NYSE:JBL

Stock Analysis Report

Executive Summary

Jabil Inc. provides manufacturing services and solutions worldwide.

Rewards

Trading at 33.9% below its fair value

Earnings are forecast to grow 35.88% per year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Reasonable growth potential and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

JBL

1.8%

US Electronic

1.7%

US Market


1 Year Return

70.0%

JBL

27.4%

US Electronic

23.6%

US Market

Return vs Industry: JBL exceeded the US Electronic industry which returned 30.2% over the past year.

Return vs Market: JBL exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

JBLIndustryMarket
7 Day0.9%1.8%1.7%
30 Day4.6%3.0%3.5%
90 Day18.1%10.4%11.7%
1 Year71.8%70.0%28.7%27.4%26.2%23.6%
3 Year92.6%86.1%54.6%50.2%53.2%43.3%
5 Year120.7%106.8%89.9%80.4%75.5%56.1%

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?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBL ($43.12) is trading below our estimate of fair value ($65.24)

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 (32.5x) compared to the Electronic industry average (21.2x).

PE vs Market: JBL is poor value based on its PE Ratio (32.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: JBL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: JBL is overvalued based on its PB Ratio (3.6x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

35.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBL's forecast earnings growth (35.9% per year) is above the savings rate (1.7%).

Earnings vs Market: JBL's earnings (35.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: JBL's revenue (2.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: JBL's revenue (2.8% 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%) underperformed the Electronic industry 53.6%.


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?

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: JBL's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: JBL's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JBL'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 Jabil's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Mark Mondello (55yo)

6.8yrs

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 ($USD11.41M) is above average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: JBL's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: JBL's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: JBL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$626,57706 Jan 20
Timothy Main
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000
Max PriceUS$41.77
SellUS$152,23130 Oct 19
Brenda Chamulak
EntityIndividual
Shares4,025
Max PriceUS$37.82
SellUS$750,82701 Oct 19
Martha Brooks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares21,100
Max PriceUS$35.78
SellUS$302,19201 May 19
Martha Brooks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$30.22
SellUS$103,94012 Apr 19
Alessandro Parimbelli
EntityIndividual
Shares3,500
Max PriceUS$29.70
SellUS$496,79109 Apr 19
Alessandro Parimbelli
EntityIndividual
Shares17,000
Max PriceUS$29.22

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Mondello (55yo)

    CEO & Director

    • Tenure: 6.8yrs
    • Compensation: US$11.41m
  • Beth Walters (59yo)

    Senior Vice President of Communications & Investor Relations

    • Steve Borges (51yo)

      Executive VP & CEO of Healthcare

      • Tenure: 6yrs
      • Compensation: US$3.13m
    • Michael Dastoor (54yo)

      Chief Financial Officer

      • Tenure: 1.3yrs
      • Compensation: US$2.86m
    • Gary Cantrell

      Chief Information Officer & Senior VP

      • Bobby Katz (56yo)

        Executive VP & General Counsel

        • Tenure: 3.3yrs
      • Michael Loparco (48yo)

        Executive VP & CEO of Engineered Solutions Group

        • Tenure: 4yrs
        • Compensation: US$3.05m
      • Jean Kneisler

        CTO & VP

        • Sherry Williams

          Chief Compliance Officer

          • Tenure: 3.3yrs
        • Kenny Wilson (54yo)

          Executive VP & CEO of Green Point

          • Tenure: 3yrs
          • Compensation: US$3.00m

        Board Members

        • John Plant (65yo)

          Independent Director

          • Tenure: 4yrs
          • Compensation: US$282.81k
        • Tom Sansone (70yo)

          Independent Vice Chairman of the Board & Lead Independent Director

          • Tenure: 21yrs
          • Compensation: US$282.81k
        • Tim Main (62yo)

          Chairman of the Board

          • Tenure: 7yrs
          • Compensation: US$422.81k
        • Mark Mondello (55yo)

          CEO & Director

          • Tenure: 6.8yrs
          • Compensation: US$11.41m
        • Steve Raymund (64yo)

          Independent Director

          • Tenure: 24yrs
          • Compensation: US$307.81k
        • Anousheh Ansari (53yo)

          Independent Director

          • Tenure: 4yrs
          • Compensation: US$287.81k
        • David Stout (64yo)

          Independent Director

          • Tenure: 10.3yrs
          • Compensation: US$302.81k
        • Martha Brooks (60yo)

          Independent Director

          • Tenure: 8.8yrs
          • Compensation: US$287.81k
        • Chris Holland (53yo)

          Independent Director

          • Tenure: 2yrs
          • Compensation: US$287.30k

        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$6.573b
        • 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 Analysis2020/01/20 23:43
        End of Day Share Price2020/01/17 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.