Latest news with #JohnsLyngGroup
Daily Telegraph
28-05-2025
- Business
- Daily Telegraph
Byron Bay's Beach Hotel sold for $140m
The famous Beach Hotel at Byron Bay has traded hands for $140m, the second most expensive Aussie pub ever sold. 'The Beachie' has been bought by Scott Didier, Group CEO of construction firm Johns Lyng Group. The $140m price tag is the second highest price paid for a pub in Australia, behind The Crossroads Hotel in Casula in Sydney's southwest which changed hands for $160m in 2022. MORE: Bizarre feature of Hemsworth's $50m Byron Bay home MA Financial Group's Redcape Hospitality confirmed the sale late Wednesday. 'The Beach Hotel is a special place, and the team has thoroughly enjoyed being a part of its history' said Chris Unger, Managing Director, Redcape Hospitality. 'The sale not only delivers a strong result but also marks an exciting new chapter for the Beach Hotel and we are sure it will continue to thrive as a beloved part of the Byron Bay landscape under the guidance of the Didier family.' The sale was brokered by John Musca of JLL. The sale of The Beach Hotel has come amid increased new competition for drinking holes across NSW. Originally a family pub run by Sale of the Century hostess Delvene Delaney and her producer husband – and best mate to Paul Hogan, John 'Strop' Cornell – The Beach Hotel in Byron was the first Aussie pub to sell for $100m, when it last traded in 2019. RELATED: How family business became billion dollar pub empire Records then revealed that global investment firm MA Financial Group had entered into an exclusivity agreement to purchase the 4585sq m property that Delaney and Cornell, who produced and co-wrote the international blockbuster Crocodile Dundee, spent about $9 million building up in the 1990s. The pub has since been managed by Redcape. At the time of the 2019 sale, Dan Brady, CEO of MA Financial Group, described the almost waterfront hotel as an 'iconic Australian establishment located on irreplaceable real estate.' MORE: Kmart set to change everything in Temu war 'The acquisition of both freehold and operating interests will enable the required capital investment to further enhance what has made the hotel iconic – that is, a great community gathering place with a fun, sociable, friendly and safe hospitality offering delivered by an engage and passionate team of local hospitality professionals,' Mr Brady. said. The Oaks Hotel in Neutral Bay on Sydney's North Shore was believed to have been sold for $175m in 2022, before the sale fell through and long-time owners The Thomas family decided to keep running it. Former Sydney Lord Mayor Nelson Meers and his family were revealed as the buyers who paid top dollar for The Crossroads. MORE: Price of car spot proves Australia has lost it
AU Financial Review
28-05-2025
- Business
- AU Financial Review
The Beach Hotel in Byron sells for $140m
Businessman Scott Didier has purchased The Beach Hotel in Byron Bay off market for $140 million from Redcape Hotel Group, marking the second-highest price paid in a pub trade on record. Didier, who is also chief executive of ASX-listed construction company Johns Lyng Group and a prolific philanthropist, and his family have bought the prominent hotel as a personal investment.
Yahoo
19-05-2025
- Business
- Yahoo
Johns Lyng Group Limited's (ASX:JLG) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
With its stock down 41% over the past three months, it is easy to disregard Johns Lyng Group (ASX:JLG). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Johns Lyng Group's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Johns Lyng Group is: 11% = AU$53m ÷ AU$501m (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. That means that for every A$1 worth of shareholders' equity, the company generated A$0.11 in profit. Check out our latest analysis for Johns Lyng Group Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. On the face of it, Johns Lyng Group's ROE is not much to talk about. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 15%. In spite of this, Johns Lyng Group was able to grow its net income considerably, at a rate of 26% in the last five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. Next, on comparing Johns Lyng Group's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 26% over the last few years. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Johns Lyng Group is trading on a high P/E or a low P/E, relative to its industry. Johns Lyng Group has a significant three-year median payout ratio of 53%, meaning the company only retains 47% of its income. This implies that the company has been able to achieve high earnings growth despite returning most of its profits to shareholders. Additionally, Johns Lyng Group has paid dividends over a period of seven years which means that the company is pretty serious about sharing its profits with shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 43%. Accordingly, forecasts suggest that Johns Lyng Group's future ROE will be 11% which is again, similar to the current ROE. In total, it does look like Johns Lyng Group has some positive aspects to its business. That is, quite an impressive growth in earnings. However, the low profit retention means that the company's earnings growth could have been higher, had it been reinvesting a higher portion of its profits. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
19-03-2025
- Business
- Yahoo
Bullish Johns Lyng Group Insiders Loaded Up On AU$1.35m Of Stock
Quite a few insiders have dramatically grown their holdings in Johns Lyng Group Limited (ASX:JLG) over the past 12 months. An insider's optimism about the company's prospects is a positive sign. Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares. See our latest analysis for Johns Lyng Group In the last twelve months, the biggest single purchase by an insider was when MD, Group CEO & Executive Director Scott Didier bought AU$995k worth of shares at a price of AU$3.87 per share. That means that an insider was happy to buy shares at above the current price of AU$2.54. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Over the last year, we can see that insiders have bought 350.33k shares worth AU$1.4m. But insiders sold 100.00k shares worth AU$618k. In the last twelve months there was more buying than selling by Johns Lyng Group insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Johns Lyng Group insiders own about AU$28m worth of shares. That equates to 4.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. The fact that there have been no Johns Lyng Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Johns Lyng Group and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Johns Lyng Group and understanding these should be part of your investment process. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Is Johns Lyng Group Limited (ASX:JLG) Trading At A 48% Discount?
Johns Lyng Group's estimated fair value is AU$7.01 based on 2 Stage Free Cash Flow to Equity Current share price of AU$3.66 suggests Johns Lyng Group is potentially 48% undervalued The AU$4.91 analyst price target for JLG is 30% less than our estimate of fair value In this article we are going to estimate the intrinsic value of Johns Lyng Group Limited (ASX:JLG) by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. See our latest analysis for Johns Lyng Group We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$56.0m AU$98.5m AU$102.4m AU$101.1m AU$101.0m AU$101.8m AU$103.1m AU$104.8m AU$106.9m AU$109.2m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x4 Analyst x1 Est @ -0.05% Est @ 0.74% Est @ 1.29% Est @ 1.68% Est @ 1.95% Est @ 2.14% Present Value (A$, Millions) Discounted @ 7.0% AU$52.3 AU$86.1 AU$83.6 AU$77.2 AU$72.1 AU$67.9 AU$64.3 AU$61.1 AU$58.2 AU$55.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$678m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.6%. We discount the terminal cash flows to today's value at a cost of equity of 7.0%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$109m× (1 + 2.6%) ÷ (7.0%– 2.6%) = AU$2.5b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$2.5b÷ ( 1 + 7.0%)10= AU$1.3b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is AU$2.0b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of AU$3.7, the company appears quite good value at a 48% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Johns Lyng Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.0%, which is based on a levered beta of 1.069. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is not viewed as a risk. Weakness Earnings growth over the past year underperformed the Construction industry. Dividend is low compared to the top 25% of dividend payers in the Construction market. Opportunity Annual revenue is forecast to grow faster than the Australian market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by cash flow. Annual earnings are forecast to grow slower than the Australian market. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Johns Lyng Group, there are three further factors you should further examine: Financial Health: Does JLG have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does JLG's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
