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IWG

LSE:IWG
Snowflake Description

Acceptable track record with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IWG
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

IWG plc, together with its subsidiaries, provides office outsourcing services in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and the United Kingdom. The last earnings update was 127 days ago. More info.


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IWG Share Price and Events
7 Day Returns
-0.4%
LSE:IWG
2.2%
GB Real Estate
0.9%
GB Market
1 Year Returns
94.9%
LSE:IWG
27.3%
GB Real Estate
8.7%
GB Market
IWG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IWG (IWG) -0.4% 2.8% -0.4% 94.9% - -
GB Real Estate 2.2% 5.1% 8.7% 27.3% -8% 20.1%
GB Market 0.9% -0.5% 0.9% 8.7% 3.6% 9.9%
1 Year Return vs Industry and Market
  • IWG outperformed the Real Estate industry which returned 27.3% over the past year.
  • IWG outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 8.7% over the past year.
Price Volatility
IWG
Industry
5yr Volatility vs Market

IWG Value

 Is IWG undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IWG to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IWG.

LSE:IWG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in GBP £ 0.074734166666667
Payout Ratio Company Filings (2019-06-30) 3488.8%
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:IWG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 5.4%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.047 (1 + (1- 18%) (174.59%))
1.348
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.348 * 5.44%)
7.86%

Discounted Cash Flow Calculation for LSE:IWG using Dividend Discount Model Model

The calculations below outline how an intrinsic value for IWG is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

LSE:IWG Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= £0.07 / (7.86% - 0.53%)
£1.02
LSE:IWG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.02
Current discount Discount to share price of £4.01
= -1 x (£4.01 - £1.02) / £1.02
-292.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of IWG is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IWG's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IWG's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:IWG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.12
LSE:IWG Share Price ** LSE (2019-12-11) in GBP £4.01
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PE Ratio Median Figure of 30 Publicly-Listed Real Estate Companies 14.4x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 751 Publicly-Listed Companies 17.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IWG.

LSE:IWG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:IWG Share Price ÷ EPS (both in GBP)

= 4.01 ÷ 0.12

33.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IWG is overvalued based on earnings compared to the GB Real Estate industry average.
  • IWG is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does IWG's expected growth come at a high price?
Raw Data
LSE:IWG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-5.2%per year
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PEG Ratio Median Figure of 18 Publicly-Listed Real Estate Companies 1.09x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 559 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:IWG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.6x ÷ -5.2%

-6.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IWG earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on IWG's assets?
Raw Data
LSE:IWG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £0.89
LSE:IWG Share Price * LSE (2019-12-11) in GBP £4.01
United Kingdom of Great Britain and Northern Ireland Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 1.11x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,312 Publicly-Listed Companies 1.51x
LSE:IWG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:IWG Share Price ÷ Book Value per Share (both in GBP)

= 4.01 ÷ 0.89

4.51x

* Primary Listing of IWG.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IWG is overvalued based on assets compared to the GB Real Estate industry average.
X
Value checks
We assess IWG's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. IWG has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IWG Future Performance

 How is IWG expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-5.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IWG expected to grow at an attractive rate?
  • IWG's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.5%.
Growth vs Market Checks
  • IWG's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • IWG's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:IWG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:IWG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -5.2%
LSE:IWG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.8%
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 1.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:IWG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:IWG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,123 1
2021-12-31 3,007 83 7
2020-12-31 2,806 66 8
2019-12-31 2,646 53 8
2019-12-11
LSE:IWG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 2,679 1,140 107
2019-03-31 2,607 826 106
2018-12-31 2,535 511 106
2018-09-30 2,416 463 92
2018-06-30 2,342 415 86
2018-03-31 2,347 403 100
2017-12-31 2,352 391 114
2017-09-30 2,339 395 124
2017-06-30 2,326 399 135
2017-03-31 2,279 416 137
2016-12-31 2,233 433 139
2016-09-30 2,151 420 129

