DB:JR0

Stock Analysis Report

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Executive Summary

Just Group plc provides various financial services in the retirement income market in the United Kingdom.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JR0's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.4%

JR0

13.5%

DE Insurance

6.8%

DE Market


1 Year Return

33.9%

JR0

-0.6%

DE Insurance

5.6%

DE Market

Return vs Industry: JR0 exceeded the German Insurance industry which returned -0.6% over the past year.

Return vs Market: JR0 exceeded the German Market which returned 5.6% over the past year.


Shareholder returns

JR0IndustryMarket
7 Day15.4%13.5%6.8%
30 Day12.9%16.0%14.0%
90 Day-12.1%0.1%7.5%
1 Year33.9%33.9%4.9%-0.6%7.4%5.6%
3 Yearn/a36.4%18.8%0.3%-7.3%
5 Yearn/a74.6%38.6%12.4%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JR0 (€0.67) is trading below our estimate of fair value (€1.93)

Significantly Below Fair Value: JR0 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JR0 is good value based on its PE Ratio (2.2x) compared to the Insurance industry average (10.5x).

PE vs Market: JR0 is good value based on its PE Ratio (2.2x) compared to the German market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: JR0's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: JR0 is good value based on its PB Ratio (0.3x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is Just Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JR0's earnings are forecast to decline over the next 3 years (-23.4% per year).

Earnings vs Market: JR0's earnings are forecast to decline over the next 3 years (-23.4% per year).

High Growth Earnings: JR0's earnings are forecast to decline over the next 3 years.

Revenue vs Market: JR0's revenue is expected to decline over the next 3 years (-13.3% per year).

High Growth Revenue: JR0's revenue is forecast to decline over the next 3 years (-13.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JR0's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Just Group performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JR0 has high quality earnings.

Growing Profit Margin: JR0 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: JR0's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: JR0 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: JR0 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (9.2%).


Return on Equity

High ROE: JR0's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Just Group's financial position?


Financial Position Analysis

Short Term Liabilities: JR0's short term assets (£25.7B) exceed its short term liabilities (£751.4M).

Long Term Liabilities: JR0's short term assets (£25.7B) exceed its long term liabilities (£22.8B).


Debt to Equity History and Analysis

Debt Level: JR0's debt to equity ratio (29.8%) is considered satisfactory.

Reducing Debt: JR0's debt to equity ratio has increased from 27.5% to 29.8% over the past 5 years.

Debt Coverage: JR0's debt is well covered by operating cash flow (39.5%).

Interest Coverage: JR0's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.87%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate JR0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate JR0's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JR0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JR0's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JR0 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JR0's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

David Richardson (47yo)

1.17yrs

Tenure

UK£1,493,000

Compensation

Mr. David Louis Richardson, FIA, CFA, serves as Group Chief Executive Officer at Just Group Plc and at Group's insurance subsidiaries, Just Retirement Limited and Partnership Life Assurance Company Limited ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.90M) is above average for companies of similar size in the German market ($USD1.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Richardson
Group CEO1.17yrsUK£1.49m0.089% £630.8k
Andrew Parsons
Group CFO & Executive Director0.42yrno datano data
Jo Varley
Interim Group Chief Operating Officerno datano datano data
Giles Offen
Group Chief Digital Information Officer4.17yrsno datano data
Stephen Lowe
Group Communications Directorno datano datano data
David Cooper
Group Marketing & Distribution Director4.17yrsno datano data
Kathryn Gray
Group Human Resources Director2.83yrsno datano data
Alexander Duncan
Group Chief Risk Officer4.17yrsno datano data
Paul Turner
Managing Director of Retail4.17yrsno datano data
Hugh McKee
Managing Director of UK Retail Business4.17yrsno datano data

4.2yrs

Average Tenure

53yo

Average Age

Experienced Management: JR0's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Richardson
Group CEO1.17yrsUK£1.49m0.089% £630.8k
Andrew Parsons
Group CFO & Executive Director0.42yrno datano data
Christopher Gibson-Smith
Independent Chairman of the Board4.17yrsUK£250.00k0.076% £536.6k
Clare Mary Spottiswoode
Independent Non-Executive Director4.17yrsUK£60.00k0.0019% £13.7k
Ian Cormack
Independent Non-Executive Director4.17yrsUK£75.00k0.013% £89.1k
Keith Nicholson
Senior Independent Director4.17yrsUK£89.00k0.0058% £40.9k
Paul Bishop
Independent Non-Executive Director4.17yrsUK£79.00k0.0036% £25.2k
Steve Melcher
Independent Non-Executive Director5.08yrsUK£75.00k0.015% £105.9k
David Davison
Director at Spence & Partnersno datano datano data
Michelle Cracknell
Independent Non-Executive Director0.25yrno datano data

4.2yrs

Average Tenure

66yo

Average Age

Experienced Board: JR0's board of directors are considered experienced (4.2 years average tenure).


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

Just Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Just Group plc
  • Ticker: JR0
  • Exchange: DB
  • Founded: 2004
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: UK£631.413m
  • Listing Market Cap: UK£709.592m
  • Shares outstanding: 1.04b
  • Website: https://www.justgroupplc.co.uk

Number of Employees


Location

  • Just Group plc
  • Vale House
  • Roebuck Close
  • Reigate
  • Surrey
  • RH2 7RU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JUSTLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2013
JR0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2013

Biography

Just Group plc provides various financial services in the retirement income market in the United Kingdom. It offers de-risking solutions, guaranteed income for life, secure lifetime income, care plans, lifetime mortgages, and protection products. The company also provides professional services, including regulated financial advice and guidance services; and a range of business services, such as consultancy and software development, and outsourced customer service delivery and marketing services. In addition, it engages in writing of insurance products for distribution to the at- or in-retirement market, which is undertaken through the activities of the life company; and provision of licensed software to financial advisers, banks, building societies, life assurance companies, and pension trustees. Further, the company arranges guaranteed income for life contracts; and provides lifetime mortgages through advice and intermediary services. It offers its products and services to trustees and scheme sponsors, individuals, homeowners, and other corporate clients. The company was formerly known as JRP Group plc and changed its name to Just Group plc in May 2017. Just Group plc was founded in 2004 and is based in Reigate, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:33
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.