LSE:JAR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Jardine Matheson Holdings

Executive Summary

Jardine Matheson Holdings Limited, through its subsidiaries, engages in the motor vehicles and related operations, property investment and development, food retailing, home furnishings, engineering and construction, and transportation businesses. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Jardine Matheson Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JAR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

JAR

-3.1%

GB Industrials

-1.9%

GB Market


1 Year Return

0%

JAR

5.4%

GB Industrials

-16.2%

GB Market

Return vs Industry: JAR underperformed the UK Industrials industry which returned 7.5% over the past year.

Return vs Market: JAR exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

JARIndustryMarket
7 Day0%-3.1%-1.9%
30 Day0%-3.1%0.7%
90 Day0%-4.7%-4.8%
1 Year2.8%0%16.0%5.4%-13.0%-16.2%
3 Year8.8%0.2%18.0%0.2%-9.4%-20.6%
5 Year14.1%0.2%68.2%33.4%13.5%-12.0%

Price Volatility Vs. Market

How volatile is Jardine Matheson Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Jardine Matheson Holdings 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: JAR ($62.5) is trading below our estimate of fair value ($196.72)

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


Price To Earnings Ratio

PE vs Industry: JAR is unprofitable, so we can't compare its PE Ratio to the XE Industrials industry average.

PE vs Market: JAR is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JAR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JAR is good value based on its PB Ratio (0.5x) compared to the XE Industrials industry average (1x).


Next Steps

Future Growth

How is Jardine Matheson Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

71.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: JAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: JAR's is expected to become profitable in the next 3 years.

Revenue vs Market: JAR's revenue (8.1% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: JAR's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JAR's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Jardine Matheson Holdings performed over the past 5 years?

-1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JAR is currently unprofitable.

Growing Profit Margin: JAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JAR is unprofitable, and losses have increased over the past 5 years at a rate of 1.6% per year.

Accelerating Growth: Unable to compare JAR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JAR is unprofitable, making it difficult to compare its past year earnings growth to the Industrials industry (-1.9%).


Return on Equity

High ROE: JAR has a negative Return on Equity (-0.094%), as it is currently unprofitable.


Next Steps

Financial Health

How is Jardine Matheson Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: JAR's short term assets ($20.2B) exceed its short term liabilities ($18.1B).

Long Term Liabilities: JAR's short term assets ($20.2B) exceed its long term liabilities ($15.2B).


Debt to Equity History and Analysis

Debt Level: JAR's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: JAR's debt to equity ratio has reduced from 26.7% to 26.1% over the past 5 years.

Debt Coverage: JAR's debt is well covered by operating cash flow (30.2%).

Interest Coverage: JAR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Jardine Matheson Holdings's current dividend yield, its reliability and sustainability?

4.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JAR's dividend (4.05%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: JAR's dividend (4.05%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


Stability and Growth of Payments

Stable Dividend: JAR's dividend payments have been volatile in the past 10 years.

Growing Dividend: JAR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: JAR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: JAR's dividends in 3 years are forecast to be well covered by earnings (41.8% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

John Witt (57 yo)

0.33

Tenure

Mr. John Raymond Witt serves as Director and Managing Director at Mandarin Oriental International Limited since June 15, 2020. Mr. Witt is Managing Director and Director at Jardine Strategic Holdings Limit ...


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Keswick
Executive Chairman1.83yrsno data2.72%
$ 427.2m
John Witt
MD & Director0.33yrno data0.041%
$ 6.5m
Graham Baker
Group Finance Director & Director0.33yrno datano data
Jeremy Parr
Group General Counsel & Executive Director4.67yrsno datano data
John Nolan
Group Human Resources Director0.083yrno datano data
Yiu Kai Pang
Deputy MD & Executive Director9.5yrsno data0.11%
$ 16.5m
Adam Phillip Charles Keswick
Executive Director13.5yrsno data0.86%
$ 134.6m
Mark Greenberg
Group Strategy Director & Executive Director12.5yrsno data0.024%
$ 3.7m
David Newbigging
Executive Director3yrsno data0.0093%
$ 1.5m
Li-Ching Hsu
Executive Director4.42yrsno data0.030%
$ 4.8m
Jocelyn Lam
Group Head of Taxation1.75yrsno datano data
Thomas Tan
Head of Group Audit & Risk Management0.58yrno datano data

1.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: JAR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benjamin Keswick
Executive Chairman1.83yrsno data2.72%
$ 427.2m
John Witt
MD & Director0.33yrno data0.041%
$ 6.5m
Graham Baker
Group Finance Director & Director0.33yrno datano data
Jeremy Parr
Group General Counsel & Executive Director4.67yrsno datano data
Yiu Kai Pang
Deputy MD & Executive Director9.5yrsno data0.11%
$ 16.5m
Adam Phillip Charles Keswick
Executive Director13.5yrsno data0.86%
$ 134.6m
Mark Greenberg
Group Strategy Director & Executive Director12.5yrsno data0.024%
$ 3.7m
David Newbigging
Executive Director3yrsno data0.0093%
$ 1.5m
Li-Ching Hsu
Executive Director4.42yrsno data0.030%
$ 4.8m
Henry Neville Lindley Keswick
Chairman Emeritus1.83yrsno datano data
Edward Percy Keswick Weatherall
Non Executive Director21.75yrsno data0.91%
$ 143.1m
Anthony John Nightingale
Non Executive Director26.75yrsno data0.32%
$ 50.4m

4.6yrs

Average Tenure

57yo

Average Age

Experienced Board: JAR's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JAR insiders have only sold shares 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

Jardine Matheson Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jardine Matheson Holdings Limited
  • Ticker: JAR
  • Exchange: LSE
  • Founded: 1832
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: US$15.696b
  • Shares outstanding: 369.41m
  • Website: https://www.jardines.com

Number of Employees


Location

  • Jardine Matheson Holdings Limited
  • Jardine House
  • 4th Floor
  • Hamilton
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JARL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1980
JARJLSE (London Stock Exchange)YesOrdinary SharesGBUSDDec 1980
JARBLSE (London Stock Exchange)YesOrdinary SharesGBUSDDec 1980
J36SGX (Singapore Exchange)YesOrdinary SharesSGUSDDec 1980
H4WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1980
JARLSE (London Stock Exchange)YesOrdinary SharesGBUSDDec 1980
JMHL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 1995

Biography

Jardine Matheson Holdings Limited, through its subsidiaries, engages in the motor vehicles and related operations, property investment and development, food retailing, home furnishings, engineering and con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:56
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.