Janus Henderson Group Plc

Team Veye | 05 May 2020 ASX - JHG
Janus Henderson Group Plc
Call Buy
Asx JHG
sector Financial

Janus Henderson Group PLC (ASX: JHG) is an independent global asset manager. The Company specializes in active investment across all asset classes. It operates through the investment management business segment. It manages a broad range of investment products for institutional and retail investors across five capabilities: Equities, Quantitative Equities, Fixed Income, Multi-Asset, and Alternatives. It operates across various product lines, distribution channels, and geographic regions. Its regional focus includes the United States, Europe, Asia and Australia (Profile source: Reuters)

From the Company Reports

Janus Henderson Group plc Reports First Quarter 2020 Diluted EPS of US$(1.35), or US$0.60 on an Adjusted Basis

Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) on 30 April 2020 published its first-quarter 2020 results for the period ended 31 March 2020

      

(Graphic Source – Company Reports)

Financial highlights

  • Solid long-term investment performance, with 65% and 66% of assets under management (‘AUM’) outperforming relevant benchmarks on a 3 and 5 year basis, respectively, as at 31 March 2020 
  • First quarter 2020 operating income of US$(332.4) million includes goodwill and intangible asset impairment charges of US$487.3 million. Adjusted operating income of US$164.5 million is up 15% compared to the same period a year ago 
  • AUM of US$294.4 billion, down 21% compared to the prior quarter, reflecting the impact of COVID-19 and net outflows. Average AUM of US$352.7 billion is down 3% compared to the prior quarter 
  • Completed US$31 million of share buybacks during the first quarter 
  • Board declared quarterly dividend of US$0.36 per share

 

First quarter 2020 operating income was US$(332.4) million compared to US$154.3 million in the fourth quarter 2019 and US$124.5 million in the first quarter 2019. Adjusted operating income, adjusted for the goodwill and intangible asset impairments and one-time, acquisition and transaction-related costs, of US$164.5 million decreased 4% compared to US$171.0 million in the fourth quarter 2019 and increased 15% compared to US$143.4 million in the first quarter 2019.

(Graphic Source – Company Reports)

First quarter 2020 diluted earnings (loss) per share was US$(1.35) compared to US$0.59 in the fourth quarter of 2019 and US$0.48 in the first quarter of 2019. Adjusted diluted earnings per share of US$0.60 decreased 8% compared to US$0.65 in the fourth quarter of 2019 and increased by 7% versus US$0.56 in the first quarter of 2019.

Share Buyback Programme

Janus Henderson Group plc (the Company) on 6 March 2020 announced its intention to commence its on-market share buyback programme (Buyback) on and from 6 March 2020.

Under the Buyback, Janus Henderson Group intends to spend up to US$200 million to buy its ordinary shares on the New York Stock Exchange (NYSE) and its CHESS Depositary Interests (CDIs) on the Australian Securities Exchange (ASX) in each case through BofA Securities, Inc. on the NYSE and through Merrill Lynch Equities (Australia) Limited (MLEA) on the ASX. MLEA undertakes to purchase CDIs as principal and sell the CDIs to the Company by way of one or more special crossings.

The Buyback will continue until the Company’s Annual General Meeting in 2021, though the Company reserves the right to end the Buyback earlier.

Janus Henderson Group plc Reports Fourth Quarter 2019 Diluted EPS of US$0.59, or US$0.65 on an Adjusted Basis

(Graphic Source – Company Reports)

Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) on 4 February 2020 published its fourth quarter and full year 2019 results for the period ended 31 December 2019.

Financial highlights

  • Strong investment performance, with 76% and 77% of assets under management (‘AUM’) outperforming relevant benchmarks on a 3 and 5-year basis, respectively, as at 31 December 2019 
  • Fourth quarter 2019 operating income of US$154.3 million and adjusted operating income of US$171.0 million 
  • AUM of US$374.8 billion, up 5% compared to the prior quarter, as a result of strong markets and favourable FX partially offset by net outflows 
  • Completed US$13 million of share buybacks during the fourth quarter concluding the US$200 million share buyback programme 
  • Board declared a quarterly dividend of US$0.36 per share and approved the additional authorisation of US$200 million of buybacks through April 2021

 

(Chart source: TradingView)

(Chart source: TradingView)

Fourth quarter 2019 operating income was US$154.3 million compared to US$143.6 million in the third quarter of 2019 and US$150.0 million in the fourth quarter of 2018. Adjusted operating income, adjusted for onetime, acquisition and transaction related costs, of US$171.0 million increased 7% compared to US$160.2 million in the third quarter 2019 and increased 3% compared to US$145.3 million in the fourth quarter 2018. 

Fourth quarter 2019 diluted earnings per share were US$0.59 compared to US$0.58 in the third quarter of 2019 and US$0.54 in the fourth quarter of 2018. Adjusted diluted earnings per share of US$0.65 increased 2% compared to US$0.64 in the third quarter of 2019 and increased by 10% versus US$0.59 in the fourth quarter of 2018.

 

  Janus Henderson Group PLC (JHG)
Stock Overview
Sector Diversified Financials
Risk Low to Medium
Market Cap $1.08 billion
Daily average Volume 554,065
EPS (FY) $3.154
PE RATIO 8.4
Yearly Dividend Yield  7.88%.
Target Price (s) T1 and T2 T1 $31.0    T2 $39.0
Stop Loss $22.70
Recommendation Buy
52 weeks High $41.32
52 weeks Low $20.68
Directors Mr Richard Weil
Non-executive Directors Ms Kalpana Desai
Mr Jeffrey Diermeier

 

Veye’s Take

The quarterly results were better than the estimated. ETF management fee cut was also to the investor's liking. Janus Henderson has a strong balance sheet and is generating positive cash flow despite significant market declines around the world. The Company in 2019 had US$375 billion of assets under management, an increase of 14% from the prior year end driven by strong markets and investment performance. In this year’s first quarter results, while AUM declined 21% to US$294 billion, due to the COVID-19 pandemic’s effect on both the global markets and investor sentiment, JHG remained solidly profitable, generating $164.5 million in adjusted operating income and $0.60 in adjusted EPS for the quarter. Its current AUM is up more than 5% from the end of March. Janus Henderson Group’s share price is substantially undervalued (>50%) compared to its fair value. JHG is good value based on its PB Ratio (0.7x) compared to the AU Capital Markets industry average (1.5x). JHG’s earnings (41.7% per year) are forecast to grow faster than the Australian Market (13.2% per year). It has high growth earnings which are expected to grow significantly over the next 3 years. JHG’s short term assets ($2.2B) exceed its short term liabilities ($690.7M). It also exceeds its long term liabilities ($1.1B). JHG’s debt to equity ratio (3.3%) is considered satisfactory. It has reduced from 14.8% to 3.3% over the past 5 years. JHG’s debt is well covered by operating cash flow (334.2%). JHG’s dividends in 3 years are forecast to be covered by earnings (70.2%) payout ratio. The stock has started moving nicely on the charts. After forming sort of double bottom, it has come out of the price squeeze, as seen in the short term chart. The stock can perform well in the short to medium term. Veye recommends a "Buy" on “Janus Henderson Group PLC” at the current price of $28.35

 

 

 

 

 

 


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