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Janus Henderson Group (JHG)
NYSE:JHG
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Janus Henderson Group
(NYSE:JHG)80Outperform
Positive Factors
Business Improvement
Early signs of business improvement have begun to manifest in KPIs such as an inflection in net flows, a stable management fee rate, and expanding operating margins.
Growth Strategy
The firm presents a compelling entry point as it executes on its growth strategy, with potential for double-digit EPS growth.
Negative Factors
Revenue Challenges
The adjusted EPS for 2025 is expected to decrease by 0.8% due to softer revenues resulting from lower assets under management.
Janus Henderson Group (JHG) vs. S&P 500 (SPY)
Market Cap
$6.50B
Dividend Yield3.78%
Average Volume (3M)1.04M
Price to Earnings (P/E)16.1
Beta (1Y)1.30
Revenue Growth18.85%
EPS Growth7.96%
CountryUS
Employees2,196
SectorFinancial
Sector Strength93
IndustryAsset Management Services
Share Statistics
EPS (TTM)2.56
Shares Outstanding157,557,820
10 Day Avg. Volume1,222,536
30 Day Avg. Volume1,039,962
Financial Highlights & Ratios
PEG Ratio2.02
Price to Book (P/B)N/A
Price to Sales (P/S)2.63
Price to Cash Flow (P/CF)6.60
P/FCF Ratio6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$47.70Price Target Upside21.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Janus Henderson Group Business Overview & Revenue Model
Company DescriptionJanus Henderson Group (JHG) is a leading global asset management firm headquartered in London, UK. The company offers a diverse range of investment products and services, including equities, fixed income, multi-asset, and alternative asset classes. With a presence in major financial markets across the world, Janus Henderson provides investment solutions to individual investors, financial advisors, and institutional clients. The firm is committed to delivering long-term value through active asset management and a client-centric approach.
How the Company Makes MoneyJanus Henderson Group generates revenue primarily through management fees charged on the assets under management (AUM). These fees are typically calculated as a percentage of the AUM and vary depending on the type of investment product and the specific client agreement. In addition to management fees, the company may earn performance fees, which are contingent on achieving specific investment benchmarks or targets. The firm also benefits from its global distribution network and strategic partnerships, which help in expanding its client base and enhancing asset growth. Janus Henderson's diversified investment offerings and commitment to active management play a crucial role in maintaining its competitive position and driving revenue growth.
Janus Henderson Group Financial Statement Overview
Summary
Janus Henderson Group demonstrates strong financial health with robust profitability, stable leverage, and consistent cash flow generation. The company shows promising revenue growth and maintains a solid balance sheet, although there is room for improvement in operational efficiency.Income Statement
Janus Henderson Group's income statement shows strong profitability with a gross profit margin of 73.32% and a net profit margin of 16.18% for the TTM. The revenue growth rate of 19.14% over the last year indicates a positive trajectory. However, the EBIT margin of 27.02% and EBITDA margin of 19.27% suggest room for operational improvements.82
Very Positive
Balance Sheet
The balance sheet reflects stability with a robust equity ratio of 67.75% and a low debt-to-equity ratio of 0.08, suggesting sound financial leverage. The return on equity stands at 8.59%, which is moderate and indicates potential for better utilization of equity.78
Positive
Cash Flow
Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.10 and a strong free cash flow to net income ratio of 1.09 for the TTM. The free cash flow growth rate of 2.37% over the previous year signifies consistent cash generation capability.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.47B | 2.10B | 2.20B | 2.77B | 2.30B | Gross Profit |
| 1.76B | 1.46B | 1.59B | 2.07B | 1.68B | EBIT |
| 645.70M | 483.70M | 489.80M | 823.40M | 717.20M | EBITDA |
| 654.40M | 550.00M | 557.30M | 983.50M | 766.40M | Net Income Common Stockholders |
| 399.00M | 392.00M | 274.50M | 620.00M | 130.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.07B | 1.88B | 1.16B | 1.56B | 1.59B | Total Assets |
| 6.96B | 6.50B | 6.24B | 6.74B | 6.69B | Total Debt |
| 486.50M | 382.50M | 332.00M | 310.40M | 458.50M | Net Debt |
| -748.30M | -785.60M | -830.30M | -796.90M | -649.60M | Total Liabilities |
| 1.88B | 1.64B | 1.64B | 1.91B | 1.87B | Stockholders Equity |
| 4.59B | 4.54B | 4.36B | 4.66B | 4.72B |
| Cash Flow | Free Cash Flow | |||
| 684.50M | 430.80M | 455.70M | 885.00M | 627.90M | Operating Cash Flow |
| 694.60M | 441.60M | 473.30M | 895.40M | 645.70M | Investing Cash Flow |
| -285.40M | -328.90M | 58.50M | -283.30M | 129.40M | Financing Cash Flow |
| -324.40M | -151.90M | -419.10M | -588.10M | -491.00M |
Janus Henderson Group Technical Analysis
Negative
39.42
Price Trends
42.65
Negative
42.44
Negative
38.51
Positive
Market Momentum
-0.61
Positive
31.97
Neutral
20.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JHG, the sentiment is Negative. The current price of 39.42 is below the 20-day moving average (MA) of 43.05, below the 50-day MA of 42.65, and above the 200-day MA of 38.51, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 31.97 is Neutral, neither overbought nor oversold. The STOCH value of 20.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JHG.
