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Jones Lang Lasalle (JLL)
:JLL
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Jones Lang Lasalle
(NYSE:JLL)75Outperform
Positive Factors
Market Position
JLL is positioned well cyclically and competitively, with a strong market share in U.S. property sales, debt brokerage, and leasing.
Revenue Mix
JLL is poised to benefit given its over 50% revenue mix of leasing/capital markets, leading to significant margin expansion in EBITDA.
Negative Factors
Stock Valuation
JLL trades at a 30% discount to CBRE's valuation, suggesting potential for narrowing the gap in valuation.
Jones Lang Lasalle (JLL) vs. S&P 500 (SPY)
Market Cap
$12.44B
Dividend YieldN/A
Average Volume (3M)367.75K
Price to Earnings (P/E)23.3
Beta (1Y)1.71
Revenue Growth12.87%
EPS Growth142.90%
CountryUS
Employees112,100
SectorReal Estate
Sector Strength72
IndustryReal Estate
Share Statistics
EPS (TTM)11.28
Shares Outstanding47,391,810
10 Day Avg. Volume401,344
30 Day Avg. Volume367,750
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)N/A
Price to Sales (P/S)0.54
Price to Cash Flow (P/CF)3.40
P/FCF Ratio3.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$334.33Price Target Upside27.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Jones Lang Lasalle Business Overview & Revenue Model
Company DescriptionJones Lang LaSalle (JLL) is a leading global professional services and investment management company specializing in real estate. With a presence in over 80 countries, JLL provides a comprehensive range of services, including leasing, property management, project management, and real estate investment advisory. JLL operates across various sectors such as office, industrial, retail, and residential, delivering tailored solutions to meet the diverse needs of its clients.
How the Company Makes MoneyJLL generates revenue through multiple streams, primarily by offering a wide array of real estate services. These include leasing and property management services, where JLL earns fees for managing commercial properties and facilitating transactions between landlords and tenants. The company also provides project and development services, earning revenue through project management and construction management contracts. Additionally, JLL's capital markets division contributes to revenue by advising clients on real estate transactions, including acquisitions, sales, and financing. The company also benefits from its investment management business, which involves managing real estate investment portfolios for clients, earning management and performance fees. Strategic partnerships and joint ventures further enhance JLL's revenue by expanding its service offerings and market reach.
Jones Lang Lasalle Financial Statement Overview
Summary
Jones Lang Lasalle has shown strong revenue growth and improved profitability margins. However, challenges in cash flow management, with negative operating and free cash flow, pose concerns. The balance sheet reflects stable equity and effective leverage management, but the decline in cash flow metrics needs attention for sustained financial health.Income Statement
Jones Lang Lasalle has demonstrated solid revenue growth with a 12.86% increase from 2023 to 2024. The gross profit margin stood at 53.06% for 2024, indicating strong profitability. The EBIT margin improved to 3.70%, and the net profit margin increased to 2.33% in 2024, showing enhanced operational efficiency. However, the EBITDA margin showed a slight decrease, reflecting possible operational cost pressures.82
Very Positive
Balance Sheet
The company's balance sheet reflects a stable equity position with an equity ratio of 40.38% in 2024. The debt-to-equity ratio improved to 0.19, showcasing effective leverage management. Return on equity increased to 8.07%, indicating better utilization of equity, though it remains modest for the industry.75
Positive
Cash Flow
The cash flow statement shows a concerning decline in operating cash flow, turning negative in 2024, alongside a negative free cash flow. The operating cash flow to net income ratio is negative, suggesting inefficiencies in cash generation relative to income. However, the free cash flow to net income ratio indicates a need for improved cash management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.43B | 20.76B | 20.86B | 19.37B | 16.59B | Gross Profit |
| 12.44B | 10.69B | 10.85B | 11.05B | 8.90B | EBIT |
| 868.10M | 677.20M | 868.10M | 1.04B | 843.90M | EBITDA |
| 1.15B | 915.60M | 1.20B | 1.35B | 927.90M | Net Income Common Stockholders |
| 546.80M | 225.40M | 654.50M | 961.60M | 402.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 416.30M | 410.00M | 519.30M | 593.70M | 574.30M | Total Assets |
| 16.76B | 16.06B | 15.59B | 15.51B | 14.32B | Total Debt |
| 1.26B | 3.12B | 3.14B | 2.62B | 3.10B | Net Debt |
| 842.80M | 2.71B | 2.62B | 2.03B | 2.53B | Total Liabilities |
| 9.87B | 9.65B | 9.44B | 9.08B | 8.70B | Stockholders Equity |
| 6.77B | 6.29B | 6.02B | 6.18B | 5.52B |
| Cash Flow | Free Cash Flow | |||
| 599.80M | 388.90M | -5.90M | 796.50M | 965.30M | Operating Cash Flow |
| 785.30M | 575.80M | 199.90M | 972.40M | 1.11B | Investing Cash Flow |
| -316.80M | -290.40M | -243.10M | -805.80M | -170.60M | Financing Cash Flow |
| -451.20M | -374.30M | -13.10M | -143.80M | -771.20M |
Jones Lang Lasalle Technical Analysis
Negative
262.41
Price Trends
265.60
Negative
267.40
Negative
249.25
Positive
Market Momentum
-1.22
Positive
42.24
Neutral
36.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JLL, the sentiment is Negative. The current price of 262.41 is below the 20-day moving average (MA) of 273.93, below the 50-day MA of 265.60, and above the 200-day MA of 249.25, indicating a neutral trend. The MACD of -1.22 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 36.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JLL.
