JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
NYSE:J - New York Stock Exchange, Inc. - US46982L1089 - Common Stock - Currency: USD
J gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. J has only an average score on both its financial health and profitability. J is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
J had positive earnings in the past year.
In the past year J had a positive cash flow from operations.
J had positive earnings in each of the past 5 years.
In the past 5 years J always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of J (7.10%) is better than 69.51% of its industry peers.
The Return On Equity of J (20.59%) is better than 70.73% of its industry peers.
J has a Return On Invested Capital of 8.54%. This is in the better half of the industry: J outperforms 63.41% of its industry peers.
J had an Average Return On Invested Capital over the past 3 years of 8.77%. This is below the industry average of 12.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 20.59% | ||
| ROIC | 8.54% |
ROA(3y)5.26%
ROA(5y)4.52%
ROE(3y)12.81%
ROE(5y)10.79%
ROIC(3y)8.77%
ROIC(5y)8.35%
1.3 Margins
Looking at the Profit Margin, with a value of 6.92%, J is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
J's Profit Margin has been stable in the last couple of years.
J's Operating Margin of 7.58% is fine compared to the rest of the industry. J outperforms 62.20% of its industry peers.
In the last couple of years the Operating Margin of J has grown nicely.
J's Gross Margin of 24.63% is on the low side compared to the rest of the industry. J is outperformed by 69.51% of its industry peers.
In the last couple of years the Gross Margin of J has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% |
OM growth 3Y-1.98%
OM growth 5Y5.54%
PM growth 3Y32.42%
PM growth 5Y0.8%
GM growth 3Y4.47%
GM growth 5Y4.84%
2. Health
2.1 Basic Checks
J has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
J has less shares outstanding than it did 1 year ago.
The number of shares outstanding for J has been reduced compared to 5 years ago.
Compared to 1 year ago, J has an improved debt to assets ratio.
2.2 Solvency
J has an Altman-Z score of 2.90. This is not the best score and indicates that J is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of J (2.90) is comparable to the rest of the industry.
J has a debt to FCF ratio of 4.49. This is a neutral value as J would need 4.49 years to pay back of all of its debts.
J has a Debt to FCF ratio (4.49) which is in line with its industry peers.
A Debt/Equity ratio of 0.68 indicates that J is somewhat dependend on debt financing.
The Debt to Equity ratio of J (0.68) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.95
WACC9.01%
2.3 Liquidity
J has a Current Ratio of 1.50. This is a normal value and indicates that J is financially healthy and should not expect problems in meeting its short term obligations.
J has a Current ratio of 1.50. This is comparable to the rest of the industry: J outperforms 54.88% of its industry peers.
A Quick Ratio of 1.50 indicates that J should not have too much problems paying its short term obligations.
The Quick ratio of J (1.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
J shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.01%.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
J shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.67%.
The Revenue has been decreasing by -2.02% on average over the past years.
EPS 1Y (TTM)-21.01%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-25.13%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.9%
3.2 Future
Based on estimates for the next years, J will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.33% on average per year.
The Revenue is expected to grow by 13.76% on average over the next years. This is quite good.
EPS Next Y-15.57%
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
EPS Next 5Y9.33%
Revenue Next Year6.09%
Revenue Next 2Y6.17%
Revenue Next 3Y11.19%
Revenue Next 5Y13.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
A Price/Earnings ratio of 20.67 indicates a rather expensive valuation of J.
J's Price/Earnings ratio is in line with the industry average.
J is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.84, the valuation of J can be described as rather expensive.
J's Price/Forward Earnings is on the same level as the industry average.
J's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as J.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of J is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.78 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
J has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.76
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
5. Dividend
5.1 Amount
J has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.02, J pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, J pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
On average, the dividend of J grows each year by 8.08%, which is quite nice.
J has been paying a dividend for over 5 years, so it has already some track record.
As J did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.08%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
J pays out 18.66% of its income as dividend. This is a sustainable payout ratio.
J's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.66%
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
125.85
-0.96 (-0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.25%
Inst Owner Change-2.21%
Ins Owners0.79%
Ins Owner Change0.78%
Market Cap15.12B
Analysts78.33
Price Target150.25 (19.39%)
Short Float %2.25%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.14
Dividend Growth(5Y)8.08%
DP18.66%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.75%
Min EPS beat(2)0.96%
Max EPS beat(2)2.53%
EPS beat(4)2
Avg EPS beat(4)-2.84%
Min EPS beat(4)-12.7%
Max EPS beat(4)2.53%
EPS beat(8)5
Avg EPS beat(8)2.74%
EPS beat(12)8
Avg EPS beat(12)2.22%
EPS beat(16)10
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-1.44%
Revenue beat(4)1
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-12.26%
Max Revenue beat(4)4.9%
Revenue beat(8)5
Avg Revenue beat(8)1.26%
Revenue beat(12)7
Avg Revenue beat(12)1.64%
Revenue beat(16)8
Avg Revenue beat(16)0.6%
PT rev (1m)-3.23%
PT rev (3m)-4.55%
EPS NQ rev (1m)-3.07%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-3.65%
Revenue NY rev (3m)-3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 17.84 | ||
| P/S | 1.31 | ||
| P/FCF | 25.78 | ||
| P/OCF | 21.91 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.15 |
EPS(TTM)6.09
EY4.84%
EPS(NY)7.06
Fwd EY5.61%
FCF(TTM)4.88
FCFY3.88%
OCF(TTM)5.74
OCFY4.56%
SpS95.71
BVpS32.16
TBVpS-13.62
PEG (NY)N/A
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 20.59% | ||
| ROCE | 10.56% | ||
| ROIC | 8.54% | ||
| ROICexc | 10.26% | ||
| ROICexgc | 51.47% | ||
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% | ||
| FCFM | 5.1% |
ROA(3y)5.26%
ROA(5y)4.52%
ROE(3y)12.81%
ROE(5y)10.79%
ROIC(3y)8.77%
ROIC(5y)8.35%
ROICexc(3y)10.34%
ROICexc(5y)9.66%
ROICexgc(3y)231.28%
ROICexgc(5y)157.22%
ROCE(3y)10.84%
ROCE(5y)10.32%
ROICexcg growth 3Y118.11%
ROICexcg growth 5Y78.34%
ROICexc growth 3Y11.41%
ROICexc growth 5Y10.22%
OM growth 3Y-1.98%
OM growth 5Y5.54%
PM growth 3Y32.42%
PM growth 5Y0.8%
GM growth 3Y4.47%
GM growth 5Y4.84%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 37.96% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.31% | ||
| Profit Quality | 73.7% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.9 |
F-Score6
WACC9.01%
ROIC/WACC0.95
Cap/Depr(3y)42.12%
Cap/Depr(5y)45.69%
Cap/Sales(3y)0.92%
Cap/Sales(5y)0.86%
Profit Quality(3y)98.48%
Profit Quality(5y)117.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.01%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-25.13%
EPS Next Y-15.57%
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.9%
Revenue Next Year6.09%
Revenue Next 2Y6.17%
Revenue Next 3Y11.19%
Revenue Next 5Y13.76%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year2.59%
EBIT Next 3Y7.07%
EBIT Next 5Y8.56%
FCF growth 1Y85.68%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y49.16%
OCF growth 3Y13.24%
OCF growth 5YN/A