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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Wood Group (john) Plc | WG. | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| -0.40 | -0.31% | 128.70 | 15:48:27 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 130.40 | 128.20 | 130.50 | 129.10 |
| Industry Sector |
|---|
| OIL EQUIPMENT SERVICES & DISTRIBUTION |
| Top Posts |
|---|
Posted at 17/10/2024 09:07 by gargoyle2 www.woodplc.com/newsWG. a market leader in CCUS |
Posted at 29/9/2024 07:11 by hazl Interesting post centred on WG. from post 69096. |
Posted at 17/9/2024 11:11 by hazl Ah there's nothing as bad as a stale bull.'chutes01 - 17 Apr 2024 - 13:00:15 - 1586 of 2108 Wood (WG.) Charts only - WG. Wood hocking itself for a quick sale amidst threat of US listing. Management to be replaced regardless. Should see this north 200p' |
Posted at 24/8/2024 08:19 by maywillow Why this unloved FTSE 250 stock could turn 55p into at least £1This FTSE 250 share’s fallen 33% in August after a takeover bid fell through. But Roland Head explains why he sees an opportunity here. Posted by @rolandhead Roland Head ❯ Published 24 August, 8:05 am BST WG. When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Shareholders in FTSE 250 energy services specialist Wood Group (LSE: WG.) have had a tough ride over the last couple of years. Hopes were high in July that a 230p bid from Dubai-based rival Sidara might provide a profitable exit from a difficult turnaround. But the bid fell through on 5 August when Sidara decided not to make a firm offer, blaming “geopolitical risks and financial market uncertainty”. This situation has left chief executive Ken Gilmartin under renewed pressure. However, Wood’s latest half-year results suggest to me that a genuine recovery’s underway. If Gilmartin can deliver on his targets, my analysis suggests the stock could be too cheap at current levels. Performance is improving There’s an old stock market saying that turnover is vanity, profit is sanity and cash flow is reality. What this means is that it’s easy to boost sales (turnover) if you aren’t too worried about making a profit. Gilmartin’s wisely resisting the temptation to boost revenue with risky, low-margin work. Instead, his focus is on improving profit margins and cash generation. This should make Wood Group a better-quality business. The company’s half-year results suggest to me that he’s making progress. Although revenue fell 4.8% to $2,844m compared to the first half of 2023, adjusted operating profit for the half year rose 14.2% to $102m. Cash flow from operations also rose 29.3% to $51m on an adjusted basis. Wood Group hasn’t yet reached a point where it’s generating surplus cash to fund debt repayments or dividends. But it’s getting closer. Gilmartin left his financial targets for 2024 and 2025 unchanged at the half-year mark and expects to report “significant free cash flow” in 2025. Why it could be too cheap Broker forecasts I’ve seen suggest Wood Group could generate $136m of surplus cash in 2025. Comparing this estimate to the company’s £925m market-cap gives me a forecast free cash flow yield of 11%. As a rule of thumb, I’d consider anything above 6% to be potentially cheap. But there’s a catch. Wood Group has more than $1bn of net debt. That’s a bit too high for my liking. If the company hits its free cash flow targets, I expect a lot of this cash to be used to repay debt. A return to dividend payments could take longer. However, the firm’s debt problems are no secret. They’re one reason why the stock’s trading more than 40% below its book value, which I estimate at 245p per share. If Gilmartin can rebuild Wood’s profits and cut debt, I think the share price could bounce back towards that 245p level. Based on a recent price of 135p, this could turn 55p invested today into 100p. Wood Group still faces turnaround challenges, and its order book could shrink if oil and gas markets slow. Debt remains a risk, for now at least. The company also has nearly $300m of historic liabilities relating to asbestos compensation payouts. These are expected to continue to at least 2050. Even so, I think most of the risks are now reflected in the share price. If Wood Group’s recovery continues as expected, I reckon the shares could perform well from current levels. |
Posted at 21/8/2024 11:30 by gargoyle2 Jefferies have a buy note out today on WG. apparently, 230p target |
Posted at 21/8/2024 11:24 by hazl It is quite common in my experience , after a drop and when the share starts to recover, for stale bulls to drift out.Eventually they will be gone and the share can thrive. Let's hope WG. Can get back on an even keel. IMO |
Posted at 21/8/2024 07:26 by misca2 Summary: John Wood Group PLCOverall, the company has poor fundamentals for a medium to long-term investment strategy. From a short-term investment perspective, the company presents a deteriorated fundamental situation Highlights: John Wood Group PLC The stock, which is currently worth 2024 to 0.34 times its sales, is clearly overvalued in comparison with peers. The company's share price in relation to its net book value makes it look relatively cheap. The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock. Over the past twelve months, analysts' opinions have been strongly revised upwards. Weaknesses: John Wood Group PLC According to forecast, a sluggish sales growth is expected for the next fiscal years. As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins. The company has insufficient levels of profitability. The firm pays small or no dividend to shareholders. For that reason, it is not a yield company. For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen. For the past year, analysts have significantly revised downwards their profit estimates. For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions. Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity. The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company. The group usually releases earnings worse than estimated. |
Posted at 20/8/2024 15:14 by ashkv Panmure Liberum analyst Ashley Kelty says: "The end of the takeover interest from Sidara – due to market conditions, rather than any underlying issues with WG – removes a distraction from mgmt. and should allow the business to refocus on the longer-term strategy and on winning new business."Disposals streamline the business further although some losses were crystalised on legacy contracts. The rise in margins is an encouraging step forward, but rise in net debt is a concern despite claims of savings being realised under strategy implementation. "The overall recovery is taking longer than mgmt. expected – having to deal with multiple takeover approaches has obviously knocked business off track – but investors will hope that the company can now focus on delivery." |
Posted at 20/8/2024 07:31 by hazl 'Ken Gilmartin, CEO, said:"These results demonstrate continued progress on our turnaround. Our strategy continues to deliver higher EBITDA and a larger order book, and we are improving the quality of our business with better pricing and higher margins. Our Simplification programme is progressing at pace, with nearly half of the annualised $60 million savings from next year already secured. I am also pleased that we have achieved all of this while recording our highest level of employee satisfaction ever, putting Wood in the top quartile of all our peers and demonstrating that our team is focused and energised on driving Wood to its full potential.' |
Posted at 07/8/2024 10:01 by hazl Sorry I just showed that the etf has 0.26% of WG. in it's selection . |
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