Johnson Service (JSG) AI Stock Analysis

• Market Cap: £578.06M
• Dividend Yield: 2.72%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.94
• Revenue Growth: 6.55%
• EPS Growth: 18.44%
• Country: UK
• Employees: 6,601
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.05
• Shares Outstanding: 394,021,550
• 10 Day Avg. Volume: 1,197,803
• 30 Day Avg. Volume: 1,330,501
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £177.50
• Price Target Upside: 23.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: 180.00p ▲(25.52% Upside)

Johnson Service's strong financial performance and positive earnings call are the primary drivers of its stock score. The technical analysis suggests a bullish trend, though caution is advised due to overbought signals. Valuation metrics indicate a fair price, with a reasonable dividend yield adding to the stock's appeal.

Johnson Service Business Overview & Revenue Model

Company Description

Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom. The company operates through two segments, Workwear; and Hotel, Restaurants and Catering. The Workwear segment supplies workwear garments and protective wear, and workplace hygiene services under the Johnsons Workwear brands, as well as provides laundering services. The Hotel, Restaurants and Catering segment offers linen services, including table linen, napkins, and chefs wear to the hotel, restaurant, and catering markets through the Afonwen, Bourne, PLS, Fresh Linen, Stalbridge, South West Laundry, and London Linen brands. It also engages in the property holding activities. Johnson Service Group PLC was incorporated in 1953 and is based in Preston Brook, the United Kingdom.

How the Company Makes Money

Johnson Service Group generates revenue primarily through its staffing services, which include temporary placements, contract staffing, and permanent recruitment. The company charges clients a fee based on a percentage of the employee's salary for permanent placements and a markup on hourly wages for temporary staff. Key revenue streams also include specialized services such as training and development for placed employees, which enhances the value JSG delivers to its clients. Additionally, strategic partnerships with industry leaders and participation in workforce development initiatives contribute to its earnings by expanding its client base and enhancing service offerings.

Johnson Service Financial Statement Overview

Summary

Johnson Service exhibits strong revenue and cash flow growth, with a stable balance sheet. Improvements in net profit margins and debt management are needed for sustained financial health.

Income Statement

Johnson Service has demonstrated strong revenue growth over the years, with a notable increase from 2023 to 2024. The company has consistently improved its EBIT and EBITDA margins, highlighting robust operational efficiency. However, the net profit margin is moderate, suggesting room for improvement in managing overall costs.

Balance Sheet

The balance sheet shows a healthy equity ratio, indicating stability. The debt-to-equity ratio has been maintained at a manageable level, reflecting prudent financial leverage. Return on equity has improved, showcasing better profitability for shareholders. However, the absolute debt levels have seen an increase, which could pose future risks if not managed effectively.

Cash Flow

The company presents a strong operating cash flow to net income ratio, indicating efficient cash generation relative to earnings. Free cash flow has grown significantly, supporting potential reinvestment and shareholder returns. However, the volatility in capital expenditures suggests fluctuations in investment strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	513.40M	465.30M	385.70M	271.40M	229.80M
Gross Profit	190.70M	167.10M	135.00M	81.10M	55.40M
EBITDA	152.20M	129.40M	104.90M	58.00M	49.20M
Net Income	35.60M	27.30M	29.00M	6.60M	-26.90M
Balance Sheet
Total Assets	562.30M	509.00M	433.50M	412.90M	382.90M
Cash, Cash Equivalents and Short-Term Investments	11.50M	9.60M	6.10M	5.20M	7.80M
Total Debt	127.10M	114.50M	54.10M	65.30M	41.60M
Total Liabilities	255.40M	229.90M	148.90M	140.50M	128.30M
Stockholders Equity	306.90M	279.10M	284.60M	272.40M	254.60M
Cash Flow
Free Cash Flow	91.20M	28.40M	18.30M	-21.60M	13.80M
Operating Cash Flow	141.80M	121.40M	94.50M	44.60M	64.50M
Investing Cash Flow	-130.70M	-119.20M	-71.60M	-66.90M	-46.80M
Financing Cash Flow	-9.50M	-2.10M	-17.70M	11.30M	-8.20M

Johnson Service Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JSG, the sentiment is Negative. The current price of 143.4 is below the 20-day moving average (MA) of 147.79, above the 50-day MA of 143.13, and above the 200-day MA of 138.76, indicating a neutral trend. The MACD of 1.12 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:JSG.

