TheWorks.co.uk plc (WRKS) AI Stock Analysis

• Market Cap: £21.44M
• Dividend Yield: N/A
• Average Volume (3M): 151.51K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.05
• Revenue Growth: -1.96%
• EPS Growth: 28.69%
• Country: UK
• Employees: 4,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.24
• Shares Outstanding: 62,500,000
• 10 Day Avg. Volume: 269,764
• 30 Day Avg. Volume: 151,506
• PEG Ratio: 0.06
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.58
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.1
• Revenue Forecast (FY): £28.74B

• Rating: 60 Neutral
• Price Target: 38.00p ▲(11.11% Upside)

The overall score reflects a mixed outlook for TheWorks.co.uk plc. The company's strong trading performance and undervaluation are positive factors, but these are tempered by weak technical indicators and financial vulnerabilities, particularly high leverage and inconsistent profitability.

Positive Factors

Cash Flow Management

Strong cash flow management provides financial stability, allowing the company to invest in growth opportunities and manage debt effectively.

E-commerce Growth

Expansion in e-commerce aligns with consumer trends, potentially increasing market reach and revenue through digital channels.

Product Range and Partnerships

Exclusive partnerships and a diverse product range can drive customer loyalty and foot traffic, supporting long-term revenue growth.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Profitability Challenges

Low profitability can hinder reinvestment in the business and affect long-term financial health, necessitating improved cost management.

Inconsistent Revenue Growth

Inconsistent revenue growth can signal market challenges or operational inefficiencies, impacting long-term business stability and investor confidence.

TheWorks.co.uk plc Business Overview & Revenue Model

Company Description

TheWorks.co.uk plc operates as a retailer of gifts, arts, crafts, toys, books, and stationery products. The company sells its products through a network of stores, as well as through its online platform. As of May 2, 2021, it operated 527 stores in the United Kingdom and Ireland. The company was founded in 1981 and is based in Birmingham, the United Kingdom.

How the Company Makes Money

TheWorks.co.uk plc generates revenue primarily through the sale of its wide-ranging products, including arts and crafts supplies, books, gifts, and educational materials. The company utilizes a multi-channel retail strategy, combining physical stores and e-commerce to maximize reach and accessibility. Key revenue streams include direct sales from retail locations, online orders, and seasonal promotions. Additionally, TheWorks.co.uk benefits from cost-effective sourcing and private label products, which enhance profit margins. The company also occasionally engages in partnership initiatives, such as collaborations with educational institutions and community organizations, which can lead to bulk sales and increased brand exposure.

TheWorks.co.uk plc Financial Statement Overview

Summary

TheWorks.co.uk plc exhibits a mixed financial performance. Improvements in cash flow and some operational efficiencies are offset by challenges with profitability and high leverage. The balance sheet's high debt levels pose a risk, necessitating prudent financial management.

Income Statement

TheWorks.co.uk plc shows a mixed performance in its income statement. The gross profit margin has improved slightly over the years, indicating better cost management. However, the net profit margin remains low, reflecting challenges in converting revenue into profit. Revenue growth has been inconsistent, with a decline in the most recent year. The EBIT and EBITDA margins are moderate, suggesting some operational efficiency but room for improvement.

Balance Sheet

The balance sheet reveals significant leverage, with a high debt-to-equity ratio indicating potential financial risk. Although the return on equity has improved, it is primarily due to a low equity base rather than strong profitability. The equity ratio is low, highlighting a reliance on debt financing. These factors suggest financial vulnerability and the need for careful debt management.

Cash Flow

Cash flow analysis shows positive trends, with strong free cash flow growth in recent years. The operating cash flow to net income ratio indicates healthy cash generation relative to earnings. However, the free cash flow to net income ratio suggests that while cash flow is robust, profitability remains a concern. Overall, cash flow management appears solid, providing some financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	277.04M	277.04M	282.58M	280.10M	264.63M	180.68M
Gross Profit	49.34M	53.75M	51.82M	43.90M	55.03M	19.95M
EBITDA	36.55M	36.59M	33.96M	38.21M	39.13M	32.13M
Net Income	8.18M	8.18M	6.38M	5.27M	13.96M	-2.30M
Balance Sheet
Total Assets	126.95M	126.95M	118.81M	137.26M	149.33M	180.44M
Cash, Cash Equivalents and Short-Term Investments	4.12M	4.12M	1.62M	10.20M	16.28M	8.31M
Total Debt	74.93M	74.93M	77.76M	98.22M	111.14M	143.01M
Total Liabilities	111.11M	111.11M	108.73M	135.60M	148.95M	171.62M
Stockholders Equity	15.84M	15.84M	10.09M	1.65M	378.00K	8.83M
Cash Flow
Free Cash Flow	28.24M	27.60M	17.87M	20.61M	45.33M	27.73M
Operating Cash Flow	32.93M	33.48M	25.16M	29.22M	49.16M	30.13M
Investing Cash Flow	-5.03M	-5.00M	-5.83M	-6.45M	-2.94M	-2.38M
Financing Cash Flow	-24.95M	-25.53M	-27.21M	-29.42M	-38.13M	-22.59M

TheWorks.co.uk plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.20
• 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:WRKS, the sentiment is Negative. The current price of 34.2 is below the 20-day moving average (MA) of 34.24, below the 50-day MA of 36.52, and below the 200-day MA of 42.28, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 30.78 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WRKS.

TheWorks.co.uk plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G4M	70 Outperform	£62.30M	15.29	10.36%	―	15.50%	314.96%
PROC	66 Neutral	£42.17M	32.52	18.64%	―	16.66%	147.92%
ANG	64 Neutral	£40.16M	21.91	4.56%	―	17.79%	18.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WRKS	60 Neutral	£21.44M	2.45	63.08%	―	-1.96%	28.69%
SOS	60 Neutral	£18.88M	-20.51	-5.63%	―	-1.65%	-454.55%
MRK	53 Neutral	£48.80M	-44.71	-9.68%	2.09%	-5.97%	14.75%

TheWorks.co.uk plc Corporate Events

TheWorks.co.uk Announces Directorate Change as Simon Hathway Steps Down

TheWorks.co.uk plc announced that Simon Hathway will step down as Independent Non-Executive Director in early January 2026 to assume a full-time Executive Director role at B&M European Value Retail S.A. Hathway’s departure comes after a year of significant contributions to The Works, including his role as Chair of the Remuneration Committee and member of the Audit and Nomination Committees. The company is actively searching for his successor and will update stakeholders in due course. The Works’ Chair, Steve Bellamy, praised Hathway’s impact on the company’s strategy and growth, while Hathway expressed confidence in the company’s future, citing its strong customer base and value proposition.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £53.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

TheWorks.co.uk plc Reports Resilient In-Store Growth Amid Online Sales Challenges

TheWorks.co.uk plc reported a slight decrease in total sales for the first half of FY26, with a 0.3% drop compared to the previous year. Despite challenges in the consumer environment and a significant decline in online sales due to operational issues, the company saw a 4% increase in store sales, driven by effective marketing and strategic initiatives. The company is on track to meet its full-year profit guidance, supported by product margin growth and cost-saving measures. The Works is focused on optimizing store sales during peak trading periods and addressing online sales challenges to ensure continued strategic and financial progress.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £53.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.