JD Wetherspoon Plc (JDW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mitchells & Butlers Plc

Compass Group Plc

Marston's Plc

Fuller, Smith & Turner Plc

Young & Co.'s Brewery Plc

JD Wetherspoon Plc

SSP Group Plc

Domino's Pizza Group Plc

DP Eurasia NV

Loungers Plc

The Restaurant Group Plc

Why is JD Wetherspoon Plc ?

Poor Management Efficiency with a low ROCE of 6.32%

The company has been able to generate a Return on Capital Employed (avg) of 6.32% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 23.52% and Operating profit at 19.20% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 6.32% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 23.52% and Operating profit at 19.20% over the last 5 years

The company has declared negative results in Jan'2026 after 7 consecutive positive quarters

RAW MATERIAL COST(Y) Grown by 33.79% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 346.55 %
OPERATING PROFIT(Q) Lowest at GBP 110.43 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.93% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is JD Wetherspoon Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

JD Wetherspoon Plc

-10.93%

-0.44

30.17%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.52%

EBIT Growth (5y)

19.20%

EBIT to Interest (avg)

-0.90

Debt to EBITDA (avg)

3.38

Net Debt to Equity (avg)

1.92

Sales to Capital Employed (avg)

1.48

Tax Ratio

17.75%

Dividend Payout Ratio

19.99%

Pledged Shares

Institutional Holding

ROCE (avg)

6.32%

ROE (avg)

6.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.11

EV to EBIT

11.58

EV to EBITDA

6.17

EV to Capital Employed

1.32

EV to Sales

0.70

PEG Ratio

Dividend Yield

218.29%

ROCE (Latest)

11.42%

ROE (Latest)

16.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 21.45%

-8What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 33.79% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 346.55 %

OPERATING PROFIT(Q)

Lowest at GBP 110.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.15 %

PRE-TAX PROFIT(Q)

Lowest at GBP 21.79 MM

NET PROFIT(Q)

Lowest at GBP 16.28 MM

Here's what is working for JD Wetherspoon Plc

Dividend Payout Ratio

Highest at 21.45%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for JD Wetherspoon Plc

Operating Profit

Lowest at GBP 110.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 10.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 21.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

Fallen at -24.6%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 16.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Net Profit

Fallen at -27.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Debt-Equity Ratio

Highest at 346.55 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 33.79% (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