One-glance verdict
Within fair range
$452.87 our estimate vs market $370.80
Wall Street consensus: $415.90 (-8.2% lower than our fair-value estimate)
18% below our estimate
Fundamentals snapshot
Jones Lang LaSalle Incorporated
JLL · NYQ · Real Estate · Real Estate Services
Current price
$370.80
52-week range
$259.83 - $395.79
Market cap
$16.94B
Balance sheet
Watch
10.93x Adequate
Net debt $2.71B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 8.0% last year.
- Reward Returns 14.5% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.9% (peer median: 1.6%).
What this company does
Jones Lang LaSalle Incorporated
Jones Lang LaSalle (JLL) is like a big helper for businesses and investors when it comes to commercial properties, such as office buildings and warehouses. They make money mainly by providing services like helping people rent out or find spaces, managing properties, and giving advice on real estate investments. This matters because JLL's success is tied to how active and healthy the commercial real estate market is, meaning they do well when businesses are expanding and investing in physical locations.
How the company got here
Jones Lang LaSalle, or JLL, has a history that stretches back to 1783 with the founding of Jones Lang Wootton in London. The American side of the company, LaSalle Partners, was founded in 1968. These two firms, with deep roots in real estate services and investment management, merged in 1999 to form the global powerhouse JLL we know today. This merger created a company with a significant global reach and a broad range of services, though integrating the two entities proved to be a complex process initially. Over the years, JLL has grown into a Fortune 500 company, expanding its operations across more than 80 countries.
What it actually does
JLL is a global professional services firm that specializes in real estate and investment management. Think of them as a one-stop shop for anything related to commercial property. They help businesses and investors buy, sell, lease, finance, manage, and invest in all sorts of real estate, from towering office buildings and sprawling industrial warehouses to hotels and apartment complexes. They offer a wide array of services, essentially guiding clients through every step of a property's lifecycle, from initial concept and development to ongoing management and eventual sale.
Real Estate Management Services
This is the largest part of JLL's business, making up the bulk of its revenue. It's all about managing properties for clients, whether that's a single office building or a vast portfolio of real estate assets. This includes everything from handling day-to-day operations like maintenance and security (often called facilities management) to planning how spaces are used within a building (workplace management) and overseeing construction or renovation projects (project management). Essentially, they ensure that properties are running smoothly, efficiently, and are well-maintained for owners and occupants.
Leasing Advisory
This segment focuses on helping clients find tenants for their properties or find suitable spaces for businesses to lease. For property owners, JLL's leasing advisors market the space, negotiate lease terms, and aim to secure tenants that best fit the owner's needs. For businesses looking to rent space, they act as tenant representatives, helping them find the right location and negotiate favorable lease agreements. This part of the business involves a lot of transactions, where JLL earns fees based on the leases that are signed.
Capital Markets Services
When it comes to large-scale real estate transactions, JLL's Capital Markets Services team is involved. They help clients buy and sell major properties, acting as intermediaries to connect buyers and sellers. This also includes helping clients secure financing for their real estate deals, whether that's through debt (loans) or equity (investment from partners). Essentially, they facilitate the flow of money into and out of real estate investments, handling billions of dollars in client transactions annually.
Investment Management
Through its subsidiary, LaSalle Investment Management, JLL manages real estate investments on behalf of institutional investors (like pension funds) and wealthy individuals. They essentially act as money managers for real estate. This involves deciding which properties or real estate-related investments to buy, managing those assets to increase their value, and then selling them when the time is right. It's a significant business, managing billions of dollars in assets across numerous countries.
Software and Technology Solutions
JLL is also investing in technology to enhance its real estate services. This segment offers cloud-based software solutions designed to improve property management, streamline operations, and enhance how tenants interact with their buildings. These tools help manage work orders, analyze data, and provide insights for better decision-making in real estate. This part of the business is growing as the real estate industry increasingly adopts technology to become more efficient.
What management is betting on now
JLL's current strategy, called 'Accelerate 2030,' is all about strengthening its position in the market by heavily leaning on data, technology, and artificial intelligence (AI). They aim to use these tools to provide even better advice to clients, execute real estate deals more effectively, and offer more integrated solutions. Management is focused on driving consistent revenue and earnings growth over the long term, while also returning capital to shareholders through share buyback programs. This strategy emphasizes leveraging their global platform and deep industry knowledge to capture future growth opportunities in the evolving real estate landscape.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$7.28B
Net income
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Diluted EPS
6.85
Operating cash flow
$609.70M
Free cash flow
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Sources
Revenue
$6.93B
Net income
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Diluted EPS
4.59
Operating cash flow
$488.10M
Free cash flow
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Revenue
$6.39B
Net income
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Diluted EPS
3.33
Operating cash flow
$-755.00M
Free cash flow
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Revenue
$7.61B
Net income
$792.10M
Diluted EPS
8.33
Operating cash flow
$1.01B
Free cash flow
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Revenue
$6.51B
Net income
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Diluted EPS
4.61
Operating cash flow
$617.10M
Free cash flow
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Revenue
$6.25B
Net income
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Diluted EPS
2.32
Operating cash flow
$332.80M
Free cash flow
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Revenue
$5.75B
Net income
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Diluted EPS
1.14
Operating cash flow
$-767.60M
Free cash flow
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Revenue
$6.81B
Net income
$241.20M
Diluted EPS
4.98
Operating cash flow
$927.30M
Free cash flow
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Is it cheap or expensive?
Fair value $452.87 vs current price $370.80
Wall Street consensus is the average analyst price target: $415.90 (-8.2% lower than our fair-value estimate).
Our most-likely fair value is $452.87 a share — about 22.1% away from today's price of $370.80, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $2.7B. Interest coverage 10.9x.
Net debt
$2.71B
Interest coverage
10.93x
Jones Lang LaSalle Incorporated's profit covers its interest bill about 10.9 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
JLL
BASELINE
Jones Lang LaSalle Incorporated
Total debt $3.22B Interest coverage 10.93x This is the baseline the peer rows are being compared against.
Total debt $10.68B Interest coverage 25.70x +135% vs JLL Carries about 2.4x more debt cushion than JLL.
Total debt $3.15B Interest coverage 4.87x -55% vs JLL Carries about 2.2x less debt cushion than JLL.
Total debt $2.98B Interest coverage 2.12x -81% vs JLL Carries about 5.2x less debt cushion than JLL.
Total debt $2.61B Interest coverage 7.20x -34% vs JLL Carries about 1.5x less debt cushion than JLL.
What you should know
The case for and against JLL
3 Rewards
1 Risk
Rewards
-
Revenue grew 8.0% last year.
-
Returns 14.5% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 0.9% (peer median: 1.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.08x
Forward P/E
12.87x
P/B
2.21x
P/S
0.60x
EV/EBITDA
10.94x
PEG ratio
0.91x
Profitability
How much profit each dollar creates
Gross margin
51.2%
Operating margin
5.6%
Net margin
3.9%
ROE
14.5%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.41x
Current ratio
1.12x
Quick ratio
0.84x
Total debt
$3.22B
Total cash
$514.30M
Growth
How the business has been compounding
Revenue TTM
$28.20B
Revenue 5Y CAGR
7.8%
EPS TTM
23.06
EPS 5Y CAGR
7.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.35B
Free CF TTM
$978.50M
FCF margin
3.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2019-11-14