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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Jones Lang Lasalle Incorporated (XNYS:JLL) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
JLL
Name:
JONES LANG LASALLE INCORPORATED (XNYS:JLL)
Sector:
- 763000.00K
Industry:
Real Estate Services
CEO:
Mr. Christian Ulbrich
Total Employees:
98,000
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 140.40% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF JONES LANG LASALLE INCORPORATED(JLL) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND REAL ESTATE SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
169.45
One Month Price Target:
$170.66
Six Month Price Target :
$176.73
Likely Price in One Year's Time:
Ticker:
$184.02
Likely Trading Range Today Under (Normal Volatility)
$168.68
Price Upper limit ($) :
$170.36
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$159.37
This week:
$146.91
This month :
$124.37
Other Primary facts
Market Cap:
7.96B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
47.92M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.46%
-16.15%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$216.23
$194.80
$122.67
$144.10
Medium risk (<10%) entry points
Buy Call
Sell Call
$187.83
Buy Put:
Sell Put:
$183.25
$151.01
$155.65
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
JLL
Sharpe Ratio:
1.18%
Comparison:
JLL, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -27.56% lower than the industry
& is -48.25% lower than the market/S&P 500 average
Average Returns/Yield of
JLL
Daily returns:
0.04%
Weekly returns:
0.22%
Monthly returns:
0.87%
Yearly returns:
16.44%
Comparison of returns:
Average annual returns/yield (last 3 years) is -36.82% below industry average
Classification:
JLL, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.88
Statistical test of Returns:
JLL has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.92%
Weekly Volatility:
6.52%
Monthly Volatility:
13.05%
Yearly Volatility:
45.20%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.53%
Volatility in last five trading days has been -81.74% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.95%
Weekly VaR:
-13.30%
Monthly VaR:
-26.61%
How Much Can the price of
JLL
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-23%
Worst case (decline):
-92.16%
This translates to price declining to:
$130.42
This translates to price declining to:
$13.28
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
JLL is a 87.78% riskier investment compared to the market/S&P 500 & is 60.87% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -16.81% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
JLL
Beta in relation to market/S&P 500--1.28
Expected beta in 1 year's time:
0.828
Expected beta in 3 year's time:
1.171
Unlevered (debt free) Beta:
0.993
Beta in relation to Nasdaq (XNAS):
0.854
Beta in relation to all global stocks::
0.842
Beta Comparison & Analysis
Beta of competitors/peers::
0.925
Beta is 38.33% higher than peers
Average Industry Beta:
1.462
Beta is -12.53% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
13.86%
Sustainable growth rate is -42.83% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.015
Alpha is -146.72% below industry average alpha yield
Alpha is -97% below the market average
Analysis of Cost of Capital of
JLL
Equity cost of capital:
0.119
Equity cost of capital is -9.53% below industry mean WACC
Unlevered (without debt) cost of capital:
9.25%
Before-tax cost of debt:
0.56%
After-tax cost of debt:
0.44%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.44%
WACC is 8.59% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$420.12
Revenue growth rate per share of (3Y):
1.26
Annual revenue growth rate is -94.28% below industry average
EPS:
$19.39
Expected Annual growth rate of EPS (3Y):
18.93%
Expected future EPS growth rate is -3.17% lower than the Real Estate Services industry
Free cash flow (FCF) per share:
$13.68
Balance sheet equity growth per share: -100.00%
Equity growth rate per share is -262.32% lower than the industry
Debt per share
$47.30
EBITDA per share
$31.70
Valuation Analysis Today of
JLL
P/E Ratio:
8.7
P/E Ratio of Competitors/Peers:
26.51
P/E ratio is -67.17% lower than main peers & is -71.09% lower than the industry
