How does the current valuation (P/E, EV/EBITDA) compare to peers in the building products and access control sectors?
Short answer: The press release you provided about JanâŻJBIâs secondâquarter 2025 results does not contain any valuation metrics (e.g., current priceâtoâearnings ratio, EV/EBITDA, marketâcap, enterprise value, or comparable peer ratios). Consequently, we canât directly compare JanâŻJBIâs valuation to its peers in the buildingâproducts or accessâcontrol sectors based on this news alone.
What We Can Infer from the Release
| Item | Data from the Release | What It Means for Valuation |
|---|---|---|
| Revenue (Q2â25) | $228.1âŻM (down 8.2% YoY) | Lower revenues can put downward pressure on the share price if the market perceives the decline as a sign of weakening demand, potentially lowering the P/E ratio. |
| Revenue (Q2â24) | $248.4âŻM | Provides the baseline for the 8.2% decline. |
| Sector Position | âLeading provider of buildingâproduct solutions and cuttingâedge accessâcontrol technologies for selfâstorage and other commercial/industrial sectors.â | Being a âleaderâ can command a premium versus peers, but the magnitude depends on growth expectations, margins, and cashâflow generation. |
| Profitability | Not disclosed (no net income, EPS, EBITDA, or operating income figures). | Without earnings or EBITDA figures, we cannot calculate P/E or EV/EBITDA. |
| Guidance / Outlook | Not included in the excerpt. | Guidance influences forwardâlooking multiples (e.g., forward P/E). |
Bottom line: The data you have is insufficient for a concrete valuation comparison.
How to Obtain the Needed Numbers
| Metric | Where to Find It | Typical Calculation |
|---|---|---|
| Current priceâtoâearnings (P/E) | ⢠Financial statements (10âQ, 10âK) for net income and shares outstanding ⢠Current market price from any stockâquote platform (e.g., Yahoo Finance, Bloomberg) |
P/E = (Share price) á (EPS) |
| EV/EBITDA | ⢠Enterprise Value = Market cap + Total debt â Cash & cash equivalents (balance sheet) ⢠EBITDA from the income statement (or EBITDAâadjusted) |
EV/EBITDA = Enterprise value á EBITDA |
| Peer Group | ⢠Buildingâproducts: e.g., James Hardie (HI), CEMEX (CX), MRC Global (MRC) ⢠Accessâcontrol: e.g., ASSA ABLOY (ASSA-B), Allegion (ALLE), Security Systems & Services (SS) ⢠Use a sector classification (GICS, NAICS) to pick comparable companies. |
N/A |
| Benchmark Multiples | ⢠Bloomberg Terminal, S&P Capital IQ, FactSet, or free sources (Yahoo Finance âStatisticsâ tab). | N/A |
Tip: When comparing multiples, ensure that youâre using the same basis (e.g., trailingâ12âmonth (TTM) vs. forwardâlooking). Also, adjust for any oneâoff items that may skew earnings (e.g., restructuring charges, asset sales).
How to Conduct the Comparison (StepâbyâStep)
Gather JanâŻJBIâs latest numbers
- Retrieve the Q2â2025 FormâŻ10âQ (or the companyâs earnings release) that includes Net Income, EBITDA, Shares Outstanding, Cash & Cash Equivalents, Total Debt, and Market Capitalization.
- Retrieve the Q2â2025 FormâŻ10âQ (or the companyâs earnings release) that includes Net Income, EBITDA, Shares Outstanding, Cash & Cash Equivalents, Total Debt, and Market Capitalization.
Calculate JanâŻJBIâs multiples
```text
EPS = Net Income á Shares Outstanding
P/E = Current share price á EPS
EBITDA = Operating Income + Depreciation + Amortization (or directly from the statement)
EV = Market cap + Total Debt â Cash & equivalents
EV/EBITDA = EV á EBITDA
```
Select Peer Companies
- Choose a set of 5â10 companies that are direct competitors in either the buildingâproduct space (e.g., buildingâmaterial manufacturers, constructionâproduct distributors) or the accessâcontrol space (e.g., electronic lock and security system providers).
- Ensure the peer set is of similar size (midâcap vs. largeâcap) to avoid distortions from scale differences.
- Choose a set of 5â10 companies that are direct competitors in either the buildingâproduct space (e.g., buildingâmaterial manufacturers, constructionâproduct distributors) or the accessâcontrol space (e.g., electronic lock and security system providers).
Collect Peer Multiples
- Use the same timeâframe (TTM) for all companies.
- Example sources: Bloomberg, S&P Capital IQ, Yahoo Finance âStatisticsâ tab, or the companiesâ own investorârelations pages.
- Use the same timeâframe (TTM) for all companies.
Compare and Interpret
- Higher P/E â market expects higher growth or lower risk, lower P/E â market perceives slower growth or higher risk.
- Higher EV/EBITDA â premium valuation, possibly due to higher margins, growth prospects, or a strategic âmoatâ.
- Compare JanâŻJBIâs multiples to the industry median or mean for each sector.
- If JanâŻJBIâs multiples are below peers, the market may be discounting the company (perhaps due to the revenue decline you see). If they are above peers, the market may be pricing in future growth (e.g., new product lines, market share gains, cost efficiencies).
- Higher P/E â market expects higher growth or lower risk, lower P/E â market perceives slower growth or higher risk.
Contextual Factors
- Seasonality: Selfâstorage and construction can be seasonal; adjust expectations accordingly.
- Oneâoff items: The news mentions a 14.8% decline (truncated), which might be driven by specific contracts or inventory adjustments; adjust the earnings if needed.
- Guidance: If the company gave forwardâlooking guidance (e.g., FY 2025 revenue target, profit margin expectations), incorporate that into a forward P/E or forward EV/EBITDA analysis.
- Seasonality: Selfâstorage and construction can be seasonal; adjust expectations accordingly.
Example (Illustrative Only)
| Company | P/E (TTM) | EV/EBITDA (TTM) | Comments |
|---|---|---|---|
| JanâŻJBI (hypothetical) | 8.5Ă | 7.3Ă | Revenue down 8%, but margin could be stable if cost control is strong. |
| James Hardie (HI) | 12.4Ă | 9.1Ă | Higher valuation reflects stronger growth outlook in specialty building products. |
| Allegion (ALLE) | 14.2Ă | 10.5Ă | Accessâcontrol firms typically command higher multiples due to recurring SaaSâlike services. |
| MRC Global (MRC) | 10.1Ă | 8.0Ă | Midârange valuation; similar to JanâŻJBI if EBITDA margins are comparable. |
Interpretation (example):
- If JanâŻJBIâs actual P/E is â8â9Ă versus peers at 10â14Ă, the market is valuing JanâŻJBI at a discount, possibly reflecting the 8% revenue decline or expectations of weaker growth in the selfâstorage market.
- If EV/EBITDA is also lower, it confirms the discount relative to earnings and cashâflow generation.
Bottom Line for the Question
Because the press release does not supply earnings, EBITDA, or marketâcapitalization data, we cannot calculate JanâŻJBIâs P/E or EV/EBITDA from the information you provided.
To answer the âhow does it compareâ question youâll need to:
- Pull JanâŻJBIâs most recent earnings (net income, EBITDA) and marketâcap data.
- Compute the P/E and EV/EBITDA for JanâŻJBI.
- Gather the same metrics for a set of comparable buildingâproducts and accessâcontrol companies.
- Compare JanâŻJBIâs multiples to the peer median/average to see whether the stock trades at a discount or premium.
If you retrieve the necessary numbers (or let me know the figures you have), I can walk you through the calculations and provide a concrete comparative analysis.