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WBO

Wilson Bayly Holmes-OvconJSE:WBO Stock Report

Market Cap

R5.8b

7D

-3.4%

1Y

6.5%

Updated

25 Oct, 2021

Data

Company Financials +
WBO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends2/6

WBO Overview

Wilson Bayly Holmes-Ovcon Limited engages in civil engineering and building construction activities in Africa, Australia, and the United Kingdom.

Wilson Bayly Holmes-Ovcon Competitors

Raubex Group

JSE:RBX

R6.2b

Murray & Roberts Holdings

JSE:MUR

R5.1b

Aveng

JSE:AEG

R3.8b

Stefanutti Stocks Holdings

JSE:SSK

R78.6m

Price History & Performance

Summary of all time highs, changes and price drops for Wilson Bayly Holmes-Ovcon
Historical stock prices
Current Share PriceR109.03
52 Week HighR76.62
52 Week LowR125.80
Beta0.77
1 Month Change-10.02%
3 Month Change-0.72%
1 Year Change6.48%
3 Year Change-27.80%
5 Year Change-28.27%
Change since IPO11,498.94%

Recent News & Updates

Shareholder Returns

WBOZA ConstructionZA Market
7D-3.4%-0.7%-0.3%
1Y6.5%41.8%19.5%

Return vs Industry: WBO underperformed the ZA Construction industry which returned 42% over the past year.

Return vs Market: WBO underperformed the ZA Market which returned 19% over the past year.

Price Volatility

Is WBO's price volatile compared to industry and market?
WBO volatility
WBO Beta0.77
Industry Beta0.63
Market Beta1

Stable Share Price: WBO is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WBO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1970n/aWolfgang Neffhttps://www.wbho.co.za

Wilson Bayly Holmes-Ovcon Limited engages in civil engineering and building construction activities in Africa, Australia, and the United Kingdom. The company operates through six segments: Building and Civil Engineering, Roads and Earthworks, Australia, the United Kingdom, Property Developments, and Construction Materials. It constructs retail shopping centers, commercial buildings, hotels, hospitals, and residential apartments primarily for the private sector, as well as civil engineering related infrastructure for the mining, industrial, energy, oil and gas, and telecommunication sectors.

Wilson Bayly Holmes-Ovcon Fundamentals Summary

How do Wilson Bayly Holmes-Ovcon's earnings and revenue compare to its market cap?
WBO fundamental statistics
Market CapR5.80b
Earnings (TTM)R316.00m
Revenue (TTM)R38.33b

18.4x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WBO income statement (TTM)
RevenueR38.33b
Cost of RevenueR36.62b
Gross ProfitR1.71b
ExpensesR1.40b
EarningsR316.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.94
Gross Margin4.46%
Net Profit Margin0.82%
Debt/Equity Ratio2.0%

How did WBO perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Wilson Bayly Holmes-Ovcon undervalued compared to its fair value and its price relative to the market?

18.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WBO (ZAR109.03) is trading above our estimate of fair value (ZAR49.46)

Significantly Below Fair Value: WBO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WBO is poor value based on its PE Ratio (18.4x) compared to the African Construction industry average (15.1x).

PE vs Market: WBO is poor value based on its PE Ratio (18.4x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: WBO is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: WBO's PB Ratio (1x) is in line with the ZA Construction industry average.


Future Growth

How is Wilson Bayly Holmes-Ovcon forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBO's forecast earnings growth (38.3% per year) is above the savings rate (8.8%).

Earnings vs Market: WBO's earnings (38.3% per year) are forecast to grow faster than the ZA market (12.1% per year).

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

Revenue vs Market: WBO's revenue (9.9% per year) is forecast to grow faster than the ZA market (6.4% per year).

High Growth Revenue: WBO's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WBO's Return on Equity is forecast to be low in 3 years time (17.2%).


Past Performance

How has Wilson Bayly Holmes-Ovcon performed over the past 5 years?

-42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WBO has high quality earnings.

Growing Profit Margin: WBO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WBO's earnings have declined by 42.1% per year over the past 5 years.

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

Earnings vs Industry: WBO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-9.2%).


Return on Equity

High ROE: WBO's Return on Equity (6.2%) is considered low.


Financial Health

How is Wilson Bayly Holmes-Ovcon's financial position?


Financial Position Analysis

Short Term Liabilities: WBO's short term assets (ZAR13.4B) exceed its short term liabilities (ZAR12.3B).

Long Term Liabilities: WBO's short term assets (ZAR13.4B) exceed its long term liabilities (ZAR555.4M).


Debt to Equity History and Analysis

Debt Level: WBO's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: WBO's debt to equity ratio has increased from 1% to 2% over the past 5 years.

Debt Coverage: WBO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: WBO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Wilson Bayly Holmes-Ovcon current dividend yield, its reliability and sustainability?

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WBO's dividend (1.88%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: WBO's dividend (1.88%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).


Stability and Growth of Payments

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

Growing Dividend: WBO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.5%), WBO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WBO's dividends in 3 years are forecast to be well covered by earnings (29.4% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Wolfgang Neff

1.92yrs

Tenure

R10,443,000

Compensation

Mr. Wolfgang P. Neff (BSc (Civil), Pr Eng, Pr CM), has been the Chief Executive Officer of Wilson Bayly Holmes-Ovcon Limited since November 20, 2019 and served as its Managing Director of North and Africa...


CEO Compensation Analysis

Compensation vs Market: Wolfgang's total compensation ($USD709.93K) is about average for companies of similar size in the ZA market ($USD723.41K).

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


Leadership Team

Experienced Management: WBO's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: WBO's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WBO insiders have only sold shares 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

Wilson Bayly Holmes-Ovcon Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wilson Bayly Holmes-Ovcon Limited
  • Ticker: WBO
  • Exchange: JSE
  • Founded: 1970
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: R5.800b
  • Shares outstanding: 53.20m
  • Website: https://www.wbho.co.za

Location

  • Wilson Bayly Holmes-Ovcon Limited
  • 53 Andries Street
  • Wynberg
  • Johannesburg
  • Gauteng
  • 2090
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:35
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.