ASX:JLG

Stock Analysis Report

Executive Summary

Johns Lyng Group Limited provides integrated building services in Australia.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.4%

JLG

1.0%

AU Construction

0.4%

AU Market


1 Year Return

106.7%

JLG

-23.4%

AU Construction

9.8%

AU Market

Return vs Industry: JLG exceeded the Australian Construction industry which returned -23.4% over the past year.

Return vs Market: JLG exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

JLGIndustryMarket
7 Day1.4%1.0%0.4%
30 Day5.7%-0.3%-1.1%
90 Day18.7%-9.0%-0.6%
1 Year110.2%106.7%-20.3%-23.4%16.1%9.8%
3 Yearn/a24.3%12.8%36.1%17.9%
5 Yearn/a49.1%17.1%49.4%15.7%

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?

30.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: JLG (A$1.84) is trading above our estimate of fair value (A$1.84)

Significantly Undervalued: JLG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JLG is poor value based on its PE Ratio (30.4x) compared to the Construction industry average (13.8x).

PE vs Market: JLG is poor value based on its PE Ratio (30.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: JLG is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: JLG is overvalued based on its PB Ratio (8.9x) compared to the AU Construction industry average (1.1x).


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JLG's forecast earnings growth (14.2% per year) is above the savings rate (2.3%).

Earnings vs Market: JLG's earnings (14.2% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: JLG's revenue (9.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: JLG's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: JLG's Return on Equity is forecast to be high in 3 years time (30%)


Next Steps

Past Performance

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

18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JLG's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: JLG's earnings growth over the past year (25%) exceeds its 5-year average (18.2% per year).

Earnings vs Industry: JLG earnings growth over the past year (25%) exceeded the Construction industry 5.7%.


Return on Equity

High ROE: JLG's Return on Equity (35.1%) is considered high.


Return on Assets

ROA vs Industry: JLG has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate JLG's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Johns Lyng Group's financial position?


Financial Position Analysis

Short Term Liabilities: JLG's short term assets (A$112.1M) exceeds its short term liabilities (A$86.3M)

Long Term Liabilities: JLG's short term assets (112.1M) exceeds its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: JLG's debt to equity ratio (1.8%) 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 (2098.6%).

Interest Coverage: JLG's interest payments on its debt are well covered by EBIT (544.3x coverage).


Balance Sheet

Inventory Level: JLG has a low level of unsold assets or inventory.

Debt Coverage by Assets: JLG's debt is covered by short term assets (assets are 135.183350x debt).


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JLG's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: JLG's dividend (1.63%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: Too early to tell whether JLG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if JLG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), JLG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JLG's dividends in 3 years are forecast to be covered by earnings (51.7% payout ratio).


Next Steps

Management

What is the CEO of Johns Lyng Group's salary, the management and board of directors tenure and is there insider trading?

14.7yrs

Average management tenure


CEO

Scott Didier 0

15.7yrs

Tenure

AU$611,887

Compensation

Mr. Scott Didier, AM has been Managing Director and Chief Executive Officer of Johns Lyng Group Ltd. He serves as a Director of Johns Lyng Group Ltd. 


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Scott's total compensation is reasonable compared to companies of similar size in the Australian market.

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Management Age and Tenure

14.7yrs

Average Tenure

Experienced Management: JLG's management team is seasoned and experienced (14.7 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

Experienced Board: JLG's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$15,499,71403 Jun 19
QVG Capital Pty Ltd
EntityCompany
Shares11,104,625
Max PriceAU$1.40
BuyAU$4,384,32623 May 19
MAM Pty Limited
EntityCompany
Shares3,422,806
Max PriceAU$1.36
BuyAU$8,311,00323 May 19
Wilson Asset Management (International) Pty Limited
EntityCompany
Shares6,711,107
Max PriceAU$1.24
SellAU$191,42528 Apr 19
Adrian Gleeson
EntityIndividual
Role
Member of the Board of Directors
Executive GM of Business Development & Client Relations and Executive Director
Shares130,000
Max PriceAU$1.49
SellAU$13,988,15724 Apr 19
PSC Insurance Group Limited
EntityCompany
Shares9,991,542
Max PriceAU$1.40
SellAU$2,490,44130 Nov 18
JCP Investment Partners Limited
EntityCompany
Shares3,032,450
Max PriceAU$0.90

Ownership Breakdown


Management Team

  • Sophie Karzis

    Company Secretary

    • Tenure: 2.1yrs
  • Scott Didier

    MD, CEO & Director

    • Tenure: 15.7yrs
    • Compensation: AU$611.89k
  • Lindsay Barber

    COO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$559.15k
  • Alan Stuart

    Head of Creative Services

    • Tenure: 14.7yrs
  • John McPhee

    Executive General Manager of Finance

    • Tenure: 0yrs
    • Compensation: AU$108.94k
  • Adrian Gleeson

    Executive GM of Business Development & Client Relations and Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$228.20k
  • Curt Mudd

    Executive GM of Strategic Initiatives & Director

    • Tenure: 2.1yrs
    • Compensation: AU$299.78k
  • Mick Harford

    Executive General Manager of Commercial Building Services & Commercial Construction

    • Tenure: 0yrs
  • Pip Brown

    General Manager of Business Development & Marketing

    • Tenure: 5.8yrs
  • Matthew Lunn

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$481.16k

Board Members

  • Robert Kelly (71yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$29.17k
  • Peter Nash (56yo)

    Non-Executive Chairman

    • Tenure: 2yrs
    • Compensation: AU$135.40k
  • Scott Didier

    MD, CEO & Director

    • Tenure: 15.7yrs
    • Compensation: AU$611.89k
  • Lindsay Barber

    COO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$559.15k
  • Larisa Moran

    Non-Executive Director

    • Tenure: 1.1yrs
  • Adrian Gleeson

    Executive GM of Business Development & Client Relations and Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$228.20k
  • Curt Mudd

    Executive GM of Strategic Initiatives & Director

    • Tenure: 2.1yrs
    • Compensation: AU$299.78k
  • Matthew Lunn

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$481.16k

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$408.883m
  • Shares outstanding: 222.22m
  • 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 Analysis2019/10/20 10:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.