Jones Lang Lasalle Risk Analysis
Jones Lang Lasalle disclosed 29 risk factors in its most recent earnings report. Jones Lang Lasalle 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
Jones Lang Lasalle Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $12.44B | 23.26 | 8.08% | ― | 12.87% | 142.90% | |
74 Outperform | $41.88B | 44.38 | 11.51% | ― | 11.95% | -1.25% | |
68 Neutral | $2.49B | 40.08 | 2.01% | 0.83% | 10.67% | 47.10% | |
64 Neutral | $9.21B | 41.22 | 12.21% | 0.24% | 13.08% | 146.40% | |
63 Neutral | $1.53B | ― | -10.38% | 2.05% | 6.69% | -137.52% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
58 Neutral | $2.62B | 20.44 | 7.48% | ― | -0.50% | ― |
* Real Estate Sector Average
Performance Comparison
JLL
Jones Lang Lasalle
262.41
75.25
40.21%
CBRE
CBRE Group
139.59
47.29
51.24%
EXPI
eXp World Holdings
9.95
-2.07
-17.22%
NMRK
Newmark Group
13.81
3.27
31.02%
CWK
Cushman & Wakefield
11.40
1.60
16.33%
TSE:CIGI
Colliers International Group
181.99
23.95
15.16%
Jones Lang Lasalle Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -6.92% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong revenue growth, market share gains, and successful technology investments, contributing to positive financial performance. However, there are challenges in specific segments, such as industrial leasing declines and issues with a Fannie Mae loan, alongside technology segment struggles. Overall, the positive achievements outweigh the challenges.Highlights
Strong Revenue Growth
Revenue in the fourth quarter grew double digits, driven by an acceleration in transactional activity and sustained growth in resilient revenues. Notably, adjusted EBITDA grew 20% in the fourth quarter, and adjusted EPS grew 17%.
Market Share Gains and Profitability
JLL reported market share gains alongside an improving real estate cycle, with adjusted EBITDA and adjusted EPS growing by 28% and 38% for the full year, respectively.
AI and Technology Investments
JLL announced the consolidation of its AI capabilities into JLL Partners, including JLL GPT and JLL Azara, to enhance client service and operational efficiency.
Investor Confidence and Capital Markets
Capital markets segments saw an acceleration in investment sales, debt and equity advisory revenue due to improved investor sentiment and greater interest rate stability, leading to 35% growth in investment sales revenue.
Strong Balance Sheet and Liquidity
JLL reported strong free cash flow generation, enabling reinvestment in the business, leverage reduction, and capital return to shareholders.
Lowlights
Challenges in Industrial Leasing
The industrial leasing market experienced further declines in 2024, with occupiers focusing on increasing utilization of existing space and delaying decision-making, particularly in the US.
Issues with Fannie Mae Loan
JLL repurchased a loan from Fannie Mae with confirmed borrower fraud, leading to discussions on next steps and resolution.
Technology Segment Challenges
JLL Technologies faced a decline in revenue due to lower technology solutions bookings and year-over-year changes in carried interest.
Company Guidance
During the Jones Lang LaSalle Incorporated fourth quarter 2024 earnings call, JLL provided a robust set of metrics indicating strong financial performance and strategic guidance. The company reported a double-digit revenue growth in the fourth quarter, with adjusted EBITDA and EPS growing by 20% and 17%, respectively. For the full year, these metrics increased by 28% and 38%, significantly outpacing a 13% revenue growth, showcasing effective operating leverage. The call highlighted an impressive free cash flow generation, which enabled reinvestment into the business, leverage reduction, and $80 million returned to shareholders through share repurchases. JLL's liquidity stood at $3.6 billion, with net leverage reduced to 0.7 times. The company's 2025 outlook includes an adjusted EBITDA range of $1.25 billion to $1.45 billion, reflecting a 14% growth at the midpoint, driven by anticipated recovery in transactional business lines and sustained growth in resilient revenues. JLL also emphasized strategic investments in technology, particularly AI, with initiatives such as JLL GPT and JLL Azara, enhancing service delivery and operational efficiency.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.