Robert Walters (RWA) AI Stock Analysis

• Market Cap: £100.31M
• Dividend Yield: 11.82%
• Average Volume (3M): 168.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -14.31%
• EPS Growth: -361.93%
• Country: UK
• Employees: 3,294
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.17
• Shares Outstanding: 72,357,700
• 10 Day Avg. Volume: 271,449
• 30 Day Avg. Volume: 168,695
• PEG Ratio: 0.24
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 21.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: 156.00p ▲(3.65% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability. Technical analysis provides some positive momentum signals, but valuation concerns due to a negative P/E ratio weigh heavily. The high dividend yield offers some compensation for the risks.

Robert Walters Business Overview & Revenue Model

Company Description

Robert Walters (RWA) is a global recruitment consultancy specializing in the placement of professionals across various sectors, including accounting and finance, banking, engineering, information technology, legal, marketing, and sales. Established in 1985, the company operates in numerous countries, providing tailored recruitment solutions to both clients and candidates. RWA focuses on sourcing mid to senior-level professionals and offers additional services such as executive search and recruitment process outsourcing.

How the Company Makes Money

Robert Walters generates revenue primarily through recruitment fees charged to client companies for successfully placing candidates in permanent, contract, and interim positions. The company earns a percentage of the candidate's first-year salary as a placement fee, which varies by sector and region. Additionally, RWA may generate income from ancillary services such as consultancy and advisory services related to talent acquisition and workforce planning. Significant partnerships with various organizations and a strong brand reputation in the recruitment space also contribute to its earnings by attracting a diverse range of clients seeking specialized recruitment services.

Robert Walters Financial Statement Overview

Summary

Robert Walters faces financial challenges marked by declining revenue, profitability, and cash flow. While the balance sheet shows manageable leverage, the negative net income and reduced free cash flow highlight operational inefficiencies and liquidity concerns. The company needs strategic interventions to reverse these trends and improve financial stability.

Income Statement

Robert Walters experienced a decline in revenue and profitability over the past year. The gross profit margin declined from 36.4% in 2023 to 36.0% in 2024, and the net profit margin turned negative at -0.67% due to a net loss. Revenue decreased by 16.2% from 2023 to 2024, indicating a challenging period. The EBIT and EBITDA margins have also deteriorated, showing reduced operational efficiency.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio of 0.64, indicating manageable leverage levels. However, the return on equity (ROE) turned negative at -4.33% due to the net loss, reflecting a poor return on shareholders' investment. The equity ratio decreased to 38.96%, indicating lower equity financing in the asset base.

Cash Flow

Free cash flow declined significantly by 67.2% from 2023 to 2024, impacting liquidity. The operating cash flow to net income ratio is negative due to net loss, showing inefficiency in converting income to cash. The free cash flow to net income ratio is also negative, indicating challenges in sustaining positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	835.60M	892.10M	1.06B	1.10B	970.70M	938.40M
Gross Profit	295.30M	321.40M	386.80M	428.20M	353.60M	302.40M
EBITDA	5.90M	28.10M	49.60M	80.80M	74.20M	39.20M
Net Income	-14.80M	-6.00M	13.40M	39.10M	33.50M	5.70M
Balance Sheet
Total Assets	329.60M	355.50M	415.70M	474.10M	446.30M	412.60M
Cash, Cash Equivalents and Short-Term Investments	55.10M	68.10M	95.70M	123.20M	142.30M	155.50M
Total Debt	93.40M	88.00M	95.00M	102.50M	82.10M	63.80M
Total Liabilities	213.50M	217.00M	250.80M	290.20M	271.50M	243.30M
Stockholders Equity	116.10M	138.50M	164.90M	183.90M	174.80M	169.30M
Cash Flow
Free Cash Flow	24.10M	9.70M	29.60M	22.20M	20.40M	89.00M
Operating Cash Flow	25.60M	19.80M	45.50M	38.10M	33.60M	98.90M
Investing Cash Flow	-9.10M	-9.40M	-14.20M	-15.50M	-12.80M	-8.90M
Financing Cash Flow	-22.40M	-33.90M	-52.20M	-47.50M	-27.20M	-49.10M

Robert Walters Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 150.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RWA, the sentiment is Positive. The current price of 150.5 is above the 20-day moving average (MA) of 140.53, above the 50-day MA of 140.38, and below the 200-day MA of 192.20, indicating a neutral trend. The MACD of 4.30 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 42.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RWA.

Robert Walters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STAF	―	£53.21M	13.87	44.68%	―	1.44%	―
STEM	―	£200.73M	7.34	12.99%	6.67%	-13.93%	-48.74%
PAGE	―	£745.34M	62.27	4.81%	7.30%	-12.54%	-76.55%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GATC	―	£29.63M	13.67	6.45%	3.59%	2.40%	1101.69%
RWA	―	£100.31M	-6.51	-11.22%	11.82%	-14.31%	-361.93%
HAS	―	£943.00M	-120.51	-1.52%	2.10%	-4.92%	-58.06%

Robert Walters Corporate Events

Robert Walters Sees Mixed Regional Performance in Q3 2025

Robert Walters PLC reported a 12% year-on-year decline in group net fee income for the third quarter of 2025, with improvements seen in Asia Pacific and the UK, while Europe faced challenges. The company is executing a strategy to optimize operations, reduce costs, and expand recruitment outsourcing services, aiming for a return to profitability by 2026. Despite the current fragile global hiring conditions, the firm is making progress in its finance function transformation and achieving cost savings.

The most recent analyst rating on (GB:RWA) stock is a Hold with a £141.00 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.

Robert Walters PLC Faces Challenging First Half of 2025 Amid Strategic Overhaul

Robert Walters PLC reported a challenging first half of 2025, with a 12% decline in revenue and a shift from a small operating profit to a loss of £7.8m, primarily due to reduced fee income. Despite the difficult market conditions, the company is implementing strategic changes to drive efficiency and long-term growth, including a focus on margin improvement and geographic penetration. The company is also diversifying its service lines, with significant growth in workforce consultancy and talent advisory services. However, due to the current economic outlook, no interim dividend has been declared, and further restructuring activities are anticipated.

The most recent analyst rating on (GB:RWA) stock is a Buy with a £3.50 price target. To see the full list of analyst forecasts on Robert Walters stock, see the GB:RWA Stock Forecast page.