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Jacobs Solutions Inc J

Morningstar Rating
$143.83 +0.33 (0.23%)
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Company Report

We Think Jacobs Is Poised to Capitalize on Favorable Secular Trends in Infrastructure

Under the leadership of former CEO Steve Demetriou, Jacobs Solutions transformed its portfolio to increase recurring revenue and reduce cyclicality. In 2017, Jacobs acquired CH2M for $3.3 billion to bolster its presence in the transportation, water, nuclear, and environmental services end markets. In April 2019, Jacobs Solutions completed the sale of its energy, chemicals, and resources, or ECR, business to WorleyParsons for $3.3 billion. Jacobs Solutions operates four business segments: critical mission solutions, people & places solutions, divergent solutions, and PA consulting.

Price vs Fair Value

J is trading at a 9% discount.
Price
$143.50
Fair Value
$151.00
Uncertainty
Medium
1-Star Price
$793.56
5-Star Price
$714.60
Economic Moat
Frsg
Capital Allocation
Zrclykwl

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
$143.50
Day Range
$143.15144.89
52-Week Range
$109.00154.50
Bid/Ask
$143.12 / $144.26
Market Cap
$18.07 Bil
Volume/Avg
382,757 / 616,770

Key Statistics

Price/Earnings (Normalized)
19.01
Price/Sales
1.09
Dividend Yield (Trailing)
0.75%
Dividend Yield (Forward)
0.81%
Total Yield
1.75%

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
ATRL
KBR
Price/Earnings (Normalized)
19.0127.3621.80
Price/Book Value
2.703.016.07
Price/Sales
1.091.101.21
Price/Cash Flow
17.8637.6123.69
Price/Earnings
J
ATRL
KBR

Financial Strength

Metric
J
ATRL
KBR
Quick Ratio
1.320.800.95
Current Ratio
1.370.851.05
Interest Coverage
5.982.73−0.44
Quick Ratio
J
ATRL
KBR

Profitability

Metric
J
ATRL
KBR
Return on Assets (Normalized)
6.44%3.45%6.20%
Return on Equity (Normalized)
14.85%11.40%23.09%
Return on Invested Capital (Normalized)
9.76%8.61%12.66%
Return on Assets
J
ATRL
KBR
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