In This Article:
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Jones Lang LaSalle Incorporated (NYSE:JLL), it is a financially-robust company with a strong track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Jones Lang LaSalle here.
Good value with proven track record
Over the past year, JLL has grown its earnings by 45%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, JLL also outperformed its industry, which delivered a growth of -20%. This is an notable feat for the company. JLL's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that JLL has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. JLL seems to have put its debt to good use, generating operating cash levels of 0.23x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
JLL is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the real estate industry, JLL is also trading below its peers, relative to earnings generated. This further reaffirms that JLL is potentially undervalued.
Next Steps:
For Jones Lang LaSalle, there are three important aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for JLL’s future growth? Take a look at our free research report of analyst consensus for JLL’s outlook.
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Dividend Income vs Capital Gains: Does JLL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from JLL as an investment.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JLL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.