Watkin Jones (WJG) AI Stock Analysis

• Market Cap: £73.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 48.3
• Beta (1Y): 1.23
• Revenue Growth: -27.17%
• EPS Growth: 98.73%
• Country: UK
• Employees: 600
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Residential Construction
• EPS (TTM): 0.00
• Shares Outstanding: 256,653,100
• 10 Day Avg. Volume: 2,984,004
• 30 Day Avg. Volume: 1,978,098
• PEG Ratio: 0.36
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.45
• 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: 13.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: 30.00p ▲(2.04%Upside)

Watkin Jones' score is primarily driven by its mixed financial performance, with improved cash flow but declining revenue and margins. Despite negative valuation metrics, recent positive corporate events and stable governance provide some optimism.

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

Watkin Jones Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 29.4 is below the 20-day moving average (MA) of 34.23, below the 50-day MA of 32.19, and above the 200-day MA of 27.75, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 is Positive, 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
VTY	69 Neutral	£1.91B	27.95	2.27%	―	6.04%	-66.96%
SPR	67 Neutral	£114.88M	12.65	5.82%	1.04%	-14.19%	9.78%
BWY	64 Neutral	£3.13B	21.34	4.22%	2.23%	-11.63%	-31.81%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
GLE	61 Neutral	£220.66M	13.34	5.65%	2.91%	13.91%	-2.75%
WJG	54 Neutral	£73.79M	48.31	-0.29%	―	-27.17%	98.73%
CRST	54 Neutral	£451.81M	―	-13.06%	1.25%	-5.98%	-677.54%

Watkin Jones Corporate Events

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.

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.