JABIL INC (JBL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JBL - US4663131039 - Common Stock
243.14 USD
-1.56 (-0.64%)
243.14 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to JBL. JBL was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While JBL has a great profitability rating, there are some minor concerns on its financial health. JBL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make JBL suitable for growth investing!
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.
- JBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- JBL has a Return On Assets of 3.65%. This is in the better half of the industry: JBL outperforms 65.85% of its industry peers.
- The Return On Equity of JBL (52.31%) is better than 99.19% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 24.71%, JBL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for JBL is significantly above the industry average of 8.87%.
- The 3 year average ROIC (20.19%) for JBL is below the current ROIC(24.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 52.31% | ||
| ROIC | 24.71% |
ROA(3y)5.25%
ROA(5y)5%
ROE(3y)50.62%
ROE(5y)45.02%
ROIC(3y)20.19%
ROIC(5y)18.61%
1.3 Margins
- The Profit Margin of JBL (2.26%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of JBL has grown nicely.
- Looking at the Operating Margin, with a value of 4.91%, JBL is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
- JBL's Operating Margin has improved in the last couple of years.
- The Gross Margin of JBL (8.94%) is worse than 82.11% of its industry peers.
- In the last couple of years the Gross Margin of JBL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.91% | ||
| PM (TTM) | 2.26% | ||
| GM | 8.94% |
OM growth 3Y4.56%
OM growth 5Y10.48%
PM growth 3Y-9.51%
PM growth 5Y61.98%
GM growth 3Y4.14%
GM growth 5Y3.49%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JBL is creating value.
- JBL has less shares outstanding than it did 1 year ago.
- JBL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, JBL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.21 indicates that JBL is not in any danger for bankruptcy at the moment.
- JBL has a Altman-Z score of 3.21. This is comparable to the rest of the industry: JBL outperforms 45.53% of its industry peers.
- JBL has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as JBL would need 2.44 years to pay back of all of its debts.
- JBL has a Debt to FCF ratio of 2.44. This is in the better half of the industry: JBL outperforms 72.36% of its industry peers.
- A Debt/Equity ratio of 1.78 is on the high side and indicates that JBL has dependencies on debt financing.
- The Debt to Equity ratio of JBL (1.78) is worse than 91.87% 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 | 1.78 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 3.21 |
ROIC/WACC2.97
WACC8.32%
2.3 Liquidity
- JBL has a Current Ratio of 0.99. 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 (0.99) than 90.24% of its industry peers.
- JBL has a Quick Ratio of 0.99. 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 Quick ratio of 0.67. This is amonst the worse of the industry: JBL underperforms 91.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.07% over the past year.
- JBL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.52% yearly.
- Looking at the last year, JBL shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
- The Revenue has been growing slightly by 1.79% on average over the past years.
EPS 1Y (TTM)35.07%
EPS 3Y8.49%
EPS 5Y27.52%
EPS Q2Q%42.5%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y-3.8%
Revenue growth 5Y1.79%
Sales Q2Q%18.74%
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 17.69% on average per year.
- JBL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.97% yearly.
EPS Next Y20.27%
EPS Next 2Y18.15%
EPS Next 3Y17.69%
EPS Next 5YN/A
Revenue Next Year11.99%
Revenue Next 2Y9.89%
Revenue Next 3Y8.97%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- JBL is valuated rather expensively with a Price/Earnings ratio of 22.87.
- 76.42% of the companies in the same industry are more expensive than JBL, based on the Price/Earnings ratio.
- JBL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- JBL is valuated rather expensively with a Price/Forward Earnings ratio of 17.81.
- Based on the Price/Forward Earnings ratio, JBL is valued a bit cheaper than 79.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. JBL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
- JBL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JBL is cheaper than 82.11% 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 79.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.92 | ||
| EV/EBITDA | 11.93 |
4.3 Compensation for Growth
- JBL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.69% in the coming years.
PEG (NY)1.13
PEG (5Y)0.83
EPS Next 2Y18.15%
EPS Next 3Y17.69%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.13%, JBL is not a good candidate for dividend investing.
- JBL's Dividend Yield is a higher than the industry average which is at 0.46.
- Compared to an average S&P500 Dividend Yield of 1.81, JBL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
- The dividend of JBL decreases each year by -0.41%.
- 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)-0.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- JBL pays out 5.12% of its income as dividend. This is a sustainable payout ratio.
DP5.12%
EPS Next 2Y18.15%
EPS Next 3Y17.69%
JABIL INC / JBL FAQ
What is the fundamental rating for JBL stock?
ChartMill assigns a fundamental rating of 6 / 10 to JBL.
What is the valuation status of JABIL INC (JBL) stock?
ChartMill assigns a valuation rating of 5 / 10 to JABIL INC (JBL). This can be considered as Fairly Valued.
How profitable is JABIL INC (JBL) stock?
JABIL INC (JBL) has a profitability rating of 8 / 10.
Can you provide the financial health for JBL stock?
The financial health rating of JABIL INC (JBL) is 5 / 10.
What is the earnings growth outlook for JABIL INC?
The Earnings per Share (EPS) of JABIL INC (JBL) is expected to grow by 20.27% in the next year.