JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:J - US46982L1089 - Common Stock
136.11 USD
+0.25 (+0.18%)
136.11 USD
0 (0%)
Overall J gets a fundamental rating of 5 out of 10. We evaluated J against 86 industry peers in the Professional Services industry. J has only an average score on both its financial health and profitability. J has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year J was profitable.
J had a positive operating cash flow in the past year.
In the past 5 years J has always been profitable.
J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
J has a Return On Assets of 2.58%. This is comparable to the rest of the industry: J outperforms 51.16% of its industry peers.
J has a Return On Equity (7.97%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 9.19%, J is doing good in the industry, outperforming 65.12% of the companies in the same industry.
J had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 12.03%.
The last Return On Invested Capital (9.19%) for J is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 7.97% | ||
| ROIC | 9.19% |
ROA(3y)4.61%
ROA(5y)4.22%
ROE(3y)11.82%
ROE(5y)10.63%
ROIC(3y)8.58%
ROIC(5y)7.98%
1.3 Margins
J's Profit Margin of 2.41% is in line compared to the rest of the industry. J outperforms 48.84% of its industry peers.
In the last couple of years the Profit Margin of J has declined.
Looking at the Operating Margin, with a value of 8.42%, J is in the better half of the industry, outperforming 66.28% of the companies in the same industry.
J's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.81%, J is doing worse than 66.28% of the companies in the same industry.
J's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 24.81% |
OM growth 3Y4.5%
OM growth 5Y6.1%
PM growth 3Y-17.62%
PM growth 5Y-7.83%
GM growth 3Y3.63%
GM growth 5Y5.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), J is creating some value.
The number of shares outstanding for J has been reduced compared to 1 year ago.
J has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, J has a worse debt to assets ratio.
2.2 Solvency
J has an Altman-Z score of 2.94. This is not the best score and indicates that J is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of J (2.94) is comparable to the rest of the industry.
J has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as J would need 3.68 years to pay back of all of its debts.
J's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. J outperforms 61.63% of its industry peers.
J has a Debt/Equity ratio of 0.61. This is a neutral value indicating J is somewhat dependend on debt financing.
The Debt to Equity ratio of J (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.11
WACC8.3%
2.3 Liquidity
A Current Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, J is in line with its industry, outperforming 41.86% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
J's Quick ratio of 1.30 is in line compared to the rest of the industry. J outperforms 41.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for J have decreased strongly by -15.56% in the last year.
The Earnings Per Share has been growing slightly by 2.27% on average over the past years.
The Revenue has been growing slightly by 4.60% in the past year.
Measured over the past years, J shows a decrease in Revenue. The Revenue has been decreasing by -2.38% on average per year.
EPS 1Y (TTM)-15.56%
EPS 3Y-4.05%
EPS 5Y2.27%
EPS Q2Q%27.74%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y-6.93%
Revenue growth 5Y-2.38%
Sales Q2Q%5.82%
3.2 Future
Based on estimates for the next years, J will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.38% on average per year.
J is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.58% yearly.
EPS Next Y17.94%
EPS Next 2Y15.27%
EPS Next 3Y14%
EPS Next 5Y12.38%
Revenue Next Year7.31%
Revenue Next 2Y6.85%
Revenue Next 3Y11.41%
Revenue Next 5Y13.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
J is valuated rather expensively with a Price/Earnings ratio of 22.20.
J's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. J is around the same levels.
Based on the Price/Forward Earnings ratio of 18.83, the valuation of J can be described as rather expensive.
J's Price/Forward Earnings is on the same level as the industry average.
J is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
J's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. J is cheaper than 65.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of J is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.61 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
J has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as J's earnings are expected to grow with 14.00% in the coming years.
PEG (NY)1.24
PEG (5Y)9.79
EPS Next 2Y15.27%
EPS Next 3Y14%
5. Dividend
5.1 Amount
J has a yearly dividend return of 0.96%, which is pretty low.
J's Dividend Yield is a higher than the industry average which is at 1.52.
With a Dividend Yield of 0.96, J pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of J has a limited annual growth rate of 2.81%.
J has been paying a dividend for over 5 years, so it has already some track record.
J has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.81%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
52.72% of the earnings are spent on dividend by J. This is a bit on the high side, but may be sustainable.
