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WKF

Workforce HoldingsJSE:WKF Stock Report

Market Cap

R333.7m

7D

0%

1Y

55.8%

Updated

21 Oct, 2021

Data

Company Financials
WKF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

WKF Overview

Workforce Holdings Limited, an investment holding company, provides human capital solutions in South Africa, Mozambique, Namibia, Botswana, Mauritius, and South America.

Price History & Performance

Summary of all time highs, changes and price drops for Workforce Holdings
Historical stock prices
Current Share PriceR1.48
52 Week HighR0.76
52 Week LowR1.48
Beta0.28
1 Month Change0%
3 Month Change26.50%
1 Year Change55.79%
3 Year Change5.71%
5 Year Change-22.11%
Change since IPO-4.52%

Recent News & Updates

Sep 21
Workforce Holdings (JSE:WKF) Seems To Use Debt Quite Sensibly

Workforce Holdings (JSE:WKF) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Apr 06
Does Workforce Holdings (JSE:WKF) Have A Healthy Balance Sheet?

Does Workforce Holdings (JSE:WKF) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

WKFZA Professional ServicesZA Market
7D0%0.3%-0.7%
1Y55.8%31.9%19.0%

Return vs Industry: WKF exceeded the ZA Professional Services industry which returned 31.3% over the past year.

Return vs Market: WKF exceeded the ZA Market which returned 19.9% over the past year.

Price Volatility

Is WKF's price volatile compared to industry and market?
WKF volatility
WKF Beta0.28
Industry Beta0.91
Market Beta1

Stable Share Price: WKF is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WKF's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19721,259Ronny Katzhttps://www.workforce.co.za

Workforce Holdings Limited, an investment holding company, provides human capital solutions in South Africa, Mozambique, Namibia, Botswana, Mauritius, and South America. The company operates through four segments: Staffing and Outsourcing, Training, Financial Services, and Healthcare. The company offers temporary employment, functional outsourcing, permanent placement recruitment, executive search, specialist staffing, short-and long-term hires, payroll and other systems management, and HR and IR consulting services, as well as disability and turnkey staffing, and business process outsourcing solutions.

Workforce Holdings Fundamentals Summary

How do Workforce Holdings's earnings and revenue compare to its market cap?
WKF fundamental statistics
Market CapR333.73m
Earnings (TTM)R75.49m
Revenue (TTM)R3.15b

4.4x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WKF income statement (TTM)
RevenueR3.15b
Cost of RevenueR2.44b
Gross ProfitR705.21m
ExpensesR629.71m
EarningsR75.49m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.33
Gross Margin22.39%
Net Profit Margin2.40%
Debt/Equity Ratio38.9%

How did WKF perform over the long term?

See historical performance and comparison

Valuation

Is Workforce Holdings undervalued compared to its fair value and its price relative to the market?

4.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WKF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WKF's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: WKF is good value based on its PE Ratio (4.4x) compared to the Global Professional Services industry average (26.3x).

PE vs Market: WKF is good value based on its PE Ratio (4.4x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WKF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WKF is good value based on its PB Ratio (0.4x) compared to the XX Professional Services industry average (2.9x).


Future Growth

How is Workforce Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.8%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Workforce Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Workforce Holdings performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WKF has a high level of non-cash earnings.

Growing Profit Margin: WKF's current net profit margins (2.4%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: WKF's earnings have declined by 11.8% per year over the past 5 years.

Accelerating Growth: WKF's earnings growth over the past year (116%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: WKF earnings growth over the past year (116%) exceeded the Professional Services industry 17.9%.


Return on Equity

High ROE: WKF's Return on Equity (10.1%) is considered low.


Financial Health

How is Workforce Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WKF's short term assets (ZAR880.9M) exceed its short term liabilities (ZAR516.9M).

Long Term Liabilities: WKF's short term assets (ZAR880.9M) exceed its long term liabilities (ZAR110.5M).


Debt to Equity History and Analysis

Debt Level: WKF's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: WKF's debt to equity ratio has reduced from 79.6% to 38.9% over the past 5 years.

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

Interest Coverage: WKF's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

What is Workforce Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WKF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WKF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WKF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WKF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WKF is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Ronny Katz (78 yo)

3.25yrs

Tenure

R3,967,194

Compensation

Mr. Ronald Stanley Katz, also known as Ronny, BCom, LLB, MBA is the Founder of Workforce Holdings Limited and serves its Chief Executive Officer since March 2019. He served as Interim Chief Executive Offic...


CEO Compensation Analysis

Compensation vs Market: Ronny's total compensation ($USD272.13K) is about average for companies of similar size in the ZA market ($USD283.52K).

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


Leadership Team

Experienced Management: WKF's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: WKF's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WKF 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

Workforce Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Workforce Holdings Limited
  • Ticker: WKF
  • Exchange: JSE
  • Founded: 1972
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: R333.729m
  • Shares outstanding: 225.49m
  • Website: https://www.workforce.co.za

Number of Employees


Location

  • Workforce Holdings Limited
  • 11 Wellington Road
  • Parktown
  • Johannesburg
  • Gauteng
  • 2193
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 21:01
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.