Jones Lang Return On Equity vs. Current Valuation

JLL Stock  USD 258.92  2.30  0.90%   
Considering the key profitability indicators obtained from Jones Lang's historical financial statements, Jones Lang LaSalle may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Jones Lang's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.03581302
Current Value
0.034
Quarterly Volatility
0.18932929
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Jones Lang's Days Sales Outstanding is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.55 this year, although the value of EV To Sales will most likely fall to 0.54. At this time, Jones Lang's Interest Income is quite stable compared to the past year. Income Quality is expected to rise to 2.68 this year, although the value of Operating Income will most likely fall to about 377.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.01030.0109
Notably Down
Slightly volatile
Operating Profit Margin0.0310.0326
Notably Down
Slightly volatile
Pretax Profit Margin0.01150.0121
Notably Down
Slightly volatile
Return On Assets0.01330.014
Notably Down
Slightly volatile
Return On Equity0.0340.0358
Notably Down
Slightly volatile
For Jones Lang profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jones Lang to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jones Lang LaSalle utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jones Lang's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jones Lang LaSalle over time as well as its relative position and ranking within its peers.
  

Jones Lang's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Real Estate Management & Development space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Jones Lang. If investors know Jones will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Jones Lang listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.602
Earnings Share
9.89
Revenue Per Share
473.594
Quarterly Revenue Growth
0.148
Return On Assets
0.0305
The market value of Jones Lang LaSalle is measured differently than its book value, which is the value of Jones that is recorded on the company's balance sheet. Investors also form their own opinion of Jones Lang's value that differs from its market value or its book value, called intrinsic value, which is Jones Lang's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Jones Lang's market value can be influenced by many factors that don't directly affect Jones Lang's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Jones Lang's value and its price as these two are different measures arrived at by different means. Investors typically determine if Jones Lang is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jones Lang's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Jones Lang LaSalle Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jones Lang's current stock value. Our valuation model uses many indicators to compare Jones Lang value to that of its competitors to determine the firm's financial worth.
Jones Lang LaSalle is rated third overall in return on equity category among its peers. It is rated second overall in current valuation category among its peers reporting about  226,972,224,770  of Current Valuation per Return On Equity. At this time, Jones Lang's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Jones Lang by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Jones Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Jones Lang

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0738
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Jones Lang

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
16.75 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Jones Current Valuation vs Competition

Jones Lang LaSalle is rated second overall in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Real Estate industry is currently estimated at about 126.81 Billion. Jones Lang retains roughly 16.75 Billion in current valuation claiming about 13% of equities listed under Real Estate industry.

Jones Lang Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jones Lang, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jones Lang will eventually generate negative long term returns. The profitability progress is the general direction of Jones Lang's change in net profit over the period of time. It can combine multiple indicators of Jones Lang, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-591.5 M-561.9 M
Operating Income677.2 M377.4 M
Income Before Tax251.9 M333.3 M
Total Other Income Expense Net-425.3 M-404 M
Net Income225.4 M247.6 M
Income Tax Expense25.7 M24.4 M
Net Income Applicable To Common Shares752.7 M790.3 M
Net Income From Continuing Ops226.2 M444.7 M
Non Operating Income Net Other253.2 M265.9 M
Interest Income27.8 M48 M
Net Interest Income-135.4 M-128.6 M
Change To Netincome-24.1 M-25.3 M
Net Income Per Share 4.73  3.90 
Income Quality 2.55  2.68 
Net Income Per E B T 0.89  0.87 

Jones Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Jones Lang. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Jones Lang position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Jones Lang's important profitability drivers and their relationship over time.

Use Jones Lang in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Jones Lang position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jones Lang will appreciate offsetting losses from the drop in the long position's value.

Jones Lang Pair Trading

Jones Lang LaSalle Pair Trading Analysis

The ability to find closely correlated positions to Jones Lang could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Jones Lang when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Jones Lang - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Jones Lang LaSalle to buy it.
The correlation of Jones Lang is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Jones Lang moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Jones Lang LaSalle moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Jones Lang can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Jones Lang position

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Basic Utilities Theme
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When determining whether Jones Lang LaSalle is a strong investment it is important to analyze Jones Lang's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Jones Lang's future performance. For an informed investment choice regarding Jones Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Jones Lang's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jones Lang LaSalle at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Jones Lang's income statement, its balance sheet, and the statement of cash flows.
Potential Jones Lang investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Jones Lang investors may work on each financial statement separately, they are all related. The changes in Jones Lang's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jones Lang's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.