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IWG's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • IWG's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:IWG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from IWG Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IWG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.10 0.10 0.10 1.00
2020-12-31 0.08 0.08 0.08 1.00
2019-12-31 0.06 0.06 0.06 1.00
2019-12-11
LSE:IWG Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.12
2019-03-31 0.12
2018-12-31 0.12
2018-09-30 0.10
2018-06-30 0.09
2018-03-31 0.11
2017-12-31 0.12
2017-09-30 0.14
2017-06-30 0.15
2017-03-31 0.15
2016-12-31 0.15
2016-09-30 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IWG is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess IWG's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IWG has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IWG Past Performance

  How has IWG performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IWG's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IWG's year on year earnings growth rate has been positive over the past 5 years.
  • IWG's 1-year earnings growth exceeds its 5-year average (24.7% vs 4.1%)
  • IWG's earnings growth has exceeded the GB Real Estate industry average in the past year (24.7% vs 2.2%).
Earnings and Revenue History
IWG's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IWG Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IWG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 2,678.50 107.20 262.70
2019-03-31 2,606.95 106.45 256.00
2018-12-31 2,535.40 105.70 249.30
2018-09-30 2,416.30 91.80 237.00
2018-06-30 2,341.90 86.00 233.20
2018-03-31 2,347.10 100.00 229.45
2017-12-31 2,352.30 114.00 225.70
2017-09-30 2,338.90 124.35 237.90
2017-06-30 2,325.50 134.70 250.10
2017-03-31 2,279.45 136.75 256.20
2016-12-31 2,233.40 138.80 262.30
2016-09-30 2,150.50 129.45 265.40 2.60
2016-06-30 2,067.60 120.10 268.50 5.20
2016-03-31 1,997.30 120.00 258.50 7.75
2015-12-31 1,927.00 119.90 248.50 10.30
2015-09-30 1,867.70 116.10 250.90 9.90
2015-06-30 1,808.40 112.30 253.30 9.50
2015-03-31 1,742.25 91.10 261.45 9.10
2014-12-31 1,676.10 69.90 269.60 8.70
2014-09-30 1,634.80 67.70 268.30 8.50
2014-06-30 1,593.50 65.50 267.00 8.30
2014-03-31 1,563.50 66.20 270.05 7.75
2013-12-31 1,533.50 66.90 273.10 7.20
2013-09-30 1,456.85 68.45 260.15 6.40
2013-06-30 1,380.20 70.00 247.20 5.60
2013-03-31 1,312.15 70.45 236.00 5.05
2012-12-31 1,244.10 70.90 224.80 4.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IWG has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IWG used its assets less efficiently than the GB Real Estate industry average last year based on Return on Assets.
  • IWG's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IWG's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IWG has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IWG Health

 How is IWG's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IWG's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IWG's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • IWG's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of IWG's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IWG Company Filings, last reported 5 months ago.

LSE:IWG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 794.70 339.20 41.10
2019-03-31 794.70 339.20 41.10
2018-12-31 751.20 529.80 69.00
2018-09-30 751.20 529.80 69.00
2018-06-30 737.90 432.00 48.80
2018-03-31 737.90 432.00 48.80
2017-12-31 727.70 351.40 55.00
2017-09-30 727.70 351.40 55.00
2017-06-30 723.60 392.20 85.60
2017-03-31 723.60 392.20 85.60
2016-12-31 742.00 201.70 50.10
2016-09-30 742.00 201.70 50.10
2016-06-30 678.50 248.80 74.60
2016-03-31 678.50 248.80 74.60
2015-12-31 583.70 269.50 63.90
2015-09-30 583.70 269.50 63.90
2015-06-30 537.60 234.50 79.40
2015-03-31 537.60 234.50 79.40
2014-12-31 537.40 218.40 72.80
2014-09-30 537.40 218.40 72.80
2014-06-30 499.10 233.40 72.20
2014-03-31 499.10 233.40 72.20
2013-12-31 514.20 141.90 84.70
2013-09-30 514.20 141.90 84.70
2013-06-30 521.60 87.50 73.80
2013-03-31 521.60 87.50 73.80
2012-12-31 527.40 11.60 132.30
  • IWG's level of debt (42.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (46.7% vs 42.7% today).
  • Debt is well covered by operating cash flow (336.2%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess IWG's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IWG has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IWG Dividends

