JANEL CORP (JANL) Stock Analysis
JANEL CORP (JANL) Stock Analysis
Overall Grade: F (Concerning)
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JANEL CORP faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 12.0% | Near cost of capital |
| FCF Margin | 12.6% | Healthy cash flow |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 12.6% provides financial flexibility for growth and shareholder returns.
What is JANEL CORP's Profitability and ROIC?
JANEL CORP's return on invested capital of 12.0% is around industry norms. Gross margin of 32.0% with operating margin at 2.9% reflects the company's moderate market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.0% | Adequate | Adequate returns |
| Return on Equity (ROE) | 21.6% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 32.0% | Good | Competitive pricing environment |
| Operating Margin | 2.9% | Warning | Moderate operational efficiency |
How Strong is JANEL CORP's Cash Flow Quality?
JANEL CORP generated $26.8M in free cash flow over the trailing twelve months, representing a 12.6% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 5.3x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 12.6% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $26.8M | Good | Positive cash generation |
| OCF/Net Income | 5.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is JANEL CORP's Financial Health?
JANEL CORP's debt-to-equity ratio of 0.0x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Is JANEL CORP Stock Overvalued or Undervalued?
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| EV/Sales | -0.0x | Excellent | Attractive revenue multiple |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.0% | Top 50% | 1.9x above |
| Free Cash Flow Margin | 12.6% | Top 50% | 1.3x above |
| Gross Margin | 32.0% | Bottom 25% | 0.6x below |
| Operating Margin | 2.9% | Bottom 50% | 0.5x below |
| Return on Equity (ROE) | 21.6% | Top 25% | 3.5x above |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 12.0% (Adequate - Top 50% of sector (median: 6.5%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 12.6% (Good - Top 50% of sector (median: 10.0%))
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 32.0% (Good - Bottom 25% of sector (median: 52.9%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 0.0% (Excellent)
Frequently Asked Questions
Q: What is JANEL CORP's Return on Invested Capital (ROIC)?
JANEL CORP (JANL) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.0%. This compares above the sector median of 6.5%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is JANEL CORP's Free Cash Flow Margin?
JANEL CORP (JANL) has a free cash flow margin of 12.6%, generating $26.8 million in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is JANEL CORP stock overvalued or undervalued?
JANEL CORP (JANL) The EV/Sales multiple is -0.0x.
Q: What is JANEL CORP's revenue and earnings growth?
JANEL CORP (JANL) grew revenue by 9.6% year-over-year. Earnings per share increased by 1334.5% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does JANEL CORP compare to competitors in Technology?
Compared to other companies in Technology, JANEL CORP (JANL) shows: ROIC of 12.0% is above the sector median of 6.5% (Top 37%). FCF margin of 12.6% exceeds the sector median of 10.0% (Top 44% of sector). Gross margin at 32.0% is 20.9 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with JANEL CORP?
JANEL CORP (JANL) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-K filed 2025-12-05. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.