NYSE:JEC

Stock Analysis Report

Jacobs Engineering Group

Executive Summary

Jacobs Engineering Group Inc. provides technical, professional, and construction services.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

6.0%

NYSE:JEC

3.5%

US Construction

2.1%

US Market


1 Year Return

19.0%

NYSE:JEC

-12.4%

US Construction

-0.04%

US Market

JEC outperformed the Construction industry which returned -12.3% over the past year.

JEC outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

JECIndustryMarket
7 Day6.0%3.5%2.1%
30 Day1.9%-8.2%-3.2%
90 Day14.1%-0.4%2.8%
1 Year20.0%19.0%-11.7%-12.4%2.2%-0.04%
3 Year63.5%59.2%9.8%7.4%41.5%32.3%
5 Year63.6%59.4%-0.01%-3.3%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Jacobs Engineering Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Jacobs Engineering Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Jacobs Engineering Group is overvalued based on earnings compared to the US Construction industry average.

Jacobs Engineering Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Jacobs Engineering Group is poor value based on expected growth next year.


Price Based on Value of Assets

Jacobs Engineering Group is overvalued based on assets compared to the US Construction industry average.


Next Steps

Future Growth

How is Jacobs Engineering Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Jacobs Engineering Group's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Jacobs Engineering Group's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

Jacobs Engineering Group's revenue growth is positive but not above the United States of America market average.

Jacobs Engineering Group's earnings growth is expected to exceed the United States of America market average.

Jacobs Engineering Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Jacobs Engineering Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Jacobs Engineering Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Jacobs Engineering Group's 1-year earnings growth exceeds its 5-year average (117.4% vs -6.4%)

Jacobs Engineering Group's earnings growth has exceeded the US Construction industry average in the past year (117.4% vs 2.6%).


Return on Equity

Jacobs Engineering Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Jacobs Engineering Group used its assets less efficiently than the US Construction industry average last year based on Return on Assets.


Return on Capital Employed

Jacobs Engineering Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Jacobs Engineering Group's financial position?


Financial Position Analysis

Jacobs Engineering Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Jacobs Engineering Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Jacobs Engineering Group's level of debt (20.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (18.3% vs 20.4% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

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

0.86%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Jacobs Engineering Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Jacobs Engineering Group's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Jacobs Engineering Group is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Jacobs Engineering Group is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Jacobs Engineering Group's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8x coverage).


Next Steps

Management

What is the CEO of Jacobs Engineering Group's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Steve Demetriou (61yo)

4.0yrs

Tenure

US$13,043,688

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

Steve's remuneration is about average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.8yrs

Average Tenure

59yo

Average Age

The average tenure for the Jacobs Engineering Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.6yrs

Average Tenure

71.5yo

Average Age

The tenure for the Jacobs Engineering Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$229,35017 May 19
Joseph Bronson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$76.45

Ownership Breakdown


Management Team

  • Steve Demetriou (61yo)

    Chairman

    • Tenure: 4.0yrs
    • Compensation: US$13.04m
  • Dawne Hickton (61yo)

    COO & President of Aerospace

    • Tenure: 4.3yrs
    • Compensation: US$264.83k
  • Billy Allen (55yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.8yrs
  • Bob Pragada (51yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$3.74m
  • Jonathan Doros

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Madhuri Andrews (52yo)

    Senior VP

    • Tenure: 0.8yrs
  • Kevin Berryman (60yo)

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$3.83m
  • Gary Mandel (59yo)

    Special Advisor to Chair & CEO

    • Tenure: 0.8yrs
    • Compensation: US$5.66m
  • Joanne Caruso (59yo)

    Chief Legal & Administration officer

    • Tenure: 0.8yrs
  • Darren Kraabel

    Chief Technology & Innovation Officer

    • Tenure: 0.8yrs

Board Members

  • Linda Fayne Levinson (77yo)

    Independent Director

    • Tenure: 23.6yrs
    • Compensation: US$373.23k
  • Peter Robertson (72yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$284.83k
  • Joe Bronson (71yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$289.63k
  • Steve Demetriou (61yo)

    Chairman

    • Tenure: 4.0yrs
    • Compensation: US$13.04m
  • Dawne Hickton (61yo)

    COO & President of Aerospace

    • Tenure: 4.3yrs
    • Compensation: US$264.83k
  • Barry Williams (75yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$240.46k
  • Bob McNamara (66yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$264.83k
  • Robert Davidson (73yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$292.03k
  • Chris Thompson (71yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$264.83k
  • Ed Eberhart (72yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$264.83k

Company Information

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


Key Information

  • Name: Jacobs Engineering Group Inc.
  • Ticker: JEC
  • Exchange: NYSE
  • Founded: 1947
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$11.727b
  • Shares outstanding: 135.50m
  • 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
JECNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1971
JEGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1971
0JOILSE (London Stock Exchange)YesCommon StockGBUSDMay 1971

Biography

Jacobs Engineering Group Inc. provides technical, professional, and construction services. The company’s Aerospace, Technology, Environmental and Nuclear segment offers scientific, engineering, constructio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:38
End of Day Share Price2019/08/22 00:00
Earnings2019/06/28
Annual Earnings2018/09/28


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.