ASX:JLG

Stock Analysis Report

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Executive Summary

Johns Lyng Group Limited provides integrated building services in Australia. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Johns Lyng Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JLG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

JLG

-1.6%

AU Construction

-2.4%

AU Market


1 Year Return

69.2%

JLG

-33.1%

AU Construction

-8.3%

AU Market

Return vs Industry: JLG exceeded the Australian Construction industry which returned -33.1% over the past year.

Return vs Market: JLG exceeded the Australian Market which returned -8.3% over the past year.


Shareholder returns

JLGIndustryMarket
7 Day1.0%-1.6%-2.4%
30 Day13.8%8.9%1.8%
90 Day30.4%5.7%1.7%
1 Year71.8%69.2%-32.5%-33.1%-5.0%-8.3%
3 Year162.9%149.4%-44.1%-48.1%14.6%-0.08%
5 Yearn/a1.3%-11.9%41.6%12.1%

Price Volatility Vs. Market

How volatile is Johns Lyng Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johns Lyng Group undervalued compared to its fair value and its price relative to the market?

11.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JLG (A$3.13) is trading below our estimate of fair value (A$3.55)

Significantly Below Fair Value: JLG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JLG is poor value based on its PE Ratio (43.9x) compared to the AU Construction industry average (16.9x).

PE vs Market: JLG is poor value based on its PE Ratio (43.9x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: JLG is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: JLG is overvalued based on its PB Ratio (13.4x) compared to the AU Construction industry average (1.9x).


Next Steps

Future Growth

How is Johns Lyng Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JLG's forecast earnings growth (15% per year) is above the savings rate (2.3%).

Earnings vs Market: JLG's earnings (15% per year) are forecast to grow slower than the Australian market (17.6% per year).

High Growth Earnings: JLG's earnings are forecast to grow, but not significantly.

Revenue vs Market: JLG's revenue (8.6% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: JLG's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JLG's Return on Equity is forecast to be high in 3 years time (31.7%)


Next Steps

Past Performance

How has Johns Lyng Group performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JLG has high quality earnings.

Growing Profit Margin: JLG's current net profit margins (3.2%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: JLG's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: JLG's earnings growth over the past year (20.3%) exceeds its 5-year average (14% per year).

Earnings vs Industry: JLG earnings growth over the past year (20.3%) exceeded the Construction industry -3.4%.


Return on Equity

High ROE: JLG's Return on Equity (37.6%) is considered high.


Next Steps

Financial Health

How is Johns Lyng Group's financial position?


Financial Position Analysis

Short Term Liabilities: JLG's short term assets (A$147.6M) exceed its short term liabilities (A$136.1M).

Long Term Liabilities: JLG's short term assets (A$147.6M) exceed its long term liabilities (A$34.2M).


Debt to Equity History and Analysis

Debt Level: JLG's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: JLG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: JLG's debt is well covered by operating cash flow (297.4%).

Interest Coverage: JLG's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Johns Lyng Group current dividend yield, its reliability and sustainability?

1.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JLG's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: JLG's dividend (1.41%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, JLG has been paying a dividend for less than 10 years.

Growing Dividend: JLG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), JLG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JLG's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Scott Didier

16.67yrs

Tenure

AU$975,372

Compensation

Mr. Scott Andrew Didier, A.M., has been Managing Director and Chief Executive Officer of Johns Lyng Group Ltd., since September 28, 2017 and February 2004 respectively. He serves as Executive Director of J ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD688.97K) is about average for companies of similar size in the Australian market ($USD734.55K).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Didier
MD, CEO & Executive Director16.67yrsAU$975.37k26.05%
A$ 177.9m
Matthew Lunn
Group Chief Financial Officerno dataAU$706.42k0.087%
A$ 591.2k
Lindsay Barber
COO & Executive Director3.25yrsAU$881.49k7.05%
A$ 48.1m
Philippa Turnbull
Executive GM of Business Development & Marketing and Executive Director0.33yrAU$167.46kno data
Adrian Gleeson
Executive Director and Executive GM of Business Development & Client Relations3.08yrsAU$495.10k0.66%
A$ 4.5m
Alan Stuart
Head of Creative Services15.58yrsno datano data
Nicholas Carnell
Group Executive GM & Executive Director0.083yrno datano data
Todd Richards
Joint Company Secretary0.67yrno datano data
Rebecca Weir
Joint Company Secretary0.67yrno datano data
John McPhee
Executive General Manager of Financeno dataAU$108.94k1.46%
A$ 10.0m
Michael Harford
Executive General Manager of Commercial Building Services & Commercial Constructionno datano datano data
Mark Baratta
General Manager of National Retail Services3.75yrsno datano data

5.3yrs

Average Tenure

Experienced Management: JLG's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Didier
MD, CEO & Executive Director16.67yrsAU$975.37k26.05%
A$ 177.9m
Lindsay Barber
COO & Executive Director3.25yrsAU$881.49k7.05%
A$ 48.1m
Philippa Turnbull
Executive GM of Business Development & Marketing and Executive Director0.33yrAU$167.46kno data
Adrian Gleeson
Executive Director and Executive GM of Business Development & Client Relations3.08yrsAU$495.10k0.66%
A$ 4.5m
Nicholas Carnell
Group Executive GM & Executive Director0.083yrno datano data
Robert Kelly
Non-Executive Director2.83yrsAU$50.00kno data
Peter Nash
Independent Non-Executive Chairman3yrsAU$179.28k0.15%
A$ 1.0m
Peter Dixon
Independent Non-Executive Director0.67yrAU$17.35k0.032%
A$ 219.3k
Larisa Moran
Non-Executive Director2.08yrsAU$60.00k0.0020%
A$ 13.5k
Curtis Mudd
Non-Executive Director3.08yrsAU$130.83k0.48%
A$ 3.3m

2.9yrs

Average Tenure

Experienced Board: JLG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Johns Lyng Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johns Lyng Group Limited
  • Ticker: JLG
  • Exchange: ASX
  • Founded: 1953
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$682.900m
  • Shares outstanding: 223.90m
  • Website: https://www.johnslyng.com.au

Number of Employees


Location

  • Johns Lyng Group Limited
  • 1 Williamsons Road
  • Doncaster
  • Victoria
  • 3108
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JLGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2017
JLGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2017

Biography

Johns Lyng Group Limited provides integrated building services in Australia. The company operates through Insurance Building and Restoration Services, Commercial Building Services, Commercial Construction, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:31
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.