IWG plc Fundamental Analysis
IWG plc (IWGFF) shows weak financial fundamentals with a PE ratio of 135.15, profit margin of 0.48%, and ROE of -6.90%. The company generates $3.6B in annual revenue with strong year-over-year growth of 24.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 278.5/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze IWGFF's fundamental strength across five key dimensions:
Efficiency Score
WeakIWGFF struggles to generate sufficient returns from assets.
Valuation Score
ModerateIWGFF shows balanced valuation metrics.
Growth Score
ModerateIWGFF shows steady but slowing expansion.
Financial Health Score
ModerateIWGFF shows balanced financial health with some risks.
Profitability Score
WeakIWGFF struggles to sustain strong margins.
Key Financial Metrics
Is IWGFF Expensive or Cheap?
P/E Ratio
IWGFF trades at 135.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IWGFF's PEG of -4.76 indicates potential undervaluation.
Price to Book
The market values IWG plc at -7.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -9.34 times EBITDA. This is generally considered low.
How Well Does IWGFF Make Money?
Net Profit Margin
For every $100 in sales, IWG plc keeps $0.48 as profit after all expenses.
Operating Margin
Core operations generate 4.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.90 in profit for every $100 of shareholder equity.
ROA
IWG plc generates $0.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IWG plc generates limited operating cash flow of $350.01M, signaling weaker underlying cash strength.
Free Cash Flow
IWG plc produces free cash flow of $162.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
IWGFF converts 6.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
135.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
-7.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-24.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How IWGFF Stacks Against Its Sector Peers
| Metric | IWGFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 135.15 | 23.27 | Worse (Expensive) |
| ROE | -6.90% | 680.00% | Weak |
| Net Margin | 0.48% | 1953.00% | Weak |
| Debt/Equity | -24.29 | -17.04 (disorted) | Distorted |
| Current Ratio | 0.38 | 23.29 | Weak Liquidity |
| ROA | 0.19% | -758.00% (disorted) | Weak |
IWGFF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IWG plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.96%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-77.39%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-11.11%
Industry Style: Income, Inflation Hedge, REIT
Declining