Watkin Jones (WJG) AI Stock Analysis

• Market Cap: £61.08M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 48.3
• Beta (1Y): 1.82
• Revenue Growth: -27.17%
• EPS Growth: 98.73%
• Country: UK
• Employees: 600
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Residential Construction
• EPS (TTM): 0.00
• Shares Outstanding: 256,653,100
• 10 Day Avg. Volume: 1,226,524
• 30 Day Avg. Volume: 1,136,910
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: £30.00
• Price Target Upside: 18.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: 25.00p ▼(-1.38%Downside)

The overall stock score is primarily influenced by mixed financial performance and weak technical indicators. Positive corporate events offer some optimism but are outweighed by valuation concerns and technical weaknesses.

Watkin Jones Business Overview & Revenue Model

Company Description

Watkin Jones Plc engages in the development and the management of properties for residential occupation in the United Kingdom. The company operates through Student Accommodation, Build to Rent, Affordable Homes, and Accommodation Management segments. It is involved in the development of purpose-built student accommodation, build to rent accommodation, and residential housing property; and management of student accommodation and build to rent property. The company was formerly known as Watkin Jones Limited and changed its name to Watkin Jones Plc in March 2016. Watkin Jones Plc was founded in 1791 and is based in London, the United Kingdom.

How the Company Makes Money

Watkin Jones makes money primarily through the development and sale of residential properties, particularly in the PBSA and BTR sectors. The company generates revenue by constructing and managing student accommodations and rental properties, which are then sold to institutional investors or retained for long-term income generation. Additionally, Watkin Jones engages in forward-funding agreements, where an investor funds the development in exchange for ownership upon completion, providing a steady cash flow during the construction phase. The company's income is also supplemented by property management services, ensuring a diversified revenue stream. Significant partnerships with universities, local authorities, and investment firms enhance its market position and contribute to its financial success.

Watkin Jones Financial Statement Overview

Summary

Watkin Jones shows mixed financial performance with declining revenue and margins, but maintains a relatively stable capital structure and improved cash flow generation. However, the company faces challenges in profitability and efficiency.

Income Statement

The gross profit margin for the latest year is 9.33%, reflecting a decrease compared to previous periods. The net profit margin is 0.52%, indicating tight profitability. Revenue has declined by 12.31% compared to the previous year, showing a negative growth trend. EBIT and EBITDA margins are 0.98% and 2.99% respectively, both highlighting low operational efficiency. The company faces challenges in maintaining revenue and profitability levels.

Balance Sheet

The debt-to-equity ratio is 0.41, suggesting a moderate level of leverage. Return on equity (ROE) is low at 1.43%, indicating limited returns for shareholders. The equity ratio stands at 39.95%, pointing to a stable capital structure. The balance sheet demonstrates moderate leverage but challenges in generating shareholder returns.

Cash Flow

Free cash flow has improved significantly with a positive change from a previous negative position. The operating cash flow to net income ratio is 15.95, suggesting strong cash generation relative to net income. The company exhibits strong cash flow generation, though historical variability poses a risk.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Watkin Jones Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.35
• 50DMA: Negative
• 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 Negative. The current price of 25.35 is below the 20-day moving average (MA) of 26.45, below the 50-day MA of 29.00, and below the 200-day MA of 27.78, indicating a bearish trend. The MACD of -1.15 indicates Negative momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 31.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WJG.

Watkin Jones Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPR	71 Outperform	£120.23M	13.24	5.82%	0.73%	-14.19%	9.78%
GLE	68 Neutral	£218.33M	13.20	5.65%	2.19%	13.91%	-2.75%
VTY	64 Neutral	£1.95B	27.34	2.27%	―	6.04%	-66.96%
Sector *	63 Neutral	kr10.82B	18.18	4.75%	2.97%	1.63%	-16.68%
BWY	60 Neutral	£3.01B	20.47	4.22%	2.33%	-11.63%	-31.81%
WJG	51 Neutral	£61.08M	48.31	-0.29%	―	-27.17%	98.73%
CRST	51 Neutral	£473.68M	―	-9.56%	119.24%	-3.50%	-176.18%

Watkin Jones Corporate Events

Watkin Jones Grants Sharesave Options to Executives

Watkin Jones plc has granted options over 4,399,277 ordinary shares under its Sharesave Scheme, with a contract start date of 1 August 2025. This move includes significant allocations to key executives, with CEO Alex Pease and CFO Simon Jones receiving options for 39,293 and 78,586 shares respectively, potentially impacting the company’s executive compensation structure and aligning management interests with shareholder value.

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.

Watkin Jones to Present Half Year Results via Investor Meet Company

Watkin Jones plc announced that its CEO, Alex Pease, and CFO, Simon Jones, will present the Group’s Half Year results for the period ending 31 March 2025 via a live presentation on Investor Meet Company. This event, scheduled for 4 June 2025, is open to all existing and potential shareholders, allowing them to submit questions in advance or during the presentation. The announcement underscores Watkin Jones’ commitment to transparency and engagement with its investors, potentially strengthening its market position and stakeholder relations.

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.

Watkin Jones Reports Resilient Interim Results Amid Market Challenges

Watkin Jones reported its interim results for the six months ending March 31, 2025, showing a decrease in revenue to £129.2 million from £175.1 million the previous year, attributed to lower transactional activity. Despite challenging market conditions, the company maintained operational progress with successful completions of in-build schemes and secured new development partnerships. The company focused on cash management, resulting in improved net cash balances, and is prioritizing financial flexibility by not declaring an interim dividend. The outlook remains positive, with a robust medium-term outlook supported by sector fundamentals, and a secured pipeline of approximately £1.1 billion.

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.

Watkin Jones Announces Change in Major Shareholder Voting Rights

Watkin Jones plc has announced a change in the voting rights held by M&G Plc, a major shareholder. M&G Plc’s voting rights in Watkin Jones have decreased from 5.031478% to 4.910627%, indicating a reduction in their stake. This adjustment reflects a disposal of voting rights, which may impact the company’s shareholder dynamics and influence.

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.

Watkin Jones to Announce H1-2025 Financial Results

Watkin Jones plc has announced that it will release its H1-2025 financial results on 29 May 2025, covering the half-year period ending 31 March 2025. The company will provide a pre-recorded audiocast of the results on its website, followed by a live Q&A webcast for analysts. This announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

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.

Watkin Jones Reports Positive H1-2025 Amid Market Challenges

Watkin Jones plc reported a small positive operating profit for the first half of 2025, despite challenging market conditions, due to strong operational focus and effective cash management. The company signed two new development partnerships and maintained a robust cash position, with expectations for a stronger second half driven by a solid project pipeline.