OTCPK:WDGJ.Y

Stock Analysis Report

Executive Summary

John Wood Group PLC, together with its subsidiaries, provides project, engineering, and technical services in energy, industry, and built environment worldwide.


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

WDGJ.Y

-6.0%

US Energy Services

7.2%

US Market


1 Year Return

n/a

WDGJ.Y

-72.2%

US Energy Services

-10.4%

US Market

Return vs Industry: Insufficient data to determine how WDGJ.Y performed against the US Energy Services industry.

Return vs Market: Insufficient data to determine how WDGJ.Y performed against the US Market.


Shareholder returns

WDGJ.YIndustryMarket
7 Day0%-6.0%7.2%
30 Dayn/a-50.5%-12.6%
90 Dayn/a-66.5%-19.4%
1 Yearn/a-71.3%-72.2%-8.5%-10.4%
3 Yearn/a-80.1%-82.9%15.8%8.3%
5 Yearn/a-81.4%-84.8%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

46.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WDGJ.Y ($6.15) is trading below our estimate of fair value ($11.52)

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


Price To Earnings Ratio

PE vs Industry: WDGJ.Y is poor value based on its PE Ratio (17.8x) compared to the Energy Services industry average (8.8x).

PE vs Market: WDGJ.Y is poor value based on its PE Ratio (17.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: WDGJ.Y is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: WDGJ.Y is good value based on its PB Ratio (0.3x) compared to the US Energy Services industry average (0.3x).


Next Steps

Future Growth

How is John Wood Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDGJ.Y's forecast earnings growth (25.5% per year) is above the savings rate (1.7%).

Earnings vs Market: WDGJ.Y's earnings (25.5% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WDGJ.Y's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: WDGJ.Y's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WDGJ.Y's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has John Wood Group performed over the past 5 years?

-59.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WDGJ.Y has a large one-off loss of $96.9M impacting its December 31 2019 financial results.

Growing Profit Margin: WDGJ.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WDGJ.Y's earnings have declined by -59.6% per year over the past 5 years.

Accelerating Growth: WDGJ.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WDGJ.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-34.4%).


Return on Equity

High ROE: WDGJ.Y's Return on Equity (1.6%) is considered low.


Next Steps

Financial Health

How is John Wood Group's financial position?


Financial Position Analysis

Short Term Liabilities: WDGJ.Y's short term assets ($4.7B) do not cover its short term liabilities ($5.0B).

Long Term Liabilities: WDGJ.Y's short term assets ($4.7B) exceed its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: WDGJ.Y's debt to equity ratio (75%) is considered high.

Reducing Debt: WDGJ.Y's debt to equity ratio has increased from 19.9% to 75% over the past 5 years.

Debt Coverage: WDGJ.Y's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: WDGJ.Y's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: WDGJ.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: WDGJ.Y's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is John Wood Group's current dividend yield, its reliability and sustainability?

18.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WDGJ.Y's dividend (18.49%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: WDGJ.Y's dividend (18.49%) is in the top 25% of dividend payers in the US market (5.4%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (328.9%), WDGJ.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WDGJ.Y's dividends in 3 years are forecast to be covered by earnings (60.9% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Robin Watson (51yo)

4.17s

Tenure

US$1,875,000

Compensation

Mr. Robin Watson serves as Chief Operating Officer at Wood Group Mustang, Inc. Mr. Watson served as Chief Executive Officer GE Oil & Gas Pressure Control Canada Inc. since January 1, 2016. He has been Grou ...


CEO Compensation Analysis

Compensation vs Market: Robin's total compensation ($USD2.33M) is below average for companies of similar size in the US market ($USD4.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robin Watson
CEO & Executive Director4.17yrsUS$1.88m0.049% $623.9k
David Kemp
CFO & Executive Director4.83yrsUS$1.13m0.0098% $125.6k
Darren Martin
Chief Technology Officer1.67yrsno datano data
Andrew Rose
Head of Investor Relationsno datano datano data
Martin McIntyre
General Counsel & Company Secretary4.17yrsno datano data
Ann Massey
President of Corporate Development0.25yrno datano data
Sue MacDonald
Executive President of People & Organisationno datano data0.012% $154.4k
Tony Dinozzi
Group Head of M&A20.17yrsno datano data
Carl Catfield
Group Head of Treasury & Taxation13.58yrsno datano data
Nina Schofield
Executive President of HSSEA5.58yrsno data0.012% $155.7k

4.5yrs

Average Tenure

Experienced Management: WDGJ.Y's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robin Watson
CEO & Executive Director4.17yrsUS$1.88m0.049% $623.9k
David Kemp
CFO & Executive Director4.83yrsUS$1.13m0.0098% $125.6k
Jeremy Wilson
Senior Independent Director0.42yrUS$60.50k0.0030% $38.2k
Roy Franklin
Independent Chairman of the Board0.42yrUS$60.50k0.0022% $28.6k
Mary Shafer-Malicki
Non-Executive Director7.67yrsUS$55.50k0.00051% $6.5k
Adrian R. Marsh
Non-Executive Director0.83yrno data0.00030% $3.8k
Thomas Botts
Non-Executive Director7.17yrsUS$60.50k0.0013% $16.3k
Jacqueline Ferguson
Non-Executive Director3.25yrsUS$55.50k0.00037% $4.7k
Birgitte Madsen
Non-Executive Directorno datano datano data

4.0yrs

Average Tenure

54yo

Average Age

Experienced Board: WDGJ.Y's board of directors are considered experienced (4 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

John Wood Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: John Wood Group PLC
  • Ticker: WDGJ.Y
  • Exchange: OTCPK
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: UK£1.033b
  • Listing Market Cap: UK£1.282b
  • Shares outstanding: 671.31m
  • Website: https://www.woodgroup.com

Number of Employees


Location

  • John Wood Group PLC
  • 15 Justice Mill Lane
  • Aberdeen
  • Aberdeenshire
  • AB11 6EQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDGJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2002
WG.LSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2002
JWG1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2002
WGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2002
JWG1BRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFMay 2002
WDGJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

John Wood Group PLC, together with its subsidiaries, provides project, engineering, and technical services in energy, industry, and built environment worldwide. It operates through five segments: Asset Solutions Europe, Africa, Asia, Australia; Assets Solutions Americas; Specialist Technical Solutions; Environment and Infrastructure Solutions; and Investment Services. The company offers engineering, fabrication and construction, and bundled services; commissioning and decommissioning services; and operations and maintenance services. It also provides scaffolding, rope access, thermal insulation and industrial painting, specialist construction and civils, asbestos remediation, mechanical, and piping support services, as well as electrical, control, and instrumentation. In addition, the company offers project management, EPC/EPCM project, and construction and field services; environment and infrastructure solutions, including environmental studies, permitting and compliance, environmental remediation, public infrastructure, geotechnical and materials, and engineering and construction services. Further, it provides clean energy solutions, such as engineering, design, and project management; analytics, technology, and laboratories; safety licensing and regulatory; and plant operations and life extension services. Additionally, the company offers mineral resources and project assessments, mine planning and design, mineral processing and metallurgy, and material handling; and information management, IoT and connected devices, software and applications and analytics, visualization, and digital project delivery, as well as automation and control, and consulting solutions. The company also provides subsea and export systems comprising operational support and integrity; engineer, procure, and fabricate; flow assurance; subsea, umbilical, riser, and flowline; and pipelines and marine terminals. John Wood Group PLC is based in Aberdeen, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:42
End of Day Share Price2020/03/13 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.