Janus Henderson Group Plc

JHG

Investment Advice

Mkt Cap

$4.118B

PE

11.97

Debt

$305.3M

Cash

$1.14B

EV

$3.283B

FCF

$410.4M

Market Cap

$4.118B

P/E Ratio

11.97

Debt

$305.3M

Cash

$1.14B

EV

$3.283B

FCF

$410.4M

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.

Sector

10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Janus Henderson Group Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$410.4M	$446.1M	$483.1M	$521.1M	$560M	$599.5M	$639.4M	$679.2M	$718.7M	$757.6M	$795.5M	$7.955B
DCF		$387.9M	$365.3M	$342.6M	$320.2M	$298.1M	$276.4M	$255.3M	$235M	$215.4M	$196.6M	$1.966B
Value	$4.859B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 2.4%

Earnings Stability -24%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	28%	18%	37%	22%	19%	6.8%	22%	12%	17%
ROA	-	9.5%	6.2%	9.6%	7.7%	3.6%	12%	7.9%	6.6%
ROE	17%	10%	13%	10%	8.5%	3.3%	13%	6.3%	7.7%

What is the average Net Margin?

The average Net Margin over the past 5 years is +19.73%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -3.78%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.85%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.36%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +9.07%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.89%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	-	-	0.89	0.50	0.74	0.50	0.35	0.67	0.74
Debt Equity	-	-	0.08	0.07	0.06	0.07	0.07	0.07	0.07
MIN
Graham Stability	-	-	-	100%	95%	30%	100%	70%	30%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.74.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.05.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.30.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	9.7%	4.8%	0.17%	-20%	-5.6%
Net Income	-2.2%	-16%	-13%	-55%	-0.7%
Stockholders Equity	13%	-2.2%	-3.8%	-6.4%	-13%
FCF	2.8%	1.3%	2.3%	-49%	-4.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.79%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -5.58%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -15.53%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.7%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -2.2%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -13.12%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +1.34%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.59%.