NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- JLL's revenue growth has slightly outpaced the industry average of 16.9%. Since the same quarter one year prior, revenues rose by 24.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- JONES LANG LASALLE INC has improved earnings per share by 37.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, JONES LANG LASALLE INC turned its bottom line around by earning $3.48 versus -$0.53 in the prior year. This year, the market expects an improvement in earnings ($4.67 versus $3.48).
- JLL's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.
- JLL has underperformed the S&P 500 Index, declining 16.74% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- The gross profit margin for JONES LANG LASALLE INC is currently extremely low, coming in at 10.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.20% significantly trails the industry average.
Jones Lang LaSalle Incorporated provides integrated real estate and investment management services to owner, occupier, and investor clients worldwide. The company has a P/E ratio of 17.7, equal to the average real estate industry P/E ratio and equal to the S&P 500 P/E ratio of 17.7. Jones Lang LaSalle has a market cap of $2.9 billion and is part of the
industry. Shares are down 20.3% year to date as of the close of trading on Friday.
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