As of May 23, 2025, Wickes Group PLC has a Discounted Cash Flow (DCF) derived fair value of $751.00 per share. With the current market price at $220.50, this represents a potential upside of 240.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $605.86 |
| DCF Fair Value (10-year) | $751.00 |
| Potential Upside (5-year) | 174.8% |
| Potential Upside (10-year) | 240.6% |
| Discount Rate (WACC) | 5.4% - 10.5% |
Revenue is projected to grow from $1539 million in 12-2024 to $2339 million by 12-2034, representing a compound annual growth rate of approximately 4.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 1539 | 1% |
| 12-2025 | 1657 | 8% |
| 12-2026 | 1738 | 5% |
| 12-2027 | 1772 | 2% |
| 12-2028 | 1808 | 2% |
| 12-2029 | 1894 | 5% |
| 12-2030 | 1991 | 5% |
| 12-2031 | 2088 | 5% |
| 12-2032 | 2168 | 4% |
| 12-2033 | 2263 | 4% |
| 12-2034 | 2339 | 3% |
Net profit margin is expected to improve from 1% in 12-2024 to 6% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 18 | 1% |
| 12-2025 | 36 | 2% |
| 12-2026 | 55 | 3% |
| 12-2027 | 73 | 4% |
| 12-2028 | 92 | 5% |
| 12-2029 | 114 | 6% |
| 12-2030 | 120 | 6% |
| 12-2031 | 125 | 6% |
| 12-2032 | 130 | 6% |
| 12-2033 | 136 | 6% |
| 12-2034 | 141 | 6% |
with a 5-year average of $30 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 33 |
| 12-2026 | 34 |
| 12-2027 | 33 |
| 12-2028 | 33 |
| 12-2029 | 35 |
| 12-2030 | 37 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 8 |
| Days Inventory | 73 |
| Days Payables | 45 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 104 | 10 | 33 | 13 | 48 |
| 2026 | 130 | 14 | 35 | 1 | 80 |
| 2027 | 153 | 19 | 35 | 0 | 98 |
| 2028 | 176 | 24 | 36 | 2 | 114 |
| 2029 | 207 | 30 | 38 | 3 | 137 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 605.86 | 174.8% |
| 10-Year DCF (Growth) | 751.00 | 240.6% |
| 5-Year DCF (EBITDA) | 209.39 | -5.0% |
| 10-Year DCF (EBITDA) | 376.31 | 70.7% |
Is Wickes Group PLC (WIX.L) a buy or a sell? Wickes Group PLC is definitely a buy. Based on our DCF analysis, Wickes Group PLC (WIX.L) appears to be significantly undervalued with upside potential of 240.6%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $220.50.