13
2022 5.40 Analyst x1 4.38
2023 5.89 Est @ 9.15% 4.46
2024 6.29 Est @ 6.78% 4.45
2025 6.62 Est @ 5.11% 4.36
2026 6.88 Est @ 3.95% 4.23
2027 7.09 Est @ 3.13% 4.07
2028 7.27 Est @ 2.56% 3.89
2029 7.43 Est @ 2.16% 3.71
Present value of next 10 years cash flows £41.60
LSE:WRKS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £7.43 × (1 + 1.23%) ÷ (7.2% – 1.23%)
£125.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £125.94 ÷ (1 + 7.2%)10
£62.84
LSE:WRKS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £41.60 + £62.84
£104.44
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £104.44 / 62.50
£1.67
LSE:WRKS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.67
Current discount Discount to share price of £0.67
= -1 x (£0.67 - £1.67) / £1.67
59.9%

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

Current Discount
Amount off the current price TheWorks.co.uk is available for.
Intrinsic value
>50%
Share price is £0.67 vs Future cash flow value of £1.67
Current Discount Checks
For TheWorks.co.uk to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TheWorks.co.uk's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TheWorks.co.uk's share price is below the future cash flow value, and 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 TheWorks.co.uk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TheWorks.co.uk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:WRKS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-28) in GBP £0.02
LSE:WRKS Share Price ** LSE (2019-07-12) in GBP £0.67
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PE Ratio Median Figure of 23 Publicly-Listed Specialty Retail Companies 14.43x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.48x

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

** Primary Listing of TheWorks.co.uk.

LSE:WRKS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:WRKS Share Price ÷ EPS (both in GBP)

= 0.67 ÷ 0.02

35.02x

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

  • TheWorks.co.uk is overvalued based on earnings compared to the GB Specialty Retail industry average.
  • TheWorks.co.uk is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does TheWorks.co.uk's expected growth come at a high price?
Raw Data
LSE:WRKS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 35.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
38.8%per year
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PEG Ratio Median Figure of 21 Publicly-Listed Specialty Retail Companies 1.39x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:WRKS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 35.02x ÷ 38.8%

0.9x

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

  • TheWorks.co.uk is good value based on expected growth next year.
Price based on value of assets
What value do investors place on TheWorks.co.uk's assets?
Raw Data
LSE:WRKS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-28) in GBP £0.70
LSE:WRKS Share Price * LSE (2019-07-12) in GBP £0.67
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PB Ratio Median Figure of 39 Publicly-Listed Specialty Retail Companies 0.97x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
LSE:WRKS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:WRKS Share Price ÷ Book Value per Share (both in GBP)

= 0.67 ÷ 0.70

0.95x

* Primary Listing of TheWorks.co.uk.

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

  • TheWorks.co.uk is good value based on assets compared to the GB Specialty Retail industry average.
X
Value checks
We assess TheWorks.co.uk'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 Specialty Retail 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 Specialty Retail industry average (and greater than 0)? (1 check)
  5. TheWorks.co.uk has a total score of 4/6, 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.

WRKS Future Performance

 How is TheWorks.co.uk expected to perform in the next 1 to 3 years based on estimates from 2 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
38.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TheWorks.co.uk expected to grow at an attractive rate?
  • TheWorks.co.uk's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • TheWorks.co.uk's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • TheWorks.co.uk's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:WRKS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:WRKS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 38.8%
LSE:WRKS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 10.3%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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
LSE:WRKS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:WRKS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-04-30 298 15 8 1
2021-04-30 269 14 7 2
2020-04-30 242 10 6 2
2019-04-30 218 8 3 2
LSE:WRKS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-04-28 217 9 1
2018-10-28 204 12 -2
2018-07-28 198 13 0
2018-04-29 192 14 2
2017-04-30 166 12 1
2016-05-01 154 12 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TheWorks.co.uk's earnings are expected to grow significantly at over 20% yearly.
  • TheWorks.co.uk's revenue is expected to grow by 10.3% 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
LSE:WRKS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from TheWorks.co.uk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:WRKS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-04-30 0.13 0.13 0.13 1.00
2021-04-30 0.11 0.11 0.11 1.00
2020-04-30 0.10 0.10 0.10 1.00
2019-04-30
LSE:WRKS Past Financials Data
Date (Data in GBP Millions) EPS *
2019-04-28 0.02
2018-10-28
2018-07-28
2018-04-29
2017-04-30
2016-05-01

*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.
  • TheWorks.co.uk is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TheWorks.co.uk'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.
TheWorks.co.uk has a total score of 4/6, 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.

