Jacobs Engineering Group
Market Cap
US$11.1b
Last Updated
2020/04/07 01:58 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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
| J | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.3% | 1.2% | 2.4% |
| 30 Day | -11.3% | -18.0% | -11.0% |
| 90 Day | -6.8% | -27.2% | -19.4% |
| 1 Year | 11.3%10.4% | -21.3%-21.9% | -8.1%-10.0% |
| 3 Year | 57.1%52.8% | -22.3%-24.1% | 17.3%9.6% |
| 5 Year | 83.8%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
1 day ago | Simply Wall St
How Much is Jacobs Engineering Group Inc.'s (NYSE:J) CEO Getting Paid?2 weeks ago | Simply Wall St
Jacobs Engineering Group (NYSE:J) Shareholders Have Enjoyed A 40% Share Price Gain3 weeks ago | Simply Wall St
Jacobs Engineering Group Inc. (NYSE:J) Delivered A Weaker ROE Than Its IndustryValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.67yrs | US$14.63m | 0.22% $25.0m | |
| President & COO | 0.33yr | US$4.08m | 0.051% $5.7m | |
| President | 0.33yr | US$4.18m | 0.087% $9.7m | |
| Executive VP and Chief Legal & Administration Officer | 1.5yrs | US$2.61m | 0.010% $1.2m | |
| Senior VP | no data | US$2.10m | 0.013% $1.5m | |
| Executive VP | 0.83yr | US$95.41k | 0.0072% $802.5k | |
| Senior VP & Chief Accounting Officer | 3.5yrs | no data | 0.0049% $539.4k | |
| Chief Technology & Innovation Officer | 1.5yrs | no data | no data | |
| Senior VP | 1.5yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.67yrs | US$14.63m | 0.22% $25.0m | |
| Independent Director | 24.25yrs | US$339.45k | 0.028% $3.1m | |
| Independent Director | 10.75yrs | US$302.31k | 0.020% $2.2m | |
| Independent Director | 17.25yrs | US$312.39k | 0.0095% $1.1m | |
| Independent Director | 3.25yrs | US$306.31k | 0.00019% $21.1k | |
| Independent Director | 19.25yrs | US$306.43k | 0.0085% $942.3k | |
| Lead Independent Director | 1.25yrs | US$333.52k | 0.015% $1.7m | |
| Independent Director | 7.58yrs | US$282.31k | no data | |
| Independent Director | 0.92yr | US$134.29k | no data | |
| Independent Director | 0.92yr | US$134.29k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| J | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1971 |
| JEG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1971 |
| 0JOI | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1971 |
| J1EG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 01:58 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/27 |
| Annual Earnings | 2019/09/27 |
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.