JABIL INC (JBL) Stock Fundamental Analysis
NYSE:JBL - New York Stock Exchange, Inc. - US4663131039 - Common Stock - Currency: USD
Taking everything into account, JBL scores 6 out of 10 in our fundamental rating. JBL was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. JBL scores excellent on profitability, but there are some minor concerns on its financial health. JBL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year JBL was profitable.
In the past year JBL had a positive cash flow from operations.
Each year in the past 5 years JBL has been profitable.
In the past 5 years JBL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of JBL (2.78%) is better than 63.20% of its industry peers.
Looking at the Return On Equity, with a value of 35.64%, JBL belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
JBL's Return On Invested Capital of 17.96% is amongst the best of the industry. JBL outperforms 95.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JBL is significantly above the industry average of 9.29%.
The last Return On Invested Capital (17.96%) for JBL is above the 3 year average (17.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 35.64% | ||
| ROIC | 17.96% |
ROA(3y)5.75%
ROA(5y)4.36%
ROE(3y)49.7%
ROE(5y)36.93%
ROIC(3y)17.51%
ROIC(5y)15.41%
1.3 Margins
Looking at the Profit Margin, with a value of 1.76%, JBL is in line with its industry, outperforming 58.40% of the companies in the same industry.
JBL's Profit Margin has improved in the last couple of years.
The Operating Margin of JBL (4.62%) is better than 64.80% of its industry peers.
In the last couple of years the Operating Margin of JBL has grown nicely.
JBL has a worse Gross Margin (8.94%) than 79.20% of its industry peers.
JBL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.62% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.94% |
OM growth 3Y8.62%
OM growth 5Y11.56%
PM growth 3Y26.45%
PM growth 5Y33.46%
GM growth 3Y3.73%
GM growth 5Y4.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JBL is creating value.
Compared to 1 year ago, JBL has less shares outstanding
Compared to 5 years ago, JBL has less shares outstanding
JBL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.99 indicates that JBL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.99, JBL is in line with its industry, outperforming 50.40% of the companies in the same industry.
The Debt to FCF ratio of JBL is 2.30, which is a good value as it means it would take JBL, 2.30 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.30, JBL is in the better half of the industry, outperforming 74.40% of the companies in the same industry.
A Debt/Equity ratio of 2.12 is on the high side and indicates that JBL has dependencies on debt financing.
JBL's Debt to Equity ratio of 2.12 is on the low side compared to the rest of the industry. JBL is outperformed by 92.80% of its industry peers.
Although JBL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.99
WACC9.01%
2.3 Liquidity
JBL has a Current Ratio of 1.02. This is a normal value and indicates that JBL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.02, JBL is not doing good in the industry: 90.40% of the companies in the same industry are doing better.
A Quick Ratio of 0.66 indicates that JBL may have some problems paying its short term obligations.
JBL has a Quick ratio of 0.66. This is amonst the worse of the industry: JBL underperforms 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for JBL have decreased by -6.77% in the last year.
JBL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.15% yearly.
Looking at the last year, JBL shows a very negative growth in Revenue. The Revenue has decreased by -14.45% in the last year.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)-6.77%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%15.48%
Revenue 1Y (TTM)-14.45%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%-0.58%
3.2 Future
Based on estimates for the next years, JBL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.86% on average per year.
JBL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y6.67%
EPS Next 2Y10.27%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue Next Year-1.98%
Revenue Next 2Y1.25%
Revenue Next 3Y2.46%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
JBL is valuated rather expensively with a Price/Earnings ratio of 20.60.
JBL's Price/Earnings ratio is a bit cheaper when compared to the industry. JBL is cheaper than 69.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, JBL is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.27 indicates a correct valuation of JBL.
76.00% of the companies in the same industry are more expensive than JBL, based on the Price/Forward Earnings ratio.
JBL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
JBL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JBL is cheaper than 83.20% of the companies in the same industry.
87.20% of the companies in the same industry are more expensive than JBL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JBL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of JBL may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)0.89
EPS Next 2Y10.27%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
JBL has a yearly dividend return of 0.19%, which is pretty low.
Compared to an average industry Dividend Yield of 2.07, JBL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of JBL has a limited annual growth rate of 1.03%.
