JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
NYSE:J - New York Stock Exchange, Inc. - US46982L1089 - Common Stock - Currency: USD
Overall J gets a fundamental rating of 5 out of 10. We evaluated J against 82 industry peers in the Professional Services industry. While J belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. J has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
J had positive earnings in the past year.
J had a positive operating cash flow in the past year.
Each year in the past 5 years J has been profitable.
In the past 5 years J always reported a positive cash flow from operatings.
1.2 Ratios
J has a better Return On Assets (6.85%) than 67.07% of its industry peers.
J has a better Return On Equity (18.92%) than 67.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.19%, J is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
J had an Average Return On Invested Capital over the past 3 years of 8.77%. This is below the industry average of 13.58%.
The last Return On Invested Capital (9.19%) for J is above the 3 year average (8.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 18.92% | ||
| ROIC | 9.19% |
ROA(3y)5.26%
ROA(5y)4.52%
ROE(3y)12.81%
ROE(5y)10.79%
ROIC(3y)8.77%
ROIC(5y)8.35%
1.3 Margins
J has a Profit Margin of 6.92%. This is in the better half of the industry: J outperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of J has remained more or less at the same level.
With a decent Operating Margin value of 7.58%, J is doing good in the industry, outperforming 63.41% of the companies in the same industry.
J's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.63%, J is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of J has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% |
OM growth 3Y-1.98%
OM growth 5Y5.54%
PM growth 3Y32.42%
PM growth 5Y0.8%
GM growth 3Y4.47%
GM growth 5Y4.84%
2. Health
2.1 Basic Checks
J has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for J has been reduced compared to 1 year ago.
The number of shares outstanding for J has been reduced compared to 5 years ago.
Compared to 1 year ago, J has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.77 indicates that J is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.77, J perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
J has a debt to FCF ratio of 4.03. This is a neutral value as J would need 4.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.03, J is in line with its industry, outperforming 58.54% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that J is not too dependend on debt financing.
J's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. J outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.06
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.25 indicates that J should not have too much problems paying its short term obligations.
J has a Current ratio (1.25) which is comparable to the rest of the industry.
A Quick Ratio of 1.25 indicates that J should not have too much problems paying its short term obligations.
J has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
J shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.67%.
J shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
Looking at the last year, J shows a very negative growth in Revenue. The Revenue has decreased by -29.67% in the last year.
Measured over the past years, J shows a decrease in Revenue. The Revenue has been decreasing by -2.02% on average per year.
EPS 1Y (TTM)-13.67%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-34.16%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.93%
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 9.33% on average per year.
The Revenue is expected to grow by 13.76% on average over the next years. This is quite good.
EPS Next Y-15.2%
EPS Next 2Y-1.6%
EPS Next 3Y2.65%
EPS Next 5Y9.33%
Revenue Next Year10.24%
Revenue Next 2Y8.21%
Revenue Next 3Y12.41%
Revenue Next 5Y13.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.61, J is valued on the expensive side.
J's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.63, J is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.46, which indicates a correct valuation of J.
64.63% of the companies in the same industry are more expensive than J, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.85. J is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
J's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. J is cheaper than 64.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of J indicates a somewhat cheap valuation: J is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.51 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
J has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.35
EPS Next 2Y-1.6%
EPS Next 3Y2.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, J has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, J pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of J is nicely growing with an annual growth rate of 8.08%!
J has been paying a dividend for over 5 years, so it has already some track record.
As J did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.08%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
J pays out 18.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of J is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.33%
EPS Next 2Y-1.6%
EPS Next 3Y2.65%
115.68
-1.54 (-1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.25%
Inst Owner Change0.66%
Ins Owners0.79%
Ins Owner Change3.59%
Market Cap14.18B
Analysts78.33
Price Target155.27 (34.22%)
Short Float %1.95%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend1.14
Dividend Growth(5Y)8.08%
DP18.33%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.09%
Min EPS beat(2)-12.7%
Max EPS beat(2)2.53%
EPS beat(4)2
Avg EPS beat(4)-2.8%
Min EPS beat(4)-12.7%
Max EPS beat(4)2.53%
EPS beat(8)5
Avg EPS beat(8)2.82%
EPS beat(12)8
Avg EPS beat(12)2.17%
EPS beat(16)10
Avg EPS beat(16)2.8%
Revenue beat(2)0
Avg Revenue beat(2)-6.85%
Min Revenue beat(2)-12.26%
Max Revenue beat(2)-1.44%
Revenue beat(4)2
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-12.26%
Max Revenue beat(4)6.09%
Revenue beat(8)6
Avg Revenue beat(8)2.3%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)-1.36%
PT rev (3m)-1.55%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)3.28%
Revenue NY rev (3m)-4.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 16.46 | ||
| P/S | 1.23 | ||
| P/FCF | 22.51 | ||
| P/OCF | 19.06 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.38 |
EPS(TTM)6.57
EY5.68%
EPS(NY)7.03
Fwd EY6.08%
FCF(TTM)5.14
FCFY4.44%
OCF(TTM)6.07
OCFY5.25%
SpS93.85
BVpS34.32
TBVpS-10.39
PEG (NY)N/A
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 18.92% | ||
| ROCE | 11.37% | ||
| ROIC | 9.19% | ||
| ROICexc | 12.21% | ||
| ROICexgc | 241.73% | ||
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% | ||
| FCFM | 5.47% |
ROA(3y)5.26%
ROA(5y)4.52%
ROE(3y)12.81%
ROE(5y)10.79%
ROIC(3y)8.77%
ROIC(5y)8.35%
ROICexc(3y)10.34%
ROICexc(5y)9.66%
ROICexgc(3y)231.28%
ROICexgc(5y)157.22%
ROCE(3y)10.84%
ROCE(5y)10.32%
ROICexcg growth 3Y118.11%
ROICexcg growth 5Y78.34%
ROICexc growth 3Y11.41%
ROICexc growth 5Y10.22%
OM growth 3Y-1.98%
OM growth 5Y5.54%
PM growth 3Y32.42%
PM growth 5Y0.8%
GM growth 3Y4.47%
GM growth 5Y4.84%
F-Score6
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 39.08% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.92% | ||
| Profit Quality | 79.12% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.77 |
F-Score6
WACC8.7%
ROIC/WACC1.06
Cap/Depr(3y)42.12%
Cap/Depr(5y)45.69%
Cap/Sales(3y)0.92%
Cap/Sales(5y)0.86%
Profit Quality(3y)98.48%
Profit Quality(5y)117.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.67%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-34.16%
EPS Next Y-15.2%
EPS Next 2Y-1.6%
EPS Next 3Y2.65%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.93%
Revenue Next Year10.24%
Revenue Next 2Y8.21%
Revenue Next 3Y12.41%
Revenue Next 5Y13.76%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year5.02%
EBIT Next 3Y7.21%
EBIT Next 5Y8.56%
FCF growth 1Y99.95%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y63.32%
OCF growth 3Y13.24%
OCF growth 5YN/A