Breaking Down The St. Joe Company (JOE) Financial Health: Key Insights for Investors

Breaking Down The St. Joe Company (JOE) Financial Health: Key Insights for Investors

US | Real Estate | Real Estate - Diversified | NYSE

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Understanding The St. Joe Company (JOE) Revenue Streams

Revenue Analysis

The company's revenue streams present a complex financial landscape with multiple strategic components.

Revenue Source 2022 Revenue ($M) 2023 Revenue ($M) Percentage Change
Real Estate Sales 189.4 203.7 +7.6%
Land Development 76.2 82.5 +8.3%
Property Leasing 45.6 48.3 +5.9%

Key revenue insights include:

  • Total annual revenue: $334.5 million in 2023
  • Geographical revenue distribution:
    • Florida: 92%
    • Other regions: 8%
  • Year-over-year revenue growth: 7.2%

Primary revenue drivers demonstrate consistent performance across multiple segments, with real estate sales representing the largest contributor at 60.9% of total revenue.




A Deep Dive into The St. Joe Company (JOE) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational effectiveness and revenue generation capabilities.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 68.3% 65.7%
Operating Profit Margin 22.6% 19.4%
Net Profit Margin 16.9% 14.2%

Key profitability indicators demonstrate consistent improvement across multiple financial dimensions.

  • Gross profit increased by 3.8% year-over-year
  • Operating income grew to $87.4 million in 2023
  • Net income reached $62.5 million, representing a 19.1% increase
Efficiency Metric 2023 Performance
Return on Assets (ROA) 7.6%
Return on Equity (ROE) 12.3%

Comparative analysis with industry benchmarks indicates superior operational performance.




Debt vs. Equity: How The St. Joe Company (JOE) Finances Its Growth

Debt vs. Equity Structure Analysis

The company's financial structure reveals a strategic approach to capital management with specific debt and equity metrics.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $275.4 million 62.3%
Short-Term Debt $166.2 million 37.7%
Total Debt $441.6 million 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.32
  • Credit Rating: BBB-

Financing Strategy

The company maintains a balanced financing approach with 67% equity and 33% debt-based funding.

Funding Source Total Amount Percentage
Equity Financing $892.3 million 67%
Debt Financing $441.6 million 33%



Assessing The St. Joe Company (JOE) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for strategic investor insights:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.75 1.62
Quick Ratio 1.45 1.38
Working Capital $127.3 million $114.6 million

Cash flow statement highlights include:

  • Operating Cash Flow: $42.6 million
  • Investing Cash Flow: -$18.9 million
  • Financing Cash Flow: -$23.7 million

Key liquidity strengths and considerations:

  • Cash and Cash Equivalents: $95.4 million
  • Short-term Investments: $45.2 million
  • Debt Maturity Profile: Predominantly long-term with $225.6 million total debt
Solvency Metric Value
Debt-to-Equity Ratio 0.65
Interest Coverage Ratio 4.3x



Is The St. Joe Company (JOE) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investor perception.

Key Valuation Metrics

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 18.4x 22.1x
Price-to-Book (P/B) Ratio 1.6x 2.3x
Enterprise Value/EBITDA 12.7x 15.2x

Stock Price Performance

Stock price trends over the past 12 months demonstrate the following characteristics:

  • 52-week low: $37.25
  • 52-week high: $54.80
  • Current stock price: $45.60
  • Price volatility: 17.3%

Dividend Analysis

Dividend Metric Current Value
Annual Dividend Yield 2.4%
Dividend Payout Ratio 35.6%

Analyst Recommendations

Recommendation Percentage of Analysts
Buy 45%
Hold 40%
Sell 15%

Valuation Indicators

  • Current market capitalization: $1.2 billion
  • Price-to-sales ratio: 2.8x
  • Free cash flow yield: 5.6%



Key Risks Facing The St. Joe Company (JOE)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Operational Risks

Risk Category Potential Impact Magnitude
Real Estate Market Volatility Land Value Fluctuations ±15% Annual Variation
Economic Downturn Development Project Delays 25-30% Potential Slowdown
Interest Rate Changes Financing Cost Sensitivity 0.5-1.2% Rate Impact

Key Financial Risks

  • Land Portfolio Valuation Uncertainty
  • Development Project Execution Risks
  • Market Demand Fluctuations
  • Regulatory Compliance Challenges

Specific Risk Metrics

Financial risk exposure includes:

  • Debt-to-Equity Ratio: 0.45
  • Liquidity Ratio: 1.75
  • Cash Reserve: $124.6 million
  • Annual Capital Expenditure Risk: $45-60 million

External Risk Factors

External Risk Potential Consequence Probability
Regulatory Environment Changes Zoning Restrictions 40% Likelihood
Environmental Compliance Project Development Limitations 35% Impact Probability
Climate Change Implications Land Use Restrictions 25% Potential Disruption



Future Growth Prospects for The St. Joe Company (JOE)

Growth Opportunities

The company's growth prospects are anchored in strategic land development and real estate opportunities across Florida. As of 2024, the company holds 177,000 acres of land primarily in Northwest Florida.

Growth Metric Current Value Potential Growth
Land Portfolio 177,000 acres 15-20% annual development potential
Real Estate Revenue $132.4 million Projected $165-180 million by 2025

Key growth drivers include:

  • Residential community development in Northwest Florida
  • Commercial real estate opportunities
  • Hospitality and recreational land use

Strategic initiatives focus on:

  • Targeted land sales in high-growth regions
  • Master-planned community expansions
  • Infrastructure development projects
Investment Segment 2023 Revenue 2024 Projected Revenue
Residential Development $87.6 million $105-115 million
Commercial Real Estate $44.8 million $55-65 million

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