JACOBS SOLUTIONS INC (J) Stock Fundamental Analysis
NYSE:J - New York Stock Exchange, Inc. - US46982L1089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to J. J was compared to 82 industry peers in the Professional Services industry. J has an average financial health and profitability rating. 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.
In the past 5 years J has always been profitable.
Each year in the past 5 years J had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.10%, J is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
The Return On Equity of J (20.59%) is better than 70.73% of its industry peers.
J has a better Return On Invested Capital (8.54%) than 63.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for J is below the industry average of 12.61%.
| 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
With a decent Profit Margin value of 6.92%, J is doing good in the industry, outperforming 70.73% of the companies in the same industry.
J's Profit Margin has been stable in the last couple of years.
J has a Operating Margin of 7.58%. This is in the better half of the industry: J outperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of J has grown nicely.
J has a Gross Margin of 24.63%. This is in the lower half of the industry: J underperforms 68.29% 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
J has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
J has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, J has less shares outstanding
The debt/assets ratio for J has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.90 indicates that J is not a great score, but indicates only limited risk for bankruptcy at the moment.
J has a Altman-Z score (2.90) which is in line with its industry peers.
The Debt to FCF ratio of J is 4.49, which is a neutral value as it means it would take J, 4.49 years of fcf income to pay off all of its debts.
J has a Debt to FCF ratio (4.49) which is in line with its industry peers.
J has a Debt/Equity ratio of 0.68. This is a neutral value indicating J is somewhat dependend on debt financing.
The Debt to Equity ratio of J (0.68) is worse than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.98
WACC8.7%
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.
With a Current ratio value of 1.50, J perfoms like the industry average, outperforming 52.44% 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.
Looking at the Quick ratio, with a value of 1.50, J is in line with its industry, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for J have decreased strongly by -21.01% in the last year.
Measured over the past 5 years, J shows a small growth in Earnings Per Share. The EPS has been growing by 7.49% on average per year.
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)-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.
The Revenue is expected to grow by 13.48% on average over the next years. This is quite good.
EPS Next Y-15.57%
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
EPS Next 5Y8.72%
Revenue Next Year9.99%
Revenue Next 2Y8.01%
Revenue Next 3Y13.69%
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
Based on the Price/Earnings ratio of 20.67, the valuation of J can be described as rather expensive.
J's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, J is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.84, J is valued on the expensive side.
J's Price/Forward 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/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 17.84 |
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 | 25.79 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The decent profitability rating of J may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.76
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
5. Dividend
5.1 Amount
J has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
J's Dividend Yield is a higher than the industry average which is at 2.10.
With a Dividend Yield of 1.00, J pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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
18.66% of the earnings are spent on dividend by J. This is a low number and 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-1.41%
EPS Next 3Y2.29%
125.89
-1.72 (-1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.42%
Inst Owner Change-2.19%
Ins Owners0.32%
Ins Owner Change0.73%
Market Cap15.13B
Analysts78.33
Price Target147.51 (17.17%)
Short Float %2.66%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)-1.82%
PT rev (3m)-6.29%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)3.68%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 17.84 | ||
| P/S | 1.32 | ||
| P/FCF | 25.79 | ||
| P/OCF | 21.92 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)6.09
EY4.84%
EPS(NY)7.06
Fwd EY5.61%
FCF(TTM)4.88
FCFY3.88%
OCF(TTM)5.74
OCFY4.56%
SpS95.71
BVpS32.16
TBVpS-13.62
PEG (NY)N/A
PEG (5Y)2.76
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 | 2.9 |
F-Score6
WACC8.7%
ROIC/WACC0.98
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-15.57%
EPS Next 2Y-1.41%
EPS Next 3Y2.29%
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 Year9.99%
Revenue Next 2Y8.01%
Revenue Next 3Y13.69%
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