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Robert Walters PLC (GB:RWA)
LSE:RWA

Robert Walters (RWA) AI Stock Analysis

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GB

Robert Walters

(LSE:RWA)

Rating:56Neutral
Price Target:
200.00p
▲(13.31%Upside)
The overall stock score of 56 reflects significant financial challenges, including declining profitability and cash flow. While technical analysis indicates bearish momentum, the stock's high dividend yield and positive corporate governance events provide some support.

Robert Walters (RWA) vs. iShares MSCI United Kingdom ETF (EWC)

Robert Walters Business Overview & Revenue Model

Company DescriptionRobert Walters plc, together with its subsidiaries, provides professional recruitment consultancy services worldwide. The company offers permanent, contract, and interim recruitment services in the fields of accounting and finance, banking and financial services, engineering, human resources, information technology, legal, sales and marketing, secretarial and support, and supply chain and procurement. It also provides staffing and recruitment process outsourcing and managed services. The company was founded in 1985 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyRobert Walters makes money primarily through fees charged for its recruitment services. The company earns revenue by matching employers with suitable candidates, for which it charges a percentage of the candidate's salary as a placement fee. This fee structure applies to both permanent and contract placements, although the percentages may vary. Additionally, Robert Walters generates income from its recruitment process outsourcing (RPO) services, where it manages the entire recruitment process for clients, including sourcing, screening, and onboarding candidates. This model allows the company to earn recurring revenue through long-term contracts with organizations seeking efficient and tailored recruitment solutions.

Robert Walters Financial Statement Overview

Summary
Robert Walters is facing significant financial challenges with declining revenue, profitability, and cash flow. The balance sheet shows moderate stability, but the negative net income and reduced free cash flow highlight operational inefficiencies and liquidity concerns.
Income Statement
55
Neutral
Robert Walters experienced a decline in revenue and profitability over the past year. The gross profit margin declined from 36.4% in 2023 to 36.0% in 2024, and the net profit margin turned negative at -0.67% due to a net loss. Revenue decreased by 16.2% from 2023 to 2024, indicating a challenging period. The EBIT and EBITDA margins have also deteriorated, showing reduced operational efficiency.
Balance Sheet
60
Neutral
The balance sheet shows moderate stability with a debt-to-equity ratio of 0.64, indicating manageable leverage levels. However, the return on equity (ROE) turned negative at -4.33% due to the net loss, reflecting a poor return on shareholders' investment. The equity ratio decreased to 38.96%, indicating lower equity financing in the asset base.
Cash Flow
50
Neutral
Free cash flow declined significantly by 67.2% from 2023 to 2024, impacting liquidity. The operating cash flow to net income ratio is negative due to net loss, showing inefficiency in converting income to cash. The free cash flow to net income ratio is also negative, indicating challenges in sustaining positive cash flow from operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue892.10M1.06B1.10B970.70M938.40M
Gross Profit321.40M386.80M428.20M353.60M302.40M
EBITDA28.10M49.60M80.80M74.20M39.20M
Net Income-6.00M13.40M39.10M33.50M5.70M
Balance Sheet
Total Assets355.50M415.70M474.10M446.30M412.60M
Cash, Cash Equivalents and Short-Term Investments68.10M95.70M123.20M142.30M155.50M
Total Debt88.00M95.00M102.50M82.10M63.80M
Total Liabilities217.00M250.80M290.20M271.50M243.30M
Stockholders Equity138.50M164.90M183.90M174.80M169.30M
Cash Flow
Free Cash Flow9.70M29.60M22.20M20.40M89.00M
Operating Cash Flow19.80M45.50M38.10M33.60M98.90M
Investing Cash Flow-9.40M-14.20M-15.50M-12.80M-8.90M
Financing Cash Flow-33.90M-52.20M-47.50M-27.20M-49.10M

Robert Walters Technical Analysis

Technical Analysis Sentiment
Negative
Last Price176.50
Price Trends
50DMA
209.83
Negative
100DMA
219.20
Negative
200DMA
265.04
Negative
Market Momentum
MACD
-9.32
Positive
RSI
22.85
Positive
STOCH
13.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWA, the sentiment is Negative. The current price of 176.5 is below the 20-day moving average (MA) of 196.03, below the 50-day MA of 209.83, and below the 200-day MA of 265.04, indicating a bearish trend. The MACD of -9.32 indicates Positive momentum. The RSI at 22.85 is Positive, neither overbought nor oversold. The STOCH value of 13.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RWA.

