JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
NYSE:J - New York Stock Exchange, Inc. - US46982L1089 - Common Stock - Currency: USD
Taking everything into account, J scores 5 out of 10 in our fundamental rating. J was compared to 82 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
J had positive earnings in the past year.
J had a positive operating cash flow in the past year.
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
J has a better Return On Assets (7.10%) than 71.95% of its industry peers.
J has a better Return On Equity (20.59%) than 71.95% of its industry peers.
The Return On Invested Capital of J (8.54%) is better than 63.41% of its industry peers.
J had an Average Return On Invested Capital over the past 3 years of 8.77%. This is below the industry average of 12.28%.
| 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
J's Profit Margin of 6.92% is fine compared to the rest of the industry. J outperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of J has remained more or less at the same level.
The Operating Margin of J (7.58%) is better than 65.85% of its industry peers.
J's Operating Margin has improved in the last couple of years.
The Gross Margin of J (24.63%) is worse than 69.51% of its industry peers.
In the last couple of years the Gross Margin of J has grown nicely.
| 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 below the Cost of Capital (WACC), so J is destroying value.
J has less shares outstanding than it did 1 year ago.
J has less shares outstanding than it did 5 years ago.
The debt/assets ratio for J has been reduced compared to a year ago.
2.2 Solvency
J has an Altman-Z score of 3.04. This indicates that J is financially healthy and has little risk of bankruptcy at the moment.
J's Altman-Z score of 3.04 is in line compared to the rest of the industry. J outperforms 56.10% 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.
The Debt to FCF ratio of J (4.49) is comparable to the rest of the industry.
J has a Debt/Equity ratio of 0.68. This is a neutral value indicating J is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, J is in line with its industry, outperforming 40.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.93
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.50 indicates that J should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, J is in line with its industry, outperforming 51.22% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that J should not have too much problems paying its short term obligations.
J has a Quick ratio of 1.50. This is comparable to the rest of the industry: J outperforms 54.88% of its industry peers.
| 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 -21.01%.
The Earnings Per Share has been growing slightly by 7.49% on average over the past years.
J shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.67%.
J shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.02% yearly.
EPS 1Y (TTM)-21.01%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-25.13%
Revenue 1Y (TTM)-29.67%
Revenue growth 3Y-6.55%
Revenue growth 5Y-2.02%
Sales Q2Q%-49.9%
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 8.72% yearly.
J is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.48% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 22.77, which indicates a rather expensive current valuation of J.
The rest of the industry has a similar Price/Earnings ratio as J.
Compared to an average S&P500 Price/Earnings ratio of 27.50, J is valued at the same level.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of J.
J's Price/Forward Earnings is on the same level as the industry average.
J is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as J.
The rest of the industry has a similar Price/Free Cash Flow ratio as J.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.41 | ||
| EV/EBITDA | 15.57 |
4.3 Compensation for Growth
The decent profitability rating of J may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.04
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, J is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.07, J pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, J's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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.
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
18.66% 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.
DP18.66%
EPS Next 2Y-1.42%
EPS Next 3Y2.64%
138.67
-0.63 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.42%
Inst Owner Change-0.01%
Ins Owners0.32%
Ins Owner Change0.72%
Market Cap16.66B
Analysts77.5
Price Target147.51 (6.37%)
Short Float %2.15%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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%
PT rev (3m)-5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)2.83%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 19.65 | ||
| P/S | 1.45 | ||
| P/FCF | 28.41 | ||
| P/OCF | 24.14 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.57 |
EPS(TTM)6.09
EY4.39%
EPS(NY)7.06
Fwd EY5.09%
FCF(TTM)4.88
FCFY3.52%
OCF(TTM)5.74
OCFY4.14%
SpS95.71
BVpS32.16
TBVpS-13.62
PEG (NY)N/A
PEG (5Y)3.04
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 | 3.04 |
F-Score6
WACC9.18%
ROIC/WACC0.93
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)-21.01%
EPS 3Y4.9%
EPS 5Y7.49%
EPS Q2Q%-25.13%
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%-49.9%
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 Year2.59%
EBIT Next 3Y7.07%
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