NYSE:J

Stock Analysis Report

Jacobs Engineering Group

Executive Summary

Jacobs Engineering Group Inc. provides consulting, technical, scientific, and project delivery services for the government and private sectors in the United States, Canada, Europe, Asia, India, Australia, New Zealand, South America, Mexico, the Middle East, and Africa.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Jacobs Engineering Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: J's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

J

1.2%

US Construction

2.4%

US Market


1 Year Return

10.4%

J

-21.9%

US Construction

-10.0%

US Market

Return vs Industry: J exceeded the US Construction industry which returned -27.8% over the past year.

Return vs Market: J exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

JIndustryMarket
7 Day5.3%1.2%2.4%
30 Day-11.3%-18.0%-11.0%
90 Day-6.8%-27.2%-19.4%
1 Year11.3%10.4%-21.3%-21.9%-8.1%-10.0%
3 Year57.1%52.8%-22.3%-24.1%17.3%9.6%
5 Year83.8%78.2%-5.2%-8.7%36.1%21.1%

Price Volatility Vs. Market

How volatile is Jacobs Engineering Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jacobs Engineering Group undervalued compared to its fair value and its price relative to the market?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: J ($78.97) is trading below our estimate of fair value ($91.67)

Significantly Below Fair Value: J is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: J is poor value based on its PE Ratio (26.5x) compared to the Construction industry average (10.2x).

PE vs Market: J is poor value based on its PE Ratio (26.5x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: J is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: J is overvalued based on its PB Ratio (1.7x) compared to the US Construction industry average (1.2x).


Next Steps

Future Growth

How is Jacobs Engineering Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J's forecast earnings growth (27.8% per year) is above the savings rate (1.7%).

Earnings vs Market: J's earnings (27.8% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: J's revenue (5.4% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: J's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: J's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Jacobs Engineering Group performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J has a large one-off loss of $219.7M impacting its December 27 2019 financial results.

Growing Profit Margin: J's current net profit margins (3.1%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: J's earnings have declined by -9.8% per year over the past 5 years.

Accelerating Growth: J's earnings growth over the past year (335.8%) exceeds its 5-year average (-9.8% per year).

Earnings vs Industry: J earnings growth over the past year (335.8%) exceeded the Construction industry 23.5%.


Return on Equity

High ROE: J's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Jacobs Engineering Group's financial position?


Financial Position Analysis

Short Term Liabilities: J's short term assets ($4.4B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: J's short term assets ($4.4B) exceed its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: J's debt to equity ratio (26.6%) is considered satisfactory.

Reducing Debt: J's debt to equity ratio has increased from 16.8% to 26.6% over the past 5 years.

Debt Coverage: J's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: J's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Jacobs Engineering Group's current dividend yield, its reliability and sustainability?

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: J's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: J's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: J is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: J is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: J is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of J's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Steve Demetriou (61yo)

4.67s

Tenure

US$14,627,253

Compensation

Mr. Steven J. Demetriou, also known as Steve, serves as a Strategic Advisor at Resilience Capital Partners LLC. Mr. Demetriou served as an Operating Partner and Member of Board of Advisors of Resilience Ca ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD14.63M) is about average for companies of similar size in the US market ($USD12.09M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Demetriou
Chairman & CEO4.67yrsUS$14.63m0.22% $25.0m
Robert Pragada
President & COO0.33yrUS$4.08m0.051% $5.7m
Kevin Berryman
President0.33yrUS$4.18m0.087% $9.7m
Joanne Caruso
Executive VP and Chief Legal & Administration Officer1.5yrsUS$2.61m0.010% $1.2m
Michael Tyler
Senior VPno dataUS$2.10m0.013% $1.5m
Dawne Hickton
Executive VP0.83yrUS$95.41k0.0072% $802.5k
William Allen
Senior VP & Chief Accounting Officer3.5yrsno data0.0049% $539.4k
Darren Kraabel
Chief Technology & Innovation Officer1.5yrsno datano data
Madhuri Andrews
Senior VP1.5yrsno datano data
Jonathan Doros
Vice President of Investor Relationsno datano datano data

1.5yrs

Average Tenure

59.5yo

Average Age

Experienced Management: J's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Demetriou
Chairman & CEO4.67yrsUS$14.63m0.22% $25.0m
Linda Fayne Levinson
Independent Director24.25yrsUS$339.45k0.028% $3.1m
Peter Robertson
Independent Director10.75yrsUS$302.31k0.020% $2.2m
Joseph Bronson
Independent Director17.25yrsUS$312.39k0.0095% $1.1m
Robert McNamara
Independent Director3.25yrsUS$306.31k0.00019% $21.1k
Robert Davidson
Independent Director19.25yrsUS$306.43k0.0085% $942.3k
Christopher M. Thompson
Lead Independent Director1.25yrsUS$333.52k0.015% $1.7m
Ralph Eberhart
Independent Director7.58yrsUS$282.31kno data
Georgette Kiser
Independent Director0.92yrUS$134.29kno data
Barbara Loughran
Independent Director0.92yrUS$134.29kno data

5.7yrs

Average Tenure

71yo

Average Age

Experienced Board: J's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Jacobs Engineering Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jacobs Engineering Group Inc.
  • Ticker: J
  • Exchange: NYSE
  • Founded: 1947
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$11.099b
  • Shares outstanding: 133.05m
  • Website: https://www.jacobs.com

Number of Employees


Location

  • Jacobs Engineering Group Inc.
  • 1999 Bryan Street
  • Suite 1200
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1971
JEGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1971
0JOILSE (London Stock Exchange)YesCommon StockGBUSDMay 1971
J1EG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Jacobs Engineering Group Inc. provides consulting, technical, scientific, and project delivery services for the government and private sectors in the United States, Canada, Europe, Asia, India, Australia, New Zealand, South America, Mexico, the Middle East, and Africa. The company operates through Critical Mission Solutions, and People & Places Solutions segments. The Critical Mission Solutions segment provides cybersecurity, data analytics, software application development, enterprise and mission IT, systems integration, and other technical consulting solutions to government agencies, as well as various aerospace, automotive, and telecom customers. The People & Places Solutions segment offers data analytics, artificial intelligence and automation, and software development solutions, as well as digitally-driven consulting, planning, architecture, and program management solutions. The company also offers engineering, design, and architectural services; construction services for wind-tunnel and water design-build projects; construction management services; and operations and maintenance services. Jacobs Engineering Group Inc. was founded in 1947 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:58
End of Day Share Price2020/04/06 00:00
Earnings2019/12/27
Annual Earnings2019/09/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.