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%)
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 correct valuation and a medium growth rate.
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.
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 2.58%. This is comparable to the rest of the industry: J outperforms 50.57% of its industry peers.
J's Return On Equity of 7.97% is in line compared to the rest of the industry. J outperforms 51.72% of its industry peers.
With a decent Return On Invested Capital value of 9.19%, J is doing good in 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 12.15%.
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
J's Profit Margin of 2.41% is in line compared to the rest of the industry. J outperforms 48.28% of its industry peers.
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.
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
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.
Compared to 1 year ago, J has a worse debt to assets ratio.
2.2 Solvency
J has an Altman-Z score of 2.93. 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 2.93 is in line compared to the rest of the industry. J outperforms 54.02% 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.
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.
A Debt/Equity ratio of 0.61 indicates that J is somewhat dependend on debt financing.
J has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.93 |
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.
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.
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
The earnings per share for J have decreased strongly by -15.56% in the last year.
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.
The Revenue has been growing slightly by 4.60% in the past year.
Measured over the past years, J shows a decrease in Revenue. The Revenue has been decreasing by -2.38% on average per year.
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.
The Revenue is expected to grow by 6.42% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 21.99, which indicates a rather expensive current 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.
When comparing the Price/Earnings ratio of J to the average of the S&P500 Index (26.31), we can say J is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.73, J is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of J is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.56. J is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, J is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
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 | 13.6 |
4.3 Compensation for Growth
J's 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.
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
J has a yearly dividend return of 0.94%, which is pretty low.
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 2.32.
| 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.
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 Change0.41%
Ins Owners0.33%
Ins Owner Change4.88%
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)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 | 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 | 13.6 |
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 | 2.93 |
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.