JBG Smith Properties (JBGS) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: 3.61%
• Average Volume (3M): 961.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -11.33%
• EPS Growth: -22.04%
• Country: US
• Employees: 645
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): -0.29
• Shares Outstanding: 61,724,342
• 10 Day Avg. Volume: 1,323,554
• 30 Day Avg. Volume: 961,849
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 8.10
• Enterprise Value/Gross Profit: 14.45
• Enterprise Value/Ebitda: 45.51
• 1Y Price Target: $18.00
• Price Target Upside: -9.55% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $22.00 ▲(10.55% Upside)

JBG Smith Properties' overall stock score is primarily driven by its challenging financial performance, with declining revenue and profitability issues being significant concerns. The technical analysis indicates positive momentum, but the valuation is impacted by negative earnings. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Multifamily Performance

Multifamily blended effective remained strong at +3.8%, with a +5.6% increase on renewal leases and a 55.5% renewal rate.

Portfolio Management

JBGS sold 2101 L Street for $110.1M at an approximately 6.9% cap rate and entered a contract to sell 8001 Woodmont.

Negative Factors

Earnings Performance

JBGS's FFOps fell -63% year-over-year, missing consensus by 26%.

Economic Environment

JBGS discussed a seemingly-imminent economic slowdown in DC metro and the delayed impact of the changing federal landscape, as agencies are required to report office utilization.

Office Sector Challenges

Office was the main culprit with -9.6% SSNOI and 76.5% occupancy.

JBG Smith Properties Business Overview & Revenue Model

Company Description

JBG SMITH is an S&P 400 company that owns, operates, invests in and develops a dynamic portfolio of high-growth mixed-use properties in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Capital region, including National Landing where it serves as the exclusive developer for Amazon's new headquarters. JBG SMITH's portfolio currently comprises 20.7 million square feet of high-growth office, multifamily and retail assets, 98% at our share of which are Metro-served. It also maintains a development pipeline encompassing 17.1 million square feet of mixed-use development opportunities.

How the Company Makes Money

JBG Smith Properties generates revenue through several key streams. Primarily, the company earns income from leasing residential units and commercial spaces, which includes long-term leases in their multifamily and office properties. Additionally, JBGS profits from rental income in retail spaces located in their mixed-use developments. The company also engages in property development projects, which can lead to significant gains upon completion and leasing of new developments. Strategic partnerships with other real estate developers and local government entities further enhance their ability to undertake large-scale projects, contributing to additional revenue sources. Furthermore, JBGS may benefit from property appreciation over time, leading to increased asset value and potential capital gains upon sale.

JBG Smith Properties Financial Statement Overview

Summary

JBG Smith Properties faces challenges with declining revenue and profitability, posting a significant net loss. Although the company has made strides in reducing debt and improving free cash flow, the declining equity and operational inefficiencies pose risks.

Income Statement

JBG Smith Properties has experienced declining revenue over the past year, with a fall from $604.2 million in 2023 to $547.3 million in 2024. The gross profit margin improved slightly, indicating some efficiency gains, but the company posted a significant net loss of $143.5 million in 2024, an increase from a loss of $79.9 million in 2023. The EBIT and EBITDA margins turned negative, highlighting challenges in covering operational costs.

Balance Sheet

The balance sheet shows a reduction in total debt, with the company reporting no debt in 2024, which improves its financial stability. However, stockholders' equity decreased from $2.22 billion in 2023 to $1.81 billion in 2024, reflecting accumulated losses. The equity ratio remains relatively healthy, indicating a solid asset base, though declining equity poses a risk.

Cash Flow

Operating cash flow decreased from $183.4 million in 2023 to $129.4 million in 2024. The free cash flow turned positive to $129.4 million in 2024, compared to a negative free cash flow in previous years, due to reduced capital expenditures. However, the operating cash flow to net income ratio indicates reliance on non-operational activities for cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	513.97M	547.31M	604.20M	605.82M	634.36M	602.72M
Gross Profit	288.06M	273.83M	313.53M	299.12M	305.74M	271.31M
EBITDA	91.48M	154.58M	242.89M	236.64M	218.28M	213.52M
Net Income	-151.84M	-143.53M	-79.98M	85.37M	-89.72M	-67.26M
Balance Sheet
Total Assets	4.55B	5.02B	5.52B	5.90B	6.39B	6.08B
Cash, Cash Equivalents and Short-Term Investments	61.43M	145.80M	164.77M	241.10M	264.36M	225.60M
Total Debt	0.00	2.62B	2.64B	2.44B	2.48B	1.99B
Total Liabilities	2.68B	2.79B	2.83B	2.71B	3.45B	2.34B
Stockholders Equity	1.32B	1.81B	2.22B	2.71B	2.42B	3.21B
Cash Flow
Free Cash Flow	-4.26M	-88.64M	-150.37M	-148.70M	44.45M	-138.48M
Operating Cash Flow	100.34M	129.39M	183.37M	178.04M	217.62M	169.02M
Investing Cash Flow	352.89M	144.16M	-98.18M	524.02M	-368.74M	-167.69M
Financing Cash Flow	-568.16M	-290.80M	-158.82M	-730.08M	189.88M	119.49M

JBG Smith Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBGS, the sentiment is Positive. The current price of 19.9 is above the 20-day moving average (MA) of 19.43, above the 50-day MA of 18.30, and above the 200-day MA of 16.07, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 18.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBGS.

JBG Smith Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEA	67 Neutral	$1.02B	56.98	1.28%	10.08%	8.18%	-15.35%
PGRE	66 Neutral	$1.62B	―	-2.52%	0.56%	-1.68%	63.27%
Sector *	64 Neutral	C$1.99B	4.98	-0.88%	5.23%	2.40%	-59.01%
JBGS	58 Neutral	$2.46B	―	-9.19%	3.61%	-11.33%	-22.04%
PDM	57 Neutral	$936.27M	―	-4.27%	6.47%	-6.74%	17.44%
ELME	56 Neutral	$1.44B	―	-1.31%	4.37%	4.59%	73.22%
BDN	49 Neutral	$689.89M	―	-29.94%	15.15%	-3.05%	-94.96%