JABIL INC (JBL) Stock Fundamental Analysis
USA - NYSE:JBL - US4663131039 - Common Stock
223.29 USD
+9.65 (+4.52%)
223.29 USD
0 (0%)
JBL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While JBL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. JBL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
JBL had positive earnings in the past year.
In the past year JBL had a positive cash flow from operations.
JBL had positive earnings in each of the past 5 years.
JBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, JBL is in the better half of the industry, outperforming 64.80% of the companies in the same industry.
With an excellent Return On Equity value of 44.90%, JBL belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
JBL's Return On Invested Capital of 20.97% is amongst the best of the industry. JBL outperforms 94.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JBL is significantly above the industry average of 9.48%.
The 3 year average ROIC (17.51%) for JBL is below the current ROIC(20.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 44.9% | ||
| ROIC | 20.97% |
ROA(3y)5.75%
ROA(5y)4.36%
ROE(3y)49.7%
ROE(5y)36.93%
ROIC(3y)17.51%
ROIC(5y)15.41%
1.3 Margins
Looking at the Profit Margin, with a value of 2.02%, JBL is in line with its industry, outperforming 58.40% of the companies in the same industry.
In the last couple of years the Profit Margin of JBL has grown nicely.
JBL has a Operating Margin of 4.67%. This is in the better half of the industry: JBL outperforms 61.60% of its industry peers.
JBL's Operating Margin has improved in the last couple of years.
JBL has a worse Gross Margin (8.86%) than 82.40% of its industry peers.
In the last couple of years the Gross Margin of JBL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.67% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.86% |
OM growth 3Y8.62%
OM growth 5Y11.56%
PM growth 3Y26.45%
PM growth 5Y33.46%
GM growth 3Y3.73%
GM growth 5Y4.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JBL is creating value.
The number of shares outstanding for JBL has been reduced compared to 1 year ago.
The number of shares outstanding for JBL has been reduced compared to 5 years ago.
The debt/assets ratio for JBL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that JBL is not in any danger for bankruptcy at the moment.
The Altman-Z score of JBL (3.02) is comparable to the rest of the industry.
The Debt to FCF ratio of JBL is 2.48, which is a good value as it means it would take JBL, 2.48 years of fcf income to pay off all of its debts.
JBL's Debt to FCF ratio of 2.48 is fine compared to the rest of the industry. JBL outperforms 75.20% of its industry peers.
JBL has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.86, JBL is not doing good in the industry: 92.80% of the companies in the same industry are doing better.
Although JBL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.02 |
ROIC/WACC2.31
WACC9.09%
2.3 Liquidity
A Current Ratio of 0.98 indicates that JBL may have some problems paying its short term obligations.
The Current ratio of JBL (0.98) is worse than 90.40% of its industry peers.
A Quick Ratio of 0.64 indicates that JBL may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, JBL is not doing good in the industry: 91.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.97% over the past year.
The Earnings Per Share has been growing by 23.15% on average over the past years. This is a very strong growth
JBL shows a decrease in Revenue. In the last year, the revenue decreased by -6.13%.
Measured over the past years, JBL shows a small growth in Revenue. The Revenue has been growing by 2.70% on average per year.
EPS 1Y (TTM)1.97%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%34.92%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%15.71%
3.2 Future
The Earnings Per Share is expected to grow by 14.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y11.34%
EPS Next 2Y13.58%
EPS Next 3Y14.16%
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y3.9%
Revenue Next 3Y4.77%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 25.40, which means the current valuation is very expensive for JBL.
Compared to the rest of the industry, the Price/Earnings ratio of JBL indicates a somewhat cheap valuation: JBL is cheaper than 73.60% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. JBL is around the same levels.
With a Price/Forward Earnings ratio of 20.44, JBL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, JBL is valued a bit cheaper than the industry average as 70.40% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of JBL to the average of the S&P500 Index (22.88), we can say JBL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.4 | ||
| Fwd PE | 20.44 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than JBL, based on the Enterprise Value to EBITDA ratio.
84.00% of the companies in the same industry are more expensive than JBL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.59 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JBL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of JBL may justify a higher PE ratio.
JBL's earnings are expected to grow with 14.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)1.1
EPS Next 2Y13.58%
EPS Next 3Y14.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, JBL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.39, JBL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
The dividend of JBL has a limited annual growth rate of 1.03%.
