Janus International Group Inc (JBI)

Janus International Group Inc. Comprehensive Analysis:

Company Profile:

History & Background: Founded in 1986 as Janus Door Systems Inc., the company transitioned from manufacturing steel door frames to architectural doors and door hardware in 1990, expanding into toilet partitions in the following year. Today, Janus is a leading global manufacturer and supplier of architectural door and frame solutions.

Business Areas & Core Services:

• Architectural Doors and Frames:
  • Steel, wood, and stainless-steel doors and frame solutions.
  • Wide range of styles, finishes, materials to suit diverse requirements.
  • Installation support for commercial, institutional and industrial facilities.
• Toilet Partitions:
  • Variety of configurations, materials and styles
  • Dedicated online configurator tool
• Modular Casework Systems
  • Versatile system adaptable for diverse needs

Leadership & Structure:

• James E. Minervino, Chairman & CEO
• David M. Polinchock Jr., CFO & Treasurer

Top Products and Market Share:

Top Products:

• Architectural doors and door frames: Ranked among top 5 manufacturers
• Premium toilet partition brands: Acclaim (US) and Futura-Cote (EU)

Market Share Analysis:

• Estimates: 7%-8% in the architectural doors market segment in North America.

Competitors:

**Top Competitors in Architectural Door Market:

| Competitor (Ticker Symbol)| Market share (estimate)| |---:---|:---| | Masonite International (DOOR)| ~25-30%| | The Stanley Black and Decker (SWK) | ~10% | | Ceco Door (CECO) | 10-15%| | Other manufacturers (including private companies) | ~25-45% |

Strengths:

• Brand recognition
• Extensive distribution network
• Diversification across various types and price points

Weaknesses:

• Comparably lower market penetration compared to top players

Financial performance:

Financial Analysis:

Revenue: Gradual increase over the past 5 years.

• 2018: $793.6M
• 2019: $804.02M -2021: $864.43 M
• 2022: $1,095.82M (25.7%)
• Q2 2023: $382.83 M (22.04% YoY growth)

Profit Margin: Fluctuations over past 5 years, but trend is upward in recent quarters.

• Q2,2023 (Adjusted Operating Margin) - 10.75 % Net income: Steadfast increase with some dips. *Q2, 2019 (Net income, diluted)- $6.02 M
  • Q2, 2022: Net Income - $34.70M *Q2,2023 ( GAAP net Income)- $ 30.64 M (YoY: +81%) EPS (diluted): Increase over past 3 three quarters, currently steady. -2Q,2019 (Earnings per Share, Diluted) : 0$.52/share
    • 2Q 42022: $ 48/share

Cash Flow and Balance Sheet Health: Consistent positive operating cash flows, improving free and operating cash flow

Debt-equity Ratio: Moderately leveraged but improving,

Dividend and shareholder returns:

• Recent Dividend yield of ~0%
• Share buybacks in 2023

** Growth Trajectory:**

• Historical: Revenue growth observed in past years.
• Forecasted Growth: Projected mid to high single digit revenue growth for 2024.
• Recent initiatives include online sales, new customer acquisition and expansion within existing sectors.

Market Dynamics

Current Trends: Growth in architectural door sector driven due infrastructure projects and residential construction. Demand is also fueled by renovation of older structures

Industry Challenges: Material supply chain, volatility, skilled worker shortages.

Competitiveness: Competitive market, with strong competitors. Janus emphasizes quality, reliability and service to stand apart.