Watkin Jones (WJG) AI Stock Analysis

• Market Cap: £73.27M
• Dividend Yield: N/A
• Average Volume (3M): 703.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -22.78%
• EPS Growth: -543.24%
• Country: UK
• Employees: 600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.02
• Shares Outstanding: 256,653,100
• 10 Day Avg. Volume: 513,156
• 30 Day Avg. Volume: 703,712
• PEG Ratio: 0.00
• 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: £38.00
• Price Target Upside: 36.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 29.00p ▲(4.13% Upside)

Watkin Jones is currently facing significant financial and valuation challenges, with declining revenues, profitability, and liquidity issues being the most significant factors. Technical analysis indicates a bearish trend, further impacting the stock's outlook.

Positive Factors

Sustainability Focus

Watkin Jones' focus on sustainability and community engagement aligns with growing market demand for eco-friendly developments, potentially enhancing long-term brand value and customer loyalty.

Partnerships

Strategic partnerships with universities and investors provide a robust pipeline for development projects, ensuring steady demand and revenue stability over the long term.

Leverage Management

Improved leverage management indicates better financial discipline, which can enhance financial stability and reduce risk in future operations.

Negative Factors

Revenue Decline

A consistent decline in revenue indicates potential market challenges and operational inefficiencies, threatening long-term growth and profitability.

Profitability Concerns

Negative profitability metrics suggest operational challenges and cost pressures, which could impair the company's ability to invest in growth and innovation.

Cash Flow Challenges

Persistent cash flow issues indicate liquidity constraints and inefficiencies in operations, potentially limiting the company's financial flexibility and growth prospects.

Watkin Jones Business Overview & Revenue Model

Company Description

Watkin Jones (WJG) is a leading UK-based property development and construction company, primarily focused on the purpose-built student accommodation (PBSA) and residential sectors. Established in 1791, the company specializes in the design, development, and management of high-quality residential properties, including student housing and private residential developments. With a strong commitment to sustainability and community engagement, Watkin Jones aims to provide innovative living solutions that meet the evolving needs of the market.

How the Company Makes Money

Watkin Jones generates revenue through several key streams, primarily from the development and sale of residential properties, including student accommodation and private housing. The company undertakes large-scale development projects, often funded through a combination of equity and debt financing. Additionally, WJG earns income from property management services and rental income from its investment properties. Significant partnerships with universities and institutional investors enhance its pipeline of development projects, while its focus on quality and sustainability helps drive demand for its properties, contributing to stable earnings.

Watkin Jones Financial Statement Overview

Summary

Watkin Jones is facing financial challenges with declining revenues and profitability, moderate leverage but poor returns on equity, and significant liquidity issues. The company needs to address operational inefficiencies to stabilize its financial position.

Income Statement

Watkin Jones has experienced declining revenue over the past year, with a negative revenue growth rate of -11.57% in the latest period. The company also reported negative net income and EBIT, indicating operational challenges. Gross profit margin has decreased significantly from previous years, reflecting pressure on profitability. Overall, the income statement shows a concerning trend with declining revenues and profitability.

Balance Sheet

The company's debt-to-equity ratio has improved slightly compared to previous years, indicating better leverage management. However, the return on equity has turned negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure. Overall, the balance sheet shows moderate stability but highlights profitability concerns.

Cash Flow

Watkin Jones has faced significant cash flow challenges, with negative operating and free cash flows in the latest period. The free cash flow growth rate is highly negative, indicating deteriorating cash generation capabilities. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies in converting income to cash. Overall, the cash flow statement reveals liquidity issues and operational inefficiencies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	279.84M	279.84M	362.37M	413.24M	407.08M	430.21M
Gross Profit	19.38M	19.38M	33.81M	34.86M	67.07M	84.78M
EBITDA	2.74M	2.74M	10.83M	-32.27M	32.80M	66.03M
Net Income	-8.41M	-8.41M	1.90M	-32.55M	13.41M	41.93M
Balance Sheet
Total Assets	312.44M	312.44M	331.89M	371.52M	386.96M	430.62M
Cash, Cash Equivalents and Short-Term Investments	80.40M	80.40M	96.91M	72.56M	110.84M	136.29M
Total Debt	43.56M	43.56M	54.36M	73.72M	77.39M	141.21M
Total Liabilities	187.44M	187.44M	199.30M	241.51M	210.01M	245.81M
Stockholders Equity	124.99M	124.99M	132.59M	130.00M	176.95M	184.81M
Cash Flow
Free Cash Flow	-14.25M	-14.25M	30.10M	-32.05M	-27.52M	61.25M
Operating Cash Flow	-14.12M	-14.12M	30.22M	-31.50M	-26.86M	61.46M
Investing Cash Flow	8.80M	8.80M	16.74M	14.98M	11.58M	-147.00K
Financing Cash Flow	-11.25M	-11.25M	-22.43M	-21.89M	-10.17M	-59.53M

Watkin Jones Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WJG, the sentiment is Positive. The current price of 27.85 is above the 20-day moving average (MA) of 27.69, below the 50-day MA of 28.30, and below the 200-day MA of 29.64, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 66.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WJG.

Watkin Jones Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPR	76 Outperform	£146.50M	10.37	8.56%	1.63%	5.26%	86.19%
GLE	72 Outperform	£245.18M	15.49	5.23%	2.38%	5.93%	-18.20%
BWY	65 Neutral	£3.14B	20.16	4.49%	2.62%	16.91%	20.93%
VTY	63 Neutral	£2.00B	-206.12	-0.31%	―	-0.57%	-104.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WJG	46 Neutral	£73.27M	-8.73	-6.53%	―	-22.78%	-543.24%
CRST	42 Neutral	£352.24M	-4.88	-9.56%	1.79%	-3.50%	-176.18%

Watkin Jones Corporate Events

Watkin Jones Reports Strong FY25 Performance Amid Market Challenges

Watkin Jones plc reported a strong second half performance for FY25, with expected revenue of approximately £280 million and adjusted operating profit aligning with market expectations. The company emphasized effective cash management and operational delivery, completing several key projects and maintaining a robust pipeline for future developments. Despite challenging market conditions, Watkin Jones remains optimistic about its prospects in FY26, driven by a structural shortage in rental and student housing and sustained investor interest.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £31.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Watkin Jones Enters £182m PBSA Joint Venture with Maslow Capital

Watkin Jones has announced a joint venture with Maslow Capital to develop a new 784-bed purpose-built student accommodation scheme in Glasgow, valued at approximately £182 million. This transaction is expected to generate significant revenue for Watkin Jones, contributing to its financial performance in FY2025 and showcasing its ability to expand its portfolio of funding partners amidst the UK’s volatile residential development sector.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £31.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Watkin Jones to Develop 200 Student Units in Bristol

Watkin Jones has signed a development partnership to deliver approximately 200 purpose-built student accommodation units in Bristol, transforming a disused railway embankment into a vibrant community. This project, expected to generate over £28 million in revenue, aligns with the company’s diversification strategy and highlights its ability to attract institutional investment despite challenging market conditions.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £0.35 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.