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 124 industry peers in the Electronic Equipment, Instruments & Components industry. While JBL has a great profitability rating, there are some minor concerns on its financial health. JBL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JBL was profitable.
In the past year JBL had a positive cash flow from operations.
JBL had positive earnings in each of the past 5 years.
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 7.28%, JBL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
JBL has a better Return On Equity (81.23%) than 100.00% of its industry peers.
JBL has a Return On Invested Capital of 17.17%. This is amongst the best in the industry. JBL outperforms 95.00% 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 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.28% | ||
| ROE | 81.23% | ||
| ROIC | 17.17% |
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 better Profit Margin (4.71%) than 68.33% of its industry peers.
In the last couple of years the Profit Margin of JBL has grown nicely.
JBL has a better Operating Margin (4.63%) than 65.00% of its industry peers.
JBL's Operating Margin has improved in the last couple of years.
JBL has a Gross Margin of 9.12%. This is amonst the worse of the industry: JBL underperforms 81.67% of its industry peers.
In the last couple of years the Gross Margin of JBL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | 4.71% | ||
| GM | 9.12% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JBL is creating value.
JBL has less shares outstanding than it did 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
An Altman-Z score of 2.97 indicates that JBL is not a great score, but indicates only limited risk for bankruptcy at the moment.
JBL has a Altman-Z score (2.97) which is comparable to the rest of the industry.
The Debt to FCF ratio of JBL is 2.92, which is a good value as it means it would take JBL, 2.92 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.92, JBL is doing good in the industry, outperforming 68.33% of the companies in the same industry.
A Debt/Equity ratio of 1.81 is on the high side and indicates that JBL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.81, JBL is doing worse than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 2.97 |
ROIC/WACC2.06
WACC8.35%
2.3 Liquidity
JBL has a Current Ratio of 1.06. This is a normal value and indicates that JBL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of JBL (1.06) is worse than 93.33% of its industry peers.
A Quick Ratio of 0.72 indicates that JBL may have some problems paying its short term obligations.
JBL has a worse Quick ratio (0.72) than 89.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for JBL have decreased strongly by -11.77% in the last year.
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.
Looking at the last year, JBL shows a very negative growth in Revenue. The Revenue has decreased by -17.83% in the last year.
JBL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
EPS 1Y (TTM)-11.77%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-17.83%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%-16.61%
3.2 Future
The Earnings Per Share is expected to grow by 11.48% on average over the next years. This is quite good.
JBL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y4.32%
EPS Next 2Y9.72%
EPS Next 3Y11.48%
EPS Next 5YN/A
Revenue Next Year-4.18%
Revenue Next 2Y0.45%
Revenue Next 3Y2%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.66 indicates a rather expensive valuation of JBL.
Compared to the rest of the industry, the Price/Earnings ratio of JBL indicates a somewhat cheap valuation: JBL is cheaper than 75.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. JBL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.95, JBL is valued correctly.
Based on the Price/Forward Earnings ratio, JBL is valued cheaper than 80.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. JBL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
82.50% of the companies in the same industry are more expensive than JBL, based on the Enterprise Value to EBITDA ratio.
77.50% 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 | 18.05 | ||
| EV/EBITDA | 9.78 |
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)4.78
PEG (5Y)0.89
EPS Next 2Y9.72%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, JBL is not a good candidate for dividend investing.
JBL's Dividend Yield is a higher than the industry average which is at 1.92.
Compared to an average S&P500 Dividend Yield of 2.29, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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
3.09% 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.
DP3.09%
EPS Next 2Y9.72%
EPS Next 3Y11.48%
162.61
-3.51 (-2.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.96%
Inst Owner Change-0.32%
Ins Owners1.85%
Ins Owner Change1.44%
Market Cap17.81B
Analysts80
Price Target174.29 (7.18%)
Short Float %2.38%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.34
Dividend Growth(5Y)1.03%
DP3.09%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.02%
Min EPS beat(2)2.58%
Max EPS beat(2)5.47%
EPS beat(4)4
Avg EPS beat(4)2.39%
Min EPS beat(4)0.41%
Max EPS beat(4)5.47%
EPS beat(8)7
Avg EPS beat(8)2.5%
EPS beat(12)11
Avg EPS beat(12)4.05%
EPS beat(16)15
Avg EPS beat(16)7.11%
Revenue beat(2)2
Avg Revenue beat(2)4.74%
Min Revenue beat(2)4.69%
Max Revenue beat(2)4.79%
Revenue beat(4)3
Avg Revenue beat(4)2.34%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)4.79%
Revenue beat(8)4
Avg Revenue beat(8)1.1%
Revenue beat(12)8
Avg Revenue beat(12)1.58%
Revenue beat(16)11
Avg Revenue beat(16)1.42%
PT rev (1m)6.72%
PT rev (3m)19.01%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-24.73%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-10.22%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.66 | ||
| Fwd PE | 15.95 | ||
| P/S | 0.65 | ||
| P/FCF | 18.05 | ||
| P/OCF | 11.27 | ||
| P/B | 11.18 | ||
| P/tB | 23.59 | ||
| EV/EBITDA | 9.78 |
EPS(TTM)7.87
EY4.84%
EPS(NY)10.2
Fwd EY6.27%
FCF(TTM)9.01
FCFY5.54%
OCF(TTM)14.43
OCFY8.87%
SpS250.98
BVpS14.54
TBVpS6.89
PEG (NY)4.78
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.28% | ||
| ROE | 81.23% | ||
| ROCE | 23.83% | ||
| ROIC | 17.17% | ||
| ROICexc | 27.95% | ||
| ROICexgc | 37.54% | ||
| OM | 4.63% | ||
| PM (TTM) | 4.71% | ||
| GM | 9.12% | ||
| FCFM | 3.59% |
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-Score6
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 88.24% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 76.28% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.97 |
F-Score6
WACC8.35%
ROIC/WACC2.06
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)-11.77%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%-23.08%
EPS Next Y4.32%
EPS Next 2Y9.72%
EPS Next 3Y11.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.83%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%-16.61%
Revenue Next Year-4.18%
Revenue Next 2Y0.45%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y-22.06%
EBIT growth 3Y8.12%
EBIT growth 5Y14.57%
EBIT Next Year35.55%
EBIT Next 3Y16%
EBIT Next 5YN/A
FCF growth 1Y121.8%
FCF growth 3Y50.39%
FCF growth 5Y37.8%
OCF growth 1Y-15.19%
OCF growth 3Y6.19%
OCF growth 5Y7.54%