JABIL INC (JBL) Stock Fundamental Analysis
NYSE:JBL - New York Stock Exchange, Inc. - US4663131039 - Common Stock - Currency: USD
Taking everything into account, JBL scores 5 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
JBL had positive earnings in the past year.
JBL had a positive operating cash flow in the past year.
In the past 5 years JBL has always been profitable.
Each year in the past 5 years JBL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, JBL is in the better half of the industry, outperforming 66.40% of the companies in the same industry.
The Return On Equity of JBL (44.90%) is better than 98.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.97%, JBL belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JBL is significantly above the industry average of 9.30%.
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
JBL has a Profit Margin (2.02%) which is in line with its industry peers.
JBL's Profit Margin has improved in the last couple of years.
JBL's Operating Margin of 4.67% is fine compared to the rest of the industry. JBL outperforms 64.80% of its industry peers.
JBL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 8.86%, JBL is doing worse than 80.80% of the companies in the same industry.
JBL's Gross Margin has improved in the last couple of years.
| 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
JBL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for JBL is higher compared to a year ago.
2.2 Solvency
JBL has an Altman-Z score of 3.06. This indicates that JBL is financially healthy and has little risk of bankruptcy at the moment.
JBL has a Altman-Z score (3.06) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 2.48, JBL is doing good in the industry, outperforming 74.40% of the companies in the same industry.
JBL has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external 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 | 3.06 |
ROIC/WACC2.33
WACC9.02%
2.3 Liquidity
JBL has a Current 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.
JBL has a worse Current ratio (0.98) than 93.60% of its industry peers.
A Quick Ratio of 0.64 indicates that JBL may have some problems paying its short term obligations.
JBL has a Quick ratio of 0.64. This is amonst the worse of the industry: JBL underperforms 91.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
JBL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.97%.
The Earnings Per Share has been growing by 23.15% on average over the past years. This is a very strong growth
Looking at the last year, JBL shows a decrease in Revenue. The Revenue has decreased by -6.13% in the last year.
JBL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.70% yearly.
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 12.29% on average per year.
The Revenue is expected to grow by 2.74% on average over the next years.
EPS Next Y6.92%
EPS Next 2Y10.54%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue Next Year-1.79%
Revenue Next 2Y1.38%
Revenue Next 3Y2.74%
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
The Price/Earnings ratio is 25.71, which means the current valuation is very expensive for JBL.
Based on the Price/Earnings ratio, JBL is valued a bit cheaper than 68.80% 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 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.84, the valuation of JBL can be described as rather expensive.
JBL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JBL is cheaper than 64.80% of the companies in the same industry.
JBL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.84 |
4.2 Price Multiples
JBL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JBL is cheaper than 79.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JBL is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.84 | ||
| EV/EBITDA | 12.25 |
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.
A more expensive valuation may be justified as JBL's earnings are expected to grow with 12.29% in the coming years.
PEG (NY)3.71
PEG (5Y)1.11
EPS Next 2Y10.54%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.15%, JBL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.95, JBL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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.
JBL has decreased its dividend recently.
Dividend Growth(5Y)1.03%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
6.59% of the earnings are spent on dividend by JBL. This is a low number and sustainable payout ratio.
The dividend of JBL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.59%
EPS Next 2Y10.54%
EPS Next 3Y12.29%
226.01
+4.12 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change0.46%
Ins Owners1.8%
Ins Owner Change-6.49%
Market Cap24.26B
Analysts78.67
Price Target212.68 (-5.9%)
Short Float %3.32%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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)7.69%
Min EPS beat(2)5.13%
Max EPS beat(2)10.25%
EPS beat(4)4
Avg EPS beat(4)5.86%
Min EPS beat(4)2.58%
Max EPS beat(4)10.25%
EPS beat(8)7
Avg EPS beat(8)3.68%
EPS beat(12)11
Avg EPS beat(12)3.82%
EPS beat(16)15
Avg EPS beat(16)4.54%
Revenue beat(2)2
Avg Revenue beat(2)7.08%
Min Revenue beat(2)3.96%
Max Revenue beat(2)10.21%
Revenue beat(4)4
Avg Revenue beat(4)5.91%
Min Revenue beat(4)3.96%
Max Revenue beat(4)10.21%
Revenue beat(8)5
Avg Revenue beat(8)2.63%
Revenue beat(12)8
Avg Revenue beat(12)2.68%
Revenue beat(16)11
Avg Revenue beat(16)1.94%
PT rev (1m)24.11%
PT rev (3m)20.12%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.84 | ||
| P/S | 0.85 | ||
| P/FCF | 20.84 | ||
| P/OCF | 15.29 | ||
| P/B | 18.88 | ||
| P/tB | 146.16 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)8.79
EY3.89%
EPS(NY)10.35
Fwd EY4.58%
FCF(TTM)10.84
FCFY4.8%
OCF(TTM)14.78
OCFY6.54%
SpS265.62
BVpS11.97
TBVpS1.55
PEG (NY)3.71
PEG (5Y)1.11
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 | 3.06 |
F-Score5
WACC9.02%
ROIC/WACC2.33
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 Y6.92%
EPS Next 2Y10.54%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y-0.46%
Revenue growth 5Y2.7%
Sales Q2Q%15.71%
Revenue Next Year-1.79%
Revenue Next 2Y1.38%
Revenue Next 3Y2.74%
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%