JABIL INC (JBL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JBL - US4663131039 - Common Stock
244.7 USD
-8.45 (-3.34%)
244.7 USD
0 (0%)
JBL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. JBL has an excellent profitability rating, but there are some minor concerns on its financial health. JBL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make JBL suitable for growth investing!
1. Profitability
1.1 Basic Checks
- JBL had positive earnings in the past year.
- JBL had a positive operating cash flow in the past year.
- Each year in the past 5 years JBL has been profitable.
- In the past 5 years JBL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.65%, JBL is in the better half of the industry, outperforming 65.32% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 52.31%, JBL belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
- JBL's Return On Invested Capital of 24.71% is amongst the best of the industry. JBL outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for JBL is significantly above the industry average of 8.82%.
- The last Return On Invested Capital (24.71%) for JBL is above the 3 year average (20.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 52.31% | ||
| ROIC | 24.71% |
ROA(3y)5.25%
ROA(5y)5%
ROE(3y)50.62%
ROE(5y)45.02%
ROIC(3y)20.19%
ROIC(5y)18.61%
1.3 Margins
- The Profit Margin of JBL (2.26%) is comparable to the rest of the industry.
- JBL's Profit Margin has improved in the last couple of years.
- JBL has a better Operating Margin (4.91%) than 62.10% of its industry peers.
- JBL's Operating Margin has improved in the last couple of years.
- JBL has a Gross Margin of 8.94%. This is amonst the worse of the industry: JBL underperforms 82.26% of its industry peers.
- JBL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.91% | ||
| PM (TTM) | 2.26% | ||
| GM | 8.94% |
OM growth 3Y4.56%
OM growth 5Y10.48%
PM growth 3Y-9.51%
PM growth 5Y61.98%
GM growth 3Y4.14%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so JBL is still creating some 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.
- JBL has a better debt/assets ratio than last year.
2.2 Solvency
- JBL has an Altman-Z score of 3.24. This indicates that JBL is financially healthy and has little risk of bankruptcy at the moment.
- JBL has a Altman-Z score (3.24) which is in line with its industry peers.
- JBL has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as JBL would need 2.44 years to pay back of all of its debts.
- JBL's Debt to FCF ratio of 2.44 is fine compared to the rest of the industry. JBL outperforms 73.39% of its industry peers.
- A Debt/Equity ratio of 1.78 is on the high side and indicates that JBL has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.78, JBL is not doing good in the industry: 91.94% of the companies in the same industry are doing better.
- Even though the debt/equity ratio score it not favorable for JBL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.7
WACC14.53%
2.3 Liquidity
- JBL has a Current Ratio of 0.99. 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 Current ratio value of 0.99, JBL is not doing good in the industry: 90.32% of the companies in the same industry are doing better.
- JBL has a Quick Ratio of 0.99. This is a bad value and indicates that JBL is not financially healthy enough and could expect problems in meeting its short term obligations.
- JBL's Quick ratio of 0.67 is on the low side compared to the rest of the industry. JBL is outperformed by 91.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- JBL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.07%, which is quite impressive.
- The Earnings Per Share has been growing by 27.52% on average over the past years. This is a very strong growth
- Looking at the last year, JBL shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
- JBL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.79% yearly.
EPS 1Y (TTM)35.07%
EPS 3Y8.49%
EPS 5Y27.52%
EPS Q2Q%42.5%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y-3.8%
Revenue growth 5Y1.79%
Sales Q2Q%18.74%
3.2 Future
- The Earnings Per Share is expected to grow by 17.64% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
EPS Next Y19.48%
EPS Next 2Y17.72%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year11.93%
Revenue Next 2Y9.85%
Revenue Next 3Y8.92%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.02, which indicates a rather expensive current valuation of JBL.
- 75.00% of the companies in the same industry are more expensive than JBL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. JBL is around the same levels.
- Based on the Price/Forward Earnings ratio of 18.05, the valuation of JBL can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, JBL is valued a bit cheaper than 79.84% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of JBL to the average of the S&P500 Index (24.32), we can say JBL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
- 82.26% of the companies in the same industry are more expensive than JBL, based on the Enterprise Value to EBITDA ratio.
- 79.84% 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 | 22.06 | ||
| EV/EBITDA | 12.4 |
4.3 Compensation for Growth
- JBL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- JBL has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as JBL's earnings are expected to grow with 17.64% in the coming years.
PEG (NY)1.18
PEG (5Y)0.84
EPS Next 2Y17.72%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
- JBL has a yearly dividend return of 0.13%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.46, JBL pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.13, JBL pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
- The dividend of JBL decreases each year by -0.41%.
- 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)-0.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- JBL pays out 5.12% of its income as dividend. This is a sustainable payout ratio.
DP5.12%
EPS Next 2Y17.72%
EPS Next 3Y17.64%
JABIL INC / JBL FAQ
What is the fundamental rating for JBL stock?
ChartMill assigns a fundamental rating of 6 / 10 to JBL.
What is the valuation status of JABIL INC (JBL) stock?
ChartMill assigns a valuation rating of 5 / 10 to JABIL INC (JBL). This can be considered as Fairly Valued.
How profitable is JABIL INC (JBL) stock?
JABIL INC (JBL) has a profitability rating of 8 / 10.
Can you provide the financial health for JBL stock?
The financial health rating of JABIL INC (JBL) is 5 / 10.
What is the earnings growth outlook for JABIL INC?
The Earnings per Share (EPS) of JABIL INC (JBL) is expected to grow by 19.48% in the next year.