Robert Walters (RWA) AI Stock Analysis

• Market Cap: £94.15M
• Dividend Yield: 12.88%
• Average Volume (3M): 541.77K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.24
• Revenue Growth: -14.31%
• EPS Growth: -361.93%
• Country: UK
• Employees: 3,294
• Sector: Industrials
• Sector Strength: 83
• Industry: Staffing & Employment Services
• EPS (TTM): -0.17
• Shares Outstanding: 72,357,700
• 10 Day Avg. Volume: 1,094,841
• 30 Day Avg. Volume: 541,774
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £210.50
• Price Target Upside: 56.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: 141.00p ▲(4.83% Upside)

The overall score for Robert Walters reflects significant financial challenges with declining profitability and cash flow, combined with bearish technical signals. While the dividend yield is high, the lack of interim dividends and negative earnings impact the valuation negatively. Corporate events show strategic efforts to address these issues, but market uncertainty poses additional risks.

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 client companies for successfully placing candidates in permanent, contract, and interim positions. The company earns a percentage of the candidate's first-year salary as a placement fee, which varies by sector and region. Additionally, RWA may generate income from ancillary services such as consultancy and advisory services related to talent acquisition and workforce planning. Significant partnerships with various organizations and a strong brand reputation in the recruitment space also contribute to its earnings by attracting a diverse range of clients seeking specialized recruitment services.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	892.10M	1.06B	1.10B	970.70M	938.40M
Gross Profit	321.40M	386.80M	428.20M	353.60M	302.40M
EBITDA	28.10M	49.60M	80.80M	74.20M	39.20M
Net Income	-6.00M	13.40M	39.10M	33.50M	5.70M
Balance Sheet
Total Assets	355.50M	415.70M	474.10M	446.30M	412.60M
Cash, Cash Equivalents and Short-Term Investments	68.10M	95.70M	123.20M	142.30M	155.50M
Total Debt	88.00M	95.00M	102.50M	82.10M	63.80M
Total Liabilities	217.00M	250.80M	290.20M	271.50M	243.30M
Stockholders Equity	138.50M	164.90M	183.90M	174.80M	169.30M
Cash Flow
Free Cash Flow	9.70M	29.60M	22.20M	20.40M	89.00M
Operating Cash Flow	19.80M	45.50M	38.10M	33.60M	98.90M
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 Price: 134.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 134.5 is below the 20-day moving average (MA) of 152.05, below the 50-day MA of 174.46, and below the 200-day MA of 241.20, indicating a bearish trend. The MACD of -11.98 indicates Positive momentum. The RSI at 29.50 is Positive, neither overbought nor oversold. The STOCH value of 36.47 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
STAF	68 Neutral	£53.20M	13.90	44.68%	―	1.44%	―
PAGE	67 Neutral	£843.88M	70.50	4.81%	6.54%	-12.54%	-76.55%
GATC	64 Neutral	£30.89M	51.58	3.66%	3.57%	4.14%	-45.24%
STEM	62 Neutral	£261.65M	9.45	12.99%	5.12%	-13.93%	-48.74%
Sector *	58 Neutral	HK$13.62B	5.49	-2.78%	5.72%	2.29%	-57.50%
HAS	51 Neutral	£998.14M	―	-2.60%	4.78%	-6.95%	-117.14%
RWA	46 Neutral	£94.15M	29.69	-11.22%	12.88%	-14.31%	-361.93%

Robert Walters Corporate Events

Robert Walters PLC Faces Challenging First Half of 2025 Amid Strategic Overhaul

Robert Walters PLC reported a challenging first half of 2025, with a 12% decline in revenue and a shift from a small operating profit to a loss of £7.8m, primarily due to reduced fee income. Despite the difficult market conditions, the company is implementing strategic changes to drive efficiency and long-term growth, including a focus on margin improvement and geographic penetration. The company is also diversifying its service lines, with significant growth in workforce consultancy and talent advisory services. However, due to the current economic outlook, no interim dividend has been declared, and further restructuring activities are anticipated.

The most recent analyst rating on (GB:RWA) stock is a Buy with a £3.50 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.

Robert Walters PLC Reports Q2 Decline Amid Economic Uncertainty

Robert Walters PLC reported a 13% decline in net fee income for the second quarter of 2025, attributed to increased macroeconomic uncertainty and weaker forward indicators in specialist recruitment. The company implemented strategic actions to enhance efficiency, including closing operations in Brazil and reducing management layers in certain markets. Despite challenging conditions, particularly in Europe, Robert Walters remains committed to its strategic initiatives, focusing on improving productivity and leveraging its talent solutions to support clients as markets recover.

The most recent analyst rating on (GB:RWA) stock is a Hold with a £3.41 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.

Liontrust Increases Stake in Robert Walters PLC

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.

Liontrust Adjusts Stake in Robert Walters PLC

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.