JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
NYSE:J - US46982L1089 - Common Stock
146.23 USD
-0.68 (-0.46%)
146.23 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to J. J was compared to 83 industry peers in the Professional Services industry. J has only an average score on both its financial health and profitability. While showing a medium growth rate, J is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year J was profitable.
J had a positive operating cash flow in the past year.
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
J's Return On Assets of 6.97% is fine compared to the rest of the industry. J outperforms 71.08% of its industry peers.
The Return On Equity of J (20.82%) is better than 73.49% of its industry peers.
J has a Return On Invested Capital of 8.59%. This is in the better half of the industry: J outperforms 61.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for J is below the industry average of 12.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 20.82% | ||
| ROIC | 8.59% |
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 73.49% of the companies in the same industry.
J's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.58%, J is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
J's Operating Margin has improved in the last couple of years.
J's Gross Margin of 24.63% is on the low side compared to the rest of the industry. J is outperformed by 67.47% of its industry peers.
J's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so J is still creating some value.
The number of shares outstanding for J has been reduced compared to 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
An Altman-Z score of 2.98 indicates that J is not a great score, but indicates only limited risk for bankruptcy at the moment.
J's Altman-Z score of 2.98 is in line compared to the rest of the industry. J outperforms 51.81% of its industry peers.
J has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as J would need 6.09 years to pay back of all of its debts.
The Debt to FCF ratio of J (6.09) is comparable to the rest of the industry.
J has a Debt/Equity ratio of 0.66. This is a neutral value indicating J is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, J is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.98 |
ROIC/WACC1
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.39 indicates that J should not have too much problems paying its short term obligations.
The Current ratio of J (1.39) is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that J should not have too much problems paying its short term obligations.
J has a Quick ratio (1.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
J shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.75%.
J shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.49% yearly.
Looking at the last year, J shows a very negative growth in Revenue. The Revenue has decreased by -29.67% in the last year.
The Revenue has been decreasing by -2.02% on average over the past years.
EPS 1Y (TTM)-26.75%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-17.35%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-47.27%
3.2 Future
J is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
The Revenue is expected to grow by 13.53% on average over the next years. This is quite good.
EPS Next Y-15.02%
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
EPS Next 5Y8.66%
Revenue Next Year9.39%
Revenue Next 2Y8.03%
Revenue Next 3Y6.77%
Revenue Next 5Y13.53%
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 stable.
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
Based on the Price/Earnings ratio of 25.43, the valuation of J can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of J is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.13. J is around the same levels.
Based on the Price/Forward Earnings ratio of 20.45, the valuation of J can be described as rather expensive.
J's Price/Forward Earnings ratio is in line with the industry average.
J's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of J is on the same level as its industry peers.
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 | 42.41 | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
The decent profitability rating of J may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.4
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, J is not a good candidate for dividend investing.
J's Dividend Yield is a higher than the industry average which is at 2.17.
Compared to an average S&P500 Dividend Yield of 2.32, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
The dividend of J is nicely growing with an annual growth rate of 8.08%!
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
18.99% of the earnings are spent on dividend by J. This is a low number and sustainable payout ratio.
The dividend of J is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.99%
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
146.23
-0.68 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.91%
Inst Owner Change0.18%
Ins Owners0.32%
Ins Owner Change-0.03%
Market Cap17.48B
Analysts78.26
Price Target157.07 (7.41%)
Short Float %2.1%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend1.14
Dividend Growth(5Y)8.08%
DP18.99%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)0.96%
Max EPS beat(2)2.79%
EPS beat(4)3
Avg EPS beat(4)-1.61%
Min EPS beat(4)-12.7%
Max EPS beat(4)2.79%
EPS beat(8)6
Avg EPS beat(8)3.28%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)10
Avg EPS beat(16)1.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.96%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-2.09%
Revenue beat(4)0
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-12.26%
Max Revenue beat(4)-1.44%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)7
Avg Revenue beat(12)1.54%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)6.39%
PT rev (3m)4.54%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-3.29%
Revenue NY rev (3m)3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 20.45 | ||
| P/S | 1.52 | ||
| P/FCF | 42.41 | ||
| P/OCF | 34.95 | ||
| P/B | 4.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.58 |
EPS(TTM)5.75
EY3.93%
EPS(NY)7.15
Fwd EY4.89%
FCF(TTM)3.45
FCFY2.36%
OCF(TTM)4.18
OCFY2.86%
SpS96.21
BVpS31.97
TBVpS-14.8
PEG (NY)N/A
PEG (5Y)3.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 20.82% | ||
| ROCE | 10.62% | ||
| ROIC | 8.59% | ||
| ROICexc | 10.19% | ||
| ROICexgc | 53.27% | ||
| OM | 7.58% | ||
| PM (TTM) | 6.92% | ||
| GM | 24.63% | ||
| FCFM | 3.58% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 34.34% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.35% | ||
| Profit Quality | 51.79% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.98 |
F-Score6
WACC8.55%
ROIC/WACC1
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)-26.75%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-17.35%
EPS Next Y-15.02%
EPS Next 2Y-0.76%
EPS Next 3Y3.52%
EPS Next 5Y8.66%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-47.27%
Revenue Next Year9.39%
Revenue Next 2Y8.03%
Revenue Next 3Y6.77%
Revenue Next 5Y13.53%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year2.84%
EBIT Next 3Y7.53%
EBIT Next 5Y7.97%
FCF growth 1Y-53.54%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y-51.58%
OCF growth 3Y13.24%
OCF growth 5YN/A