JABIL INC (JBL) Stock Fundamental Analysis
NYSE:JBL - New York Stock Exchange, Inc. - US4663131039 - Common Stock - Currency: USD
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 has a correct valuation and a medium growth rate.
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
With a decent Return On Assets value of 2.78%, JBL is doing good in the industry, outperforming 61.29% of the companies in the same industry.
With an excellent Return On Equity value of 35.64%, JBL belongs to the best of the industry, outperforming 95.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.96%, JBL belongs to the top of the industry, outperforming 95.16% 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 9.26%.
The last Return On Invested Capital (17.96%) for JBL is above the 3 year average (17.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 35.64% | ||
| ROIC | 17.96% |
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 has a Profit Margin (1.76%) which is comparable to the rest of the industry.
JBL's Profit Margin has improved in the last couple of years.
The Operating Margin of JBL (4.62%) is better than 65.32% of its industry peers.
In the last couple of years the Operating Margin of JBL has grown nicely.
JBL has a Gross Margin of 8.94%. This is amonst the worse of the industry: JBL underperforms 80.65% of its industry peers.
JBL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.62% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.94% |
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.
Compared to 5 years ago, JBL has less shares outstanding
JBL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.86 indicates that JBL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of JBL (2.86) is comparable to the rest of the industry.
JBL has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as JBL would need 2.30 years to pay back of all of its debts.
JBL has a Debt to FCF ratio of 2.30. This is in the better half of the industry: JBL outperforms 73.39% of its industry peers.
JBL has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
JBL has a Debt to Equity ratio of 2.12. This is amonst the worse of the industry: JBL underperforms 93.55% 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 | 2.12 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 2.86 |
ROIC/WACC2.12
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.02 indicates that JBL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, JBL is doing worse than 91.94% of the companies in the same industry.
JBL has a Quick Ratio of 1.02. 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 0.66 is on the low side compared to the rest of the industry. JBL is outperformed by 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
JBL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.77%.
Measured over the past years, JBL shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.15% on average per year.
JBL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.45%.
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)-6.77%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%15.48%
Revenue 1Y (TTM)-14.45%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%-0.58%
3.2 Future
Based on estimates for the next years, JBL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.86% on average per year.
Based on estimates for the next years, JBL will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y6.67%
EPS Next 2Y10.27%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue Next Year-1.91%
Revenue Next 2Y1.42%
Revenue Next 3Y2.67%
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.
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
A Price/Earnings ratio of 16.61 indicates a correct valuation of JBL.
78.23% of the companies in the same industry are more expensive than JBL, based on the Price/Earnings ratio.
JBL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
JBL is valuated correctly with a Price/Forward Earnings ratio of 13.11.
82.26% of the companies in the same industry are more expensive than JBL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of JBL to the average of the S&P500 Index (21.08), we can say JBL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
JBL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JBL is cheaper than 84.68% of the companies in the same industry.
JBL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JBL is cheaper than 86.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 7.97 |
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.
PEG (NY)2.49
PEG (5Y)0.72
EPS Next 2Y10.27%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, JBL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.40, JBL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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
8.06% of the earnings are spent on dividend by JBL. This is a low number and sustainable payout ratio.
The dividend of JBL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.06%
EPS Next 2Y10.27%
EPS Next 3Y11.86%
135.04
+1.17 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change1.11%
Ins Owners1.8%
Ins Owner Change2.89%
Market Cap14.50B
Analysts80
Price Target177.5 (31.44%)
Short Float %2.71%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.34
Dividend Growth(5Y)1.03%
DP8.06%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.3%
Min EPS beat(2)5.13%
Max EPS beat(2)5.47%
EPS beat(4)4
Avg EPS beat(4)3.56%
Min EPS beat(4)1.08%
Max EPS beat(4)5.47%
EPS beat(8)7
Avg EPS beat(8)3.04%
EPS beat(12)11
Avg EPS beat(12)3.39%
EPS beat(16)15
Avg EPS beat(16)5.39%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)3.96%
Max Revenue beat(2)4.79%
Revenue beat(4)4
Avg Revenue beat(4)4.02%
Min Revenue beat(4)2.64%
Max Revenue beat(4)4.79%
Revenue beat(8)5
Avg Revenue beat(8)1.65%
Revenue beat(12)8
Avg Revenue beat(12)1.86%
Revenue beat(16)11
Avg Revenue beat(16)1.48%
PT rev (1m)0.25%
PT rev (3m)8.68%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.98%
Revenue NQ rev (1m)4.16%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.53 | ||
| P/FCF | 11.57 | ||
| P/OCF | 8.55 | ||
| P/B | 10.67 | ||
| P/tB | 57.07 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)8.13
EY6.02%
EPS(NY)10.3
Fwd EY7.63%
FCF(TTM)11.67
FCFY8.64%
OCF(TTM)15.8
OCFY11.7%
SpS255.71
BVpS12.65
TBVpS2.37
PEG (NY)2.49
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 35.64% | ||
| ROCE | 24.94% | ||
| ROIC | 17.96% | ||
| ROICexc | 26.16% | ||
| ROICexgc | 38.27% | ||
| OM | 4.62% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.94% | ||
| FCFM | 4.56% |
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 Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 62.13% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.66% | ||
| Profit Quality | 258.88% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.86 |
F-Score5
WACC8.47%
ROIC/WACC2.12
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)-6.77%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%15.48%
EPS Next Y6.67%
EPS Next 2Y10.27%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.45%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%-0.58%
Revenue Next Year-1.91%
Revenue Next 2Y1.42%
Revenue Next 3Y2.67%
Revenue Next 5YN/A
EBIT growth 1Y-19.61%
EBIT growth 3Y8.12%
EBIT growth 5Y14.57%
EBIT Next Year38.65%
EBIT Next 3Y16.61%
EBIT Next 5YN/A
FCF growth 1Y75.74%
FCF growth 3Y50.39%
FCF growth 5Y37.8%
OCF growth 1Y-16.49%
OCF growth 3Y6.19%
OCF growth 5Y7.54%