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

• Market Cap: £15.50M
• Dividend Yield: N/A
• Average Volume (3M): 100.99K
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.20
• Revenue Growth: 0.16%
• EPS Growth: 287.23%
• Country: UK
• Employees: 4,000
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Specialty Retail
• EPS (TTM): 0.18
• Shares Outstanding: 62,500,000
• 10 Day Avg. Volume: 109,214
• 30 Day Avg. Volume: 100,989
• PEG Ratio: 0.00474
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

TheWorks.co.uk plc's stock score reflects a balance of moderate financial performance with consistent revenue growth and improved margins, heavily offset by high leverage risks. Positive technical momentum and a very low P/E ratio suggest potential undervaluation. Insider share purchases indicate confidence and provide a positive outlook, though caution is advised due to financial risks.

TheWorks.co.uk plc Business Overview & Revenue Model

Company Description

TheWorks.co.uk plc (WRKS) is a leading UK-based retailer specializing in value-focused products across various categories including books, arts and crafts, stationery, toys, and games. Operating both online and through a network of physical stores, The Works aims to provide affordable and accessible products to a broad audience, catering to both adults and children with a diverse range of interests.

How the Company Makes Money

TheWorks.co.uk plc generates revenue primarily through the sale of its merchandise across multiple channels. The company operates a network of retail stores throughout the UK, which are strategically located to maximize foot traffic and customer engagement. In addition to its brick-and-mortar presence, The Works also offers an online shopping platform, which extends its reach to a wider audience. Key revenue streams include the sale of books, arts and crafts supplies, stationery, and toys, all offered at competitive prices. The company often leverages seasonal promotions and discounts to drive sales, particularly during peak shopping periods such as back-to-school season and the holiday period. Additionally, The Works partners with various suppliers to ensure a steady supply of innovative and popular products, which helps maintain customer interest and repeat business.

TheWorks.co.uk plc Financial Statement Overview

Summary

TheWorks.co.uk plc demonstrates moderate financial health with consistent revenue growth and improved profitability margins. However, high leverage and a weak equity base pose potential risks. Cash flow generation remains robust, though recent declines in free cash flow warrant attention. Continued focus on improving profitability and reducing leverage would strengthen the company's financial position.

Income Statement

The company's revenue has shown a consistent growth trajectory with a 0.89% increase from 2023 to 2024. Gross profit margin improved to 18.34% in 2024, indicating better cost management. Net profit margin also increased to 2.26%, though still relatively low, suggesting room for profitability improvement. EBIT and EBITDA margins rose to 4.04% and 12.02% respectively, reflecting enhanced operational efficiency.

Balance Sheet

The debt-to-equity ratio is high at 7.71, indicating significant leverage, which poses a risk if not managed properly. The return on equity improved to 63.23%, driven largely by a low equity base, which may not be sustainable. The equity ratio is weak at 8.49%, suggesting high reliance on debt financing and potential vulnerability to financial distress.

Cash Flow

Free cash flow decreased by 13.29% from the previous year, showing some strain on cash generation. Operating cash flow to net income ratio is strong at 3.94, indicating efficient cash conversion from operations. Free cash flow to net income ratio stands at 2.80, demonstrating solid cash profitability.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
282.58M	280.10M	264.63M	180.68M	225.04M
	Gross Profit
51.82M	43.90M	55.03M	19.95M	31.39M
	EBIT
11.42M	9.43M	19.41M	2.67M	-13.52M
	EBITDA
33.96M	38.21M	33.94M	32.13M	13.54M
	Net Income Common Stockholders
6.38M	5.27M	13.96M	-2.30M	-17.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.62M	10.20M	16.28M	8.31M	6.55M
	Total Assets
118.81M	137.26M	149.33M	180.44M	186.31M
	Total Debt
77.76M	98.22M	111.14M	143.01M	145.73M
	Net Debt
76.14M	88.02M	94.86M	134.69M	139.19M
	Total Liabilities
108.73M	135.60M	148.95M	171.62M	172.90M
	Stockholders Equity
10.09M	1.65M	378.00K	8.83M	13.41M
Cash Flow		Free Cash Flow
17.87M	20.61M	45.33M	27.73M	17.79M
	Operating Cash Flow
25.16M	29.22M	49.16M	30.13M	26.46M
	Investing Cash Flow
-5.83M	-6.45M	-2.94M	-2.38M	-8.66M
	Financing Cash Flow
-27.21M	-29.42M	-38.13M	-22.59M	-18.87M