JBL has been paying a dividend for at least 10 years, so it has a reliable track record.
JBL has decreased its dividend recently.
Dividend Growth(5Y)1.03%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
6.59% of the earnings are spent on dividend by JBL. This is a low number and sustainable payout ratio.
JBL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.59%
EPS Next 2Y13.58%
EPS Next 3Y14.16%
223.29
+9.65 (+4.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.48%
Inst Owner Change-0.81%
Ins Owners1.46%
Ins Owner Change-7.02%
Market Cap23.96B
Analysts83.75
Price Target230.09 (3.05%)
Short Float %4.02%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.34
Dividend Growth(5Y)1.03%
DP6.59%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.21%
Min EPS beat(2)5.13%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)5.62%
Min EPS beat(4)2.58%
Max EPS beat(4)9.3%
EPS beat(8)7
Avg EPS beat(8)3.56%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)15
Avg EPS beat(16)4.48%
Revenue beat(2)2
Avg Revenue beat(2)6.87%
Min Revenue beat(2)3.96%
Max Revenue beat(2)9.79%
Revenue beat(4)4
Avg Revenue beat(4)5.81%
Min Revenue beat(4)3.96%
Max Revenue beat(4)9.79%
Revenue beat(8)5
Avg Revenue beat(8)2.58%
Revenue beat(12)8
Avg Revenue beat(12)2.65%
Revenue beat(16)11
Avg Revenue beat(16)1.92%
PT rev (1m)0%
PT rev (3m)32.39%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)5.16%
EPS NY rev (1m)0%
EPS NY rev (3m)4.38%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)5.39%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.4 | ||
| Fwd PE | 20.44 | ||
| P/S | 0.84 | ||
| P/FCF | 20.59 | ||
| P/OCF | 15.1 | ||
| P/B | 18.65 | ||
| P/tB | 144.36 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)8.79
EY3.94%
EPS(NY)10.93
Fwd EY4.89%
FCF(TTM)10.85
FCFY4.86%
OCF(TTM)14.79
OCFY6.62%
SpS265.69
BVpS11.97
TBVpS1.55
PEG (NY)2.24
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 44.9% | ||
| ROCE | 29.11% | ||
| ROIC | 20.97% | ||
| ROICexc | 31.45% | ||
| ROICexgc | 49.68% | ||
| OM | 4.67% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.86% | ||
| FCFM | 4.08% |
ROA(3y)5.75%
ROA(5y)4.36%
ROE(3y)49.7%
ROE(5y)36.93%
ROIC(3y)17.51%
ROIC(5y)15.41%
ROICexc(3y)25.48%
ROICexc(5y)21.92%
ROICexgc(3y)31.86%
ROICexgc(5y)27.58%
ROCE(3y)24.31%
ROCE(5y)21.38%
ROICexcg growth 3Y20.02%
ROICexcg growth 5Y13.03%
ROICexc growth 3Y18.23%
ROICexc growth 5Y13.93%
OM growth 3Y8.62%
OM growth 5Y11.56%
PM growth 3Y26.45%
PM growth 5Y33.46%
GM growth 3Y3.73%
GM growth 5Y4.13%
F-Score5
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 55.58% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.86% | ||
| Profit Quality | 201.73% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 3.02 |
F-Score5
WACC9.09%
ROIC/WACC2.31
Cap/Depr(3y)124.62%
Cap/Depr(5y)125.97%
Cap/Sales(3y)3.27%
Cap/Sales(5y)3.48%
Profit Quality(3y)59.97%
Profit Quality(5y)145.45%
High Growth Momentum
Growth
EPS 1Y (TTM)1.97%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%34.92%
EPS Next Y11.34%
EPS Next 2Y13.58%
EPS Next 3Y14.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%15.71%
Revenue Next Year2.01%
Revenue Next 2Y3.9%
Revenue Next 3Y4.77%
Revenue Next 5YN/A
EBIT growth 1Y-12.43%
EBIT growth 3Y8.12%
EBIT growth 5Y14.57%
EBIT Next Year47.63%
EBIT Next 3Y20.86%
EBIT Next 5YN/A
FCF growth 1Y49.81%
FCF growth 3Y50.39%
FCF growth 5Y37.8%
OCF growth 1Y-18.78%
OCF growth 3Y6.19%
OCF growth 5Y7.54%