JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:J - US46982L1089 - Common Stock
128.77 USD
-0.4 (-0.31%)
129.75 USD
+0.98 (+0.76%)
J gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. J has a medium profitability rating, but doesn't score so well on its financial health evaluation. J is valued expensive and it does not seem to be growing.
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 4 of the past 5 years.
J had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of J (6.97%) is better than 68.97% of its industry peers.
J has a Return On Equity of 20.82%. This is in the better half of the industry: J outperforms 72.41% of its industry peers.
J has a Return On Invested Capital (8.59%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for J is significantly below the industry average of 22.56%.
| 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
The Profit Margin of J (6.92%) is better than 70.11% of its industry peers.
In the last couple of years the Profit Margin of J has remained more or less at the same level.
J has a Operating Margin of 7.58%. This is in the better half of the industry: J outperforms 64.37% of its industry peers.
J's Operating Margin has improved in the last couple of years.
J has a worse Gross Margin (24.63%) than 65.52% 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.
J has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
J has an Altman-Z score of 2.82. 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.
Looking at the Altman-Z score, with a value of 2.82, J is in line with its industry, outperforming 54.02% of the companies in the same industry.
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.
J has a Debt to FCF ratio of 6.09. This is comparable to the rest of the industry: J outperforms 47.13% of its industry peers.
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: 60.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.03
WACC8.37%
2.3 Liquidity
J has a Current Ratio of 1.39. 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 1.39. This is comparable to the rest of the industry: J outperforms 44.83% of its industry peers.
J has a Quick Ratio of 1.39. 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 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 -15.56%.
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.
EPS 1Y (TTM)-15.56%
EPS 3Y-4.05%
EPS 5Y2.27%
EPS Q2Q%27.74%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%48.88%
3.2 Future
The Earnings Per Share is expected to grow by 15.73% on average over the next years. This is quite good.
Based on estimates for the next years, J will show a quite strong growth in Revenue. The Revenue will grow by 14.59% on average per year.
EPS Next Y16.91%
EPS Next 2Y14.23%
EPS Next 3Y14.83%
EPS Next 5Y15.73%
Revenue Next Year6.65%
Revenue Next 2Y8.86%
Revenue Next 3Y17.57%
Revenue Next 5Y14.59%
3.3 Evolution
The EPS 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 21.01.
Compared to the rest of the industry, the Price/Earnings ratio of J is on the same level as its industry peers.
J is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.97 indicates a rather expensive valuation of J.
The rest of the industry has a similar Price/Forward Earnings ratio as J.
J is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
J's Enterprise Value to EBITDA ratio is in line with the industry average.
J's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.35 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
J's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as J's earnings are expected to grow with 14.83% in the coming years.
PEG (NY)1.24
PEG (5Y)9.27
EPS Next 2Y14.23%
EPS Next 3Y14.83%
5. Dividend
5.1 Amount
J has a yearly dividend return of 0.99%, which is pretty low.
J's Dividend Yield is a higher than the industry average which is at 4.28.
With a Dividend Yield of 0.99, J pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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.
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
18.99% of the earnings are spent on dividend by J. This is a low number and sustainable payout ratio.
J's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.99%
EPS Next 2Y14.23%
EPS Next 3Y14.83%
128.77
-0.4 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.24%
Inst Owner Change0.46%
Ins Owners0.33%
Ins Owner Change-0.06%
Market Cap15.39B
Revenue(TTM)N/A
Net Income(TTM)795.82M
Analysts80
Price Target162.65 (26.31%)
Short Float %1.81%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)0.64%
Revenue beat(12)7
Avg Revenue beat(12)1.61%
Revenue beat(16)8
Avg Revenue beat(16)0.75%
PT rev (1m)2.49%
PT rev (3m)7.38%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 17.97 | ||
| P/S | 1.34 | ||
| P/FCF | 37.35 | ||
| P/OCF | 30.78 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.77 |
EPS(TTM)6.13
EY4.76%
EPS(NY)7.17
Fwd EY5.57%
FCF(TTM)3.45
FCFY2.68%
OCF(TTM)4.18
OCFY3.25%
SpS96.21
BVpS31.97
TBVpS-14.8
PEG (NY)1.24
PEG (5Y)9.27
Graham Number66.41
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%
ROICexgc growth 3Y118.11%
ROICexgc 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 | 2.82 |
F-Score6
WACC8.37%
ROIC/WACC1.03
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)-15.56%
EPS 3Y-4.05%
EPS 5Y2.27%
EPS Q2Q%27.74%
EPS Next Y16.91%
EPS Next 2Y14.23%
EPS Next 3Y14.83%
EPS Next 5Y15.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%48.88%
Revenue Next Year6.65%
Revenue Next 2Y8.86%
Revenue Next 3Y17.57%
Revenue Next 5Y14.59%
EBIT growth 1Y-31.7%
EBIT growth 3Y-8.4%
EBIT growth 5Y3.41%
EBIT Next Year2.51%
EBIT Next 3Y7.89%
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
JACOBS SOLUTIONS INC / J FAQ
Can you provide the ChartMill fundamental rating for JACOBS SOLUTIONS INC?
ChartMill assigns a fundamental rating of 4 / 10 to J.
Can you provide the valuation status for JACOBS SOLUTIONS INC?
ChartMill assigns a valuation rating of 3 / 10 to JACOBS SOLUTIONS INC (J). This can be considered as Overvalued.
What is the profitability of J stock?
JACOBS SOLUTIONS INC (J) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for J stock?
The Price/Earnings (PE) ratio for JACOBS SOLUTIONS INC (J) is 21.01 and the Price/Book (PB) ratio is 4.03.
Can you provide the expected EPS growth for J stock?
The Earnings per Share (EPS) of JACOBS SOLUTIONS INC (J) is expected to grow by 16.91% in the next year.