Added to YB: 2025-04-23
Pitch date: 2025-04-21
JLG.AX [bearish]
Johns Lyng Group Limited
-97.52%
current return
Author Info
No bio for this author
Company Info
Johns Lyng Group Limited provides integrated building services in Australia, New Zealand, and the United States.
Market Cap
AUD 1.1B
Pitch Price
AUD 2.02
Price Target
N/A
Dividend
N/A
EV/EBITDA
10.33
P/E
30.08
EV/Sales
1.09
Sector
Construction and Engineering
Category
N/A
Johns Lyng Group (JLG-AU) has dumb revenue recognition accounting
JLG.AX (short): Low-quality restoration contractor with 8% market share in fragmented industry. Revenue recognition too aggressive—overestimates recoverable costs from insurers. Poor ~19% cash conversion despite rising margins. P/E ~25x historically overvalued. 80% BAU/20% CAT revenue mix. CAT work cyclical, damages scorecard with insurers. Roll-ups likely destroy value. Worth much less than current ~$2.
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