Johns Lyng Group Limited Fundamental Analysis (ASX: JLG.AX)
Johns Lyng Group Limited Fundamental Analysis (ASX: JLG.AX)
Johns Lyng Group Limited (ASX: JLG.AX) shows weak financial fundamentals with a PE ratio of 30.69, profit margin of 3.14%, and ROE of 7.98%. The company generates $1.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JLG.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakJLG.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateJLG.AX shows balanced valuation metrics.
Growth Score
ModerateJLG.AX shows steady but slowing expansion.
Financial Health Score
ExcellentJLG.AX maintains a strong and stable balance sheet.
Profitability Score
WeakJLG.AX struggles to sustain strong margins.
Key Financial Metrics
Is JLG.AX Expensive or Cheap?
P/E Ratio
JLG.AX trades at 30.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JLG.AX's PEG of -1.30 indicates potential undervaluation.
Price to Book
The market values Johns Lyng Group Limited at 2.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.97 times EBITDA. This is generally considered low.
How Well Does JLG.AX Make Money?
Net Profit Margin
For every $100 in sales, Johns Lyng Group Limited keeps $3.14 as profit after all expenses.
Operating Margin
Core operations generate 7.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.98 in profit for every $100 of shareholder equity.
ROA
Johns Lyng Group Limited generates $3.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Johns Lyng Group Limited generates limited operating cash flow of $53.78M, signaling weaker underlying cash strength.
Free Cash Flow
Johns Lyng Group Limited produces free cash flow of $39.59M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.14 in free cash annually.
FCF Yield
JLG.AX converts 3.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How JLG.AX Stacks Against Its Sector Peers
| Metric | JLG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.69 | 30.24 | Neutral |
| ROE | 7.98% | 1098.00% | Weak |
| Net Margin | 3.14% | -25209.00% (disorted) | Weak |
| Debt/Equity | 0.47 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 1.25 | 21.68 | Neutral |
| ROA | 3.60% | -1323325.00% (disorted) | Weak |
JLG.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Johns Lyng Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure