JABIL INC (JBL) Stock Fundamental Analysis
NYSE:JBL - New York Stock Exchange, Inc. - US4663131039 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to JBL. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JBL had positive earnings in the past year.
In the past year JBL had a positive cash flow from operations.
In the past 5 years JBL has always been profitable.
JBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JBL has a Return On Assets of 3.10%. This is in the better half of the industry: JBL outperforms 66.40% of its industry peers.
JBL's Return On Equity of 44.90% is amongst the best of the industry. JBL outperforms 98.40% of its industry peers.
The Return On Invested Capital of JBL (20.97%) is better than 95.20% of its industry peers.
JBL had an Average Return On Invested Capital over the past 3 years of 17.51%. This is significantly above the industry average of 9.16%.
The last Return On Invested Capital (20.97%) for JBL is above the 3 year average (17.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 44.9% | ||
| ROIC | 20.97% |
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
The Profit Margin of JBL (2.02%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of JBL has grown nicely.
JBL has a Operating Margin of 4.67%. This is in the better half of the industry: JBL outperforms 64.80% of its industry peers.
JBL's Operating Margin has improved in the last couple of years.
JBL has a worse Gross Margin (8.86%) than 80.80% of its industry peers.
In the last couple of years the Gross Margin of JBL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.67% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.86% |
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
JBL has an Altman-Z score of 3.05. This indicates that JBL is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.05, JBL perfoms like the industry average, outperforming 46.40% of the companies in the same industry.
The Debt to FCF ratio of JBL is 2.48, which is a good value as it means it would take JBL, 2.48 years of fcf income to pay off all of its debts.
JBL has a better Debt to FCF ratio (2.48) than 74.40% of its industry peers.
A Debt/Equity ratio of 1.86 is on the high side and indicates that JBL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.86, JBL is doing worse than 95.20% of the companies in the same industry.
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 | 1.86 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.05 |
ROIC/WACC2.24
WACC9.36%
2.3 Liquidity
A Current Ratio of 0.98 indicates that JBL may have some problems paying its short term obligations.
The Current ratio of JBL (0.98) is worse than 93.60% of its industry peers.
JBL has a Quick Ratio of 0.98. This is a bad value and indicates that JBL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of JBL (0.64) is worse than 91.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.97% over the past year.
The Earnings Per Share has been growing by 23.15% on average over the past years. This is a very strong growth
The Revenue has decreased by -6.13% in the past year.
The Revenue has been growing slightly by 2.70% on average over the past years.
EPS 1Y (TTM)1.97%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%34.92%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%15.71%
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 14.16% on average per year.
The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y11.34%
EPS Next 2Y13.58%
EPS Next 3Y14.16%
EPS Next 5YN/A
Revenue Next Year2.09%
Revenue Next 2Y4.07%
Revenue Next 3Y4.68%
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.
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 25.32, which means the current valuation is very expensive for JBL.
JBL's Price/Earnings ratio is a bit cheaper when compared to the industry. JBL is cheaper than 68.00% of the companies in the same industry.
JBL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.37, the valuation of JBL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, JBL is valued a bit cheaper than the industry average as 69.60% of the companies are valued more expensively.
JBL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JBL is valued a bit cheaper than the industry average as 76.80% of the companies are valued more expensively.
JBL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JBL is cheaper than 79.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JBL has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as JBL's earnings are expected to grow with 14.16% in the coming years.
PEG (NY)2.23
PEG (5Y)1.09
EPS Next 2Y13.58%
EPS Next 3Y14.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, JBL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, JBL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
5.2 History
The dividend of JBL has a limited annual growth rate of 1.03%.
JBL has been paying a dividend for at least 10 years, so it has 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 6.59% of its income as dividend. This is a sustainable payout ratio.
JBL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.59%
EPS Next 2Y13.58%
EPS Next 3Y14.16%
222.55
+4.14 (+1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-0.08%
Ins Owners1.8%
Ins Owner Change-6.45%
Market Cap23.88B
Analysts82.67
Price Target228.39 (2.62%)
Short Float %3.08%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.34
Dividend Growth(5Y)1.03%
DP6.59%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.21%
Min EPS beat(2)5.13%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)5.62%
Min EPS beat(4)2.58%
Max EPS beat(4)9.3%
EPS beat(8)7
Avg EPS beat(8)3.56%
EPS beat(12)11
Avg EPS beat(12)3.74%
EPS beat(16)15
Avg EPS beat(16)4.48%
Revenue beat(2)2
Avg Revenue beat(2)6.87%
Min Revenue beat(2)3.96%
Max Revenue beat(2)9.79%
Revenue beat(4)4
Avg Revenue beat(4)5.81%
Min Revenue beat(4)3.96%
Max Revenue beat(4)9.79%
Revenue beat(8)5
Avg Revenue beat(8)2.58%
Revenue beat(12)8
Avg Revenue beat(12)2.65%
Revenue beat(16)11
Avg Revenue beat(16)1.92%
PT rev (1m)7.38%
PT rev (3m)33.27%
EPS NQ rev (1m)4.53%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)4.13%
EPS NY rev (3m)4.38%
Revenue NQ rev (1m)4.8%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)3.95%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 20.37 | ||
| P/S | 0.84 | ||
| P/FCF | 20.52 | ||
| P/OCF | 15.05 | ||
| P/B | 18.59 | ||
| P/tB | 143.88 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)8.79
EY3.95%
EPS(NY)10.93
Fwd EY4.91%
FCF(TTM)10.85
FCFY4.87%
OCF(TTM)14.79
OCFY6.64%
SpS265.69
BVpS11.97
TBVpS1.55
PEG (NY)2.23
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 44.9% | ||
| ROCE | 29.11% | ||
| ROIC | 20.97% | ||
| ROICexc | 31.45% | ||
| ROICexgc | 49.68% | ||
| OM | 4.67% | ||
| PM (TTM) | 2.02% | ||
| GM | 8.86% | ||
| FCFM | 4.08% |
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 Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 55.58% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.86% | ||
| Profit Quality | 201.73% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 3.05 |
F-Score5
WACC9.36%
ROIC/WACC2.24
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)1.97%
EPS 3Y14.72%
EPS 5Y23.15%
EPS Q2Q%34.92%
EPS Next Y11.34%
EPS Next 2Y13.58%
EPS Next 3Y14.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%15.71%
Revenue Next Year2.09%
Revenue Next 2Y4.07%
Revenue Next 3Y4.68%
Revenue Next 5YN/A
EBIT growth 1Y-12.43%
EBIT growth 3Y8.12%
EBIT growth 5Y14.57%
EBIT Next Year38.58%
EBIT Next 3Y16.19%
EBIT Next 5YN/A
FCF growth 1Y49.81%
FCF growth 3Y50.39%
FCF growth 5Y37.8%
OCF growth 1Y-18.78%
OCF growth 3Y6.19%
OCF growth 5Y7.54%