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1. Company Snapshot

1.a. Company Description

Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom.The company operates through two segments, Workwear; and Hotel, Restaurants and Catering.The Workwear segment supplies workwear garments and protective wear, and workplace hygiene services under the Johnsons Workwear brands, as well as provides laundering services.


The Hotel, Restaurants and Catering segment offers linen services, including table linen, napkins, and chefs wear to the hotel, restaurant, and catering markets through the Afonwen, Bourne, PLS, Fresh Linen, Stalbridge, South West Laundry, and London Linen brands.It also engages in the property holding activities.Johnson Service Group PLC was incorporated in 1953 and is based in Preston Brook, the United Kingdom.

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1.b. Last Insights on JSG

Johnson Service Group PLC's recent performance has been impacted by a decline in its share price, despite strong fundamentals. The company's recent three-month period has seen a 9.5% drop in share price. A closer look at the company's operations reveals that its share price has been affected by a decline in its revenue growth, partly due to a slowdown in the UK's commercial laundry market. Additionally, the company's recent earnings release showed a decline in its operating profit margin, which may have contributed to the market's negative sentiment. Furthermore, the company's share buyback program, announced in the recent earnings release, may have been overshadowed by the decline in revenue growth and operating profit margin.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Johnson Service Group PLC's (LON:JSG) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?

Dec -01

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Form 8.3 - IQE Plc

Sep -09

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Taylor Wimpey (LSE:TW.): A Fresh Look at Valuation After a Year of Share Price Pressure

Sep -09

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Sep -09

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HSBC sees gradual unwinding of OPEC+ voluntary cuts over next year

Sep -09

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HSBC HOLDINGS PLC ANNOUNCES RESULTS OF ITS TENDER OFFERS FOR FOUR SERIES OF NOTES

Sep -09

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Form 8.3 - UNITE GROUP PLC

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.61%)

6. Segments

Hotel, Restaurant and Catering

Expected Growth: 5%

Johnson Service Group PLC's 5% growth in Hotel, Restaurant, and Catering is driven by increasing demand for outsourced services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on sustainability, digitalization, and customer experience enhancements are contributing to its growth momentum.

Workwear

Expected Growth: 7%

Johnson Service Group PLC's 7% growth in Workwear is driven by increasing demand for high-quality, durable uniforms from industries such as healthcare, hospitality, and manufacturing. Additionally, the company's focus on sustainability, innovative fabric technologies, and strategic acquisitions have contributed to its growth. Furthermore, the rising trend of employee branding and corporate identity has led to increased spending on workwear, benefiting the company.

7. Detailed Products

Workwear

Johnson Service Group PLC provides high-quality workwear for various industries, including hospitality, healthcare, and manufacturing.

Textile Rental Services

The company offers a range of textile rental services, including laundry and linen supply, to businesses across various sectors.

Facilities Management

Johnson Service Group PLC provides facilities management services, including cleaning, maintenance, and repair, to help businesses maintain their properties.

Hygiene Services

The company offers a range of hygiene services, including washroom services and pest control, to help businesses maintain a clean and healthy environment.

8. Johnson Service Group PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Johnson Service Group PLC is moderate due to the availability of alternative services and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the market and the lack of concentration of buyers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a competitive landscape.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.58%
Debt Cost 6.64%
Equity Weight 78.42%
Equity Cost 12.14%
WACC 10.95%
Leverage 27.52%

11. Quality Control: Johnson Service Group PLC passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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GLEvents

A-Score: 5.5/10

Value: 5.5

Growth: 4.7

Quality: 4.6

Yield: 3.8

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

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Coor

A-Score: 5.3/10

Value: 5.0

Growth: 4.0

Quality: 3.2

Yield: 8.1

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Johnson Service Group

A-Score: 5.3/10

Value: 6.0

Growth: 6.9

Quality: 5.8

Yield: 3.1

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Mitie

A-Score: 5.2/10

Value: 5.6

Growth: 5.4

Quality: 4.7

Yield: 4.4

Momentum: 6.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
De La Rue

A-Score: 4.9/10

Value: 8.3

Growth: 2.2

Quality: 3.7

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Applus Services

A-Score: 4.5/10

Value: 5.2

Growth: 7.2

Quality: 1.9

Yield: 1.9

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.4$

Current Price

1.4$

Potential

-0.00%

Expected Cash-Flows