JUST EAT Plc – Value Analysis (LONDON:JE) : December 19, 2017

Capitalcube gives JUST EAT Plc a score of 66.

Our analysis is based on comparing JUST EAT Plc with the following peers – Koovs Plc, Ocado Group PLC, ASOS plc and boohoo.com Plc (KOOV-GB, OCDO-GB, ASC-GB and BOO-GB).

Investment Outlook

JUST EAT Plc has a fundamental score of 66 and has a relative valuation of UNDERVALUED.

Fundamental Score

Access our research and ratings on JUST EAT Plc

Company Overview

  • Compared to peers, relative underperformance last month is down from a median performance last year.
  • It trades at a lower Price/Book multiple (6.01) than its peer median (7.96).
  • The market expects JE-GB to grow more slowly than its peers and for its median ROE to decline.
  • JE-GB‘s relatively high profit margins are burdened by relative asset inefficiency.
  • Compared with its chosen peers, changes in the company’s annual earnings are better than the changes in its revenue, implying better than median cost control and/or some economies of scale.
  • JE-GB‘s return on assets currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • While JE-GB‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company is likely overinvesting in a business with only median returns.
  • JE-GB has the financial and operating capacity to borrow quickly.

Access our research and ratings on JUST EAT Plc

Leverage & Liquidity

JE-GB has the financial and operating capacity to borrow quickly.

  • With debt at a relatively low 0.02% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 0.43%), and a well-cushioned interest coverage level of 100.90x, JE-GB can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
  • Of the 4 chosen peers for the company, only 3 of the stocks have an outstanding debt balance. Companies with no debt include ASC-GB.

JE-GB has maintained its Quick & Able profile from the prior year-end.

  • JE-GB‘s interest coverage has increased 26.90 points from last year’s low but is still below its four-year average interest coverage of 690.67.
  • The increase in its interest coverage to 100.90x from 74x (in 2015) was also accompanied by an increase in its peer median during this period to 48.68x from 35.51x.
  • Interest coverage rose 13.73 points relative to peers.
  • JE-GB‘s debt-EV is its highest over the last four years and compares to a low of 0% in 2015.
  • Compared to 2015, debt-EV has remained relatively stable for both the company (0.02%) and the peer median (0.43%).

Access the detailed analysis for JUST EAT Plc

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Koovs Plc 0.79 4.3 -264.51 -1807.11
Ocado Group PLC 11.93 0.47 -3.55 38.96
ASOS plc 0 0.95 No interest exp 999
boohoo.com Plc 0.43 1.93 0 363.02
JUST EAT plc 0.02 1.12 100.9 10650
Peer Median 0.43 1.12 48.68 363.02
Best In Class 0.02 4.3 No interest exp 10650

Looking for more metrics and analysis for JUST EAT Plc?

Company Profile

JUST EAT plc operates an online marketplace for restaurant delivery. The company provides online takeaway ordering service that allows consumers to search for and order in real-time from their local takeaway restaurants through a single online portal. Its websites and mobile apps enable consumers to find an array of local takeaway restaurants and place orders directly through the JUST EAT platform. The company has operations in Belgium, Brazil, Canada, Denmark, France, India, Ireland, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom. JUST EAT was founded in 2001 and is headquartered in London, the United Kingdom.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.