NYSE:JCAP

Stock Analysis Report

Executive Summary

Jernigan Capital, Inc. is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners, and operators of self-storage facilities.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

How has Jernigan Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

JCAP

-0.07%

US REITs

-1.1%

US Market


1 Year Return

-5.5%

JCAP

16.0%

US REITs

17.9%

US Market

Return vs Industry: JCAP underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: JCAP underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

JCAPIndustryMarket
7 Day-1.0%-0.07%-1.1%
30 Day1.9%3.6%1.4%
90 Day17.0%7.8%6.9%
1 Year1.3%-5.5%20.7%16.0%20.3%17.9%
3 Year15.7%-6.1%37.9%20.6%47.8%38.3%
5 Yearn/a60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jernigan Capital 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: JCAP ($20.33) is trading below our estimate of fair value ($51.49)

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


Price To Earnings Ratio

PE vs Industry: JCAP is good value based on its PE Ratio (10.7x) compared to the REITs industry average (37.2x).

PE vs Market: JCAP is good value based on its PE Ratio (10.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: JCAP is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

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

-62.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JCAP's earnings are forecast to decline over the next 3 years (-62.8% per year).

Earnings vs Market: JCAP's earnings are forecast to decline over the next 3 years (-62.8% per year).

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

Revenue vs Market: JCAP's revenue (23.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: JCAP's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JCAP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Jernigan Capital performed over the past 5 years?

60.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JCAP has a large one-off gain of $47.8M impacting its September 30 2019 financial results.

Growing Profit Margin: JCAP's current net profit margins are higher than last year (91.3%).


Past Earnings Growth Analysis

Earnings Trend: JCAP's earnings have grown significantly by 60.4% per year over the past 5 years.

Accelerating Growth: JCAP's earnings growth over the past year (82.8%) exceeds its 5-year average (60.4% per year).

Earnings vs Industry: JCAP earnings growth over the past year (82.8%) exceeded the REITs industry 7.6%.


Return on Equity

High ROE: JCAP's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jernigan Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: JCAP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: JCAP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if JCAP has a sufficient allowance for bad loans.

Low Risk Liabilities: JCAP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if JCAP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: JCAP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if JCAP has an appropriate level of bad loans.


Next Steps

Dividend

What is Jernigan Capital's current dividend yield, its reliability and sustainability?

6.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JCAP's dividend (6.89%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: JCAP's dividend (6.89%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, JCAP has been paying a dividend for less than 10 years.

Growing Dividend: JCAP has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), JCAP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JCAP's dividends in 3 years are forecast to be thoroughly covered by earnings (5.4% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

John Good (61yo)

1.3yrs

Tenure

US$964,001

Compensation

Mr. John A. Good, J.D. serves as Chairman of the Board of Jernigan Capital, Inc. since December 31, 2019. He has been Chief Executive Officer since October 29, 2018 and Director of Jernigan Capital, Inc. J ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD964.00K) is below average for companies of similar size in the US market ($USD1.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Good
Chairman of the Board & CEO1.3yrsUS$964.00k1.23% $5.8m
Jonathan Perry
President & Chief Investment Officer1.3yrsUS$1.41m0.23% $1.1m
Kelly Luttrell
Senior VP2.8yrsUS$442.74k0.14% $642.6k
David Corak
Senior Vice President of Corporate Finance1.9yrsno datano data
William Perry
Senior Vice President of Investment Management1.6yrsno datano data

1.6yrs

Average Tenure

44yo

Average Age

Experienced Management: JCAP's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Good
Chairman of the Board & CEO1.3yrsUS$964.00k1.23% $5.8m
Richard Stern
Member of Advisory Board0yrsno datano data
Carol Shipley
Member of Advisory Board0yrsno datano data
Howard Silver
Independent Director5yrsUS$125.29k0.090% $420.0k
Harry Thie
Lead Independent Director5.1yrsUS$100.29k0.11% $491.6k
Mark Decker
Independent Director4.9yrsUS$100.29k0.10% $482.6k
David Levenfeld
Member of Advisory Board0yrsno datano data
Douglas Chamberlain
Member of Advisory Board0yrsno datano data
Jesse Morgan
Member of Advisory Board0yrsno datano data
James Williams
Member of Advisory Board0yrsno datano data

5.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: JCAP's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JCAP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.3%.


Top Shareholders

Company Information

Jernigan Capital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jernigan Capital, Inc.
  • Ticker: JCAP
  • Exchange: NYSE
  • Founded:
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$467.938m
  • Shares outstanding: 23.02m
  • Website: https://www.jernigancapital.com

Location

  • Jernigan Capital, Inc.
  • 6410 Poplar Avenue
  • Suite 650
  • Memphis
  • Tennessee
  • 38119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JCAPNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2015
JCAP.PRBNYSE (New York Stock Exchange)7.0% CUM PFD BUSUSDJan 2018

Biography

Jernigan Capital, Inc. is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners, and operators of self-storage facilities. Our mission is to be the preeminent capital partner for self-storage entrepreneurs nationwide by offering creative solutions through an experienced team demonstrating the highest levels of integrity, dedication, excellence and community, while maximizing shareholder value. The Jernigan Capital team has extensive experience in over 100 U.S. markets—from acquiring and managing self-storage properties to new self-storage development—providing JCAP with knowledge unmatched by any lender, broker or advisor to the sector. Jernigan Capital is the only source of construction and development capital focused solely on the self-storage sector. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 03:15
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.