Watkin Jones (WJG) AI Stock Analysis

• Market Cap: £94.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 49.5
• Beta (1Y): 1.50
• Revenue Growth: -12.31%
• EPS Growth: N/A
• Country: UK
• Employees: 600
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Residential Construction
• EPS (TTM): <0.01
• Shares Outstanding: 256,653,100
• 10 Day Avg. Volume: 1,379,784
• 30 Day Avg. Volume: 1,455,797
• PEG Ratio: -0.31
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.56
• 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: £33.50
• Price Target Upside: -8.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Watkin Jones' overall stock score reflects a mixed financial performance with declining revenues and low profitability. However, improved cash flow and stability in its capital structure are positives. Technical indicators suggest potential overbought conditions, while a high P/E ratio points to overvaluation. Positive corporate events indicate strategic focus, offering some optimism for future growth.

Watkin Jones Business Overview & Revenue Model

Company Description

Watkin Jones (WJG) is a leading UK-based developer and manager specializing in the construction and management of residential rental properties. The company operates across several sectors, including purpose-built student accommodation (PBSA), build-to-rent (BTR) residential properties, and affordable housing. With a strong focus on sustainable development and urban regeneration, Watkin Jones leverages its expertise to deliver high-quality, modern living spaces that cater to the evolving needs of communities.

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 exhibits mixed financial results with declining revenue and margins, but maintains a stable capital structure and improved cash flow generation. The company faces challenges in profitability and efficiency, reflected in the low gross and net profit margins. However, the improved cash flow is a positive aspect.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
434.48M	362.37M	413.24M	407.08M	430.21M	354.12M
	Gross Profit
36.94M	33.81M	34.86M	67.07M	84.78M	75.92M
	EBIT
2.39M	3.57M	-37.97M	33.76M	57.35M	51.64M
	EBITDA
-27.72M	10.83M	-32.27M	32.80M	66.03M	40.90M
	Net Income Common Stockholders
-30.37M	1.90M	-32.55M	13.41M	41.93M	21.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.91M	96.91M	72.56M	110.84M	136.29M	134.51M
	Total Assets
283.78M	331.89M	371.52M	386.96M	430.62M	459.95M
	Total Debt
39.61M	54.36M	73.72M	77.39M	141.21M	174.12M
	Net Debt
-18.29M	-42.55M	1.29M	-33.45M	4.92M	39.61M
	Total Liabilities
122.63M	199.30M	241.51M	210.01M	245.81M	292.11M
	Stockholders Equity
161.15M	132.59M	130.00M	176.95M	184.81M	167.84M
Cash Flow		Free Cash Flow
-6.34M	30.10M	-32.05M	-27.52M	61.25M	37.97M
	Operating Cash Flow
-5.94M	30.22M	-31.50M	-26.86M	61.46M	38.29M
	Investing Cash Flow
15.23M	16.74M	14.98M	11.58M	-147.00K	564.00K
	Financing Cash Flow
-25.54M	-22.43M	-21.89M	-10.17M	-59.53M	-19.99M

Watkin Jones Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 36.5 is above the 20-day moving average (MA) of 34.20, above the 50-day MA of 31.60, and above the 200-day MA of 28.93, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 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	73 Outperform	£113.68M	12.52	5.82%	1.05%	-14.19%	9.78%
GLE	69 Neutral	£300.05M	18.14	5.65%	2.14%	13.91%	-2.75%
VTY	65 Neutral	£2.00B	28.78	2.27%	―	6.04%	-66.96%
BWY	64 Neutral	£3.23B	21.83	4.22%	2.00%	-11.63%	-31.81%
Sector *	61 Neutral	$6.99B	11.27	2.81%	3.90%	2.61%	-21.77%
WJG	58 Neutral	£94.96M	49.46	1.44%	―	-12.31%	―
CRST	54 Neutral	£481.89M	―	-13.06%	1.17%	-5.98%	-677.54%

Watkin Jones Corporate Events

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.

Spark’s Take on GB:WJG Stock

According to Spark, TipRanks’ AI Analyst, GB:WJG is a Neutral.

Watkin Jones shows mixed financial performance with declining revenue and low profitability, but improved cash flow and a stable capital structure. Technical indicators suggest caution with possible overbought conditions. The high P/E ratio indicates overvaluation. However, positive corporate events reflect strategic focus and leadership confidence, potentially supporting future performance.

To see Spark’s full report on GB:WJG stock, click here.

Watkin Jones Grants Share Awards to Key Executives

Watkin Jones plc announced the grant of nominal-cost share awards to its CEO, Alex Pease, and CFO, Simon Jones, under the company’s Long Term Incentive Plan 2018. These awards, which are subject to certain conditions and a three-year vesting period, reflect the company’s commitment to aligning leadership incentives with long-term performance goals.

FIL Limited Increases Stake in Watkin Jones plc

Watkin Jones plc has announced a change in its major holdings, with FIL Limited increasing its stake in the company. The acquisition of additional financial instruments has raised FIL Limited’s total voting rights in Watkin Jones to 12.0223%. This change in holdings could impact the company’s strategic decisions and influence its market positioning, potentially affecting stakeholders and future operations.

FIL Limited Increases Stake in Watkin Jones plc

Watkin Jones plc, a UK-based company, has announced a change in its major holdings. FIL Limited, registered in Bermuda, has increased its voting rights in Watkin Jones to 11.013% from a previous 10.097%. This change, effective from February 28, 2025, reflects an acquisition or disposal of financial instruments by FIL Limited. The increase in voting rights could impact Watkin Jones’ strategic decisions and influence within the market, potentially affecting stakeholders and the company’s industry positioning.

Watkin Jones plc Successfully Passes All AGM Resolutions

Watkin Jones plc announced that all resolutions were passed at its recent Annual General Meeting. This outcome reflects the company’s stable governance and continued focus on its strategic goals in the residential rental market, reinforcing its position as a key player in the UK property development industry.