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 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. Both the profitability and the financial health of J get a neutral evaluation. Nothing too spectacular is happening here. J is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
J had positive earnings in the past year.
J had a positive operating cash flow in the past year.
In the past 5 years J has always been profitable.
J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.10%, J is doing good in the industry, outperforming 73.17% of the companies in the same industry.
With a decent Return On Equity value of 20.59%, J is doing good in the industry, outperforming 73.17% of the companies in the same industry.
With a Return On Invested Capital value of 8.54%, J perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
J had an Average Return On Invested Capital over the past 3 years of 8.77%. This is below the industry average of 12.49%.
| 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
The Profit Margin of J (6.92%) is better than 74.39% of its industry peers.
In the last couple of years the Profit Margin of J has remained more or less at the same level.
With a decent Operating Margin value of 7.58%, J is doing good in the industry, outperforming 63.41% 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 69.51% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), J is 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.
Compared to 1 year ago, J has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.11 indicates that J is not in any danger for bankruptcy at the moment.
J has a Altman-Z score of 3.11. This is comparable to the rest of the industry: J outperforms 57.32% of its industry peers.
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 of 4.49. This is comparable to the rest of the industry: J outperforms 54.88% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that J is somewhat dependend on debt financing.
J has a Debt to Equity ratio (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.99
WACC8.59%
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 (1.50) which is in line with its industry peers.
J has a Quick 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.
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 -26.75%.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
Looking at the last year, J shows a very negative growth in Revenue. The Revenue has decreased by -29.67% in the last year.
J shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.02% yearly.
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%-28.35%
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 8.72% on average per year.
The Revenue is expected to grow by 13.48% on average over the next years. This is quite good.
EPS Next Y-15.72%
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
EPS Next 5Y8.72%
Revenue Next Year13.11%
Revenue Next 2Y9.41%
Revenue Next 3Y14.71%
Revenue Next 5Y13.48%
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
The Price/Earnings ratio is 25.77, which means the current valuation is very expensive for J.
J's Price/Earnings is on the same level as the industry average.
J is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.00 indicates a rather expensive valuation of J.
J's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, J is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 21 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as J.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.35 | ||
| EV/EBITDA | 16.37 |
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)3.44
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
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 2.23.
With a Dividend Yield of 0.87, J pays less dividend than the S&P500 average, which is at 2.40.
| 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.
J has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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-1.42%
EPS Next 3Y2.64%
148.16
+1.18 (+0.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.42%
Inst Owner Change0.37%
Ins Owners0.32%
Ins Owner Change-0.03%
Market Cap17.80B
Analysts78.26
Price Target151.42 (2.2%)
Short Float %2.24%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)0.08%
PT rev (3m)-2.25%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-3.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)2.83%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 21 | ||
| P/S | 1.55 | ||
| P/FCF | 30.35 | ||
| P/OCF | 25.8 | ||
| P/B | 4.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.37 |
EPS(TTM)5.75
EY3.88%
EPS(NY)7.06
Fwd EY4.76%
FCF(TTM)4.88
FCFY3.29%
OCF(TTM)5.74
OCFY3.88%
SpS95.71
BVpS32.16
TBVpS-13.62
PEG (NY)N/A
PEG (5Y)3.44
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 | 3.11 |
F-Score6
WACC8.59%
ROIC/WACC0.99
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-15.72%
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
EPS Next 5Y8.72%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-28.35%
Revenue Next Year13.11%
Revenue Next 2Y9.41%
Revenue Next 3Y14.71%
Revenue Next 5Y13.48%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year2.84%
EBIT Next 3Y7.53%
EBIT Next 5Y7.87%
FCF growth 1Y85.68%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y49.16%
OCF growth 3Y13.24%
OCF growth 5YN/A