LSE:JLG

Stock Analysis Report

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Executive Summary

John Laing Group plc, an investment holding company, originates, invests in, and manages greenfield infrastructure projects. More Details


Snowflake Analysis

High growth potential with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.6%

JLG

-0.2%

GB Construction

-1.9%

GB Market


1 Year Return

-19.0%

JLG

-23.8%

GB Construction

-16.2%

GB Market

Return vs Industry: JLG exceeded the UK Construction industry which returned -23.7% over the past year.

Return vs Market: JLG underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

JLGIndustryMarket
7 Day2.6%-0.2%-1.9%
30 Day0.2%-1.1%0.7%
90 Day-2.9%-6.3%-4.8%
1 Year-16.5%-19.0%-12.8%-23.8%-13.0%-16.2%
3 Year23.1%3.6%-34.5%-48.6%-9.4%-20.6%
5 Year96.0%55.4%-23.6%-45.6%13.5%-12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: JLG (£2.98) is trading above our estimate of fair value (£1.15)

Significantly Below Fair Value: JLG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JLG is unprofitable, so we can't compare its PE Ratio to the GB Construction industry average.

PE vs Market: JLG 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 JLG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JLG's PB Ratio (1x) is in line with the GB Construction industry average.


Next Steps

Future Growth

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

101.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: JLG's revenue (85.7% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: JLG's revenue (85.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JLG's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has John Laing Group performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JLG is currently unprofitable.

Growing Profit Margin: JLG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JLG is unprofitable, and losses have increased over the past 5 years at a rate of 7% per year.

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

Earnings vs Industry: JLG is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-13.9%).


Return on Equity

High ROE: JLG has a negative Return on Equity (-1.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is John Laing Group's financial position?


Financial Position Analysis

Short Term Liabilities: JLG's short term assets (£91.0M) do not cover its short term liabilities (£528.0M).

Long Term Liabilities: JLG's short term assets (£91.0M) exceed its long term liabilities (£15.0M).


Debt to Equity History and Analysis

Debt Level: JLG's debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: JLG's debt to equity ratio has increased from 1% to 33.8% over the past 5 years.

Debt Coverage: JLG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if JLG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is John Laing Group current dividend yield, its reliability and sustainability?

3.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JLG's dividend (3.2%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: JLG's dividend (3.2%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


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 5 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: JLG's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Ben Loomes

0.42

Tenure

Mr. Ben Robert Loomes has been Chief Executive Officer of John Laing Group plc since May 8, 2020. Mr. Loomes served as a Managing Partner and Head of Infrastructure at InfraRed Capital Partners. Mr. Loomes ...


Leadership Team

NamePositionTenureCompensationOwnership
Ben Loomes
Chief Executive Officer0.42yrno data0.064%
£ 941.4k
Michael Jaffe
Corporate Finance Directorno datano datano data
Kellie McAvoy
Head of Investor Relationsno datano datano data
Romina Dawson-Hall
Group Human Resources Director4.75yrsno datano data
Christopher Waples
Group Managing Director of International Projectsno datano datano data
Mark Westbrook
Chief Risk Officerno datano datano data
Anthony Phillips
Regional MD of North America3yrsno datano data
Justin Bailey
Regional Managing Director of Asia Pacificno datano datano data
Salim Bensmail
Group Managing Director for Strategy & Partnerships2yrsno datano data
Anthony Philips
Regional Managing Director - North Americano datano datano data
Clare Underwood
Group Company Secretary2.08yrsno datano data

2.1yrs

Average Tenure

Experienced Management: JLG's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Samuel
Non-Executive Chairman2.42yrsUK£195.00k0.010%
£ 149.1k
David Rough
Senior Independent Directorno dataUK£65.00k0.0095%
£ 140.2k
Philip Keller
Independent Non-Executive Director0.75yrno datano data
Jeremy Beeton
Independent Non-Executive Director5.83yrsUK£50.00k0.0044%
£ 64.6k
Anne Wade
Independent Non-Executive Director5.83yrsUK£65.00k0.0055%
£ 80.6k
Andrea Abt
Independent Non-Executive Director2.42yrsUK£50.00k0.0020%
£ 29.9k

2.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: JLG's board of directors are not considered experienced ( 2.4 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: JLG 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

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


Key Information

  • Name: John Laing Group plc
  • Ticker: JLG
  • Exchange: LSE
  • Founded: 1848
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£1.471b
  • Shares outstanding: 493.25m
  • Website: https://www.laing.com

Number of Employees


Location

  • John Laing Group plc
  • 1 Kingsway
  • London
  • Greater London
  • WC2B 6AN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JLGLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2015
JLGlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2015
JL0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2015

Biography

John Laing Group plc, an investment holding company, originates, invests in, and manages greenfield infrastructure projects. It operates through Primary Investment, Secondary Investment, and Asset Manageme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 22:17
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.