JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
NYSE:J - New York Stock Exchange, Inc. - US46982L1089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to J. J was compared to 82 industry peers in the Professional Services industry. J scores excellent on profitability, but there are some minor concerns on its financial health. J does not seem to be growing, but still is valued expensively.
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.
J had positive earnings in each of the past 5 years.
J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
J's Return On Assets of 6.85% is fine compared to the rest of the industry. J outperforms 68.35% of its industry peers.
J has a Return On Equity of 18.92%. This is in the better half of the industry: J outperforms 68.35% of its industry peers.
J has a better Return On Invested Capital (9.19%) than 62.03% of its industry peers.
J had an Average Return On Invested Capital over the past 3 years of 8.77%. This is below the industry average of 13.65%.
The 3 year average ROIC (8.77%) for J is below the current ROIC(9.19%), indicating increased profibility in the last year.
| 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
The Profit Margin of J (6.92%) is better than 73.42% of its industry peers.
In the last couple of years the Profit Margin of J has remained more or less at the same level.
J has a better Operating Margin (7.58%) than 62.03% of its industry peers.
J's Operating Margin has improved in the last couple of years.
J has a Gross Margin of 24.63%. This is in the lower half of the industry: J underperforms 72.15% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), J is destroying value.
Compared to 1 year ago, J has less shares outstanding
J has less shares outstanding than it did 5 years ago.
The debt/assets ratio for J has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.90 indicates that J is not a great score, but indicates only limited risk for bankruptcy at the moment.
J's Altman-Z score of 2.90 is in line compared to the rest of the industry. J outperforms 49.37% of its industry peers.
The Debt to FCF ratio of J is 4.03, which is a neutral value as it means it would take J, 4.03 years of fcf income to pay off all of its debts.
J's Debt to FCF ratio of 4.03 is in line compared to the rest of the industry. J outperforms 54.43% of its industry peers.
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 48.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.99
WACC9.28%
2.3 Liquidity
J has a Current Ratio of 1.25. This is a normal value and indicates that J is financially healthy and should not expect problems in meeting its short term obligations.
J's Current ratio of 1.25 is in line compared to the rest of the industry. J outperforms 44.30% of its industry peers.
J has a Quick Ratio of 1.25. This is a normal value and indicates that J is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.25, J is in line with its industry, outperforming 45.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for J have decreased strongly by -13.67% in the last year.
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.
J shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.02% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 6.82% on average per year.
Based on estimates for the next years, J will show a quite strong growth in Revenue. The Revenue will grow by 13.70% on average per year.
EPS Next Y-15.46%
EPS Next 2Y-1.74%
EPS Next 3Y2.24%
EPS Next 5Y6.82%
Revenue Next Year14.55%
Revenue Next 2Y12.67%
Revenue Next 3Y15.82%
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.
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
A Price/Earnings ratio of 19.64 indicates a rather expensive valuation of J.
Compared to the rest of the industry, the Price/Earnings ratio of J is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, J is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.41 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.
J's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as J.
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 | 25.12 | ||
| EV/EBITDA | 13.74 |
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)2.62
EPS Next 2Y-1.74%
EPS Next 3Y2.24%
5. Dividend
5.1 Amount
J has a yearly dividend return of 0.98%, which is pretty low.
J's Dividend Yield is a higher than the industry average which is at 1.93.
Compared to an average S&P500 Dividend Yield of 2.29, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 18.33% 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.
DP18.33%
EPS Next 2Y-1.74%
EPS Next 3Y2.24%
129.06
-1.07 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners45.46%
Inst Owner Change5.59%
Ins Owners0.38%
Ins Owner Change4.12%
Market Cap15.82B
Analysts78.33
Price Target158.11 (22.51%)
Short Float %1.44%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)0.25%
PT rev (3m)1.36%
EPS NQ rev (1m)-5.91%
EPS NQ rev (3m)-35.17%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-9.56%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-44.85%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 18.41 | ||
| P/S | 1.38 | ||
| P/FCF | 25.12 | ||
| P/OCF | 21.26 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)6.57
EY5.09%
EPS(NY)7.01
Fwd EY5.43%
FCF(TTM)5.14
FCFY3.98%
OCF(TTM)6.07
OCFY4.7%
SpS93.85
BVpS34.32
TBVpS-10.39
PEG (NY)N/A
PEG (5Y)2.62
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 | 2.9 |
F-Score6
WACC9.28%
ROIC/WACC0.99
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-15.46%
EPS Next 2Y-1.74%
EPS Next 3Y2.24%
EPS Next 5Y6.82%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.93%
Revenue Next Year14.55%
Revenue Next 2Y12.67%
Revenue Next 3Y15.82%
Revenue Next 5Y13.7%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year7.27%
EBIT Next 3Y6.58%
EBIT Next 5Y16.81%
FCF growth 1Y99.95%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y63.32%
OCF growth 3Y13.24%
OCF growth 5YN/A