JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:J - US46982L1089 - Common Stock
140.73 USD
+2 (+1.44%)
140.73 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to J. J was compared to 87 industry peers in the Professional Services industry. J has an average financial health and profitability rating. 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
J has a Return On Assets (2.58%) which is in line with its industry peers.
J has a Return On Equity of 7.97%. This is comparable to the rest of the industry: J outperforms 51.72% 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 65.52% 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 12.17%.
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 comparable to the rest of the industry.
J's Profit Margin has declined in the last couple of years.
The Operating Margin of J (8.42%) is better than 67.82% of its industry peers.
In the last couple of years the Operating Margin of J has grown nicely.
The Gross Margin of J (24.81%) is worse than 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
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.
The debt/assets ratio for J is higher compared to a year ago.
2.2 Solvency
J has an Altman-Z score of 2.96. 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's Altman-Z score of 2.96 is in line compared to the rest of the industry. J outperforms 57.47% of its industry peers.
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.
J has a Debt to FCF ratio (3.68) which is comparable to the rest of the industry.
J has a Debt/Equity ratio of 0.61. This is a neutral value indicating J is somewhat dependend on debt financing.
J has a Debt to Equity ratio of 0.61. This is comparable to the rest of the industry: J outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.12
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
J has a Current ratio of 1.30. This is comparable to the rest of the industry: J outperforms 41.38% of its industry peers.
A Quick Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, J perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 2.27% on average over the past years.
J shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
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
J is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.38% yearly.
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
J is valuated rather expensively with a Price/Earnings ratio of 22.96.
Compared to the rest of the industry, the Price/Earnings ratio of J is on the same level as its industry peers.
When comparing the Price/Earnings ratio of J to the average of the S&P500 Index (26.41), we can say J is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.56, the valuation of J can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of J is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, J is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
62.07% 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 | 27.51 | ||
| EV/EBITDA | 13.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of J may justify a higher PE ratio.
J's earnings are expected to grow with 14.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)10.13
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.
J's Dividend Yield is a higher than the industry average which is at 4.07.
With a Dividend Yield of 0.94, J pays less dividend than the S&P500 average, which is at 2.32.
| 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.
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 2Y14.93%
EPS Next 3Y14.05%
140.73
+2 (+1.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change0.41%
Ins Owners0.33%
Ins Owner Change4.88%
Market Cap16.71B
Revenue(TTM)12.03B
Net Income(TTM)290.25M
Analysts80
Price Target162.65 (15.58%)
Short Float %2.19%
Short Ratio2.25
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)3.55%
EPS NQ rev (1m)-4.45%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)34.19%
Revenue NY rev (3m)34.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 19.56 | ||
| P/S | 1.39 | ||
| P/FCF | 27.51 | ||
| P/OCF | 24.34 | ||
| P/B | 4.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.98 |
EPS(TTM)6.13
EY4.36%
EPS(NY)7.2
Fwd EY5.11%
FCF(TTM)5.12
FCFY3.64%
OCF(TTM)5.78
OCFY4.11%
SpS101.3
BVpS30.66
TBVpS-15.64
PEG (NY)1.32
PEG (5Y)10.13
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 | 2.96 |
F-Score7
WACC8.23%
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 22.96 and the Price/Book (PB) ratio is 4.59.
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.