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Jacobs Solutions Inc J

Morningstar Rating
$146.48 −0.51 (0.35%)
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Company Report

Jacobs Earnings: Growing Backlog Gives Us Confidence the Firm Can Maintain Solid Momentum

Jacobs posted solid fiscal first-quarter results, featuring a 28% year-over-year increase in adjusted EPS, from $1.57 to $2.02. While nothing in the earnings release materially alters our long-term thesis, we’ve raised our fair value estimate to $157 from $154, mostly due to time value of money. We see the name as modestly undervalued at current levels, with shares trading at a roughly 11% discount to our updated fair value estimate.

Price vs Fair Value

J is trading at a 7% discount.
Price
$146.48
Fair Value
$594.00
Uncertainty
Medium
1-Star Price
$546.23
5-Star Price
$491.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Management has shifted Jacobs' portfolio toward sectors with favorable long-term prospects, including transportation and water.

Bears

Jacobs’ M&A track record is mixed, as its serial acquisitions (over 80 deals since 1994) have been a drag on the firm’s returns on invested capital.

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News

Trading Information

Previous Close Price
$146.99
Day Range
$146.12147.86
52-Week Range
$109.00149.17
Bid/Ask
$135.00 / $161.00
Market Cap
$18.41 Bil
Volume/Avg
767,238 / 883,909

Key Statistics

Price/Earnings (Normalized)
19.11
Price/Sales
1.10
Dividend Yield (Trailing)
0.73%
Dividend Yield (Forward)
0.79%
Total Yield
1.71%

Company Profile

Jacobs Solutions is a global provider of engineering, design, procurement, construction, and maintenance services as well as cyber engineering and security solutions. The firm serves industrial, commercial, and government clients in a wide variety of sectors, including water, transportation, healthcare, technology, and chemicals. Jacobs Solutions employs approximately 60,000 workers. The company generated $16.4 billion in revenue and $1.3 billion in adjusted operating income in fiscal 2023.
Sector
Industrials
Industry
Engineering & Construction
Stock Style Box
Mid Core
Total Number of Employees
60,000

Competitors

Valuation

Metric
J
KBR
FLR
Price/Earnings (Normalized)
19.1118.9416.85
Price/Book Value
2.714.693.78
Price/Sales
1.101.110.40
Price/Cash Flow
17.9521.8124.71
Price/Earnings
J
KBR
FLR

Financial Strength

Metric
J
KBR
FLR
Quick Ratio
1.320.951.49
Current Ratio
1.371.051.60
Interest Coverage
5.98−0.442.45
Quick Ratio
J
KBR
FLR

Profitability

Metric
J
KBR
FLR
Return on Assets (Normalized)
6.44%6.20%6.87%
Return on Equity (Normalized)
14.85%23.09%25.86%
Return on Invested Capital (Normalized)
9.76%12.66%10.83%
Return on Assets
J
KBR
FLR
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