Johnson Service Group PLC

AIM:JSG Stock Report

Market Cap: UK£595.0m

Johnson Service Group Valuation

Is JSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of JSG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JSG (£1.44) is trading below our estimate of fair value (£3.74)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for JSG?

Key metric: As JSG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for JSG. This is calculated by dividing JSG's market cap by their current earnings.
What is JSG's PE Ratio?
PE Ratio19.2x
EarningsUK£31.00m
Market CapUK£595.03m

Price to Earnings Ratio vs Peers

How does JSG's PE Ratio compare to its peers?

The above table shows the PE ratio for JSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average57.4x
RST Restore
95.8x48.0%UK£364.2m
FRAN Franchise Brands
44.2xn/aUK£318.1m
MER Mears Group
8x-15.6%UK£333.4m
SMS Smart Metering Systems
81.4x15.2%UK£1.3b
JSG Johnson Service Group
19.2x20.9%UK£595.0m

Price-To-Earnings vs Peers: JSG is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (57.4x).


Price to Earnings Ratio vs Industry

How does JSG's PE Ratio compare vs other companies in the European Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
JSG 19.2xIndustry Avg. 14.9xNo. of Companies14PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JSG is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the European Commercial Services industry average (14.9x).


Price to Earnings Ratio vs Fair Ratio

What is JSG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: JSG is good value based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst JSG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.44
UK£1.92
+33.4%
8.9%UK£2.20UK£1.65n/a7
Nov ’25UK£1.46
UK£1.92
+31.8%
8.9%UK£2.20UK£1.65n/a7
Oct ’25UK£1.56
UK£1.93
+23.8%
8.4%UK£2.20UK£1.65n/a8
Sep ’25UK£1.60
UK£1.86
+16.3%
9.0%UK£2.10UK£1.55n/a8
Aug ’25UK£1.58
UK£1.86
+17.4%
9.0%UK£2.10UK£1.55n/a8
Jul ’25UK£1.61
UK£1.86
+15.7%
9.0%UK£2.10UK£1.55n/a8
Jun ’25UK£1.67
UK£1.86
+11.1%
9.0%UK£2.10UK£1.55n/a8
May ’25UK£1.41
UK£1.69
+19.5%
12.4%UK£2.00UK£1.40n/a8
Apr ’25UK£1.31
UK£1.63
+23.8%
9.0%UK£1.80UK£1.40n/a8
Mar ’25UK£1.42
UK£1.61
+12.9%
9.1%UK£1.80UK£1.40n/a8
Feb ’25UK£1.46
UK£1.61
+10.4%
9.1%UK£1.80UK£1.40n/a8
Jan ’25UK£1.42
UK£1.57
+10.9%
8.2%UK£1.80UK£1.40n/a8
Dec ’24UK£1.33
UK£1.57
+18.0%
8.2%UK£1.80UK£1.40UK£1.448
Nov ’24UK£1.29
UK£1.57
+21.9%
8.2%UK£1.80UK£1.40UK£1.468
Oct ’24UK£1.35
UK£1.57
+16.3%
8.2%UK£1.80UK£1.40UK£1.568
Sep ’24UK£1.24
UK£1.47
+18.5%
10.0%UK£1.70UK£1.25UK£1.608
Aug ’24UK£1.10
UK£1.46
+33.1%
10.3%UK£1.70UK£1.25UK£1.588
Jul ’24UK£1.03
UK£1.46
+41.2%
11.0%UK£1.70UK£1.20UK£1.618
Jun ’24UK£1.08
UK£1.46
+34.7%
11.0%UK£1.70UK£1.20UK£1.678
May ’24UK£1.22
UK£1.44
+18.6%
11.4%UK£1.70UK£1.20UK£1.418
Apr ’24UK£1.22
UK£1.39
+13.2%
15.1%UK£1.70UK£1.06UK£1.317
Mar ’24UK£1.11
UK£1.37
+23.3%
18.9%UK£1.80UK£1.05UK£1.427
Feb ’24UK£1.13
UK£1.37
+21.2%
18.9%UK£1.80UK£1.05UK£1.467
Jan ’24UK£0.97
UK£1.36
+40.2%
20.3%UK£1.80UK£0.97UK£1.427
Dec ’23UK£0.96
UK£1.36
+41.5%
20.3%UK£1.80UK£0.97UK£1.337

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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