JACOBS SOLUTIONS INC (J)
US46982L1089 - Common Stock
J gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. J has only an average score on both its financial health and profitability. J has a correct valuation and a medium 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.
Each year in the past 5 years J has been profitable.
Of the past 5 years J 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.76%, J is doing good in the industry, outperforming 62.50% of the companies in the same industry.
With a Return On Equity value of 10.66%, J perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
J has a Return On Invested Capital of 8.64%. This is in the better half of the industry: J outperforms 63.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for J is below the industry average of 12.24%.
The 3 year average ROIC (8.31%) for J is below the current ROIC(8.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 10.66% | ||
| ROIC | 8.64% |
ROA(3y)3.96%
ROA(5y)4.65%
ROE(3y)9.33%
ROE(5y)10.25%
ROIC(3y)8.31%
ROIC(5y)7.83%
1.3 Margins
With a Profit Margin value of 4.26%, J perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
J's Profit Margin has improved in the last couple of years.
J has a Operating Margin (7.29%) which is in line with its industry peers.
In the last couple of years the Operating Margin of J has grown nicely.
Looking at the Gross Margin, with a value of 21.00%, J is doing worse than 78.75% of the companies in the same industry.
In the last couple of years the Gross Margin of J has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.29% | ||
| PM (TTM) | 4.26% | ||
| GM | 21% |
OM growth 3Y7.13%
OM growth 5Y16.36%
PM growth 3Y4.36%
PM growth 5Y21.75%
GM growth 3Y3.66%
GM growth 5Y0.8%
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.
Compared to 1 year ago, J has less shares outstanding
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 3.23 indicates that J is not in any danger for bankruptcy at the moment.
J has a Altman-Z score of 3.23. This is comparable to the rest of the industry: J outperforms 52.50% of its industry peers.
The Debt to FCF ratio of J is 2.99, which is a good value as it means it would take J, 2.99 years of fcf income to pay off all of its debts.
J's Debt to FCF ratio of 2.99 is fine compared to the rest of the industry. J outperforms 62.50% of its industry peers.
J has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.42, J perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 3.23 |
ROIC/WACC1
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.37 indicates that J should not have too much problems paying its short term obligations.
J has a Current ratio (1.37) which is in line with its industry peers.
J has a Quick Ratio of 1.37. 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 of 1.37. This is comparable to the rest of the industry: J outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
J shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.94%.
Measured over the past years, J shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.10% on average per year.
The Revenue has grown by 8.94% in the past year. This is quite good.
The Revenue has been growing by 9.10% on average over the past years. This is quite good.
EPS 1Y (TTM)7.94%
EPS 3Y12.9%
EPS 5Y35.1%
EPS growth Q2Q20.96%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y6.42%
Revenue growth 5Y9.1%
Revenue growth Q2Q9.49%
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 12.07% on average per year.
The Revenue is expected to grow by 6.56% on average over the next years.
EPS Next Y9.62%
EPS Next 2Y11.8%
EPS Next 3Y8.88%
EPS Next 5Y12.07%
Revenue Next Year4.63%
Revenue Next 2Y5.84%
Revenue Next 3Y5.5%
Revenue Next 5Y6.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
J is valuated rather expensively with a Price/Earnings ratio of 18.82.
Based on the Price/Earnings ratio, J is valued a bit cheaper than the industry average as 63.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of J to the average of the S&P500 Index (24.55), we can say J is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.20, which indicates a correct valuation of J.
J's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. J is cheaper than 73.75% of the companies in the same industry.
J's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, J is valued a bit cheaper than 66.25% of the companies in the same industry.
67.50% of the companies in the same industry are more expensive than J, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.58 | ||
| EV/EBITDA | 12.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of J may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)0.54
EPS Next 2Y11.8%
EPS Next 3Y8.88%
5. Dividend
5.1 Amount
J has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 2.06, J pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of J is nicely growing with an annual growth rate of 10.93%!
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)10.93%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
J pays out 18.54% 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.
DP18.54%
EPS Next 2Y11.8%
EPS Next 3Y8.88%
JACOBS SOLUTIONS INC
NYSE:J (5/1/2024, 3:15:00 PM)
After market: 143.19 0 (0%)143.19
-0.34 (-0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 15.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.96
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 10.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.29% | ||
| PM (TTM) | 4.26% | ||
| GM | 21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.94%
EPS 3Y12.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.94%
Revenue growth 3Y6.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y