Jones Lang LaSalle

Jones Lang LaSalle 
www.jll.com






Jones Lang LaSalle Incorporated or JLL is a professional services and investment management company specializing in real estate. It is headquartered in Chicago, Illinois. They have 60,000 employees. They offer a range f real estate services, including agency leasing, project and development management/construction, capital markets, property management, corporate finance, real estate investment banking/merchant banking, energy and sustainability services, research, facility management outsourcing, strategic consulting and advisory services, investment management tenant representation , lease administration, transaction management, logistics and supply chain management, valuations, mortgage ordination and servicing, and value recovery and receivership services. The company also provides investment management services in institutional and retail investors, including high net worth individuals. It offers its services to real estate owners, occupiers, investors, and developers for various property types, including, cultural, educational, government, healthcare, laboratory, hotel hospitality and sports facilities; industrial, warehouse, office, residential, and retail properties.; critical environments, data, and transportation centers; infrastructure projects; military housing, and shopping mall.

This company was just bought by our Mustang Investment Club in October we paid $114.90.

Here are the statistics:

Positive Considerations:

1. 14.4% sales growth over the past five years. It is a mid capitalization company with 6 billion in sales in 2015.
2. Pre-tax profit on sales is 8.02% and that leads the industry average of 6.27%.
3. It has a 13.43% earned on stockholders equity that also leads the industry of 6.04%.
4. Earnings per share is 28.8% which is a little higher than sales. We like for it to be close to the same as sales. So this one is questionable. Not a deal breaker though.
5. It pays a .62 dividend which is less than half of earnings so they are spending on growth not tweaked to pay income.
6. The upside/downside ratio is invalid to 1 because the price is below the low end of the buy zone.
7. It is below the buy Zone at $96.98. The buy zone is $115-194 so it appears to be a bargain at this price.


Concerns:

1. They reported third quarter  EPS of $1.42 down from $2.56 last year and below adjusted estimates of $1.99.
2. Most analysts think this is an anomaly although they cannot explain what has happened.
3. In June of this year they acquired BRG ...the leading corporate Real Estate technology and management firm. This settled in July so not sure how this is going to factor into the bottom line. It is also a reason for the discrepancy in earnings and sales. Uncertainty.

We will purchase today 100 shares at 96.92. So we paid $9,699 with the $7 commission.

Here is where we stand:

TSCO $7,205 we paid $6,667 so gain of $538
KMX $5,689 we paid $5,046 so gain of $245
LCI $2,425 we paid $3,238 so loss of $813
JLL $9,692 we paid $9,699 so loss of $7

Loss of $30.