Johnson Service Group PLC

Johnson Service Group PLC maintains a capital structure characterized by significant leverage relative to its equity base. The company reports total assets of £579.5 million against total liabilities of £304.4 million, resulting in total equity of £275.1 million. Long-term debt stands at £170.3 million, while cash and equivalents are limited to £11.0 million, leading to a negative net cash position. The debt-to-equity ratio is 0.62, indicating moderate leverage. Liquidity is assessed as medium risk, supported by a current ratio of 0.93, which suggests that current liabilities slightly exceed current assets. Operating cash flow is robust at £139.9 million, but free cash flow is constrained to £16.5 million due to substantial capital expenditures of £105.1 million.

Profitability metrics indicate efficient asset utilization despite high valuation multiples. The company generated a net income of £37.1 million on revenue of £535.4 million, yielding a return on equity (ROE) of 13.49% and a return on assets (ROA) of 6.4%. These returns reflect the company's ability to generate profit from its equity and asset base. However, the valuation snapshot presents extreme multiples, with a price-to-earnings (P/E) ratio of 1,473.97 and an EV/EBITDA of 932.72. These figures suggest that the market price of £149.2 per share is significantly detached from current earnings power, or that the earnings base used for calculation is anomalously low relative to the market capitalization of £54.68 billion.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company's activity is broadly defined as Commercial Services & Supplies, but specific breakdowns of revenue by segment or geography are absent from the current dataset.

Growth trajectory analysis is limited by the absence of historical period data. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to assess the company's historical growth rate or momentum. The current financial snapshot provides a static view of performance, lacking the temporal context required to evaluate growth consistency or acceleration.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which aligns with the balance sheet showing £170.3 million in long-term debt versus £11.0 million in cash. The current ratio of 0.93 further underscores potential short-term liquidity pressures. Dilution risk is rated low, with basic and diluted shares outstanding both at 366.5 million, indicating no significant share-based compensation or convertible instruments impacting the share count.

Recent events and analyst sentiment suggest a positive outlook despite valuation concerns. The mean analyst price target is £185.50, with a median of £189.00, implying potential upside from the current market price of £149.2. The mean recommendation is 1.83, leaning towards a buy, with two strong buys, three buys, and one hold. These estimates reflect analyst confidence in the company's future performance, although the wide range between the low target of £150.00 and high target of £210.00 indicates varying expectations among analysts.

Revenue £535.4M, +4,3% YoY; Operating income +7,5% YoY.

• ▍Revenue £535.4M, +4,3% YoY
• ▍Operating income +7,5% YoY
• ▍Net income +4,2% YoY
• ▍Free cash flow +179,7% YoY
• ▍Net margin 6.9%

Revenue £513.4M, +10,3% YoY; Operating income +25,5% YoY.

• ▍Revenue £513.4M, +10,3% YoY
• ▍Operating income +25,5% YoY
• ▍Net income +30,4% YoY
• ▍Free cash flow −40,4% YoY
• ▍Net margin 6.9%

Revenue £465.3M, +20,6% YoY; Operating income +30,9% YoY.

• ▍Revenue £465.3M, +20,6% YoY
• ▍Operating income +30,9% YoY
• ▍Net income −5,9% YoY
• ▍Free cash flow −50,5% YoY
• ▍Net margin 5.9%

Revenue £385.7M, +42,1% YoY; Operating income +296,4% YoY.

• ▍Revenue £385.7M, +42,1% YoY
• ▍Operating income +296,4% YoY
• ▍Net income +339,4% YoY
• ▍Free cash flow +189,9% YoY
• ▍Net margin 7.5%

Revenue £271.4M; Operating income £8.4M.

• ▍Revenue £271.4M
• ▍Operating income £8.4M
• ▍Net margin 2.4%