JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - NYSE:J - US46982L1089 - Common Stock
149.63 USD
+2.33 (+1.58%)
149.63 USD
0 (0%)
Taking everything into account, J scores 5 out of 10 in our fundamental rating. J was compared to 82 industry peers in the Professional Services industry. J has an average financial health and profitability rating. While showing a medium growth rate, J is valued expensive at the moment.
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
With a decent Return On Assets value of 6.97%, J is doing good in the industry, outperforming 69.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.82%, J is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.59%, J is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
J had an Average Return On Invested Capital over the past 3 years of 8.77%. This is below the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 20.82% | ||
| ROIC | 8.59% |
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 73.17% 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 Operating Margin of 7.58%. This is in the better half of the industry: J outperforms 63.41% of its industry peers.
In the last couple of years the Operating Margin of J has grown nicely.
J has a worse Gross Margin (24.63%) than 65.85% 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
Compared to 5 years ago, J has less shares outstanding
J has a better debt/assets ratio than last year.
2.2 Solvency
J has an Altman-Z score of 2.99. 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 2.99 is in line compared to the rest of the industry. J outperforms 53.66% of its industry peers.
J has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as J would need 6.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.09, J is in line with its industry, outperforming 45.12% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that J is somewhat dependend on debt financing.
J has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.02
WACC8.41%
2.3 Liquidity
J has a Current Ratio of 1.39. 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 Current ratio of 1.39. This is comparable to the rest of the industry: J outperforms 48.78% of its industry peers.
A Quick Ratio of 1.39 indicates that J should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, J perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The earnings per share for J have decreased strongly by -26.75% in the last year.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
The Revenue for J has decreased by -29.67% in the past year. This is quite bad
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)-26.75%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-17.35%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-47.27%
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 8.66% yearly.
J is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.53% yearly.
EPS Next Y-15.02%
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
EPS Next 5Y8.66%
Revenue Next Year9.36%
Revenue Next 2Y7.99%
Revenue Next 3Y9.84%
Revenue Next 5Y13.53%
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
The Price/Earnings ratio is 26.02, which means the current valuation is very expensive for J.
The rest of the industry has a similar Price/Earnings ratio as J.
The average S&P500 Price/Earnings ratio is at 27.41. J is around the same levels.
A Price/Forward Earnings ratio of 20.93 indicates a rather expensive valuation of J.
The rest of the industry has a similar Price/Forward Earnings ratio as J.
J is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
J's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 43.4 | ||
| EV/EBITDA | 16.69 |
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)3.48
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, J is not a good candidate for dividend investing.
J's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to an average S&P500 Dividend Yield of 2.38, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of J is nicely growing with an annual growth rate of 8.08%!
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
18.99% 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.
DP18.99%
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
149.63
+2.33 (+1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.91%
Inst Owner Change0.18%
Ins Owners0.32%
Ins Owner Change-0.05%
Market Cap17.89B
Analysts79.13
Price Target158.56 (5.97%)
Short Float %1.75%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend1.14
Dividend Growth(5Y)8.08%
DP18.99%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.96%
Max EPS beat(2)2.79%
EPS beat(4)3
Avg EPS beat(4)-1.61%
Min EPS beat(4)-12.7%
Max EPS beat(4)2.79%
EPS beat(8)6
Avg EPS beat(8)3.28%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)10
Avg EPS beat(16)1.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.96%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-12.26%
Max Revenue beat(4)-1.44%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)7
Avg Revenue beat(12)1.54%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)4.72%
PT rev (3m)7.49%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-3.31%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 20.93 | ||
| P/S | 1.56 | ||
| P/FCF | 43.4 | ||
| P/OCF | 35.76 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.69 |
EPS(TTM)5.75
EY3.84%
EPS(NY)7.15
Fwd EY4.78%
FCF(TTM)3.45
FCFY2.3%
OCF(TTM)4.18
OCFY2.8%
SpS96.21
BVpS31.97
TBVpS-14.8
PEG (NY)N/A
PEG (5Y)3.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 20.82% | ||
| ROCE | 10.62% | ||
| ROIC | 8.59% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 53.27% | ||
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% | ||
| FCFM | 3.58% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 34.34% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.35% | ||
| Profit Quality | 51.79% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.99 |
F-Score6
WACC8.41%
ROIC/WACC1.02
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)-26.75%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-17.35%
EPS Next Y-15.02%
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
EPS Next 5Y8.66%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-47.27%
Revenue Next Year9.36%
Revenue Next 2Y7.99%
Revenue Next 3Y9.84%
Revenue Next 5Y13.53%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year2.84%
EBIT Next 3Y7.53%
EBIT Next 5Y7.97%
FCF growth 1Y-53.54%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y-51.58%
OCF growth 3Y13.24%
OCF growth 5YN/A