Worley Limited

1.1: Company Overview: Headquartered in Australia, Worley Limited (ASX: WOR) is engaged in providing engineering design and project delivery services, including providing maintenance, reliability support and advisory services. The company caters to the energy, chemicals, and resources sectors. Kalkine’s Dividend Income Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.   

1.2: The Key Positives, Negatives, Investment Highlights, and Risks:

1.3: Top 10 Shareholders: The top 10 shareholders together form ~28.65% of the total shareholding. Grill (John Michael) and T. Rowe Price Associates, Inc. are holding maximum stakes in the company at ~6.49% and ~5.59%, respectively.

1.4: Key Metrics: WOR registered an asset turnover ratio of 1.12x in FY24 vs 0.71x of industry median. The company paid a total of AUD 264mn in unfranked dividends for FY24, comprising both interim and final dividends. Below is captured the metrics showing the trend of return on equity and cash cycle days since FY20:

2.1: Recent Business Updates:

2.2: Financial Insights:

2.3: Historical Financial Trend:

4.1: Price Performance and Technical Summary

The stock price has gone down by ~9.32% in the last one month and over the last 6 months, stock prices declined by ~8.06%. The stock has a 52-week low and 52-week high of AUD 13.110 and AUD 17.830, respectively, and is currently trading close to the 52-week-low level. WOR was last covered in a report dated ‘7 November 2024’.

4.2: Fundamental Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 12 December 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.   

Note 4: Dividend Yield may vary as per the stock price movement. 

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.  

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.