JABIL INC (JBL) Stock Fundamental Analysis
NYSE:JBL - New York Stock Exchange, Inc. - US4663131039 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to JBL. JBL was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. JBL scores excellent on profitability, but 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
In the past year JBL was profitable.
JBL had a positive operating cash flow in the past year.
Each year in the past 5 years JBL has been profitable.
Each year in the past 5 years JBL had a positive operating cash flow.
1.2 Ratios
JBL has a Return On Assets of 3.10%. This is in the better half of the industry: JBL outperforms 66.40% of its industry peers.
The Return On Equity of JBL (44.90%) is better than 98.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.97%, JBL belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
JBL had an Average Return On Invested Capital over the past 3 years of 17.51%. This is significantly above the industry average of 9.16%.
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
JBL's Profit Margin of 2.02% is in line compared to the rest of the industry. JBL outperforms 59.20% of its industry peers.
In the last couple of years the Profit Margin of JBL has grown nicely.
Looking at the Operating Margin, with a value of 4.67%, JBL is in the better half of the industry, outperforming 64.80% of the companies in the same industry.
JBL's Operating Margin has improved in the last couple of years.
The Gross Margin of JBL (8.86%) is worse than 80.80% 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
JBL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for JBL has been reduced compared to 1 year ago.
JBL has less shares outstanding than it did 5 years ago.
JBL has a worse debt/assets ratio than last year.
2.2 Solvency
JBL has an Altman-Z score of 3.04. This indicates that JBL is financially healthy and has little risk of bankruptcy at the moment.
JBL has a Altman-Z score (3.04) which 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 73.60% of its industry peers.
A Debt/Equity ratio of 1.86 is on the high side and indicates that JBL has dependencies on debt financing.
The Debt to Equity ratio of JBL (1.86) is worse than 95.20% of its industry peers.
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 | 3.04 |
ROIC/WACC2.29
WACC9.14%
2.3 Liquidity
JBL has a Current Ratio of 0.98. This is a bad value and indicates that JBL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.98, JBL is doing worse than 93.60% of the companies in the same industry.
JBL has a Quick Ratio of 0.98. This is a bad value and indicates that JBL is not financially healthy enough and could expect problems in meeting 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.
JBL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.15% yearly.
JBL shows a decrease in Revenue. In the last year, the revenue decreased by -6.13%.
JBL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
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 12.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.74% on average over the next years.
EPS Next Y6.92%
EPS Next 2Y10.54%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue Next Year-1.79%
Revenue Next 2Y1.38%
Revenue Next 3Y2.74%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
JBL is valuated quite expensively with a Price/Earnings ratio of 25.26.
Based on the Price/Earnings ratio, JBL is valued a bit cheaper than 69.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, JBL is valued at the same level.
A Price/Forward Earnings ratio of 21.45 indicates a rather expensive valuation of JBL.
JBL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JBL is cheaper than 66.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of JBL to the average of the S&P500 Index (21.76), we can say JBL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 21.45 |
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.
JBL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JBL is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.48 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of JBL may justify a higher PE ratio.
A more expensive valuation may be justified as JBL's earnings are expected to grow with 12.29% in the coming years.
PEG (NY)3.65
PEG (5Y)1.09
EPS Next 2Y10.54%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, JBL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.76, JBL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
The dividend of JBL has a limited annual growth rate of 1.03%.
JBL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of JBL decreased recently.
Dividend Growth(5Y)1.03%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
JBL pays out 6.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of JBL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.59%
EPS Next 2Y10.54%
EPS Next 3Y12.29%
222.02
+1.06 (+0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-0.02%
Ins Owners1.8%
Ins Owner Change-6.91%
Market Cap23.83B
Analysts82.67
Price Target212.68 (-4.21%)
Short Float %3.32%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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)24.11%
PT rev (3m)19.82%
EPS NQ rev (1m)5.16%
EPS NQ rev (3m)5.16%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)5.9%
Revenue NQ rev (3m)5.9%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 21.45 | ||
| P/S | 0.84 | ||
| P/FCF | 20.48 | ||
| P/OCF | 15.02 | ||
| P/B | 18.55 | ||
| P/tB | 143.58 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)8.79
EY3.96%
EPS(NY)10.35
Fwd EY4.66%
FCF(TTM)10.84
FCFY4.88%
OCF(TTM)14.78
OCFY6.66%
SpS265.62
BVpS11.97
TBVpS1.55
PEG (NY)3.65
PEG (5Y)1.09
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 | 3.04 |
F-Score5
WACC9.14%
ROIC/WACC2.29
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 Y6.92%
EPS Next 2Y10.54%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%15.71%
Revenue Next Year-1.79%
Revenue Next 2Y1.38%
Revenue Next 3Y2.74%
Revenue Next 5YN/A
EBIT growth 1Y-12.43%
EBIT growth 3Y8.12%
EBIT growth 5Y14.57%
EBIT Next Year38.58%
EBIT Next 3Y16.19%
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%