Stock price/value with industry average P/E ratio: $583.72
JLL is -70.97% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.4
Price to sales ratio is -92.29% below the industry mean
P/B (Price to book value ratio):
1.26
Price to free cash flow: 12.38
-
Net income growth rate (3Y):
77.65%
Net income growth rate is 99.20% higher than the average industry net income growth rate
Dividend Analysis
-
Dividend yeild: 0.25%
Previous Dividend: $0.43
Previous adjusted dividend: $0.43
Previous Dividend: $0.43
-
-
Average dividend payment (long-term): $0.43
-
-
-
-
Previous dividend payment date: 13/12/2019
Previous dividend record date: 15/11/2019
Previous dividend declaration date: 11/05/2019
Dividend History:
2019-11-14--$0.43
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
36.72%
Net debt to equity ratio:
47.70%
Debt to assets ratio:
14.73%
Net debt to assets ratio:
19.13%
Debt-to-asset ratio is -72.53% below industry average
Ability to repay debt:
Interest coverage ratio:
77.12
Interest coverage ratio is 174.95% more than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 38.19%
Analysis of Key Statistics
Correlation of price movement with the market:
0.64
Statistical significance of correlation:
JLL has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.544
Stock price is 17.70% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.544
Correlation of price movement with Nasdaq (^IXIC):
0.053
Covariance of price movement with the market:
0.089
Kurtosis
5.139
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.118
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
JLL
Gross Profit Margin Ratio:
174%
Operating Profit Margin Ratio:
5.66%
Operating profit margin is -44.03% lower than the industry
Net Profit Margin Ratio:
174%
Effective Tax Rate:
21.64%
Effective tax rate is 13.94% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
16.27%
Return on equity (ROE) is 39.14% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
6.52%
Return on assets (ROA) is 35.18% higher than the industry
Financial Leverage:
1.2x
Current Ratio:
1.14
Current ratio is -84.60% below industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 0.9 years
Stock based compensation to net income ratio:
1.85%
In-depth Efficiency Analysis
Revenue generated per employee:
205.4K
Each employee generates -77% less revenue than industry average revenue per employee
EBITDA generated per employee:
15.5K
Each employee generates -94% less EBITDA than industry average revenue per employee
Profit generated per employee:
10.2K
Each employee generates -87% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 7.8K
Each employee generates -93% less free cash flow than industry average revenue per employee
Assets/Capital per employee
94.2K
Each employee generates -93% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
JLL
HOST HOTELS & RESORTS, INC. (XNAS:HST)
IRON MOUNTAIN INCORPORATED (XNYS:IRM)
MAA-PI
MEDICAL PROPERTIES TRUST, INC. (XNYS:MPW)
VNO-PL
Verbund AG (XWBO:VER)
VNO-PM
ANNALY CAPITAL MANAGEMENT, INC. (XNYS:NLY)
REXFORD INDUSTRIAL REALTY, INC (XNYS:REXR)
Current Analyst Ratings
Strong buy�13%
Buy�13%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
20.13B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.41B
8.92B
-
12.27B
12.27B
-
218.90M
12.49B
-
19.70M
218.90M
1.52B
1.14B
1.00B
1.28B
276.40M
1.00B
Statement of Cash Flow
Date:
Period:
54.40M
Differed Income Tax :
-
Stock Based Compensation :
18.60M
Change in Working Capital :
- 928800.00K
Accounts Receivables:
-
Other Working Capital:
- 765100.00K
Other Non-Cash Items:
- 4500.00K
Net Cash Provided by Operating Activities:
- 716400.00K
Investments in PP&E:
- 46600.00K
Net Acquisitions:
- 38500.00K
Purchases of Investments:
- 12000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
575.80M
-
575.80M
5.02B
-
566.70M
6.17B
1.52B
4.60B
879.50M
785.30M
313.20M
1.13B
9.23B
-
15.39B
1.06B
1.25B
-
211.30M
2.88B
5.40B
2.27B
1.10B
3.57B
-
8.97B
500.00K
5.08B
- 419500.0K
-
March 31, 2022 at 6:00:00 AM
18.91B
6.17B
15.14B
-
3.52B
2.9B
-
3.10M
- 94000.00K
- 1400400.00K
-
- 150000.00K
-
2.36B
806.50M
- 6700.00K
- 10600.00K
831.00M
841.60M
- 716400.00K
- 46600.00K
- 763000.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
JLL
2023
2024
2025
2026
2027
$184.94
$345.34
$375.02
$407.26
$442.26