Janus Henderson Group Risk Analysis
Janus Henderson Group disclosed 40 risk factors in its most recent earnings report. Janus Henderson Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Janus Henderson Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.50B | 16.12 | 8.69% | 3.78% | 18.85% | 7.96% | |
73 Outperform | $78.68B | 19.24 | 26.53% | 1.28% | -20.40% | -13.30% | |
72 Outperform | $7.16B | 13.59 | 5.32% | 4.89% | 3.97% | ― | |
70 Outperform | $22.29B | 10.93 | 19.76% | 4.77% | 9.80% | 17.87% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
64 Neutral | $10.28B | 30.00 | 3.03% | 6.30% | 9.48% | -65.57% | |
63 Neutral | $4.72B | 10.67 | 15.29% | 0.02% | -6.77% | -14.55% |
* Financial Sector Average
Performance Comparison
JHG
Janus Henderson Group
39.42
8.30
26.67%
AMG
Affiliated Managers
161.23
2.27
1.43%
APO
Apollo Global Management
137.92
30.62
28.54%
BEN
Franklin Resources
19.56
-6.77
-25.71%
IVZ
Invesco
16.00
1.00
6.67%
TROW
T Rowe Price
100.10
-11.92
-10.64%
Janus Henderson Group Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -8.92% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong net inflows, strategic acquisitions, and solid financial performance, despite some challenges in equity flows and specific strategies.Highlights
Positive Net Flows and Revenue Growth
Janus Henderson reported $2.4 billion in net inflows for 2024, a significant improvement from $31 billion of net outflows two years ago. The firm also generated new net revenue in both the third and fourth quarters.
Strong Financial Performance
The company returned $458 million of cash to shareholders in 2024 with adjusted diluted EPS of $1.07, a 30% increase compared to the same period a year ago.
Active ETF Growth
Janus Henderson's active ETFs experienced $14 billion in net flows, with AUM doubling in 2024, resulting in a 79% annual growth rate over the last five years.
Strategic Acquisitions
Acquisitions of NBK Capital Partners and Victory Park Capital expanded Janus Henderson's capabilities into private markets, enhancing offerings to existing and new clients.
Resilient Management Fee Rate
The 2024 net management fee rate of 48.6 basis points decreased only 1 basis point over two years, showcasing resilience despite industry fee pressures.
Lowlights
Equity Flows
Equity flows were negative $2.5 billion, an improvement from negative $3.2 billion a year ago, but still a challenging environment for active equities.
Institutional Flows
Despite positive trends in intermediary channels, the institutional channel showed some volatility with net outflows in the previous quarter.
Challenges in U.S. Mid-Cap Growth Strategy
The U.S. mid-cap growth strategy underperformed due to narrow leadership in U.S. market gains for small and mid-cap growth stocks, impacting relative returns to the benchmark.
Company Guidance
During the Janus Henderson Group's fourth quarter and full-year 2024 results briefing, the company reported significant progress and positive momentum. They achieved $2.4 billion in net inflows for 2024, a substantial improvement from $31 billion in net outflows two years prior. This marked a 1% organic growth rate. The company's diversified strategies led to positive net flows across North America, EMEA, Latin America, and Asia Pacific. Janus Henderson's 2024 net management fee rate was 48.6 basis points, with a decrease of only 1 basis point over two years, highlighting their resilience amidst industry fee pressures. The firm returned $458 million to shareholders and ended the year with an AUM of $378.7 billion, up 13% from 2023, driven by strong markets and alpha generation. Their strategic acquisitions in private markets and the launch of European ETFs further amplified their growth, with the firm now being the eighth largest provider of active ETFs globally.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.