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 81 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
J had positive earnings in the past year.
J had a positive operating cash flow in the past year.
Each year in the past 5 years J has been profitable.
Each year in the past 5 years J had a positive operating cash flow.
1.2 Ratios
J has a Return On Assets of 7.10%. This is in the better half of the industry: J outperforms 70.37% of its industry peers.
J has a better Return On Equity (20.59%) than 70.37% of its industry peers.
J's Return On Invested Capital of 8.54% is fine compared to the rest of the industry. J outperforms 62.96% 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 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 20.59% | ||
| ROIC | 8.54% |
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
J's Profit Margin of 6.92% is fine compared to the rest of the industry. J outperforms 70.37% of its industry peers.
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 (7.58%) is better than 65.43% of its industry peers.
J's Operating Margin has improved in the last couple of years.
J has a worse Gross Margin (24.63%) than 69.14% of its industry peers.
J's Gross Margin has improved in the last couple of years.
| 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) just above the Cost of Capital (WACC), J is creating some value.
Compared to 1 year ago, J has less shares outstanding
The number of shares outstanding for J has been reduced compared to 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 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.
The Altman-Z score of J (2.96) is comparable to the rest of the industry.
The Debt to FCF ratio of J is 4.49, which is a neutral value as it means it would take J, 4.49 years of fcf income to pay off all of its debts.
J has a Debt to FCF ratio (4.49) which is in line with its industry peers.
J has a Debt/Equity ratio of 0.68. This is a neutral value indicating J is somewhat dependend on debt financing.
J has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.99
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.50 indicates that J should not have too much problems paying its short term obligations.
J has a Current ratio of 1.50. This is comparable to the rest of the industry: J outperforms 51.85% of its industry peers.
J has a Quick Ratio of 1.50. 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 Quick ratio of 1.50 is in line compared to the rest of the industry. J outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for J have decreased strongly by -21.01% in the last year.
J shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
J shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.67%.
Measured over the past years, J shows a decrease in Revenue. The Revenue has been decreasing by -2.02% on average per year.
EPS 1Y (TTM)-21.01%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-25.13%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.9%
3.2 Future
The Earnings Per Share is expected to grow by 8.72% on average over the next years. This is quite good.
Based on estimates for the next years, J will show a quite strong growth in Revenue. The Revenue will grow by 13.48% on average per year.
EPS Next Y-15.72%
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
EPS Next 5Y8.72%
Revenue Next Year9.99%
Revenue Next 2Y8.01%
Revenue Next 3Y13.69%
Revenue Next 5Y13.48%
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 stable.
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 21.78, which indicates a rather expensive current valuation of J.
J's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of J to the average of the S&P500 Index (27.21), we can say J is valued inline with the index average.
A Price/Forward Earnings ratio of 18.80 indicates a rather expensive valuation of J.
J's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of J to the average of the S&P500 Index (21.70), we can say J is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as J.
J's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.17 | ||
| EV/EBITDA | 14.74 |
4.3 Compensation for Growth
The decent profitability rating of J may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.91
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
5. Dividend
5.1 Amount
J has a yearly dividend return of 0.99%, which is pretty low.
J's Dividend Yield is a higher than the industry average which is at 2.12.
With a Dividend Yield of 0.99, J pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
18.66% of the earnings are spent on dividend by J. This is a low number and sustainable payout ratio.
The dividend of J is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.66%
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
132.65
+1.2 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.42%
Inst Owner Change-2.19%
Ins Owners0.32%
Ins Owner Change0.73%
Market Cap15.94B
Analysts78.33
Price Target147.51 (11.2%)
Short Float %2.04%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend1.14
Dividend Growth(5Y)8.08%
DP18.66%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.75%
Min EPS beat(2)0.96%
Max EPS beat(2)2.53%
EPS beat(4)2
Avg EPS beat(4)-2.84%
Min EPS beat(4)-12.7%
Max EPS beat(4)2.53%
EPS beat(8)5
Avg EPS beat(8)2.74%
EPS beat(12)8
Avg EPS beat(12)2.22%
EPS beat(16)10
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-1.44%
Revenue beat(4)1
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-12.26%
Max Revenue beat(4)4.9%
Revenue beat(8)5
Avg Revenue beat(8)1.26%
Revenue beat(12)7
Avg Revenue beat(12)1.64%
Revenue beat(16)8
Avg Revenue beat(16)0.6%
PT rev (1m)-1.82%
PT rev (3m)-6.29%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)3.68%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 18.8 | ||
| P/S | 1.39 | ||
| P/FCF | 27.17 | ||
| P/OCF | 23.09 | ||
| P/B | 4.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.74 |
EPS(TTM)6.09
EY4.59%
EPS(NY)7.06
Fwd EY5.32%
FCF(TTM)4.88
FCFY3.68%
OCF(TTM)5.74
OCFY4.33%
SpS95.71
BVpS32.16
TBVpS-13.62
PEG (NY)N/A
PEG (5Y)2.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 20.59% | ||
| ROCE | 10.56% | ||
| ROIC | 8.54% | ||
| ROICexc | 10.26% | ||
| ROICexgc | 51.47% | ||
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% | ||
| FCFM | 5.1% |
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 37.96% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.31% | ||
| Profit Quality | 73.7% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.96 |
F-Score6
WACC8.67%
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)-21.01%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-25.13%
EPS Next Y-15.72%
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
EPS Next 5Y8.72%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.9%
Revenue Next Year9.99%
Revenue Next 2Y8.01%
Revenue Next 3Y13.69%
Revenue Next 5Y13.48%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year2.59%
EBIT Next 3Y7.07%
EBIT Next 5Y7.87%
FCF growth 1Y85.68%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y49.16%
OCF growth 3Y13.24%
OCF growth 5YN/A