Fact based stock research
Johns Lyng Group (ASX:JLG)

AU000000JLG8

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Johns Lyng Group stock research in summary

johnslyng.com.au

ANALYSIS: With an Obermatt Combined Rank of 34 (worse than 66% compared with investment alternatives), Johns Lyng Group (Construction & Engineering, Australia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Johns Lyng Group are low in value (priced high) with a consolidated Value Rank of 21 (worse than 79% of alternatives) and show below-average growth (Growth Rank of 43) but are safely financed (Safety Rank of 57), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 34, is a hold recommendation based on Johns Lyng Group's financial characteristics. As the company Johns Lyng Group's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 21) and low growth (Obermatt Growth Rank of 43), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 57) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	21
Growth Rank	43
Safety Rank	57
Combined Rank	34

Country	Australia
Industry	Construction & Engineering
Index	ASX 300
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Johns Lyng Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	16	9	21
GROWTH
GROWTH	62	97	11	43
SAFETY
SAFETY	91	37	62	57
SENTIMENT
SENTIMENT	n/a	28	44	^new
360° VIEW
360° VIEW	n/a	38	11	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Johns Lyng Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	16	9	21
GROWTH
GROWTH	62	97	11	43
SAFETY
SAFETY	91	37	62	57
COMBINED
COMBINED	71	54	4	34

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Johns Lyng Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 21 (worse than 79% compared with alternatives), Johns Lyng Group shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Johns Lyng Group. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 54% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 20 which means that the stock price compared with what market professionals expect for future profits is higher than 80% of comparable companies, indicating a low value concerning Johns Lyng Group's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 11 which means that the stock price compared with what market professionals expect for future profit levels is higher than 89% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 3 is also low. Compared with invested capital, the stock price is higher than for 97% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 21, is a sell recommendation based on Johns Lyng Group's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Johns Lyng Group? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Johns Lyng Group only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	23	15	12	20
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	28	1	8	11
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	12	1	3	3
DIVIDEND YIELD
DIVIDEND YIELD	38	34	43	54
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	17	16	9	21

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Johns Lyng Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Johns Lyng Group shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Johns Lyng Group. Sales Growth has a value of 50 which means that currently professionals expect the company to grow more than 50% of its competitors. Profit Growth with a value of 52 and Capital Growth with a rank of 83 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 1, which means that stock returns have recently been below 99% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. Johns Lyng Group has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Johns Lyng Group, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	50	74	24	50
PROFIT GROWTH
PROFIT GROWTH	n/a	82	67	52
CAPITAL GROWTH
CAPITAL GROWTH	n/a	67	36	83
STOCK RETURNS
STOCK RETURNS	96	100	11	1
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	62	97	11	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Johns Lyng Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company Johns Lyng Group has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Johns Lyng Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Johns Lyng Group. Leverage is at a rank of 68, meaning the company has a below-average debt-to-equity ratio. It has less debt than 68% of its competitors. Liquidity is also good at a rank of 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 15, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), Johns Lyng Group has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Johns Lyng Group. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Johns Lyng Group and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	66	45	68	68
REFINANCING
REFINANCING	80	7	15	15
LIQUIDITY
LIQUIDITY	70	63	68	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	91	37	62	57

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Johns Lyng Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	38	49	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	38	74	^new
MARKET PULSE
MARKET PULSE	n/a	41	56	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	44	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Johns Lyng Group.
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