The dividend of J is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.72%
EPS Next 2Y15.27%
EPS Next 3Y14%
136.11
+0.25 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.27%
Inst Owner Change0.43%
Ins Owners0.36%
Ins Owner Change5.19%
Market Cap16.16B
Revenue(TTM)12.03B
Net Income(TTM)290.25M
Analysts77.5
Price Target159.62 (17.27%)
Short Float %2.37%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.26
Dividend Growth(5Y)2.81%
DP52.72%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.47%
Min EPS beat(2)2.15%
Max EPS beat(2)2.79%
EPS beat(4)4
Avg EPS beat(4)2.11%
Min EPS beat(4)0.96%
Max EPS beat(4)2.79%
EPS beat(8)6
Avg EPS beat(8)3.21%
EPS beat(12)9
Avg EPS beat(12)2.61%
EPS beat(16)11
Avg EPS beat(16)1.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-1.44%
Revenue beat(8)3
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)1.4%
Revenue beat(16)8
Avg Revenue beat(16)0.9%
PT rev (1m)-1.86%
PT rev (3m)0.67%
EPS NQ rev (1m)-3.38%
EPS NQ rev (3m)-7.68%
EPS NY rev (1m)0.47%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)2.9%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)-27.5%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.83 | ||
| P/S | 1.34 | ||
| P/FCF | 26.61 | ||
| P/OCF | 23.54 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)6.13
EY4.5%
EPS(NY)7.23
Fwd EY5.31%
FCF(TTM)5.12
FCFY3.76%
OCF(TTM)5.78
OCFY4.25%
SpS101.3
BVpS30.66
TBVpS-15.64
PEG (NY)1.24
PEG (5Y)9.79
Graham Number65.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 7.97% | ||
| ROCE | 12.82% | ||
| ROIC | 9.19% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 62.19% | ||
| OM | 8.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 24.81% | ||
| FCFM | 5.05% |
ROA(3y)4.61%
ROA(5y)4.22%
ROE(3y)11.82%
ROE(5y)10.63%
ROIC(3y)8.58%
ROIC(5y)7.98%
ROICexc(3y)10.31%
ROICexc(5y)9.31%
ROICexgc(3y)212.98%
ROICexgc(5y)147.14%
ROCE(3y)11.97%
ROCE(5y)11.12%
ROICexgc growth 3Y10.01%
ROICexgc growth 5Y14.23%
ROICexc growth 3Y12.32%
ROICexc growth 5Y7.96%
OM growth 3Y4.5%
OM growth 5Y6.1%
PM growth 3Y-17.62%
PM growth 5Y-7.83%
GM growth 3Y3.63%
GM growth 5Y5.41%
F-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 33.35% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 6.87 | ||
| Cash Conversion | 54.92% | ||
| Profit Quality | 209.29% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.94 |
F-Score7
WACC8.3%
ROIC/WACC1.11
Cap/Depr(3y)39.11%
Cap/Depr(5y)39.34%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.81%
Profit Quality(3y)150.96%
Profit Quality(5y)131.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.56%
EPS 3Y-4.05%
EPS 5Y2.27%
EPS Q2Q%27.74%
EPS Next Y17.94%
EPS Next 2Y15.27%
EPS Next 3Y14%
EPS Next 5Y12.38%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y-6.93%
Revenue growth 5Y-2.38%
Sales Q2Q%5.82%
Revenue Next Year7.31%
Revenue Next 2Y6.85%
Revenue Next 3Y11.41%
Revenue Next 5Y13.58%
EBIT growth 1Y16%
EBIT growth 3Y-2.75%
EBIT growth 5Y3.58%
EBIT Next Year19.54%
EBIT Next 3Y11.96%
EBIT Next 5Y9.2%
FCF growth 1Y-34.93%
FCF growth 3Y20.51%
FCF growth 5Y-2.47%
OCF growth 1Y-34.89%
OCF growth 3Y13.1%
OCF growth 5Y-3.17%
JACOBS SOLUTIONS INC / J FAQ
Can you provide the ChartMill fundamental rating for JACOBS SOLUTIONS INC?
ChartMill assigns a fundamental rating of 5 / 10 to J.
Can you provide the valuation status for JACOBS SOLUTIONS INC?
ChartMill assigns a valuation rating of 4 / 10 to JACOBS SOLUTIONS INC (J). This can be considered as Fairly Valued.
What is the profitability of J stock?
JACOBS SOLUTIONS INC (J) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for J stock?
The Price/Earnings (PE) ratio for JACOBS SOLUTIONS INC (J) is 22.2 and the Price/Book (PB) ratio is 4.44.
Can you provide the expected EPS growth for J stock?
The Earnings per Share (EPS) of JACOBS SOLUTIONS INC (J) is expected to grow by 17.94% in the next year.