JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:J - US46982L1089 - Common Stock
139.95 USD
+1.56 (+1.13%)
139.95 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to J. J was compared to 86 industry peers in the Professional Services industry. Both the profitability and the financial health of J get a neutral evaluation. Nothing too spectacular is happening here. J has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
J had positive earnings in the past year.
In the past year J had a positive cash flow from operations.
J had positive earnings in each of the past 5 years.
Each year in the past 5 years J had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.58%, J is in line with its industry, outperforming 51.16% of the companies in the same industry.
The Return On Equity of J (7.97%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 9.19%, J is doing good in the industry, outperforming 66.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for J is below the industry average of 11.86%.
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 has a Profit Margin (2.41%) which is in line with its industry peers.
J's Profit Margin has declined in the last couple of years.
J has a Operating Margin of 8.42%. This is in the better half of the industry: J outperforms 66.28% of its industry peers.
J's Operating Margin has improved in the last couple of years.
J's Gross Margin of 24.81% is on the low side compared to the rest of the industry. J is outperformed by 65.12% of its industry peers.
In the last couple of years the Gross Margin of J has grown nicely.
| 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
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.
The debt/assets ratio for J is higher compared to a year ago.
2.2 Solvency
J has an Altman-Z score of 2.97. 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.
J has a Altman-Z score of 2.97. This is comparable to the rest of the industry: J outperforms 58.14% of its industry peers.
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.
The Debt to FCF ratio of J (3.68) is better than 60.47% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that J is somewhat dependend on debt financing.
J's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. J outperforms 43.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.1
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, J perfoms like the industry average, 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.
Looking at the Quick ratio, with a value of 1.30, J is in line with its industry, outperforming 41.86% of the companies in the same industry.
| 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.
J shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.27% yearly.
The Revenue has been growing slightly by 4.60% in the past year.
The Revenue has been decreasing by -2.38% on average over the past years.
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 a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y17.94%
EPS Next 2Y15.27%
EPS Next 3Y14%
EPS Next 5Y12.38%
Revenue Next Year-22.49%
Revenue Next 2Y6.49%
Revenue Next 3Y-0.04%
Revenue Next 5Y6.42%
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 22.83.
J's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. J is around the same levels.
A Price/Forward Earnings ratio of 19.36 indicates a rather expensive valuation of J.
Compared to the rest of the industry, the Price/Forward Earnings ratio of J is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of J to the average of the S&P500 Index (23.88), we can say J is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, J is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, J is valued a bit cheaper than 61.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.36 | ||
| EV/EBITDA | 14.09 |
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.
J's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)10.07
EPS Next 2Y15.27%
EPS Next 3Y14%
5. Dividend
5.1 Amount
J has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.49, J pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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.
As J did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.81%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
J pays out 52.72% of its income as dividend. 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%
139.95
+1.56 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.45%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change5.19%
Market Cap16.62B
Revenue(TTM)12.03B
Net Income(TTM)290.25M
Analysts77.5
Price Target159.62 (14.06%)
Short Float %2.74%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.26
Dividend Growth(5Y)2.81%
DP52.72%
Div Incr Years6
Div Non Decr Years7
Ex-DateN/A
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)0%
PT rev (3m)0.61%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-7.68%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 19.36 | ||
| P/S | 1.38 | ||
| P/FCF | 27.36 | ||
| P/OCF | 24.2 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.09 |
EPS(TTM)6.13
EY4.38%
EPS(NY)7.23
Fwd EY5.17%
FCF(TTM)5.12
FCFY3.66%
OCF(TTM)5.78
OCFY4.13%
SpS101.3
BVpS30.66
TBVpS-15.64
PEG (NY)1.27
PEG (5Y)10.07
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 | 2.97 |
F-Score7
WACC8.34%
ROIC/WACC1.1
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 Year-22.49%
Revenue Next 2Y6.49%
Revenue Next 3Y-0.04%
Revenue Next 5Y6.42%
EBIT growth 1Y16%
EBIT growth 3Y-2.75%
EBIT growth 5Y3.58%
EBIT Next Year16.26%
EBIT Next 3Y10.96%
EBIT Next 5Y8.61%
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.
What is the valuation status for J stock?
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 22.83 and the Price/Book (PB) ratio is 4.56.
What is the financial health of JACOBS SOLUTIONS INC (J) stock?
The financial health rating of JACOBS SOLUTIONS INC (J) is 5 / 10.