Robert Walters Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
£305.61M6.4821.08%5.55%-10.24%-11.60%
71
Outperform
¥254.81B12.928.49%3.09%6.34%12.88%
69
Neutral
£55.83M8.52%5.83%19.29%
65
Neutral
£836.93M29.2510.00%6.46%-13.50%-62.86%
GBHAS
60
Neutral
£1.10B-2.60%0.03%-6.95%-117.14%
60
Neutral
£24.43M40.793.66%2.58%4.14%-45.24%
GBRWA
56
Neutral
£123.93M29.69-3.96%13.85%-16.16%-145.46%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RWA
Robert Walters
176.50
-206.65
-53.93%
GB:GATC
Gattaca
80.00
-7.34
-8.40%
GB:HAS
Hays plc
68.65
-22.23
-24.46%
GB:PAGE
PageGroup
270.80
-131.79
-32.74%
GB:STAF
Staffline
47.40
9.20
24.08%
GB:STEM
SThree plc
243.50
-164.28
-40.29%

Robert Walters Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Liontrust Increases Stake in Robert Walters PLC
Neutral
Jun 4, 2025

Liontrust Investment Partners LLP has increased its voting rights in Robert Walters PLC to 16.069%, following an acquisition or disposal of voting rights. This change in holdings reflects a slight increase from the previous position, indicating Liontrust’s continued interest and influence in the company, which could impact future decision-making and strategic directions.

The most recent analyst rating on (GB:RWA) stock is a Hold with a £4.65 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Liontrust Adjusts Stake in Robert Walters PLC
Neutral
Jun 2, 2025

Robert Walters PLC has been notified of a change in major holdings by Liontrust Investment Partners LLP, which now holds 16.0777% of the company’s voting rights. This adjustment in holdings, effective from May 30, 2025, indicates a slight decrease from the previous position of 16.1187%. Such changes in voting rights can impact the company’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder relations.

The most recent analyst rating on (GB:RWA) stock is a Hold with a £4.65 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Liontrust Increases Stake in Robert Walters PLC
Neutral
Apr 30, 2025

On April 30, 2025, Robert Walters PLC announced a change in the voting rights held by Liontrust Investment Partners LLP, which now holds 16.1187% of the company’s voting rights. This adjustment in holdings reflects a slight increase from the previous 16.153% and could influence the company’s governance and strategic decisions, impacting stakeholders and potentially affecting its market positioning.

Shareholder MeetingsDividends
Robert Walters PLC Concludes 2025 AGM with All Resolutions Passed
Positive
Apr 29, 2025

Robert Walters PLC announced the successful conclusion of its 2025 Annual General Meeting, where all proposed resolutions were passed. Key resolutions included the approval of the annual report, director re-elections, and a final dividend declaration. The meeting’s outcomes reinforce the company’s governance and strategic direction, potentially impacting shareholder value positively.

Executive/Board ChangesBusiness Operations and Strategy
Robert Walters PLC Grants Performance Share Awards to Executives
Positive
Apr 16, 2025

Robert Walters PLC has announced the granting of performance share awards to its Executive Directors under the Robert Walters Performance Share Plan 2023. The awards, totaling 872,434 ordinary shares, are subject to performance conditions and will vest after three years. This move is part of the company’s strategy to incentivize its leadership team, potentially impacting its operational efficiency and market positioning.

Business Operations and StrategyFinancial Disclosures
Robert Walters Faces Challenging Q1 Amidst Economic Uncertainty
Negative
Apr 15, 2025

Robert Walters PLC reported a challenging first quarter of 2025, with a 16% decline in group net fee income compared to the previous year, primarily due to macroeconomic uncertainties affecting client and candidate confidence. The company experienced varying regional performances, with the UK showing some growth, while Europe and the Rest of the World faced tougher conditions. Despite these challenges, Robert Walters remains committed to its strategic initiatives aimed at improving productivity and optimizing operations. The company continues to focus on enhancing its service offerings to meet the evolving needs of clients in a rapidly changing work environment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 20, 2025