Robert Walters (RWA) AI Stock Analysis

• Market Cap: £82.22M
• Dividend Yield: 12.88%
• Average Volume (3M): 168.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -14.31%
• EPS Growth: -361.93%
• Country: UK
• Employees: 3,294
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.17
• Shares Outstanding: 72,357,700
• 10 Day Avg. Volume: 271,449
• 30 Day Avg. Volume: 168,695
• PEG Ratio: 0.24
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 21.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £230.00
• Price Target Upside: 60.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 124.00p ▼(-13.59% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability. Technical analysis indicates bearish momentum, while valuation is mixed with a high dividend yield but negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Diversified revenue model

Robert Walters earns fees from contingent recruitment plus contract staffing margins, giving it multiple revenue channels. This durable model smooths cycle effects: permanent placements generate placement fees while contract staffing yields repeatable margin and cash flow from billable hours.

Global, sector-diverse footprint

A multinational presence across professional sectors spreads geographic and cyclical risk, enabling cross-border placements and client diversification. Exposure to finance, tech, engineering and healthcare supports structural demand for skilled hires and long-term client relationships.

Manageable leverage

Debt levels are moderate (D/E ~0.64) and equity still funds a material portion of the asset base, providing financial flexibility. Manageable leverage supports investment in recruiter networks and working capital for contract staffing without immediate refinancing pressure.

Negative Factors

Persistent revenue decline

Sustained top-line deterioration weakens scale advantages, reduces recruiter capacity to invest in sourcing and client development, and undermines long-term market position. Continued revenue shrinkage can erode client relationships and limit pricing power across niche segments.

Profitability deterioration

Negative margins and a negative ROE indicate the business is not currently generating acceptable returns on capital. This undermines reinvestment, constrains talent retention incentives, and raises questions about sustaining dividends or funding strategic initiatives without corrective action.

Weak cash generation

A large drop in free cash flow and negative conversion of income to cash reduce liquidity to fund payroll for contract workers, invest in systems, or expand recruiter headcount. Persistent weak cash conversion increases reliance on external financing and limits strategic flexibility.

Robert Walters Business Overview & Revenue Model

Company Description

Robert 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 Money

Robert Walters generates revenue primarily through recruitment fees charged to clients for successfully placing candidates in job positions. The company employs a contingent recruitment model, where fees are only incurred upon successful placement. Additionally, RWA earns money through contract staffing services, where it charges clients a margin on the hourly or daily rate of temporary workers. The company benefits from strong relationships with various industries and maintains a network of skilled professionals, which enhances its service offerings. Significant partnerships with various organizations and a focus on niche markets also contribute to its earnings, allowing RWA to command competitive fees in specialized sectors.

Robert Walters Financial Statement Overview

Summary

Robert Walters faces financial challenges with declining revenue, profitability, and cash flow. The balance sheet shows manageable leverage, but negative net income and reduced free cash flow highlight operational inefficiencies and liquidity concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	835.60M	892.10M	1.06B	1.10B	970.70M	938.40M
Gross Profit	295.30M	321.40M	386.80M	428.20M	353.60M	302.40M
EBITDA	5.90M	28.10M	49.60M	80.80M	74.20M	39.20M
Net Income	-14.80M	-6.00M	13.40M	39.10M	33.50M	5.70M
Balance Sheet
Total Assets	329.60M	355.50M	415.70M	474.10M	446.30M	412.60M
Cash, Cash Equivalents and Short-Term Investments	55.10M	68.10M	95.70M	123.20M	142.30M	155.50M
Total Debt	93.40M	88.00M	95.00M	102.50M	82.10M	63.80M
Total Liabilities	213.50M	217.00M	250.80M	290.20M	271.50M	243.30M
Stockholders Equity	116.10M	138.50M	164.90M	183.90M	174.80M	169.30M
Cash Flow
Free Cash Flow	24.10M	9.70M	29.60M	22.20M	20.40M	89.00M
Operating Cash Flow	25.60M	19.80M	45.50M	38.10M	33.60M	98.90M
Investing Cash Flow	-9.10M	-9.40M	-14.20M	-15.50M	-12.80M	-8.90M
Financing Cash Flow	-22.40M	-33.90M	-52.20M	-47.50M	-27.20M	-49.10M

Robert Walters Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 143.5 is above the 20-day moving average (MA) of 129.70, above the 50-day MA of 133.39, and below the 200-day MA of 158.10, indicating a bearish trend. The MACD of -3.04 indicates Positive momentum. The RSI at 39.99 is Neutral, neither overbought nor oversold. The STOCH value of 40.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RWA.

Robert Walters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GATC	71 Outperform	£38.45M	17.11	6.45%	3.35%	2.40%	1101.69%
STEM	69 Neutral	£243.93M	14.01	12.99%	6.35%	-13.93%	-48.74%
STAF	66 Neutral	£59.65M	15.71	44.68%	―	1.44%	―
PAGE	64 Neutral	£653.12M	54.56	4.81%	7.58%	-12.54%	-76.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RWA	53 Neutral	£82.22M	-5.53	-11.22%	12.88%	-14.31%	-361.93%
HAS	46 Neutral	£757.99M	-96.82	-1.52%	1.76%	-4.92%	-58.06%

Robert Walters Corporate Events

Robert Walters Flags Tough Hiring Markets for 2026 as UK and ANZ Rebound Offsets European Weakness

Robert Walters reported a 14% year-on-year decline in fourth-quarter net fee income on a constant currency basis, with group performance broadly stable quarter-on-quarter but showing widening regional divergence: strong specialist recruitment growth in the UK, improving trends in Spain and New Zealand, contrasted with continued weakness in northern Europe and softer conditions in parts of Asia Pacific and the Middle East. The group is tightening its cost base, reducing headcount, closing its small Canadian operation and shifting more back-office work into global business services hubs, while net cash of £26.2m underpins a strategy focused on portfolio management and productivity as management plans for 2026 net fee income to come in slightly below 2025 amid uncertain global hiring markets, even as new outsourcing partnerships and fast-growing early-stage talent and consultancy lines provide offsetting growth pockets.

The most recent analyst rating on (GB:RWA) stock is a Buy with a £250.00 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.

Robert Walters Announces Leadership Changes with New Non-Executive Director Appointment

Robert Walters plc has announced the retirement of Tanith Dodge, a long-serving Non-Executive Director, at the upcoming 2026 AGM. Andrew Rashbass, an experienced leader with a strong background in international leadership and expertise in AI, will join the board as an independent Non-Executive Director effective January 1, 2026, marking a strategic move to enhance the company’s governance and leadership capabilities.

The most recent analyst rating on (GB:RWA) stock is a Buy with a £250.00 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.