Robert Walters share price: improving financial health and solid yield

Screening for companies with strong balance sheets and solid dividend yields can be a quick and simple way of identifying potentially high-quality investments that might be attractively priced. One way of doing might be to include stocks that have a Piotroski F-Score of 8 or 9 and a dividend yield of at least, say, 3%.

Take Robert Walters (LON:RWA), for example, which is a mid cap professional recruitment consultancy with operations in the UK, Europe, Asia Pacific, the US, Brazil, the Middle East, and South Africa. Robert Walters pays out a rolling 3.03% of its share price in dividend payments.

Does Robert Walters pass our F-Score test?

Stockopedia applies algorithms to its stream of financial data to automatically calculate the Piotroski F-Score for every stock on the market. It shows that Robert Walters scores 8 out of a possible 9. 

By investing in companies scoring 8 or 9 by these measures, Piotroski showed that, over a 20-year test period through to 1996, the return earned by a value-focused investor could be increased by an astounding 7.5% each year. Even better, it suggests that the company is well-placed to continue to pay out attractive dividends.

Prospects for Robert Walters

Perhaps we can see why this is by looking at the company's most recent financial results. For the fiscal year ended 31 December 2018, Robert Walters PLC revenues increased 6% to £1.23B and net income increased 21% to £35.6M - an encouraging trading performance to back up its improving financial health and attractive dividend yield.

What does this mean for potential investors?

Robert Walters has an F-Score that suggests it could be a promising investment candidate worthy of further research - but it's only a first step. Higher F-Score stocks can still have weaknesses and may trade at premium prices compared to other stocks. We've identified some areas of concern with Robert Walters that you can find out about here.