WRKS Past Performance

  How has TheWorks.co.uk 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 TheWorks.co.uk's growth in the last year to its industry (Specialty Retail).
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.
  • Insufficient data to establish if TheWorks.co.uk's year on year earnings growth rate was positive over the past 5 years.
  • TheWorks.co.uk's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • TheWorks.co.uk's 1-year earnings growth is negative, it can't be compared to the GB Specialty Retail industry average.
Earnings and Revenue History
TheWorks.co.uk'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 TheWorks.co.uk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:WRKS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-28 217.47 1.12 32.40
2018-10-28 204.06 -1.85 31.92
2018-07-28 198.08 -0.03 29.01
2018-04-29 192.10 1.79 26.10
2017-04-30 166.42 1.34 20.75
2016-05-01 154.40 4.60 20.56

*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.
  • TheWorks.co.uk has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TheWorks.co.uk used its assets less efficiently than the GB Specialty Retail industry average last year based on Return on Assets.
  • Unable to establish if TheWorks.co.uk improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess TheWorks.co.uk'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 Specialty Retail 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.
TheWorks.co.uk has a total score of 0/6, 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.

WRKS Health

 How is TheWorks.co.uk'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 TheWorks.co.uk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TheWorks.co.uk's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TheWorks.co.uk's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TheWorks.co.uk'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 73.6x 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 TheWorks.co.uk Company Filings, last reported 2 months ago.

LSE:WRKS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-28 38.34 0.00 3.69
2018-10-28 29.90 3.83 0.32
2018-07-28 29.90 3.83 0.32
2018-04-29 7.95 30.76 7.42
2017-04-30 6.17 30.40 4.09
2016-05-01 4.83 30.04 6.42
  • TheWorks.co.uk's level of debt (1.7%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if TheWorks.co.uk's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (1497.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).
X
Financial health checks
We assess TheWorks.co.uk'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. TheWorks.co.uk has a total score of 4/6, 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.

WRKS Dividends

 What is TheWorks.co.uk'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
7.16%
Current annual income from TheWorks.co.uk dividends. Estimated to be 7.13% next year.
If you bought £2,000 of TheWorks.co.uk shares you are expected to receive £143 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?
  • TheWorks.co.uk's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • TheWorks.co.uk's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.39%).
Upcoming dividend payment

Purchase TheWorks.co.uk before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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
LSE:WRKS 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 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 25 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
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 5.4%

Industry and Market average data is calculated daily.

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

LSE:WRKS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-04-30 0.05 1.00
2021-04-30 0.05 2.00
2020-04-30 0.04 2.00
2019-04-30 0.04 2.00
LSE:WRKS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-07-03 0.048 7.023
2019-01-16 0.024 2.352

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

  • It is too early to tell whether TheWorks.co.uk has stable dividend payments.
  • TheWorks.co.uk only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of TheWorks.co.uk's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess TheWorks.co.uk'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 TheWorks.co.uk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TheWorks.co.uk 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.

WRKS Management

 What is the CEO of TheWorks.co.uk'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
Kevin Keaney
AGE 51
TENURE AS CEO 7.5 years
CEO Bio

Mr. Kevin Gerald Patrick Keaney serves as the Chief Executive Officer of THE WORKS. Mr. Keaney is responsible for implementing operational initiatives following recent capital raising. He serves as Chief Executive Officer and Director of Theworks.Co.Uk Plc, since January 2012 after joining as managing director in August 2011. He joined THE WORKS Group as Managing Director in August 2011. Mr. Keaney served as a Commercial Director at Alexon Group Plc., since August 2010. He joined Alexon from Animal, where he has spent three years in various senior roles - most recently as Chief Executive Officer. During his time at Animal, Mr. Keaney was primarily involved in helping to execute its turnaround strategy. He has over 30 years’ front-line retail leadership experience having held senior management positions at Savers, M&S, Somerfield and Sainsbury`s. He holds a Diploma in Company Direction from the IOD.

