Johnson Service (JSVGF) AI Stock Analysis

Johnson Service

(Other OTC:JSVGF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Multi-year revenue and profit recoveryThe substantial multi-year increase in revenue alongside a return to meaningful profitability indicates that the business has rebuilt operating scale and earnings capacity. This provides a stronger foundation for reinvestment, debt service and shareholder distributions over the next several quarters.

Negative Factors

Persistent HORECA revenue pressureHORECA is facing both volume weakness and cautious customer decision-making, with pricing increases unable to offset the decline in activity. If softer trading persists, this division could remain a drag on group growth and limit the benefits of performance elsewhere.

Johnson Service (JSVGF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $502.86M
Dividend Yield: 3.73%
Average Volume (3M): 65.38K
Price to Earnings (P/E): 14.8
Beta (1Y): 0.33
Revenue Growth: 5.53%
EPS Growth: 13.71%
Country: US
Employees: 6,696
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

Johnson Service Business Overview & Revenue Model

Company Description

Johnson Service Group PLC is a UK-based company that, through its various subsidiaries, specializes in providing textile rental and associated services. The company's operations are divided into two main segments: Workwear, and Hotel, Restaurants and...

Johnson Service Earnings Call Summary

Earnings Call Date:Sep 07, 2026(Q2-2026)|% Change Since:-4.71%|Next Earnings Date:Mar 08, 2027

Earnings Call SentimentPositive

The call was predominantly positive. The group delivered modest revenue growth, stronger operating profit, margin expansion, EPS growth, a higher dividend and continued progress on share buybacks. Workwear performed well, HORECA remained profitable despite lower volumes, and management maintained its adjusted operating margin target of at least 14% for 2026. The main challenges were HORECA's softer trading environment, labor cost inflation, higher interest expense and uncertainty around 2027 energy exposure.

Positive Updates

Resilient Group Revenue and Profit Growth

First-half group revenue increased by 0.2% to GBP 258 million, while adjusted operating profit increased by 3.8% to GBP 29.8 million. The group stated that customer price increases and contract acquisitions more than offset lower HORECA volumes.

Negative Updates

Decline in Organic Group Revenue

Organic group revenue declined by 0.7%, despite reported group revenue increasing by 0.2%.

Company Guidance

The group remains on track to deliver another year of progress and achieve its targeted adjusted operating margin of at least 14% in 2026; labor costs as a percentage of revenue are expected to moderate during the second half and trend towards the 2025 level, around that 46% mark, remaining broadly stable on a full year basis; energy costs are anticipated to show a further modest reduction in the second half of the year as a percentage of revenue; working capital is expected to be broadly in line with the 2025 levels on a full year basis; the majority of the current buyback program is expected to be completed by the end of this year, with leverage then expected to be maintained at the lower end of our target range at the year end; on a full year basis, the group expects to maintain its commitment on dividends with a dividend cover of 2.5 times; and in HORECA, the business is being managed under the assumption that this softer trading persists throughout the remainder of the year.

Johnson Service Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JSVGF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:MTO	67Neutral	GBP 2.65B	32.35	15.86%	2.15%	10.55%	-19.05%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:SRP	62Neutral	GBP 2.75B	18.75	17.55%	1.61%	1.20%	221.80%
GB:RTO	54Neutral	GBP 8.80B	24.81	5.82%	2.68%	-0.18%	39.04%
GB:CPI	47Neutral	GBP 307.23M	-1.53	-677.10%	―	-16.13%	-1315.87%
GB:IWG	44Neutral	GBP 1.78B	279.80	-2.52%	0.55%	0.18%	-55.56%

* Industrials Sector Average

Performance Comparison

JSVGF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JSVGF	Johnson Service	1.80	0.07	4.05%
GB:CPI	Capita plc	256.50	-51.50	-16.72%
GB:MTO	Mitie Group plc	209.00	50.47	31.84%
GB:RTO	Rentokil Initial	350.10	-61.73	-14.99%
GB:SRP	Serco Group plc	288.20	41.09	16.63%
GB:IWG	IWG plc	190.20	-28.74	-13.13%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Johnson Service AI Stock Analysis