NYSE:JBL

Stock Analysis Report

Executive Summary

Jabil Inc. provides manufacturing services and solutions worldwide.


Snowflake Analysis

Proven track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Jabil's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.6%

JBL

-7.8%

US Electronic

-7.6%

US Market


1 Year Return

21.3%

JBL

0.5%

US Electronic

10.2%

US Market

Return vs Industry: JBL exceeded the US Electronic industry which returned 0.5% over the past year.

Return vs Market: JBL exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

JBLIndustryMarket
7 Day-8.6%-7.8%-7.6%
30 Day-16.4%-9.0%-4.5%
90 Day-12.0%-7.2%-0.6%
1 Year22.5%21.3%1.5%0.5%12.5%10.2%
3 Year38.2%33.7%26.5%22.9%37.1%28.3%
5 Year67.0%56.8%56.3%48.5%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jabil undervalued compared to its fair value and its price relative to the market?

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBL ($34.63) is trading below our estimate of fair value ($61.7)

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


Price To Earnings Ratio

PE vs Industry: JBL is poor value based on its PE Ratio (26.1x) compared to the Electronic industry average (18.3x).

PE vs Market: JBL is poor value based on its PE Ratio (26.1x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: JBL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: JBL is overvalued based on its PB Ratio (2.9x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Jabil forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBL's forecast earnings growth (37.3% per year) is above the savings rate (1.7%).

Earnings vs Market: JBL's earnings (37.3% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: JBL's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: JBL's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBL's Return on Equity is forecast to be high in 3 years time (29.7%)


Next Steps

Past Performance

How has Jabil performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBL has a large one-off loss of $154.7M impacting its November 30 2019 financial results.

Growing Profit Margin: JBL's current net profit margins (0.8%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: JBL has become profitable over the past 5 years, growing earnings by -0.6% per year.

Accelerating Growth: JBL's earnings growth over the past year (39.6%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: JBL earnings growth over the past year (39.6%) exceeded the Electronic industry 12%.


Return on Equity

High ROE: JBL's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jabil's financial position?


Financial Position Analysis

Short Term Liabilities: JBL's short term assets ($9.3B) do not cover its short term liabilities ($9.6B).

Long Term Liabilities: JBL's short term assets ($9.3B) exceed its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: JBL's debt to equity ratio (136.3%) is considered high.

Reducing Debt: JBL's debt to equity ratio has increased from 74.4% to 136.3% over the past 5 years.

Debt Coverage: JBL's debt is well covered by operating cash flow (51.8%).

Interest Coverage: JBL's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: JBL has a high level of physical assets or inventory.

Debt Coverage by Assets: JBL's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Jabil's current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%4.0%industryaverage1.7%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: JBL's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: JBL's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: JBL's dividends per share have been stable in the past 10 years.

Growing Dividend: JBL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.1%), JBL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBL's dividends in 3 years are forecast to be thoroughly covered by earnings (8% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Mark Mondello (55yo)

6.9yrs

Tenure

US$11,412,435

Compensation

Mr. Mark T. Mondello has been the Chief Executive Officer at Jabil Inc. since March, 2013. Mr. Mondello served as the Chief Operating Officer of Jabil Inc. from November 2002 to March 1, 2013. Mr. Mondello ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD11.41M) is above average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Mondello
CEO & Director6.9yrsUS$11.41m1.27% $66.8m
Michael Dastoor
Chief Financial Officer1.4yrsUS$2.86m0.14% $7.2m
Steven Borges
Executive VP & CEO of Healthcare6.1yrsUS$3.13m0.16% $8.5m
Michael Loparco
Executive VP & CEO of Engineered Solutions Group4.1yrsUS$3.05m0.19% $9.8m
Kenneth Wilson
Executive VP & CEO of Green Point3.1yrsUS$3.00m0.13% $7.1m
Jean Kneisler
CTO & VP0yrsno datano data
Gary Cantrell
Chief Information Officer & Senior VP0yrsno datano data
Beth Walters
Senior Vice President of Communications & Investor Relations0yrsno datano data
Robert Katz
Executive VP & General Counsel3.4yrsno data0.11% $6.0m
Sherry Williams
Chief Compliance Officer3.3yrsno datano data

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: JBL's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Mondello
CEO & Director6.9yrsUS$11.41m1.27% $66.8m
John Plant
Independent Director4.1yrsUS$282.81k0.023% $1.2m
Thomas Sansone
Independent Vice Chairman of the Board & Lead Independent Director21.1yrsUS$282.81k1.16% $60.8m
Timothy Main
Chairman of the Board7.1yrsUS$422.81k0.20% $10.7m
Steven Raymund
Independent Director24.1yrsUS$307.81k0.13% $6.7m
Anousheh Ansari
Independent Director4.1yrsUS$287.81k0.023% $1.2m
David Stout
Independent Director10.4yrsUS$302.81k0.059% $3.1m
Martha Brooks
Independent Director8.9yrsUS$287.81k0.050% $2.6m
Christopher Holland
Independent Director2.1yrsUS$287.30k0.0097% $509.3k

7.1yrs

Average Tenure

62yo

Average Age

Experienced Board: JBL's board of directors are considered experienced (7.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JBL 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

Jabil Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jabil Inc.
  • Ticker: JBL
  • Exchange: NYSE
  • Founded: 1966
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$5.267b
  • Shares outstanding: 152.09m
  • Website: https://www.jabil.com

Number of Employees


Location

  • Jabil Inc.
  • 10560 Dr. Martin Luther King
  • Jr. Street North
  • Saint Petersburg
  • Florida
  • 33716
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JBLNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1993
JBLDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1993

Biography

Jabil Inc. provides manufacturing services and solutions worldwide. The company operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also specializes in the three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various industrial design, advance mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, and PCBA design validation and verification services; and other consulting services, including the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution manufacturing development services. Additionally, the company offers systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves automotive and transportation, capital equipment, cloud, computing and storage, defense and aerospace, industrial and energy, networking and telecommunications, print and retail, and smart home and appliances, as well as edge devices and accessories, healthcare, mobility, and packaging industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:54
End of Day Share Price2020/02/26 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.