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Watkin Jones Plc (WJG) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 48.2M GBX

WJ Watkin Jones Plc WJG · LSE
Price£0.1876
Fair Value£0.4690
Upside+150.0%
Quality47/100
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Weak Growth
Loss-making · -3.4% net margin
Low debt · negative free cash flow
Mixed vs. peers (4/10)
Narrow moat 12/100
Evidence: Low Range £0.4330 – £0.5230 Share as image

Fair value as of: Jul 18, 2026

From 3 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from £0.4000 to £0.4690 (+17.3%) since Jun 26, 2026. Share price −3.7% over the past month.

Below-average quality, screening 150% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£0.4330). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

£2.64 £0.1876 Fair Value £0.4690 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £0.1876 – £2.64 · fair‑value band £0.4330 – £0.5230 · the £0.1876 price screens below the £0.4690 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Watkin Jones Plc (WJG) currently trades at £0.1876, while our model-based Fair Value estimate is £0.4690, implying the stock looks roughly 150.0% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Watkin Jones Plc generated revenue of £251M at a net margin of -3.4%. Revenue declined 22.5% year over year. It earns a return on equity of -6.7%. The balance sheet holds a net cash position of £36.8M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £0.4330 (bear case) to £0.5230 (bull case); at £0.1876, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at 44% fair-value upside, at 150%, WJG screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM £0.4100 £0.4400 £0.4800 70
DDM Multi-Stage £0.4100 £0.4700 £0.5600 61
NCAV (Graham) £0.2400 £0.3300 £0.4900 50
All 3 models by family
Dividend Discount
Gordon GGM £0.4100 £0.4400 £0.4800 70
DDM Multi-Stage £0.4100 £0.4700 £0.5600 61
Asset-Based
NCAV (Graham) £0.2400 £0.3300 £0.4900 50

Widest divergence: Dividend Discount (£0.4400) versus Asset-Based (£0.3300). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) 251M GBX
Revenue growth (YoY) -22.5%
Net margin -3.4%
Return on equity -6.7%
Free cash flow −14.2M GBX FY2025
Operating margin -4.5%
More key figures
EPS (TTM) £-0.0300
EPS growth (YoY) +25.3%
Net cash 36.8M GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 50 · Market factors (momentum, volatility) 15

Profitability 17
Margins and returns on capital today
Quality Growth 15
Are margins and returns improving?
Cashflow 26
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 40
Calm price path (market factor)
Momentum 8
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Watkin Jones Plc engages in the development and the management of properties for residential occupation in the United Kingdom. The company operates through Student Accommodation, Build to Rent, Affordable Homes, Refresh, and Accommodation Management segments.

Full company description

Watkin Jones Plc engages in the development and the management of properties for residential occupation in the United Kingdom. The company operates through Student Accommodation, Build to Rent, Affordable Homes, Refresh, and Accommodation Management segments. It is involved in the development of purpose-built student accommodation, build to rent accommodation, and residential housing property; refurbishment, redevelopment and repurposing of existing accommodation; and management of student accommodation and build to rent/private rental sector property. In addition, the company is involved in property development, accommodation management, property fund asset management, and property letting. The company was formerly known as Watkin Jones Limited and changed its name to Watkin Jones Plc in March 2016. Watkin Jones Plc was founded in 1791 and is based in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Watkin Jones Plc reported revenue of £280M in FY2025 versus £430M in FY2021, a compound −10.2%/yr. Reported net income was −£8.4M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£280M
Latest YoY
−22.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−11.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.6%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Revenue −10.2%/yr
FY21 £430M
FY22 £407M
FY23 £413M
FY24 £362M
FY25 £280M
Net income
FY21 £41.9M
FY22 £13.4M
FY23 −£32.5M
FY24 £1.9M
FY25 −£8.4M

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Cite: Fair Value Calculator (2026). "Watkin Jones Plc Fair Value". https://www.fairvalue-calculator.com/stock/WJG

Peer Group

Residential Construction · 65 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 49 · Below median
Fair Value upside +151% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -3% · Bottom 25%
Operating margin (TTM) -4% · Bottom 25%
Revenue growth -23% · Bottom 25%
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Residential Construction median · lower = cheaper

P/B 0.52× · Cheaper than median
P/S (TTM) 0.26× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 51
FUTURE 0 · sector 0
PAST 0 · sector 33
HEALTH 96 · sector 88
DIVIDEND 0 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Residential Construction stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
D.R. Horton, Inc DHI $149.39 $214.93 +44%
PulteGroup, Inc PHM $124.75 $193.56 +55%
Lennar Corporation LEN $83.89 $146.58 +75%
NVR, Inc NVR $6,479 $7,821 +21%
Toll Brothers, Inc TOL $150.76 $225.76 +50%
Taylor Morrison Home Corporation TMHC $72.13 $144.47 +100%
Installed Building Products, Inc IBP $228.65 $209.51 -8%
Meritage Homes Corporation MTH $73.83 $104.26 +41%
Champion Homes, Inc SKY $82.70 $75.12 -9%
Cavco Industries, Inc CVCO $569.16 $421.10 -26%

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Frequently asked questions

Is Watkin Jones Plc (WJG) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £0.4690 versus a price of £0.1876, about +150% (undervalued).
What is the fair value of WJG?
Our model-based fair value for Watkin Jones Plc is £0.4690 (as of Jul 18, 2026), built from audited fundamentals. The current price is £0.1876.
What is the quality score of WJG?
Watkin Jones Plc has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Watkin Jones Plc (WJG)?
Watkin Jones Plc reported trailing-twelve-month revenue of about £251M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of WJG?
The net profit margin of Watkin Jones Plc is about -3.4%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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