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

Kevin Keaney

TITLE
CEO & Director
AGE
51
TENURE
7.5 yrs

Gavin Peck

TITLE
CFO & Director
AGE
38
TENURE
1.3 yrs

Debbie McMinn

TITLE
Human Resources Director
AGE
37
Board of Directors Tenure

Average tenure and age of the TheWorks.co.uk board of directors in years:

1.3
Average Tenure
52
Average Age
  • The average tenure for the TheWorks.co.uk board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dean Hoyle

TITLE
Chairman
AGE
52
TENURE
3.8 yrs

Kevin Keaney

TITLE
CEO & Director
AGE
51

Gavin Peck

TITLE
CFO & Director
AGE
38
TENURE
1.5 yrs

Harry Michael Morley

TITLE
Senior Independent Non-Executive Director
AGE
54
TENURE
1 yrs

Catherine Glickman

TITLE
Independent Non-Executive Director
AGE
61
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by TheWorks.co.uk individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
03. Jul 19 Buy Gavin Peck Individual 03. Jul 19 03. Jul 19 100,000 £0.69 £68,750
03. Jul 19 Buy Catherine Glickman Individual 03. Jul 19 03. Jul 19 16,187 £0.69 £11,129
03. Jul 19 Buy Kevin Keaney Individual 03. Jul 19 03. Jul 19 100,000 £0.69 £68,750
03. Jul 19 Buy Harry Michael Morley Individual 03. Jul 19 03. Jul 19 15,500 £0.69 £10,656
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Management checks
We assess TheWorks.co.uk'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. TheWorks.co.uk 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.

WRKS News

Simply Wall St News

Is TheWorks.co.uk plc's (LON:WRKS) 2.9% ROE Worse Than Average?

One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.029 in profit. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for TheWorks.co.uk: 2.9% = UK£1.1m ÷ UK£38m (Based on the trailing twelve months to April 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Is There An Opportunity With TheWorks.co.uk plc's (LON:WRKS) 25.02% Undervaluation?

by taking the foreast future cash flows of the company and discounting them back to today's 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 -

How Financially Strong Is TheWorks.co.uk plc (LON:WRKS)?

Investors are always looking for growth in small-cap stocks like TheWorks.co.uk plc (LON:WRKS), with a market cap of UK£85m. … However, an important fact which most ignore is: how financially healthy is the business? … Specialty Retail businesses operating in the environment facing headwinds from current disruption,.

Simply Wall St -

How TheWorkscouk plc (LON:WRKS) Delivered A Better ROE Than Its Industry

and want to learn about Return on Equity using a real-life example. … If WRKS borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.

Simply Wall St -

WRKS Company Info

Description

TheWorks.co.uk plc engages in the retail sale of gifts, arts, crafts, toys, books, and stationery products in the United Kingdom and Ireland. The company sells its products through a network of stores, as well as through its online platform. The company was formerly known as Theworks.Co.Uk Limited and changed its name to TheWorks.co.uk plc in July, 2018. TheWorks.co.uk plc was founded in 1981 and is headquartered in Birmingham, United Kingdom.

Details
Name: TheWorks.co.uk plc
WRKS
Exchange: LSE
Founded: 1981
£41,875,000
62,500,000
Website: http://www.theworksplc.co.uk
Address: TheWorks.co.uk plc
Boldmere House,
Faraday Avenue,
Birmingham,
West Midlands, B46 1AL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE WRKS Ordinary Shares London Stock Exchange GB GBP 19. Jul 2018
Number of employees
Current staff
Staff numbers
3,616
TheWorks.co.uk employees.
Industry
Specialty Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/14 22:43
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/07/03
Last earnings filing: 2019/07/03
Last earnings reported: 2019/04/28
Last annual earnings reported: 2019/04/28


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.