Janus currently trades at $7.05 per share and has shown little upside over the past six months, posting a small loss of 4.1%.
Is there a buying opportunity in Janus, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Is Janus Not Exciting?
We're cautious about Janus. Here are three reasons why JBI doesn't excite us and a stock we'd rather own.
1. Slow Organic Growth Suggests Waning Demand In Core Business
Investors interested in Commercial Building Products companies should track organic revenue in addition to reported revenue. This metric gives visibility into Janus’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.
Over the last two years, Janus’s organic revenue averaged 1.9% year-on-year growth. This performance was underwhelming and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations. 
2. Revenue Projections Show Stormy Skies Ahead
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Janus’s revenue to drop by 9.4%, a decrease from its 2.8% annualized declines for the past two years. This projection doesn't excite us and suggests its products and services will face some demand challenges.
3. EPS Trending Down
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sadly for Janus, its EPS declined by 9.4% annually over the last four years while its revenue grew by 15.1%. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
Janus isn’t a terrible business, but it isn’t one of our picks. That said, the stock currently trades at 18.3× forward price-to-earnings (or $7.05 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward the most entrenched endpoint security platform on the market.
Stocks We Like More Than Janus
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