JACOBS SOLUTIONS INC (J)

US46982L1089 - Common Stock

132.35  -0.75 (-0.56%)

After market: 132.35 0 (0%)

Fundamental Rating

5

Overall J gets a fundamental rating of 5 out of 10. We evaluated J against 82 industry peers in the Professional Services industry. J has only an average score on both its financial health and profitability. J has a valuation in line with the averages, but on the other hand it scores bad on growth.



6

1. Profitability

1.1 Basic Checks

In the past year J was profitable.
In the past year J had a positive cash flow from operations.
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

The Return On Assets of J (4.25%) is comparable to the rest of the industry.
J has a Return On Equity (9.67%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 9.72%, J is doing good in the industry, outperforming 64.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for J is below the industry average of 13.48%.
The 3 year average ROIC (8.77%) for J is below the current ROIC(9.72%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.25%
ROE 9.67%
ROIC 9.72%
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

With a Profit Margin value of 3.78%, J perfoms like the industry average, outperforming 53.16% of the companies in the same industry.
In the last couple of years the Profit Margin of J has remained more or less at the same level.
The Operating Margin of J (7.48%) is better than 62.03% of its industry peers.
J's Operating Margin has improved in the last couple of years.
J's Gross Margin of 21.14% is on the low side compared to the rest of the industry. J is outperformed by 74.68% of its industry peers.
J's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.48%
PM (TTM) 3.78%
GM 21.14%
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%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so J is still 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 an improved debt to assets ratio.

2.2 Solvency

J has an Altman-Z score of 3.05. This indicates that J is financially healthy and has little risk of bankruptcy at the moment.
J has a Altman-Z score (3.05) which is in line with its industry peers.
The Debt to FCF ratio of J is 3.05, which is a good value as it means it would take J, 3.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.05, J is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that J is not too dependend on debt financing.
J has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: J outperforms 50.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 3.05
Altman-Z 3.05
ROIC/WACC1.05
WACC9.26%

2.3 Liquidity

J has a Current Ratio of 1.14. This is a normal value and indicates that J is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.14, J is not doing good in the industry: 65.82% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that J should not have too much problems paying its short term obligations.
J's Quick ratio of 1.14 is on the low side compared to the rest of the industry. J is outperformed by 65.82% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 1.14

3

3. Growth

3.1 Past

J shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
Looking at the last year, J shows a very negative growth in Revenue. The Revenue has decreased by -29.67% in the last year.
The Revenue has been decreasing by -2.02% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-30.1%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-50.59%

3.2 Future

The Earnings Per Share is expected to grow by 6.82% on average over the next years.
The Revenue is expected to grow by 13.70% on average over the next years. This is quite good.
EPS Next Y-15.2%
EPS Next 2Y-1.71%
EPS Next 3Y1.1%
EPS Next 5Y6.82%
Revenue Next Year15.51%
Revenue Next 2Y11.24%
Revenue Next 3Y14.67%
Revenue Next 5Y13.7%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.23, which indicates a rather expensive current valuation of J.
Based on the Price/Earnings ratio, J is valued a bit cheaper than the industry average as 63.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.91, J is valued a bit cheaper.
J is valuated rather expensively with a Price/Forward Earnings ratio of 21.50.
J's Price/Forward Earnings ratio is in line with the industry average.
J's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.26.
Industry RankSector Rank
PE 18.23
Fwd PE 21.5

4.2 Price Multiples

J's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. J is cheaper than 73.42% of the companies in the same industry.
J's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. J is cheaper than 75.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.18
EV/EBITDA 11.5

4.3 Compensation for Growth

The decent profitability rating of J may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y-1.71%
EPS Next 3Y1.1%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.87%, J is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.86, J pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, J pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.87%

5.2 History

On average, the dividend of J grows each year by 8.08%, which is quite nice.
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 21.74% of its income as dividend. This is a sustainable payout ratio.
J's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.74%
EPS Next 2Y-1.71%
EPS Next 3Y1.1%

JACOBS SOLUTIONS INC

NYSE:J (1/10/2025, 8:04:00 PM)

After market: 132.35 0 (0%)

132.35

-0.75 (-0.56%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-19 2024-11-19/bmo
Earnings (Next)02-04 2025-02-04/amc
Inst Owners45.46%
Inst Owner Change-0.01%
Ins Owners0.38%
Ins Owner Change2.93%
Market Cap16.41B
Analysts78.33
Price Target157.72 (19.17%)
Short Float %1.27%
Short Ratio2.02
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
Dividend Growth(5Y)8.08%
DP21.74%
Div Incr Years6
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.52%
Min EPS beat(2)-2.13%
Max EPS beat(2)1.09%
EPS beat(4)3
Avg EPS beat(4)8.17%
Min EPS beat(4)-2.13%
Max EPS beat(4)30.99%
EPS beat(8)5
Avg EPS beat(8)4.39%
EPS beat(12)7
Avg EPS beat(12)2.64%
EPS beat(16)11
Avg EPS beat(16)5.3%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)4.9%
Max Revenue beat(2)6.09%
Revenue beat(4)4
Avg Revenue beat(4)5.97%
Min Revenue beat(4)1.7%
Max Revenue beat(4)11.21%
Revenue beat(8)7
Avg Revenue beat(8)4.77%
Revenue beat(12)8
Avg Revenue beat(12)2.57%
Revenue beat(16)9
Avg Revenue beat(16)1.59%
PT rev (1m)0.08%
PT rev (3m)-4.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.08%
EPS NY rev (1m)-4.99%
EPS NY rev (3m)-32.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-33.14%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-33.84%
Valuation
Industry RankSector Rank
PE 18.23
Fwd PE 21.5
P/S 0.97
P/FCF 17.18
P/OCF 15.23
P/B 2.48
P/tB N/A
EV/EBITDA 11.5
EPS(TTM)7.26
EY5.49%
EPS(NY)6.16
Fwd EY4.65%
FCF(TTM)7.7
FCFY5.82%
OCF(TTM)8.69
OCFY6.56%
SpS136.66
BVpS53.35
TBVpS-15.68
PEG (NY)N/A
PEG (5Y)2.43
Profitability
Industry RankSector Rank
ROA 4.25%
ROE 9.67%
ROCE 12.02%
ROIC 9.72%
ROICexc 10.97%
ROICexgc 132.36%
OM 7.48%
PM (TTM) 3.78%
GM 21.14%
FCFM 5.64%
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 Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 3.05
Debt/EBITDA 1.33
Cap/Depr 39.55%
Cap/Sales 0.72%
Interest Coverage 250
Cash Conversion 68.39%
Profit Quality 149.26%
Current Ratio 1.14
Quick Ratio 1.14
Altman-Z 3.05
F-Score6
WACC9.26%
ROIC/WACC1.05
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)0%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-30.1%
EPS Next Y-15.2%
EPS Next 2Y-1.71%
EPS Next 3Y1.1%
EPS Next 5Y6.82%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-50.59%
Revenue Next Year15.51%
Revenue Next 2Y11.24%
Revenue Next 3Y14.67%
Revenue Next 5Y13.7%
EBIT growth 1Y6.69%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year7.53%
EBIT Next 3Y6.36%
EBIT Next 5Y16.81%
FCF growth 1Y7.69%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y4.32%
OCF growth 3Y13.24%
OCF growth 5YN/A