Janus Henderson Group (JHG) AI Stock Analysis

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Janus Henderson Group

(NYSE:JHG)

74Outperform

Janus Henderson Group has a strong financial foundation with robust profitability and cash flow generation. The company's positive earnings call highlights significant progress in strategic acquisitions and net inflows. However, technical analysis indicates downward momentum, which may present short-term challenges. Valuation remains attractive with a reasonable P/E ratio and solid dividend yield, supporting the overall score.

Positive Factors

Earnings Growth

The firm presents a compelling entry point with potential for double-digit EPS growth as it executes its growth strategy.

Organic Growth Strategy

Janus Henderson Group is on a unique growth path with differentiated product offerings driving positive organic growth.

Partnership and Diversification

The partnership with Guardian Life increases AUM by 12% and adds diversification for Janus Henderson Group.

Negative Factors

Future Earnings Projection

The 2026 adjusted EPS is projected to decrease by 0.5% as a result of lower revenues slightly offset by reduced expenses.

Revenue Concerns

The adjusted EPS for 2025 is expected to decrease by 0.8% due to softer revenues from lower assets under management.

Janus Henderson Group (JHG) vs. S&P 500 (SPY)

Market Cap

$5.23B

Dividend Yield5.29%

Average Volume (3M)1.66M

Price to Earnings (P/E)13.0

Beta (1Y)1.46

Revenue Growth18.85%

EPS Growth7.96%

CountryUS

Employees2,308

SectorFinancial

Sector Strength79

IndustryAsset Management

Share Statistics

EPS (TTM)2.56

Shares Outstanding157,557,820

10 Day Avg. Volume1,789,857

30 Day Avg. Volume1,655,479

Financial Highlights & Ratios

PEG Ratio1.63

Price to Book (P/B)N/A

Price to Sales (P/S)2.38

Price to Cash Flow (P/CF)6.00

P/FCF Ratio5.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$43.67

Price Target Upside43.46% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price30.44

Price Trends

50DMA

39.25

Negative

100DMA

41.18

Negative

200DMA

38.97

Negative

Market Momentum

MACD

-1.19

Negative

RSI

36.29

Neutral

STOCH

28.13

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 30.44 is below the 20-day moving average (MA) of 35.32, below the 50-day MA of 39.25, and below the 200-day MA of 38.97, indicating a bearish trend. The MACD of -1.19 indicates Negative momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.13 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
AB	80 Outperform	$3.97B	9.68	20.63%	9.08%	―	58.52%
JHG	74 Outperform	$5.23B	12.95	8.74%	5.29%	18.85%	7.96%
FHI	74 Outperform	$3.07B	11.68	22.74%	3.28%	1.64%	-6.23%
IVZ	73 Outperform	$6.11B	11.60	5.31%	6.01%	3.97%	―
CG	67 Neutral	$14.29B	14.27	18.90%	3.54%	62.87%	―
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
AMG	63 Neutral	$4.68B	10.58	14.75%	0.03%	-6.77%	-14.55%

* Financial Sector Average

Performance Comparison

JHG

Janus Henderson Group

30.44

-0.37

-1.20%

AMG

Affiliated Managers

153.53

-12.60

-7.58%

AllianceBernstein

35.71

5.55

18.40%

FHI

Federated Hermes

36.89

2.63

7.68%

IVZ

Invesco

12.69

-2.28

-15.23%

Carlyle Group

36.63

-9.19

-20.06%

Janus Henderson Group Earnings Call Summary

Earnings Call Date: Jan 31, 2025 | % Change Since: -29.67% | 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.