TheWorks.co.uk
Market Cap
UK£13.1m
Last Updated
2020/07/13 20:59 UTC
Data Sources
Company Financials +
Executive Summary
TheWorks.co.uk plc engages in the retail sale of gifts, arts, crafts, toys, books, and stationery products in the United Kingdom and Ireland.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued second-rate dividend payer.
Similar Companies
Share Price & News
How has TheWorks.co.uk's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WRKS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-10.7%
WRKS
-3.2%
GB Specialty Retail
-1.5%
GB Market
1 Year Return
-68.8%
WRKS
-9.3%
GB Specialty Retail
-14.9%
GB Market
Return vs Industry: WRKS underperformed the UK Specialty Retail industry which returned -9.9% over the past year.
Return vs Market: WRKS underperformed the UK Market which returned -15.5% over the past year.
Shareholder returns
| WRKS | Industry | Market | |
|---|---|---|---|
| 7 Day | -10.7% | -3.2% | -1.5% |
| 30 Day | -18.7% | 1.8% | 0.9% |
| 90 Day | -28.2% | 19.8% | 7.5% |
| 1 Year | -67.0%-68.8% | -7.7%-9.3% | -10.9%-14.9% |
| 3 Year | n/a | -4.9%-13.4% | -4.0%-15.8% |
| 5 Year | n/a | -20.2%-31.7% | 13.6%-11.8% |
Price Volatility Vs. Market
How volatile is TheWorks.co.uk's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is TheWorks.co.uk plc (LON:WRKS) Struggling With Its 4.0% Return On Capital Employed?2 months ago | Simply Wall St
Here's Why We Don't Think TheWorks.co.uk's (LON:WRKS) Statutory Earnings Reflect Its Underlying Earnings Potential3 months ago | Simply Wall St
Investors Who Bought TheWorks.co.uk (LON:WRKS) Shares A Year Ago Are Now Down 83%Valuation
Is TheWorks.co.uk undervalued compared to its fair value and its price relative to the market?
22.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WRKS (£0.21) is trading below our estimate of fair value (£0.27)
Significantly Below Fair Value: WRKS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WRKS is good value based on its PE Ratio (5.2x) compared to the GB Specialty Retail industry average (12.8x).
PE vs Market: WRKS is good value based on its PE Ratio (5.2x) compared to the UK market (15.2x).
Price to Earnings Growth Ratio
PEG Ratio: WRKS is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: WRKS is good value based on its PB Ratio (0.5x) compared to the GB Specialty Retail industry average (0.8x).
Next Steps
Future Growth
How is TheWorks.co.uk forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
11.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WRKS's forecast earnings growth (11.9% per year) is above the savings rate (1.2%).
Earnings vs Market: WRKS's earnings (11.9% per year) are forecast to grow slower than the UK market (21.6% per year).
High Growth Earnings: WRKS's earnings are forecast to grow, but not significantly.
Revenue vs Market: WRKS's revenue is expected to decline over the next 3 years (-0.6% per year).
High Growth Revenue: WRKS's revenue is forecast to decline over the next 3 years (-0.6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WRKS's Return on Equity is forecast to be low in 3 years time (11.3%).
Next Steps
Past Performance
How has TheWorks.co.uk performed over the past 5 years?
-41.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WRKS has high quality earnings.
Growing Profit Margin: WRKS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WRKS's earnings have declined by -41.3% per year over the past 5 years.
Accelerating Growth: WRKS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: WRKS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-4.6%).
Return on Equity
High ROE: WRKS's Return on Equity (10%) is considered low.
Next Steps
Financial Health
How is TheWorks.co.uk's financial position?
Financial Position Analysis
Short Term Liabilities: WRKS's short term assets (£54.6M) do not cover its short term liabilities (£79.1M).
Long Term Liabilities: WRKS's short term assets (£54.6M) do not cover its long term liabilities (£94.6M).
Debt to Equity History and Analysis
Debt Level: WRKS's debt to equity ratio (58.6%) is considered high.
Reducing Debt: Insufficient data to determine if WRKS's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: WRKS's debt is well covered by operating cash flow (86.2%).
Interest Coverage: WRKS's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Next Steps
Dividend
What is TheWorks.co.uk current dividend yield, its reliability and sustainability?
22.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WRKS's dividend (22.97%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).
High Dividend: WRKS's dividend (22.97%) is in the top 25% of dividend payers in the UK market (5.46%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether WRKS's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if WRKS's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (88.9%), WRKS's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WRKS's dividends in 3 years are not forecast to be well covered by earnings (290.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average board tenure
CEO
Gavin Peck (39yo)
0.50
Tenure
UK£179,000
Compensation
Mr. Gavin Lee Peck has been Chief Executive Officer of Theworks.Co.Uk Plc since January 16, 2020 and serves as its Director. Mr. Peck served as Chief Financial Officer of Theworks.Co.Uk Plc since April 201 ...
CEO Compensation Analysis
Compensation vs Market: Gavin's total compensation ($USD225.76K) is below average for companies of similar size in the UK market ($USD347.71K).
Compensation vs Earnings: Insufficient data to compare Gavin's compensation with company performance.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | UK£179.00k | 0.89% £115.9k | |
| Senior Independent Non-Executive Director | 2yrs | UK£43.00k | 0.050% £6.5k | |
| Chairman | 2yrs | UK£78.00k | 16.75% £2.2m | |
| Independent Non-Executive Director | 2yrs | UK£39.00k | 0.051% £6.6k |
2.0yrs
Average Tenure
54yo
Average Age
Experienced Board: WRKS's board of directors are not considered experienced ( 2 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
TheWorks.co.uk plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: TheWorks.co.uk plc
- Ticker: WRKS
- Exchange: LSE
- Founded: 1981
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: UK£13.063m
- Shares outstanding: 62.50m
- Website: https://www.theworksplc.co.uk
Number of Employees
Location
- TheWorks.co.uk plc
- Boldmere House
- Faraday Avenue
- Birmingham
- West Midlands
- B46 1AL
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WRKS | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jul 2018 |
Biography
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. As of April 28, 2019, the company operated 497 stores in the United Kingdom and Ireland. 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/13 20:59 |
| End of Day Share Price | 2020/07/13 00:00 |
| Earnings | 2019/10/27 |
| Annual Earnings | 2019/04/28 |
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.