JANISON EDUCATION GROUP LIMITED (JAN)
Share Price Analysis and Chart

08/08/2024

1

Buy

$0.33

69.23%

Janison Education pre-announced its FY24 results with revenue and cash flow coming in below the Shaw and Partners forecasts.

The broker believes Janison Insights continues to grow and remains a key asset, potentially worth $90-100m. It remains undervalued by the market.

FY25 is anticipated by the analyst to be a transition year with cash flow remaining positive, supported by $10m in cash and no debt.

Shaw and Partners is looking to the new CEO, Sujata Stead, who will present her strategy in September, with an emphasis on leveraging Janison Insights for growth, the broker notes.

Target price is revised to 33c from 70c, and a Buy (High risk) rating retained.

FORECAST
Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -2.10 cents.
Shaw and Partners forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -1.50 cents.

18/09/2024

3

Market Weight

$0.25

28.21%

Janison Education offered a strategic review which met Wilsons' expectations as the company focuses on the Core assessment platform and de-emphasising the lower margin businesses.

Management did not provide any quantitative guidance. The broker highlights a focus on cost-outs and top-line growth being re-established with a focus on existing customers.

The NSW Department of Education win is expected to add "meaningfully" through FY25.

Market weight retained. Target price 25c.

FORECAST
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -3.40 cents.
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -1.50 cents.