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

1.9%

JEC

3.5%

US Construction

1.0%

US Market


1 Year Return

20.6%

JEC

8.1%

US Construction

8.0%

US Market

Return vs Industry: JEC exceeded the US Construction industry which returned 8.1% over the past year.

Return vs Market: JEC exceeded the US Market which returned 8% over the past year.


Shareholder returns

JECIndustryMarket
7 Day1.9%3.5%1.0%
30 Day1.4%3.8%-0.07%
90 Day9.6%2.6%-1.0%
1 Year21.6%20.6%9.0%8.1%10.4%8.0%
3 Year87.9%82.6%28.3%25.4%46.2%36.7%
5 Year103.7%98.0%25.3%21.0%64.3%46.2%

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?

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JEC ($93.11) is trading below our estimate of fair value ($113.56)

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


Price To Earnings Ratio

PE vs Industry: JEC is poor value based on its PE Ratio (36.3x) compared to the Construction industry average (17.7x).

PE vs Market: JEC is poor value based on its PE Ratio (36.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: JEC is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: JEC is overvalued based on its PB Ratio (2.1x) compared to the US Construction industry average (1.7x).


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?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JEC's forecast earnings growth (16.1% per year) is above the savings rate (2.7%).

Earnings vs Market: JEC's earnings (16.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: JEC's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: JEC's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JEC's Return on Equity is forecast to be low in 3 years time (13.5%).


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

Earnings Trend: JEC's earnings have declined by -6.4% per year over the past 5 years.

Accelerating Growth: JEC's earnings growth over the past year (117.4%) exceeds its 5-year average (-6.4% per year).

Earnings vs Industry: JEC earnings growth over the past year (117.4%) exceeded the Construction industry 2.6%.


Return on Equity

High ROE: JEC's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: JEC's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: JEC has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Jacobs Engineering Group's financial position?


Financial Position Analysis

Short Term Liabilities: JEC's short term assets ($4.5B) exceeds its short term liabilities ($3.3B)

Long Term Liabilities: JEC's short term assets (4.5B) exceeds its long term liabilities (2.2B)


Debt to Equity History and Analysis

Debt Level: JEC's debt to equity ratio (20.4%) is considered satisfactory

Reducing Debt: JEC's debt to equity ratio has increased from 18.3% to 20.4% over the past 5 years.

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

Interest Coverage: JEC's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: JEC has a low level of unsold assets or inventory.

Debt Coverage by Assets: JEC's debt is covered by short term assets (assets are 3.586820x debt).


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JEC's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: JEC's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: JEC 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: JEC is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


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?

1.0yrs

Average management tenure


CEO

Steve Demetriou (61yo)

4.2yrs

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

Compensation vs. Market: Steve's total compensation ($USD13.04M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

1.0yrs

Average Tenure

59yo

Average Age

Experienced Management: JEC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

71.5yo

Average Age

Experienced Board: JEC's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


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: 4.2yrs
    • Compensation: US$13.04m
  • Dawne Hickton (61yo)

    COO & President of Aerospace

    • Tenure: 0.3yrs
    • Compensation: US$264.83k
  • Billy Allen (55yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3yrs
  • Bob Pragada (51yo)

    Chief Operating Officer

    • Tenure: 1yrs
    • Compensation: US$3.74m
  • Jonathan Doros

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Madhuri Andrews (52yo)

    Senior VP

    • Tenure: 1yrs
  • Kevin Berryman (60yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$3.83m
  • Gary Mandel (59yo)

    Special Advisor to Chair & CEO

    • Tenure: 1yrs
    • Compensation: US$5.66m
  • Joanne Caruso (59yo)

    Chief Legal & Administration officer

    • Tenure: 1yrs
  • Darren Kraabel

    Chief Technology & Innovation Officer

    • Tenure: 1yrs

Board Members

  • Linda Fayne Levinson (77yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$373.23k
  • Peter Robertson (72yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$284.83k
  • Joe Bronson (71yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$289.63k
  • Steve Demetriou (61yo)

    Chairman

    • Tenure: 4.2yrs
    • Compensation: US$13.04m
  • Barry Williams (75yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$240.46k
  • Bob McNamara (66yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$264.83k
  • Robert Davidson (73yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$292.03k
  • Chris Thompson (71yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$264.83k
  • Ed Eberhart (72yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$264.83k
  • Georgette Kiser (51yo)

    Independent Director

    • Tenure: 0.4yrs

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$12.616b
  • 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 Analysis2019/10/21 23:37
End of Day Share Price2019/10/21 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.