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Stock Analysis & ValuationJPMorgan Global Core Real Assets Limited (JARU.L)

Professional Stock Screener
Previous Close
£1.06
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)42.223892
Intrinsic value (DCF)1.5849
Graham-Dodd Method0.55-48
Graham Formulan/a

Strategic Investment Analysis

Company Overview

JPMorgan Global Core Real Assets Limited (JARU.L) is a UK-based investment company listed on the London Stock Exchange, specializing in global core real assets. The firm provides investors with diversified exposure to essential real assets such as infrastructure, transportation, and real estate, aiming to deliver stable income and long-term capital appreciation. Operating in the Financial Services sector under Asset Management - Global, JARU.L leverages JPMorgan's extensive expertise to identify and manage high-quality, income-generating assets. With a market capitalization of approximately $190 million, the company focuses on low-volatility, inflation-resistant investments, making it an attractive option for risk-averse investors seeking portfolio diversification. Despite recent financial challenges, including negative revenue and net income, JARU.L maintains a strong cash position and continues to distribute dividends, underscoring its commitment to shareholder returns.

Investment Summary

JPMorgan Global Core Real Assets Limited presents a mixed investment profile. The company's focus on core real assets offers diversification benefits and potential inflation hedging, supported by JPMorgan's asset management prowess. However, recent financial performance raises concerns, with negative revenue ($-9.17M) and net income ($-11.88M) in the latest fiscal year. The low beta (0.19) indicates minimal correlation with broader market movements, appealing to conservative investors. Positive operating cash flow ($15.62M) and a dividend yield (based on $0.027 per share) provide some income stability, but the lack of revenue growth and profitability may deter growth-oriented investors. The absence of debt is a positive, but the company's ability to sustain dividends amid operational losses warrants caution.

Competitive Analysis

JPMorgan Global Core Real Assets Limited competes in the niche market of global real asset investment trusts and funds. Its primary competitive advantage lies in its affiliation with JPMorgan, which provides access to top-tier asset management resources and global investment opportunities. The company's focus on 'core' real assets—stable, income-generating properties and infrastructure—differentiates it from more speculative real estate or infrastructure funds. However, its small market cap (~$190M) limits scale advantages compared to larger peers. The fund's UK listing may appeal to European investors but could limit visibility among US-based investors. Performance-wise, the negative earnings and revenue contrast with many peers who maintain profitability in this sector. The zero-debt capital structure is a strength, but the lack of leverage may also constrain growth potential compared to competitors using moderate leverage to enhance returns. The fund's ability to source off-market deals through JPMorgan connections could provide an edge in asset acquisition, but this hasn't yet translated into positive bottom-line results.

Major Competitors

  • BlackRock Sustainable American Income Trust plc (BREG.L): Focuses on US real assets with a sustainability angle. Larger market cap provides economies of scale. Stronger recent performance than JARU.L but higher volatility. Limited global diversification compared to JARU's mandate.
  • Ruffer Investment Company Limited (RICA.L): Diversified alternative asset fund with real assets exposure. More established track record but less pure-play real assets focus than JARU.L. Stronger balance sheet but higher expense ratio.
  • JPMorgan Global Core Real Assets Limited (USD) (JARA.L): Sister share class of JARU.L with USD denomination. Identical portfolio but appeals to different currency preference investors. Same management team and strategy.
  • Schroder Real Estate Investment Trust Limited (SRIF.L): UK-focused real asset investor. More concentrated geographic exposure than JARU's global mandate. Stronger dividend history but less infrastructure diversification.
  • International Public Partnerships Limited (INPP.L): Specializes in infrastructure assets. More established in core infrastructure but lacks JARU's broader real asset diversification. Consistently profitable with strong yield, but lower growth profile.
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