ST JOE Co (NYSE: JOE)

Sector: Real Estate Industry: Real Estate - Diversified CIK: 0000745308
Market Cap 4.17 Bn
P/B 6.61
P/E 58.77
P/S 16.52
ROIC (Qtr) 7.29
Div Yield % 0.79
Rev 1y % (Qtr) 62.68
Total Debt (Qtr) 577.74 Mn
Debt/Equity (Qtr) 0.76
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About

Investment thesis

Bull case

  • Operating cash flow of 176.13M provides exceptional 1151.20x coverage of minority interest expenses 153000, showing strong core operations.
  • Operating cash flow of 176.13M provides strong 140.79x coverage of stock compensation 1.25M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.53B provides 2.66x coverage of total debt 577.74M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 148.30M exceeds capital expenditure of 27.84M by 5.33x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 176.13M provides 6.72x coverage of SG&A expenses 26.22M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 176.13M barely covers its investment activities of (25.30M), with a coverage ratio of -6.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 176.13M provides thin coverage of dividend payments of (32.56M) with a -5.41 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 148.30M represents just -3.26x of debt issuance (45.51M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 176.13M is outpaced by equity issuance of (28.43M) (-6.19 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tax assets of 0 provide limited offset against tax liabilities of 68.92M, which is 0x, indicating potential future cash flow pressure from tax obligations.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HHH Howard Hughes Holdings Inc. 4.39 Bn 16.01 2.39 5.29 Bn
2 JOE ST JOE Co 4.17 Bn 58.77 16.52 0.58 Bn
3 STRS Stratus Properties Inc 0.26 Bn -29.01 8.23 0.22 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.03 1.50
EV to Cash from Ops. EV/CFO 96.40 33.03
EV to Debt EV to Debt 8.05 3.81
EV to EBIT EV/EBIT 40.88 8.50
EV to EBITDA EV/EBITDA 55.10 4.30
EV to Free Cash Flow [EV/FCF] EV/FCF -22.04 0.74
EV to Market Cap EV to Market Cap 1.12 1.50
EV to Revenue EV/Rev 18.42 11.92
Price to Book Value [P/B] P/B 6.61 3.06
Price to Earnings [P/E] P/E 58.77 15.26
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.21 1.56
Dividend Payout Ratio % Div Payout % (Qtr) 31.10 10.37
Dividend per Basic Share Div per Share (Qtr) 0.56 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.84 7.28
Interest Coverage Int. cover (Qtr) 5.47 -1.67
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 60.26 44.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 52.34 113.25
Dividend Growth (1y) % Div 1y % (Qtr) 12.00 4.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.30 -138.40
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 35.97 -128.29
EBIT Growth (1y) % EBIT 1y % (Qtr) 36.24 -110.81
EBT Growth (1y) % EBT 1y % (Qtr) 52.75 -69.63
EPS Growth (1y) % EPS 1y % (Qtr) 53.85 -105.34
FCF Growth (1y) % FCF 1y % (Qtr) 653.97 337.32
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 30.78 -24.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.18
Cash Payout Ratio Cash Payout (Qtr) 0.16 0.04
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.76 1.11
Interest Cover Ratio Int Coverage (Qtr) 5.47 -1.67
Times Interest Earned Times Interest Earned (Qtr) 5.47 -1.67
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 45.00 20.07
EBIT Margin % EBIT Margin % (Qtr) 35.23 7.01
EBT Margin % EBT Margin % (Qtr) 28.79 0.69
Gross Margin % Gross Margin % (Qtr) 42.30 24.60
Net Profit Margin % Net Margin % (Qtr) 21.40 2.67