 What is IWG's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.57%
Current annual income from IWG dividends. Estimated to be 1.87% next year.
If you bought £2,000 of IWG shares you are expected to receive £31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • IWG's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • IWG's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:IWG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 2.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 678 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:IWG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.09 1.00
2021-12-31 0.08 7.00
2020-12-31 0.07 8.00
2019-12-31 0.07 8.00
2019-12-11
LSE:IWG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-06 0.063 1.797
2018-03-06 0.057 2.330
2018-01-15 0.057 2.335
2017-02-28 0.051 1.824

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, IWG has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but IWG only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of IWG's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess IWG's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IWG afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IWG has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IWG Management

 What is the CEO of IWG's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Dixon
COMPENSATION £1,450,000
AGE 60
CEO Bio

Mr. Mark Dixon is a Founder of Regus plc and serves as its Group Chief Executive Officer. Mr. Dixon serves as the Chief Executive Officer and Director at Regus Business Center Corp. Mr. Dixon serves as Chief Executive Officer of Regus Business Center Corp. He has been an Executive Director of Regus PLC since August 18, 2008. He serves as a Director of Regus Business Center Corp. Since founding Regus in Brussels, Belgium in 1989, he has achieved a formidable reputation for leadership and innovation. Prior to Regus he established businesses in the retail and wholesale food industry. In 1999, Ernst & Young presented Mr. Dixon with the award for the United Kingdom Entrepreneur of the Year.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Mark Dixon

TITLE
CEO & Director
COMPENSATION
£1M
AGE
60

Eric Hageman

TITLE
CFO & Director
TENURE
1.3 yrs

Wayne Gerry

TITLE
Group Investor Relations Director

Matt Young

TITLE
Group Corporate Affairs Director

Guillermo Rotman

TITLE
President of the Regus Group Americas

Filippo Sarti

TITLE
Chief Executive Officer of Middle East & Africa

Paulo Dias

TITLE
Chief Executive Officer of Europe
TENURE
16.9 yrs

Lynsey Blair

TITLE
Company Secretary

Stephen Gleadle

TITLE
Group Finance Director
COMPENSATION
£676K
AGE
60

Shingo Nishioka

TITLE
Country Manager
Board of Directors Tenure

Average tenure and age of the IWG board of directors in years:

5.6
Average Tenure
61.5
Average Age
  • The tenure for the IWG board of directors is about average.
Board of Directors

Doug Sutherland

TITLE
Independent Chairman of the Board
COMPENSATION
£250K
AGE
62
TENURE
9.6 yrs

Mark Dixon

TITLE
CEO & Director
COMPENSATION
£1M
AGE
60
TENURE
11.3 yrs

Eric Hageman

TITLE
CFO & Director
TENURE
0.9 yrs

Nina Henderson

TITLE
Non-Executive Director
COMPENSATION
£77K
AGE
69
TENURE
5.6 yrs

François Pauly

TITLE
Senior Independent Director
COMPENSATION
£72K
AGE
55
TENURE
2.6 yrs

Florence Pierre

TITLE
Non-Executive Director
COMPENSATION
£60K
AGE
68
TENURE
6.6 yrs

Laurie Harris

TITLE
Non-Executive Director
AGE
61
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
17. Jun 19 Buy Mark Dixon Individual 14. Jun 19 14. Jun 19 251,282 £3.33 £837,585
18. Jun 19 Buy Mark Dixon Individual 17. Jun 19 17. Jun 19 42,080 £3.40 £143,070
X
Management checks
We assess IWG's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IWG has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IWG News

Simply Wall St News

Why IWG PLC (LON:IWG) Looks Like A Quality Company

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every £1 worth of shareholders' equity, it generated £0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Do You Get For Owning IWG PLC (LON:IWG)?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently IWG is able to use capital to create earnings will help us understand your potential return.

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Does IWG PLC (LON:IWG)'s Capital Return Make The Cut?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in IWG, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Will IWG PLC's (LON:IWG) Earnings Grow In The Next Couple Of Years?

