Stock of the day: Johns Lyng Group
With a robust business model, Johns Lyng Group leverages the impact of natural disasters to drive revenue, presenting an attractive option for investors.
(AI video summary)
This video was created on 6 March for IG audiences by ausbiz.
ASX code: JLG
Johns Lyng thrives amid natural disaster repair demand
The insurance sector has been under pressure recently due to the anticipated impacts of Cyclone Alfred on southeast Queensland. Among the affected companies is Johns Lyng Group, a building company that specialises in repairing damage caused by natural disasters. Unlike insurers, Johns Lyng benefits from these events as they are contracted to assess and repair damaged properties.
Financial performance
Johns Lyng recently adjusted its revenue forecast for the fiscal year (FY) 2025, expecting it to reach close to $1.2 billion, a 5% decrease from previous guidance. Despite this, the company saw a 7% rise in share prices, indicating investor confidence.
The firm's business-as-usual operations, such as repairing individual homes, performed well, contrasting with the catastrophe division, which saw reduced activity due to fewer natural disasters in the first half (H1) of the year.
Investment opportunities in a volatile market
Despite a recent dip in stock prices, the company's robust business model positions it well for future growth, especially as demand for repairs increases post-cyclone. Analysts project a double-digit annual return over the next five years, driven by a backlog of repair work.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Explore the markets with our free course
Discover and learn how the range of markets you can trade on with IG Academy's online course – ‘Introducing the financial markets’.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade on over 10,000 popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