Johnson Service Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	79 Outperform	£578.06M	16.66	12.46%	2.72%	6.55%	18.44%
SRP	77 Outperform	2.21B	46.50	5.25%	1.60%	0.84%	-62.73%
RWS	71 Outperform	326.54M	13.07	5.28%	14.10%	-0.78%	0.00%
MTO	70 Outperform	1.81B	17.17	24.71%	3.11%	14.34%	-16.43%
RST	64 Neutral	368.33M	38.63	5.30%	2.23%	6.90%	0.00%
CPI	59 Neutral	294.04M	18.00	38.37%	―	-4.87%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Johnson Service Corporate Events

Johnson Service Group Executes Share Buyback

Johnson Service Group PLC, a company involved in the purchase and management of its own shares, announced a recent transaction involving the acquisition of 2,102 of its ordinary shares through Investec Bank plc. The shares were bought at prices ranging from 149.80 to 150.80 pence, with a weighted average price of 150.4827 pence. The company plans to cancel these shares as part of a buyback program initiated on 2nd September 2025, which could potentially impact its stock value and shareholder equity.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £171.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.

Johnson Service Group Initiates Share Buyback Program

Johnson Service Group PLC has announced the purchase of 12,856 of its ordinary shares at an average price of 148.7556 pence per share as part of a buyback program initiated on September 2, 2025. This move to repurchase and cancel its shares is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £171.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.

Johnson Service Group Initiates £25 Million Share Buyback Program

Johnson Service Group PLC, a company focused on disciplined investment and capital efficiency, has announced the commencement of a new share buyback program. The company plans to return up to £25 million to shareholders by March 2026, reflecting its strong balance sheet and cash-generating capabilities. This buyback aims to reduce the company’s share capital and is in line with its capital allocation policy.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £157.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.

Johnson Service Group Reports Revenue Growth and Announces New Share Buyback

Johnson Service Group PLC reported a 5.5% increase in revenue to £257.5 million for the first half of 2025, with significant growth in its HORECA division. The company has completed a £30 million share buyback and plans an additional £25 million buyback, reflecting its strong financial position and commitment to shareholder returns. Despite challenges in the hospitality market and rising employment costs, the company improved its adjusted operating profit margin to 11.1% and aims for at least 14% by 2026, supported by productivity improvements and cost management.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £157.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.

Johnson Service Group Executes Share Buyback

Johnson Service Group PLC, a company involved in the textile services industry, has announced the repurchase of 180,368 of its ordinary shares at prices ranging between 139.20 pence and 142.40 pence, with a weighted average price of 141.7487 pence. This transaction is part of a buyback program initiated in March 2025, and the company intends to cancel the repurchased shares, potentially impacting its share value and market perception by reducing the total number of shares outstanding.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £159.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.

Johnson Service Group Completes £30 Million Share Buyback Programme

Johnson Service Group PLC has successfully completed its share buyback programme, which began on March 5, 2025. The company repurchased 21,074,153 ordinary shares, representing 5.1% of its issued share capital, at an average price of 142.35 pence per share, totaling £30 million. This completion brings the total cash returned to shareholders to £65.3 million since the start of its first buyback programme in September 2022. The announcement of the results for the six months ending June 30, 2025, is scheduled for September 2, 2025.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £159.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.

Johnson Service Group Announces Share Buyback

Johnson Service Group PLC, a company involved in a share buyback program, announced the purchase of 145,482 of its ordinary shares at a weighted average price of 142.4976 pence per share. The company plans to cancel these shares, which is part of a previously announced buyback program aimed at consolidating its share capital and potentially enhancing shareholder value.

The most recent analyst rating on (GB:JSG) stock is a Buy with a £159.00 price target. To see the full list of analyst forecasts on Johnson Service stock, see the GB:JSG Stock Forecast page.