JBL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of JBL decreased recently.
Dividend Growth(5Y)1.03%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
JBL pays out 8.06% of its income as dividend. This is a sustainable payout ratio.
The dividend of JBL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.06%
EPS Next 2Y10.27%
EPS Next 3Y11.86%
167.51
+0.07 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners96.01%
Inst Owner Change0.27%
Ins Owners1.8%
Ins Owner Change-1.83%
Market Cap17.98B
Analysts78.67
Price Target171.37 (2.3%)
Short Float %3.75%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.34
Dividend Growth(5Y)1.03%
DP8.06%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.3%
Min EPS beat(2)5.13%
Max EPS beat(2)5.47%
EPS beat(4)4
Avg EPS beat(4)3.56%
Min EPS beat(4)1.08%
Max EPS beat(4)5.47%
EPS beat(8)7
Avg EPS beat(8)3.04%
EPS beat(12)11
Avg EPS beat(12)3.39%
EPS beat(16)15
Avg EPS beat(16)5.39%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)3.96%
Max Revenue beat(2)4.79%
Revenue beat(4)4
Avg Revenue beat(4)4.02%
Min Revenue beat(4)2.64%
Max Revenue beat(4)4.79%
Revenue beat(8)5
Avg Revenue beat(8)1.65%
Revenue beat(12)8
Avg Revenue beat(12)1.86%
Revenue beat(16)11
Avg Revenue beat(16)1.48%
PT rev (1m)-3.45%
PT rev (3m)-1.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.23%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.16%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 16.27 | ||
| P/S | 0.66 | ||
| P/FCF | 14.35 | ||
| P/OCF | 10.6 | ||
| P/B | 13.24 | ||
| P/tB | 70.8 | ||
| EV/EBITDA | 9.73 |
EPS(TTM)8.13
EY4.85%
EPS(NY)10.3
Fwd EY6.15%
FCF(TTM)11.67
FCFY6.97%
OCF(TTM)15.8
OCFY9.43%
SpS255.71
BVpS12.65
TBVpS2.37
PEG (NY)3.09
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 35.64% | ||
| ROCE | 24.94% | ||
| ROIC | 17.96% | ||
| ROICexc | 26.16% | ||
| ROICexgc | 38.27% | ||
| OM | 4.62% | ||
| PM (TTM) | 1.76% | ||
| GM | 8.94% | ||
| FCFM | 4.56% |
ROA(3y)5.75%
ROA(5y)4.36%
ROE(3y)49.7%
ROE(5y)36.93%
ROIC(3y)17.51%
ROIC(5y)15.41%
ROICexc(3y)25.48%
ROICexc(5y)21.92%
ROICexgc(3y)31.86%
ROICexgc(5y)27.58%
ROCE(3y)24.31%
ROCE(5y)21.38%
ROICexcg growth 3Y20.02%
ROICexcg growth 5Y13.03%
ROICexc growth 3Y18.23%
ROICexc growth 5Y13.93%
OM growth 3Y8.62%
OM growth 5Y11.56%
PM growth 3Y26.45%
PM growth 5Y33.46%
GM growth 3Y3.73%
GM growth 5Y4.13%
F-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 62.13% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.66% | ||
| Profit Quality | 258.88% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 2.99 |
F-Score5
WACC9.01%
ROIC/WACC1.99
Cap/Depr(3y)124.62%
Cap/Depr(5y)125.97%
Cap/Sales(3y)3.27%
Cap/Sales(5y)3.48%
Profit Quality(3y)59.97%
Profit Quality(5y)145.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.77%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%15.48%
EPS Next Y6.67%
EPS Next 2Y10.27%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.45%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%-0.58%
Revenue Next Year-1.98%
Revenue Next 2Y1.25%
Revenue Next 3Y2.46%
Revenue Next 5YN/A
EBIT growth 1Y-19.61%
EBIT growth 3Y8.12%
EBIT growth 5Y14.57%
EBIT Next Year38.65%
EBIT Next 3Y16.61%
EBIT Next 5YN/A
FCF growth 1Y75.74%
FCF growth 3Y50.39%
FCF growth 5Y37.8%
OCF growth 1Y-16.49%
OCF growth 3Y6.19%
OCF growth 5Y7.54%