Why is IWG Plc ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate -4.06% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 1.82% signifying low profitability per unit of shareholders funds
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -4.85%, its profits have risen by 196.3% ; the PEG ratio of the company is 0.4
3
Below par performance in long term as well as near term
- Along with generating -4.85% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is IWG Plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
IWG Plc
-100.0%
-0.15
33.92%
FTSE 100
13.98%
1.02
13.67%
Quality key factors
Factor
Value
Sales Growth (5y)
1.55%
EBIT Growth (5y)
-4.06%
EBIT to Interest (avg)
0.53
Debt to EBITDA (avg)
1.15
Net Debt to Equity (avg)
19.59
Sales to Capital Employed (avg)
296.73
Tax Ratio
62.93%
Dividend Payout Ratio
76.87%
Pledged Shares
0
Institutional Holding
0.80%
ROCE (avg)
10.60%
ROE (avg)
1.82%
Valuation Key Factors 
Factor
Value
P/E Ratio
74
Industry P/E
Price to Book Value
-13.42
EV to EBIT
27.44
EV to EBITDA
9.15
EV to Capital Employed
2.63
EV to Sales
1.26
PEG Ratio
0.38
Dividend Yield
1.08%
ROCE (Latest)
9.60%
ROE (Latest)
Negative BV
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
1What is working for the Company
EPS(Q)
Highest at GBP 0.01
-9What is not working for the Company
PRE-TAX PROFIT(Q)
At GBP 21.59 MM has Fallen at -51.23%
OPERATING CASH FLOW(Y)
Lowest at GBP 885.78 MM
INTEREST(HY)
At GBP 40.1 MM has Grown at 30.05%
RAW MATERIAL COST(Y)
Grown by 7.14% (YoY
NET SALES(Q)
Lowest at GBP 1,426.7 MM
Here's what is working for IWG Plc
EPS
Highest at GBP 0.01
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Here's what is not working for IWG Plc
Pre-Tax Profit
At GBP 21.59 MM has Fallen at -51.23%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (GBP MM)
Interest
At GBP 40.1 MM has Grown at 30.05%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Operating Cash Flow
Lowest at GBP 885.78 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (GBP MM)
Net Sales
Lowest at GBP 1,426.7 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Raw Material Cost
Grown by 7.14% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






