JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:J - US46982L1089 - Common Stock
137.89 USD
-2.2 (-1.57%)
137.89 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to J. J was compared to 87 industry peers in the Professional Services industry. J has an average financial health and profitability rating. J is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year J was profitable.
- In the past year J had a positive cash flow from operations.
- Each year in the past 5 years J has been profitable.
- J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.58%, J is in line with its industry, outperforming 51.72% of the companies in the same industry.
- J has a Return On Equity (7.97%) which is comparable to the rest of the industry.
- J has a better Return On Invested Capital (9.19%) than 66.67% of its industry peers.
- J had an Average Return On Invested Capital over the past 3 years of 8.58%. This is below the industry average of 11.85%.
- The last Return On Invested Capital (9.19%) for J is above the 3 year average (8.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 7.97% | ||
| ROIC | 9.19% |
ROA(3y)4.61%
ROA(5y)4.22%
ROE(3y)11.82%
ROE(5y)10.63%
ROIC(3y)8.58%
ROIC(5y)7.98%
1.3 Margins
- The Profit Margin of J (2.41%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of J has declined.
- Looking at the Operating Margin, with a value of 8.42%, J is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of J has grown nicely.
- J's Gross Margin of 24.81% is on the low side compared to the rest of the industry. J is outperformed by 63.22% of its industry peers.
- In the last couple of years the Gross Margin of J has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 2.41% | ||
| GM | 24.81% |
OM growth 3Y4.5%
OM growth 5Y6.1%
PM growth 3Y-17.62%
PM growth 5Y-7.83%
GM growth 3Y3.63%
GM growth 5Y5.41%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so J is still creating some value.
- J has less shares outstanding than it did 1 year ago.
- J has less shares outstanding than it did 5 years ago.
- J has a worse debt/assets ratio than last year.
2.2 Solvency
- J has an Altman-Z score of 2.95. 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.
- J has a Altman-Z score (2.95) which is comparable to the rest of the industry.
- J has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as J would need 3.68 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.68, J is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that J is somewhat dependend on debt financing.
- J has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.1
WACC8.38%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.30, J is in line with its industry, outperforming 43.68% of the companies in the same industry.
- A Quick Ratio of 1.30 indicates that J should not have too much problems paying its short term obligations.
- The Quick ratio of J (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- The earnings per share for J have decreased strongly by -15.56% in the last year.
- Measured over the past 5 years, J shows a small growth in Earnings Per Share. The EPS has been growing by 2.27% on average per year.
- J shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
- The Revenue has been decreasing by -2.38% on average over the past years.
EPS 1Y (TTM)-15.56%
EPS 3Y-4.05%
EPS 5Y2.27%
EPS Q2Q%27.74%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y-6.93%
Revenue growth 5Y-2.38%
Sales Q2Q%5.82%
3.2 Future
- The Earnings Per Share is expected to grow by 12.38% on average over the next years. This is quite good.
- The Revenue is expected to grow by 13.58% on average over the next years. This is quite good.
EPS Next Y18.08%
EPS Next 2Y15.17%
EPS Next 3Y14%
EPS Next 5Y12.38%
Revenue Next Year7.31%
Revenue Next 2Y6.85%
Revenue Next 3Y11.41%
Revenue Next 5Y13.58%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- J is valuated rather expensively with a Price/Earnings ratio of 22.49.
- J's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. J is around the same levels.
- The Price/Forward Earnings ratio is 19.05, which indicates a rather expensive current valuation of J.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of J is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. J is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, J is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
- J's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. J is cheaper than 60.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 13.9 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of J may justify a higher PE ratio.
- J's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)9.92
EPS Next 2Y15.17%
EPS Next 3Y14%
5. Dividend
5.1 Amount
- J has a yearly dividend return of 0.91%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.44, J pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
- The dividend of J has a limited annual growth rate of 2.81%.
- 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)2.81%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
- J pays out 52.72% of its income as dividend. This is a bit on the high side, but may be sustainable.
- J's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.72%
EPS Next 2Y15.17%
EPS Next 3Y14%
JACOBS SOLUTIONS INC / J FAQ
Can you provide the ChartMill fundamental rating for JACOBS SOLUTIONS INC?
ChartMill assigns a fundamental rating of 5 / 10 to J.
What is the valuation status for J stock?
ChartMill assigns a valuation rating of 4 / 10 to JACOBS SOLUTIONS INC (J). This can be considered as Fairly Valued.
What is the profitability of J stock?
JACOBS SOLUTIONS INC (J) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for J stock?
The Price/Earnings (PE) ratio for JACOBS SOLUTIONS INC (J) is 22.49 and the Price/Book (PB) ratio is 4.5.
What is the financial health of JACOBS SOLUTIONS INC (J) stock?
The financial health rating of JACOBS SOLUTIONS INC (J) is 5 / 10.