OTCPK:JDWP.Y

Stock Analysis Report

Executive Summary

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has J D Wetherspoon's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

JDWP.Y

2.0%

US Hospitality

1.3%

US Market


1 Year Return

17.8%

JDWP.Y

2.1%

US Hospitality

5.9%

US Market

Return vs Industry: JDWP.Y exceeded the US Hospitality industry which returned 2.1% over the past year.

Return vs Market: JDWP.Y exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

JDWP.YIndustryMarket
7 Day0%2.0%1.3%
30 Day0%-6.0%-1.9%
90 Dayn/a-6.3%-1.8%
1 Year18.8%17.8%4.5%2.1%8.3%5.9%
3 Year56.0%51.5%43.0%33.7%45.6%36.2%
5 Year58.7%49.7%41.1%25.5%66.1%47.9%

Price Volatility Vs. Market

How volatile is J D Wetherspoon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is J D Wetherspoon undervalued compared to its fair value and its price relative to the market?

21.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: JDWP.Y ($95.28) is trading above our estimate of fair value ($88.19)

Significantly Undervalued: JDWP.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JDWP.Y is good value based on its PE Ratio (21.4x) compared to the Hospitality industry average (22.5x).

PE vs Market: JDWP.Y is poor value based on its PE Ratio (21.4x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: JDWP.Y is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: JDWP.Y is overvalued based on its PB Ratio (4.9x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is J D Wetherspoon forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JDWP.Y's forecast earnings growth (5.7% per year) is above the savings rate (2.7%).

Earnings vs Market: JDWP.Y's earnings (5.7% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: JDWP.Y's revenue (4.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JDWP.Y's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: JDWP.Y's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has J D Wetherspoon performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JDWP.Y's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: JDWP.Y's earnings growth over the past year (9.1%) is below its 5-year average (11.6% per year).

Earnings vs Industry: JDWP.Y earnings growth over the past year (9.1%) exceeded the Hospitality industry -13.9%.


Return on Equity

High ROE: Whilst JDWP.Y's Return on Equity (22.97%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: JDWP.Y has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: JDWP.Y has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is J D Wetherspoon's financial position?


Financial Position Analysis

Short Term Liabilities: JDWP.Y's short term assets (£91.7M) do not cover its short term liabilities (£326.7M)

Long Term Liabilities: JDWP.Y's short term assets (91.7M) do not cover its long term liabilities (878.4M)


Debt to Equity History and Analysis

Debt Level: JDWP.Y's debt to equity ratio (258.7%) is considered high

Reducing Debt: JDWP.Y's debt to equity ratio has reduced from 272% to 258.7% over the past 5 years.

Debt Coverage: JDWP.Y's debt is well covered by operating cash flow (21.2%).

Interest Coverage: JDWP.Y's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: JDWP.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: JDWP.Y's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is J D Wetherspoon's current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JDWP.Y's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: JDWP.Y's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: JDWP.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: JDWP.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: JDWP.Y is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JDWP.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of J D Wetherspoon's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

John Hutson (54yo)

0yrs

Tenure

UK£1,035,000

Compensation

Mr. John Hutson serves as the Chief Executive Officer of JD Wetherspoon PLC. Mr. Hutson served as Managing Director of JD Wetherspoon plc and also served as its Chief Operating Officer since October 2010.  ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD1.30M) is below average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

15.8yrs

Average Tenure

50yo

Average Age

Experienced Management: JDWP.Y's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

54yo

Average Age

Experienced Board: JDWP.Y's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • John Hutson (54yo)

    CEO, Director & Member of Management Board

    • Tenure: 0yrs
    • Compensation: UK£1.04m
  • Martin Geoghegan (50yo)

    Operations Director & Member of Management Board

    • Tenure: 15.8yrs
    • Compensation: UK£342.00k
  • David Capstick (58yo)

    IT & Property Director and Member of Management Board

    • Tenure: 16.8yrs
  • Su Cacioppo (52yo)

    Executive Director

    • Tenure: 11.6yrs
    • Compensation: UK£589.00k
  • Miles Slade (39yo)

    Retail Director & Member of Management Board

    • Tenure: 0yrs
  • Ben Whitley (41yo)

    Finance Director

    • Tenure: 3.9yrs
    • Compensation: UK£358.00k
  • Nigel Connor (50yo)

    Company Secretary & Head of Legal

    • Tenure: 0yrs
  • James Ullman (48yo)

    Audit Director & Member of Management Board

    • Tenure: 2.8yrs

Board Members

  • Harry Michael Morley (54yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£53.00k
  • Tim Martin (64yo)

    Non-Executive Chairman

    • Tenure: 36.8yrs
    • Compensation: UK£341.00k
  • John Hutson (54yo)

    CEO, Director & Member of Management Board

    • Tenure: 0yrs
    • Compensation: UK£1.04m
  • Debra van Gene (64yo)

    Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: UK£53.00k
  • Su Cacioppo (52yo)

    Executive Director

    • Tenure: 11.6yrs
    • Compensation: UK£589.00k
  • Richard Beckett (75yo)

    Non-Executive Director

    • Tenure: 10.5yrs
    • Compensation: UK£53.00k
  • Ben Whitley (41yo)

    Finance Director

    • Tenure: 3.9yrs
    • Compensation: UK£358.00k

Company Information

J D Wetherspoon plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: J D Wetherspoon plc
  • Ticker: JDWP.Y
  • Exchange: OTCPK
  • Founded: 1979
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£1.544b
  • Listing Market Cap: UK£1.943b
  • Shares outstanding: 102.42m
  • Website: https://www.jdwetherspoon.com

Number of Employees


Location

  • J D Wetherspoon plc
  • Wetherspoon House
  • Central Park
  • Watford
  • Hertfordshire
  • WD24 4QL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JDWP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1992
JDWLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1992
JDWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1992
0QWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1992
JDWP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1997

Biography

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. As of July 29, 2018, it operated 883 pubs. The company was founded in 1979 and is based in Watford,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:46
End of Day Share Price2019/08/22 00:00
Earnings2019/07/28
Annual Earnings2019/07/28


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.