JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:J - US46982L1089 - Common Stock
134.81 USD
-1.05 (-0.77%)
134.226 USD
-0.58 (-0.43%)
J gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 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.
J had positive earnings in each of the past 5 years.
In the past 5 years J always reported a positive cash flow from operatings.
1.2 Ratios
J has a Return On Assets (2.58%) which is in line with its industry peers.
J has a Return On Equity (7.97%) which is comparable to the rest of the industry.
J has a better Return On Invested Capital (9.19%) than 65.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for J is below the industry average of 12.15%.
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
Looking at the Profit Margin, with a value of 2.41%, J is in line with its industry, outperforming 48.28% of the companies in the same industry.
In the last couple of years the Profit Margin of J has declined.
With a decent Operating Margin value of 8.42%, J is doing good in the industry, outperforming 67.82% of the companies in the same industry.
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 66.67% of its industry peers.
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.
J has less shares outstanding than it did 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
An Altman-Z score of 2.94 indicates that J is not a great score, but indicates only limited risk for bankruptcy at the moment.
J has a Altman-Z score (2.94) which is comparable to the rest of the industry.
The Debt to FCF ratio of J is 3.68, which is a good value as it means it would take J, 3.68 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.68, J perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
J has a Debt/Equity ratio of 0.61. This is a neutral value indicating J is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, J perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.12
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
The Current ratio of J (1.30) is comparable to the rest of the industry.
J has a Quick Ratio of 1.30. This is a normal value and indicates that J is financially healthy and should not expect problems in meeting its short term obligations.
J has a Quick ratio (1.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
J shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.56%.
Measured over the past 5 years, J shows a small growth in Earnings Per Share. The EPS has been growing by 2.27% on average per year.
Looking at the last year, J shows a small growth in Revenue. The Revenue has grown by 4.60% in the last 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
The Earnings Per Share is expected to grow by 12.38% on average over the next years. This is quite good.
J is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y17.39%
EPS Next 2Y14.93%
EPS Next 3Y14.05%
EPS Next 5Y12.38%
Revenue Next Year6.91%
Revenue Next 2Y6.2%
Revenue Next 3Y6.17%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.99, which indicates a rather expensive current valuation of J.
The rest of the industry has a similar Price/Earnings ratio as J.
Compared to an average S&P500 Price/Earnings ratio of 26.31, J is valued at the same level.
A Price/Forward Earnings ratio of 18.73 indicates a rather expensive valuation of J.
The rest of the industry has a similar Price/Forward Earnings ratio as J.
J is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.73 |
4.2 Price Multiples
64.37% of the companies in the same industry are more expensive than J, based on the Enterprise Value to EBITDA ratio.
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 | 26.35 | ||
| EV/EBITDA | 13.7 |
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 14.05% in the coming years.
PEG (NY)1.26
PEG (5Y)9.7
EPS Next 2Y14.93%
EPS Next 3Y14.05%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, J is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.07, J pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.94, J pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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.
J's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.72%
EPS Next 2Y14.93%
EPS Next 3Y14.05%
134.81
-1.05 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change0.4%
Ins Owners0.33%
Ins Owner Change4.8%
Market Cap16.01B
Revenue(TTM)12.03B
Net Income(TTM)290.25M
Analysts80
Price Target162.65 (20.65%)
Short Float %1.81%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)2.52%
PT rev (3m)7.41%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)33.85%
Revenue NY rev (3m)29.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.73 | ||
| P/S | 1.33 | ||
| P/FCF | 26.35 | ||
| P/OCF | 23.31 | ||
| P/B | 4.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.7 |
EPS(TTM)6.13
EY4.55%
EPS(NY)7.2
Fwd EY5.34%
FCF(TTM)5.12
FCFY3.79%
OCF(TTM)5.78
OCFY4.29%
SpS101.3
BVpS30.66
TBVpS-15.64
PEG (NY)1.26
PEG (5Y)9.7
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
WACC8.18%
ROIC/WACC1.12
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 Y17.39%
EPS Next 2Y14.93%
EPS Next 3Y14.05%
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 Year6.91%
Revenue Next 2Y6.2%
Revenue Next 3Y6.17%
Revenue Next 5Y6.42%
EBIT growth 1Y16%
EBIT growth 3Y-2.75%
EBIT growth 5Y3.58%
EBIT Next Year15.26%
EBIT Next 3Y10.67%
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.
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 21.99 and the Price/Book (PB) ratio is 4.4.
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 17.39% in the next year.