TransJamaica Highway’s share price jumped almost 60 per cent in just over a month, but is the stock now too expensive?
TransJamaican Highway’s stock rose from approximately J$8 at the beginning of July to a peak of J$12.70 on August 5.
It has since pulled back, but investors are still excited. And this is not a rally based entirely on hype.
New results show that TJH’s revenue increased 28 per cent to US$57 million during the first six months of 2026.
Net profit jumped 40 per cent to US$25 million, compared with US$18 million one year earlier.
The Williamsfield leg is bringing in more revenue than originally projected, traffic volumes are rising and financing costs are declining as TJH pays down debt.
The company is also exploring opportunities to operate the Montego Bay Perimeter Road and future extensions of Jamaica’s highway network.
So, the growth story is real.
Business Development Advisor at Sagicor Investments, Monique Wilson, explained on Taking Stock.
I like to say that fundamentals make it sure and speculation creates momentum. I think it’s a combination of two factors. There is the fundamental factor, which is that TransJamaica is a company that is just doing exceedingly well.
Monique Wilson, Sagicor Investments
But investors still need to consider price.
At J$12.70, TJH was trading at approximately 24 times trailing earnings. Its rising share price has also reduced its dividend yield, meaning new investors are paying considerably more for every dollar of profit and dividends.
Monique believes TJH’s fundamentals support the excitement—but acknowledges that speculation is amplifying the movement.
However, she believes that it’s still a good buy.
“There is a split opinion across the industry. I conservatively have it ending around fourteen, fifteen dollars by about December, January, but I’ve heard predictions as high as twenty dollars. I do believe that even at fourteen dollars, it is a good buy.”
Monique Wilson, Sagicor Investments
She added that she believes TJH could eventually become a J$20 stock, but does not expect that necessarily by December or January.
Of course I have to add the standard disclaimer that this is not to be construed as investment advice. Please consult your licensed financial advisor before making any investment decisions.
TJH may still have long-term potential, but a good company is not automatically a good purchase at every price.
The real question is no longer whether TJH is performing well. It is whether future growth can justify the valuation investors are placing on it today.
And that’s The Bottom Line.
Would you buy TJH at its current price, or wait for another pullback?