TheWorks.co.uk plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WRKS, the sentiment is Positive. The current price of 25.4 is above the 20-day moving average (MA) of 20.70, above the 50-day MA of 20.43, and above the 200-day MA of 22.25, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 86.99 is Negative, neither overbought nor oversold. The STOCH value of 94.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
CARD	76 Outperform	£328.19M	7.96	13.65%	5.93%	7.75%	-21.78%
FRAS	72 Outperform	£2.75B	9.37	16.46%	―	-6.82%	-37.46%
MKS	71 Outperform	£7.87B	15.42	17.19%	0.77%	6.87%	22.36%
SMWH	64 Neutral	£1.17B	17.75	2.46%	3.71%	4.46%	-89.55%
WRKS	61 Neutral	£15.50M	1.36	63.23%	―	0.16%	287.23%
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
DEBS	48 Neutral	£278.04M	―	-96.36%	―	-16.32%	-202.39%

TheWorks.co.uk plc Corporate Events

TheWorks.co.uk Chair Increases Shareholding, Signaling Confidence

TheWorks.co.uk plc announced that its Non-Executive Chair, Steve Bellamy, has acquired 55,000 ordinary shares in the company, increasing his total shareholding to 710,000 shares, which represents 1.14% of the company’s issued share capital. This purchase may signal confidence in the company’s future prospects and could have implications for investor sentiment, potentially affecting the company’s market positioning and stakeholder interests.

Spark’s Take on GB:WRKS Stock

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

TheWorks.co.uk plc earns an overall score of 61, reflecting moderate financial performance with consistent revenue growth but high leverage risks. The valuation is favorable with a very low P/E ratio indicating potential undervaluation. Technical indicators suggest mixed momentum. Positive corporate events, such as insider share purchases, enhance stakeholder confidence and provide a positive outlook.

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

TheWorks.co.uk Chair Increases Stake with Share Purchase

TheWorks.co.uk plc announced that its Non-Executive Chair, Steve Bellamy, has acquired 30,000 ordinary shares in the company, increasing his total shareholding to 655,000 shares, which represents 1.05% of the company’s issued share capital. This transaction may indicate confidence in the company’s future performance and could positively influence investor sentiment, potentially impacting the company’s market positioning and stakeholder interests.

Spark’s Take on GB:WRKS Stock

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

TheWorks.co.uk plc’s overall stock score reflects a mix of moderate financial performance, technical indicators suggesting balanced momentum, and a favorable valuation due to a low P/E ratio. High leverage is a significant risk, but recent insider confidence and strategic initiatives indicate potential for future growth.

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

TheWorks.co.uk Director Increases Stake with Share Purchase

TheWorks.co.uk plc announced that Simon Hathway, a Non-Executive Director, has purchased 100,000 ordinary shares in the company, representing 0.16% of its issued share capital. This transaction, conducted on the London Stock Exchange, may signal confidence in the company’s future prospects and could impact its market perception positively.

Spark’s Take on GB:WRKS Stock

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

TheWorks.co.uk plc’s stock score reflects a mix of moderate financial performance and bearish technical momentum, offset by favorable valuation. The company’s high leverage remains a key risk, but recent strategic initiatives and insider confidence provide a positive outlook. Investors should weigh the potential for undervaluation against the risks of financial instability.

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

TheWorks.co.uk Enhances Employee Incentive Scheme with Share Purchase

TheWorks.co.uk plc has announced that its Employee Benefit Trust (EBT) has purchased 410,000 ordinary shares to support its executive and employee share plans. This acquisition, funded by a company loan, increases the EBT’s holdings to 4.29% of the company’s issued share capital, reflecting a strategic move to incentivize and retain key personnel, potentially strengthening the company’s operational stability and stakeholder confidence.

Spark’s Take on GB:WRKS Stock

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

TheWorks.co.uk plc’s stock score reflects moderate financial performance with consistent revenue growth but high leverage risks. The technical indicators suggest bearish momentum, yet the stock’s low P/E ratio presents a valuation opportunity. Positive corporate events, including strategic shifts and stakeholder confidence, offer potential for future growth. The overall score is impacted by these mixed signals, suggesting cautious optimism.

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

Hudson Management Increases Stake in TheWorks.co.uk PLC

TheWorks.co.uk PLC has announced a change in its major holdings, as Hudson Management Limited has increased its voting rights in the company to 17.0656% from a previous 15.26%. This acquisition signifies a stronger influence for Hudson Management Limited within the company, potentially impacting the company’s strategic decisions and future direction.

Voting Rights Update at TheWorks.co.uk PLC

TheWorks.co.uk PLC has announced a change in voting rights, with Mike Burn increasing his stake from 4.55% to 5.76%, reflecting a significant boost in his voting power within the company. This increase indicates a strategic move that may influence the company’s decision-making processes and could have implications for its governance and future operations.