Jacobs Engineering (J) AI Stock Analysis

• Market Cap: $15.17B
• Dividend Yield: 0.96%
• Average Volume (3M): 919.44K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.66
• Revenue Growth: -13.76%
• EPS Growth: -13.39%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 4.85
• Shares Outstanding: 122,543,670
• 10 Day Avg. Volume: 648,157
• 30 Day Avg. Volume: 919,439
• PEG Ratio: 1.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $145.71
• Price Target Upside: 17.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Jacobs Solutions' stock score reflects strong revenue growth and operational efficiency, balanced by challenges in maintaining profitability. Technical analysis suggests a bearish trend, while the valuation indicates moderate pricing with a modest dividend yield. The earnings call presents a mixed outlook with both positive growth signals and profitability concerns.

Positive Factors

Backlog Strength

Jacobs has seen significant strength in the water and environmental end-markets with marquee project wins being a key component of backlog strength.

Competitive Position

There is a strong competitive position and outlook for solid growth led by Water and Environmental.

Sector Expertise

Jacobs leverages its science-based expertise to be the leading program delivery manager for biotech, pharma, semiconductor, and data center buildout projects.

Negative Factors

Market Rating

Despite the positive commentary, analysts reiterate a Market Perform rating on Jacobs as proof of execution is needed to show that targets are truly achievable.

Political Uncertainty

The incoming Administration is likely to impact investment decisions, creating potential volatility and uncertainty for Jacobs Solutions Inc.

Valuation Concerns

The stock is now trading at a higher multiple of 14.2x NTM EV/EBITDA.

Jacobs Engineering Business Overview & Revenue Model

Company Description

Jacobs Engineering Group Inc. provides consulting, technical, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, rest of Asia, Australia, New Zealand, South America, Mexico, the Middle East, and Africa. The company operates in two segments, Critical Mission Solutions and People & Places Solutions. The Critical Mission Solutions segment provides cybersecurity, data analytics, systems and software application integration and consulting, enterprise and mission IT, engineering and design, nuclear, enterprise level operations and maintenance, and other technical consulting solutions. The People & Places Solutions segment offers data analytics, artificial intelligence and automation, software development, digitally driven consulting, planning and architecture, program management, and other technical consulting solutions. The company is also involved in the management and execution of wind-tunnel design-build projects; and design-build for water and construction management. Jacobs Engineering Group Inc. was founded in 1947 and is headquartered in Dallas, Texas.

How the Company Makes Money

Jacobs Solutions generates revenue through a diversified portfolio of services and solutions offered to its clients worldwide. The company's key revenue streams include engineering and construction services, consulting, and operations and maintenance services. By engaging in long-term contracts and partnerships with government agencies, corporations, and industrial clients, Jacobs Solutions ensures a steady flow of income. The company also leverages its expertise in sectors like aerospace, defense, and technology to secure large-scale projects that contribute significantly to its earnings. Additionally, strategic acquisitions and investments in technology and innovation enable Jacobs Solutions to expand its capabilities and access new markets, further enhancing its revenue potential.

Jacobs Engineering Financial Statement Overview

Summary

Jacobs Solutions demonstrates solid revenue growth and operational efficiency, reflected in steady EBIT and EBITDA margins. However, declining net profit margins and free cash flow growth suggest challenges in maintaining profitability. The balance sheet remains stable with manageable leverage, but there's a shift towards more liabilities. Overall, the company shows resilience in revenue generation and cash management, though it faces potential risks in profitability sustainability.

Income Statement

Jacobs Solutions shows a solid financial performance with a stable gross profit margin of 22.4% TTM, although it has slightly decreased from previous annual reports. The net profit margin for TTM stands at 4.3%, showing a decline compared to 7.0% from the last annual report. Revenue growth TTM is impressive at 25.2%, indicating strong top-line growth. EBIT and EBITDA margins are healthy and stable, reflecting operational efficiency. However, the net income has decreased, signaling potential challenges in managing costs or other expenses.

Balance Sheet

The balance sheet of Jacobs Solutions reflects moderate financial stability. The debt-to-equity ratio is 0.72, indicating a balanced approach to leveraging. The return on equity (ROE) for TTM is 14.7%, which is decent but slightly lower than previous periods, reflecting reduced profitability. The equity ratio stands at 36.2%, showing a solid level of equity financing, though it has declined from past figures, suggesting increased reliance on liabilities.

Cash Flow

Cash flow analysis reveals a robust performance with a free cash flow growth rate of -32.6% TTM, which indicates a decline from the previous annual report. The operating cash flow to net income ratio is 1.21, and the free cash flow to net income ratio is 1.02 for TTM, showcasing efficient cash generation relative to net income. Despite the decrease in free cash flow, the company maintains strong cash flow metrics indicating effective cash management.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.50B	10.85B	9.78B	14.09B	13.57B
	Gross Profit
2.83B	2.71B	2.58B	3.04B	2.59B
	EBIT
692.44M	676.48M	539.88M	688.09M	535.97M
	EBITDA
1.26B	996.31M	878.74M	1.02B	685.04M
	Net Income Common Stockholders
806.09M	665.78M	644.04M	477.03M	385.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.89B	926.58M	1.14B	1.01B	1.21B
	Total Assets
11.76B	14.62B	14.66B	14.63B	12.35B
	Total Debt
2.75B	3.57B	4.17B	3.82B	2.58B
	Net Debt
1.61B	2.64B	3.02B	2.81B	1.71B
	Total Liabilities
6.37B	7.38B	7.92B	8.00B	6.50B
	Stockholders Equity
4.55B	6.55B	6.06B	5.94B	5.82B
Cash Flow		Free Cash Flow
933.56M	837.28M	347.09M	633.46M	688.58M
	Operating Cash Flow
1.05B	974.76M	474.71M	726.28M	806.85M
	Investing Cash Flow
-127.19M	-145.66M	-538.42M	-1.38B	-429.09M
	Financing Cash Flow
-751.64M	-1.09B	320.23M	798.98M	-208.31M

Jacobs Engineering Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 124.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Neutral. The current price of 124.3 is above the 20-day moving average (MA) of 118.12, above the 50-day MA of 121.65, and below the 200-day MA of 129.30, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 93.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for J.

Jacobs Engineering Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	85 Outperform	$18.46B	19.17	37.25%	0.25%	15.76%	61.64%
ACM	80 Outperform	$13.30B	28.52	26.35%	0.93%	8.89%	669.67%
FIX	78 Outperform	$14.02B	23.85	37.81%	0.34%	31.47%	64.96%
MTZ	76 Outperform	$10.07B	61.96	5.80%	―	2.56%	―
J	68 Neutral	$15.17B	25.50	10.92%	0.96%	-13.76%	-13.39%
PWR	68 Neutral	$43.40B	48.54	13.32%	0.13%	13.36%	20.00%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%

Jacobs Engineering Corporate Events

Jacobs Solutions Secures $200M and £410M Loan Agreement

On March 27, 2025, Jacobs Solutions Inc. and Jacobs Engineering Group Inc. entered into a $200 million and £410 million term loan agreement with Bank of America, N.A. The loan, which has a two-year term, will be used to repay existing debt and for general corporate purposes. The agreement includes customary covenants and interest rates based on the borrower’s leverage ratio. The proceeds were used to repay the outstanding amounts under a previous loan agreement, resulting in the termination of related obligations and agreements.