IWG PLC's (LON:IWG) most recent earnings announcement in December 2017a … showed … business

Simply Wall St -

Is It Time To Sell IWG PLC (LON:IWG) Based Off Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between IWG PLC (LON:IWG)’s fundamentals and stock market performance. … While IWG might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

A Look At The Intrinsic Value Of IWG PLC (LON:IWG)

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (£, Millions) £58.03 £123.30 £168.15 £188.90 £212.21 Source Analyst x3 Analyst x3 Analyst x2 Extrapolated @ (12.34%) Extrapolated @ (12.34%) Present Value Discounted @ 8.3% £53.59 £105.13 £132.38 £137.32 £142.45 Present Value of 5-year Cash Flow (PVCF)= £571 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = £212 × (1 + 1.5%) ÷ (8.3% – 1.5%) = £3,163 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = £3,163 / ( 1 + 8.3%)5 = £2,124 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is £2,694. … LSE:IWG Intrinsic Value May 24th 18 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

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What does IWG PLC's (LON:IWG) Balance Sheet Tell Us About Its Future?

This article will examine IWG’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Additionally, IWG has generated UK£391.20M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 111.33%, signalling that IWG’s operating cash is sufficient to cover its debt. … Next Steps: IWG’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Is IWG PLC's (LON:IWG) Stock Available For A Good Price After Accounting For Growth?

IWG PLC (LSE:IWG) closed yesterday at £2.579, which left some investors asking whether the high earnings potential can still be justified at this price. … IWG is available at price-to-earnings ratio of 20.72x, showing us it is overvalued based on current earnings compared to the commercial services industry average of 20.35x , and overvalued compared to the GB market average ratio of 17.06x. … Based on this growth, IWG's stock can be considered slightly overvalued , based on the fundamentals.

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Does IWG PLC (LON:IWG) Have A Place In Your Portfolio?

See our latest analysis for IWG 5 checks you should use to assess a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is its annual yield among the top 25% of dividend-paying companies? … In the near future, analysts are predicting lower payout ratio of 34.22%, leading to a dividend yield of around 3.04%. … However, EPS should increase to £0.15, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

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What Do Analysts Think About IWG PLC's (LON:IWG) Earnings Trend?

Below is a brief commentary on my key takeaways on how market analysts perceive IWG's earnings growth trajectory over the next couple of years and whether the future looks brighter. … See our latest analysis for IWG Market analysts' prospects for the coming year seems positive, with earnings rising by a robust 21.02%. … LSE:IWG Future Profit Mar 29th 18 Even though it is informative knowing the growth each year relative to today’s figure, it may be more beneficial to evaluate the rate at which the earnings are growing every year, on average.

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IWG Company Info

Description

IWG plc, together with its subsidiaries, provides office outsourcing services in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and the United Kingdom. The company offers virtual office services; 24/7 workspace recovery solutions; mobile and digital self-service solutions; co-working solutions; fully managed offices; networking and knowledge-sharing meetings; and meeting spaces. It provides its services to property owners and investors, franchisees, brokers, and customers under the Regus, Spaces, No18, HQ, Signature, Open Office, and Basepoint brands. As of December 31, 2018, the company operated 3,306 locations in 1,109 towns and cities across approximately 110 countries. The company was formerly known as Regus plc and changed its name to IWG plc in December 2016. IWG plc was founded in 1989 and is headquartered in Zug, Switzerland.

Details
Name: IWG plc
IWG
Exchange: LSE
Founded: 1989
£3,586,197,810
895,430,165
Website: http://www.iwgplc.com
Address: IWG plc
Dammstrasse 19,
Zug,
Zug, 6300,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE IWG New Ordinary Shares London Stock Exchange GB GBP 19. Dec 2016
OTCPK IWGF.F New Ordinary Shares Pink Sheets LLC US USD 19. Dec 2016
DB IWG New Ordinary Shares Deutsche Boerse AG DE EUR 19. Dec 2016
BATS-CHIXE IWGL New Ordinary Shares BATS 'Chi-X Europe' GB GBP 19. Dec 2016
Number of employees
Current staff
Staff numbers
10,000
IWG employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/11 22:07
End of day share price update: 2019/12/11 00:00
Last estimates confirmation: 2019/11/28
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.