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Watkin Jones PLC (GB:WJG)
LSE:WJG

Watkin Jones (WJG) AI Stock Analysis

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GB:WJG

Watkin Jones

(LSE:WJG)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
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 (WJG) vs. iShares MSCI United Kingdom ETF (EWC)

Watkin Jones Business Overview & Revenue Model

Company DescriptionWatkin 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 MoneyWatkin 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
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue279.84M279.84M362.37M413.24M407.08M430.21M
Gross Profit19.38M19.38M33.81M34.86M67.07M84.78M
EBITDA2.74M2.74M10.83M-32.27M32.80M66.03M
Net Income-8.41M-8.41M1.90M-32.55M13.41M41.93M
Balance Sheet
Total Assets312.44M312.44M331.89M371.52M386.96M430.62M
Cash, Cash Equivalents and Short-Term Investments80.40M80.40M96.91M72.56M110.84M136.29M
Total Debt43.56M43.56M54.36M73.72M77.39M141.21M
Total Liabilities187.44M187.44M199.30M241.51M210.01M245.81M
Stockholders Equity124.99M124.99M132.59M130.00M176.95M184.81M
Cash Flow
Free Cash Flow-14.25M-14.25M30.10M-32.05M-27.52M61.25M
Operating Cash Flow-14.12M-14.12M30.22M-31.50M-26.86M61.46M
Investing Cash Flow8.80M8.80M16.74M14.98M11.58M-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 Price27.85
Price Trends
50DMA
27.99
Positive
100DMA
29.28
Positive
200DMA
29.50
Negative
Market Momentum
MACD
0.28
Positive
RSI
59.38
Neutral
STOCH
51.28
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 below the 20-day moving average (MA) of 28.81, below the 50-day MA of 27.99, and below the 200-day MA of 29.50, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 51.28 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
£224.75M14.205.23%2.38%5.93%-18.20%
70
Outperform
£3.73B10.6510.27%6.38%-6.44%-0.03%
67
Neutral
£5.30B27.632.80%4.73%33.83%15.11%
63
Neutral
£2.03B-214.54-0.31%-0.57%-104.08%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
46
Neutral
£75.33M-8.96-6.53%-22.78%-543.24%
42
Neutral
£345.57M-4.82-9.56%1.79%-3.50%-176.18%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WJG
Watkin Jones
29.40
9.40
47.00%
GB:BTRW
Barratt Redrow
380.60
-27.51
-6.74%
GB:BKG
The Berkeley Group Holdings
3,980.00
302.07
8.21%
GB:VTY
Vistry Group
652.20
44.70
7.36%
GB:CRST
Crest Nicholson Holdings
138.00
-34.04
-19.79%
GB:GLE
MJ Gleeson PLC
403.00
-75.14
-15.72%

Watkin Jones Corporate Events

Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Watkin Jones Publishes 2025 Annual Report and Sets February AGM
Neutral
Jan 6, 2026

Watkin Jones plc has published its Annual Report and Financial Statements for the year ended 30 September 2025, together with the Notice of its forthcoming Annual General Meeting, on the company’s website, and has posted hard copies to shareholders. The AGM is scheduled for 10:30 a.m. on 4 February 2026 at the offices of MHP Group in London, providing shareholders with a formal opportunity to review performance, question management and vote on key resolutions, underlining the company’s adherence to standard UK corporate governance and disclosure practices.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Business Operations and Strategy
Watkin Jones Strikes Second Latium Deal with £40m Wimbledon Hotel Project
Positive
Dec 22, 2025

Watkin Jones has entered a development partnership with Latium Enterprises to deliver a 294-room hotel on a former brownfield site on Worple Road in central Wimbledon, marking a further diversification of its residential-for-rent platform into hospitality. The 11-storey scheme, targeted for completion in summer 2028 and expected to generate about £40 million in revenue at margins in line with guidance, will feature a club lounge, gym, co-working space and café, and is aiming for BREEAM Excellent certification, underscoring the group’s sustainability credentials; as its second project with Latium in 2025, the deal highlights Watkin Jones’ ability to leverage repeat partnerships, broaden its revenue streams and reinforce its position as a leading provider of high-quality, amenity-rich accommodation assets.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Watkin Jones Beats Earnings Forecasts as New Research Flags Cautious Recovery
Positive
Dec 19, 2025

Watkin Jones has commissioned Progressive Equity Research to provide ongoing research coverage, with the latest note highlighting that adjusted profit before tax for the year to 30 September 2025 came in at £5.6 million, ahead of the £5.0 million estimate but down from £9.2 million a year earlier amid a challenging market backdrop. The research outlines expectations for a cautious rebound, introducing forecasts for the 2026 financial year that point to a 20% rise in adjusted profit before tax to £6.8 million alongside further growth in net cash, suggesting a measured recovery trajectory that may reassure investors about the group’s financial resilience.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Financial Disclosures
Watkin Jones to Present FY2025 Results via Investor Meet Company
Neutral
Dec 17, 2025

Watkin Jones is a UK-focused property developer concentrating on student accommodation and later-living/build-to-rent schemes, providing development, investment and management services in the residential and purpose-built rental sector.

The Group announced that Chief Executive Alex Pease and Chief Financial Officer Simon Jones will deliver a live presentation of Watkin Jones’s full-year results for the year ended 30 September 2025 via the Investor Meet Company platform on 18 December 2025 at 14:00 GMT. The event is open to existing and potential shareholders, with questions accepted ahead of the event via the platform until the morning of the presentation and during the live session; investors can register on the platform and current followers will be invited automatically. The presentation gives management an opportunity to outline financial performance and engage directly with investors, which may affect market perception and stakeholder engagement in the short term.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Watkin Jones Reports Resilient FY25 Performance and Strong Future Pipeline
Positive
Dec 16, 2025

Watkin Jones plc reported resilient financial performance for the fiscal year ending September 30, 2025, with a revenue of £279.8 million and an adjusted operating profit of £6.3 million. Despite challenges, the company maintained a robust pipeline of £2 billion in future opportunities, driven by strategic partnerships and diversified activities. The outlook for 2026 is positive, with secured forward revenue and a focus on cost management and revenue diversification, positioning the company for continued growth and value creation for stakeholders.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Watkin Jones and Maslow Capital Launch £102m Bristol Student Accommodation Project
Positive
Dec 15, 2025

Watkin Jones plc has announced a new £102 million PBSA development in Bristol through its joint venture with Maslow Capital. This project, which is expected to be completed by the 2028/29 academic year, will provide 484 beds and generate significant revenue over its three-year construction period. The development underscores Watkin Jones’ strategic focus on expanding its presence in high-demand student markets and strengthening its relationships with institutional investors.

The most recent analyst rating on (GB:WJG) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on Watkin Jones stock, see the GB:WJG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Watkin Jones Reports Strong FY25 Performance Amid Market Challenges
Positive
Oct 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 18, 2025