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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, Europe, Canada, India, rest of Asia, Australia, New Zealand, South America, Mexico, the Middle East, and Africa. More Details


Snowflake Analysis

Excellent balance sheet with proven 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: J's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

J

-0.2%

US Construction

1.4%

US Market


1 Year Return

15.7%

J

32.1%

US Construction

22.6%

US Market

Return vs Industry: J underperformed the US Construction industry which returned 34.2% over the past year.

Return vs Market: J underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

JIndustryMarket
7 Day-0.8%-0.2%1.4%
30 Day4.7%13.4%4.9%
90 Day12.0%30.5%14.6%
1 Year16.7%15.7%32.9%32.1%25.4%22.6%
3 Year63.3%59.1%28.3%25.7%46.8%37.0%
5 Year205.8%194.6%115.2%107.6%132.0%106.1%

Long-Term 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?

23.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: J ($111.12) is trading below our estimate of fair value ($145.49)

Significantly Below Fair Value: J is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: J is poor value based on its PE Ratio (41.3x) compared to the US Construction industry average (25.6x).

PE vs Market: J is poor value based on its PE Ratio (41.3x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: J is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: J is good value based on its PB Ratio (2.5x) compared to the US Construction industry average (2.7x).


Next Steps

Future Growth

How is Jacobs Engineering Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J's forecast earnings growth (19.5% per year) is above the savings rate (2%).

Earnings vs Market: J's earnings (19.5% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: J's earnings are forecast to grow, but not significantly.

Revenue vs Market: J's revenue (5.7% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: J's revenue (5.7% 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 (13.9%).


Next Steps

Past Performance

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

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J has a large one-off loss of $351.6M impacting its October 2 2020 financial results.

Growing Profit Margin: J's current net profit margins (2.6%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: J's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: J's earnings growth over the past year (19%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: J earnings growth over the past year (19%) exceeded the Construction industry 15.3%.


Return on Equity

High ROE: J's Return on Equity (6.6%) 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 ($4.5B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: J's short term assets ($4.5B) exceed its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: J's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: J's debt to equity ratio has increased from 13.7% to 29.2% over the past 5 years.

Debt Coverage: J's debt is well covered by operating cash flow (47.2%).

Interest Coverage: J's interest payments on its debt are well covered by EBIT (21.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: J's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: J's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.86%).


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?

2.3yrs

Average management tenure


CEO

Steve Demetriou (62 yo)

5.42yrs

Tenure

US$14,814,906

Compensation

Mr. Steven J. Demetriou, also known as Steve, served as a Strategic Advisor at Resilience Capital Partners LLC till May 2020. Mr. Demetriou served as an Operating Partner and Member of Board of Advisors of...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD14.81M) is above average for companies of similar size in the US market ($USD10.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Demetriou
Chairman & CEO5.42yrsUS$14.81m0.37%
$ 54.1m
Robert Pragada
President & COO1.08yrsUS$4.90m0.071%
$ 10.2m
Kevin Berryman
President & CFO1.08yrsUS$4.57m0.12%
$ 17.5m
Joanne Caruso
Executive VP and Chief Legal & Administration Officer2.25yrsUS$2.53m0.028%
$ 4.0m
Dawne Hickton
Executive VP & COO of Critical Mission Solutions2yrsUS$3.50m0.0085%
$ 1.2m
William Allen
Senior VP & Chief Accounting Officer4.25yrsno data0.0095%
$ 1.4m
Darren Kraabel
Chief Technology & Innovation Officer2.25yrsno datano data
Madhuri Andrews
Senior VP2.25yrsno datano data
Jonathan Doros
Vice President of Investor Relationsno datano datano data
Michael Tyler
Senior VPno dataUS$2.10m0.014%
$ 2.0m
Marietta Hannigan
Chief Strategy & Communications Officer2.25yrsno datano data
William Birkhofer
Senior Vice President of Public Sector Salesno datano datano data

2.3yrs

Average Tenure

61yo

Average Age

Experienced Management: J's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Demetriou
Chairman & CEO5.42yrsUS$14.81m0.37%
$ 54.1m
Linda Levinson
Independent Director25yrsUS$301.43k0.030%
$ 4.3m
Peter Robertson
Independent Director11.5yrsUS$313.57k0.038%
$ 5.4m
Joseph Bronson
Independent Director18yrsUS$335.49k0.0077%
$ 1.1m
Robert McNamara
Independent Director4yrsUS$313.07k0.00019%
$ 27.4k
Robert Davidson
Independent Director20yrsUS$320.65k0.0087%
$ 1.3m
Christopher M. Thompson
Lead Independent Director2yrsUS$378.57k0.023%
$ 3.3m
Ralph Eberhart
Independent Director8.33yrsUS$291.07k0%
$ 0
Georgette Kiser
Independent Director1.67yrsUS$290.20k0%
$ 0
Barbara Loughran
Independent Director1.67yrsUS$289.27k0%
$ 0
Vincent Brooks
Independent Director0.42yrUS$82.44kno data
Manny Fernandez
Independent Director0.25yrno datano data

4.3yrs

Average Tenure

69.5yo

Average Age

Experienced Board: J's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: J insiders have only sold shares 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$14.444b
  • Shares outstanding: 129.98m
  • 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, Europe, Canada, India, rest of Asia, Aus...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 00:31
End of Day Share Price2021/01/21 00:00
Earnings2020/10/02
Annual Earnings2020/10/02


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.