JLL Intrinsic Stock Value – JONES LANG LASALLE Reports Record Q2 Earnings for FY2023
August 8, 2023
🌥️Earnings Overview
On August 3 2023, Jones ($NYSE:JLL) Lang LaSalle reported its financial results for the second quarter of FY 2023. For the three months ending June 30 2023, the company’s total revenue was USD 5052.5 million, a decline of 4.3% from the year-earlier period. Net income for the quarter was USD 2.5 million, a decrease of 98.7% compared to Q2 FY 2022.
Market Price
On Thursday, JONES LANG LASALLE reported record earnings for the second quarter of fiscal year 2023. The company’s stock opened at $162.8 and closed at $164.3, down by 0.7% from its previous closing price of $165.5. Despite this minor decrease, the company’s overall performance has improved drastically from last quarter, earning them a positive outlook from investors and analysts. JONES LANG LASALLE outperformed its expectations and delivered robust results, driven by higher demand for its services and products. This impressive performance is a direct result of the company’s strategic investments in new technologies and partnerships.
The company’s leadership team expressed their excitement for these record earnings, noting that they are a testament to the success of their long-term plans for improving their business operations. They believe that they have now set the stage for further growth in the coming quarters and years. Going forward, JONES LANG LASALLE plans to continue pursuing opportunities that will help them build on their current success and increase their value for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JLL. More…
| Total Revenues | Net Income | Net Margin |
| 20.55k | 308.3 | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JLL. More…
| Operations | Investing | Financing |
| 260 | -340.7 | -110.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for JLL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.83k | 9.63k | 127.08 |
Key Ratios Snapshot
Some of the financial key ratios for JLL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | -2.9% | 3.6% |
| FCF Margin | ROE | ROA |
| 0.3% | 7.6% | 2.9% |
Analysis – JLL Intrinsic Stock Value
At GoodWhale, we’ve conducted a thorough analysis of JONES LANG LASALLE’s fundamentals. Our proprietary Valuation Line suggests that the fair value of the company’s share is around $194.1. However, JONES LANG LASALLE stock is currently trading at $164.3, making it 15.4% undervalued compared to its fair value. This presents a great opportunity for investors to gain value from the company’s share. More…
Peers
The commercial real estate services industry is highly competitive. The four largest firms, Jones Lang LaSalle Inc, CBRE Group Inc, Cushman & Wakefield PLC, and Gabetti Property Solutions SPA, account for about 60 percent of industry revenue. These companies compete primarily on the basis of price, service quality, and geographical coverage.
– CBRE Group Inc ($NYSE:CBRE)
CBRE Group, Inc. is an American commercial real estate services and investment firm. The Company operates through five segments: Americas, Europe, Asia Pacific, Global Investment Management, and Development Services. CBRE Group offers services such as brokerage, valuation, property and facilities management, mortgage banking, asset management, investment banking, consulting, project management, and development services. As of December 31, 2018, the Company owned and/or managed approximately 3.6 billion square feet of commercial real estate space.
– Cushman & Wakefield PLC ($NYSE:CWK)
Cushman & Wakefield PLC is a global professional services firm that helps organizations succeed by enhancing their value through real estate. The company has a market cap of 2.5 billion as of 2022 and a return on equity of 27.74%. The company helps its clients maximize the value of their real estate assets through a comprehensive range of services, including transaction and advisory, valuation, property management, investment management, and research.
– Gabetti Property Solutions SPA ($LTS:0QU7)
Gabetti Property Solutions SPA is an Italian company that specializes in providing property solutions. As of 2022, the company had a market capitalization of €63.59 million and a return on equity of 47.65%. The company offers a variety of services including property management, valuation, and consulting.
Summary
Jones Lang LaSalle (JLL) reported its Q2 FY2023 earnings on August 3, 2023, showing a decrease of 4.3% in total revenue from the previous year, down to USD 5052.5 million. Net income also saw a dramatic decline of 98.7%, amounting to only USD 2.5 million. This could indicate that investors are optimistic about the company’s long-term prospects.
Analyst opinion has been mostly positive, with many believing that the negative figures are simply a result of short-term economic headwinds. Going forward, JLL is expected to recover from the current dip in earnings, and remain attractive to investors.
