Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $17.42B
• Dividend Yield: 0.81%
• Average Volume (3M): 673.99K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.72
• Revenue Growth: -22.81%
• EPS Growth: -30.13%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 1.62
• Shares Outstanding: 119,981,840
• 10 Day Avg. Volume: 825,266
• 30 Day Avg. Volume: 673,990
• PEG Ratio: 1.03
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 17.26
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 7.69
• Enterprise Value/Ebitda: 23.08
• 1Y Price Target: $155.44
• Price Target Upside: 7.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $157.00 ▲(8.12% Upside)

Jacobs Solutions demonstrates robust financial health with a strong earnings call performance and strategic corporate actions. While technical indicators show bullish trends, the stock may be overbought, and valuation metrics suggest it could be overvalued. The positive strategic moves and strong backlog growth contribute positively to the overall score. However, caution is warranted due to potential overvaluation and equity decline.

Positive Factors

Capital Return

Jacobs announced that the company will distribute the Amentum shares at the end of the month, representing a $159 million capital return to shareholders.

Earnings

Jacobs Solutions Inc. achieved a 2Q25 EPS beat with EBITDA in-line and backlogs up an impressive 20% year-over-year.

Market Demand

The company is seeing a favorable demand backdrop across infrastructure end markets, particularly in water/waste-water infrastructure and life sciences.

Negative Factors

Legal Issues

Results were impacted by a meaningful reserve for a legal matter in the infrastructure and advanced facilities segment that is now largely complete.

Procurement Challenges

The procurement cycle is extending a bit given the macro environment, but few outright project cancellations or delays have occurred at this point.

Revenue and Earnings

Shares of Jacobs are trading down 5% after the company reaffirmed its full-year outlook while posting weaker-than-expected revenue and EBITDA during the quarter.

Jacobs Solutions Business Overview & Revenue Model

Company Description

Jacobs Solutions (J) is a global professional services company that specializes in providing advanced solutions for a wide range of industries, including aerospace, defense, environmental, infrastructure, and nuclear sectors. The company offers a broad spectrum of services including consulting, technical, scientific, and project delivery for the government and private sector.

How the Company Makes Money

Jacobs Solutions makes money primarily through service contracts with government agencies and large corporations. The company generates revenue by offering engineering, design, and consulting services, as well as project management and construction services. Key revenue streams include long-term government contracts, partnerships with private sector clients, and strategic acquisitions that enhance its service offerings. Jacobs Solutions also benefits from its diversified portfolio and its ability to provide integrated solutions that meet the complex needs of its clients, contributing to consistent earnings.

Jacobs Solutions Financial Statement Overview

Summary

Jacobs Solutions demonstrates solid revenue growth and profitability, although recent figures show some decline in revenue and net margins. The balance sheet is stable, with moderate leverage, but declining equity suggests caution. Cash flow generation remains strong but shows some volatility. Overall, the financial health of Jacobs Solutions is robust but warrants close monitoring of equity trends and cash flow stability.

Income Statement

Jacobs Solutions has shown consistent revenue growth over the years, with recent TTM revenue at $8.92 billion. However, there's a notable drop from the previous annual revenue of $11.5 billion. The gross profit margin for TTM is 28.45%, indicating solid profitability. The net profit margin for TTM is 5.16%, showing a decrease from previous years, which could be a concern. EBIT and EBITDA margins remain steady, with the TTM EBIT margin at 7.00% and EBITDA margin at 10.17%.

Balance Sheet

Jacobs Solutions maintains a healthy balance sheet with a debt-to-equity ratio of 0.81 for TTM, reflecting moderate leverage. The equity ratio stands at 34.46%, suggesting a stable financial position. However, a steady decline in stockholders' equity from prior periods is evident. Return on Equity (ROE) for TTM is 11.90%, which is slightly lower than previous periods, indicating a potential area for improvement.

Cash Flow

The company has experienced volatility in its free cash flow, with a decline in TTM free cash flow compared to the previous period. The operating cash flow to net income ratio is 1.50 for TTM, showing strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, indicating potential challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.72B	11.50B	10.85B	9.78B	14.09B	13.57B
Gross Profit	2.38B	2.83B	2.71B	2.58B	3.04B	2.59B
EBITDA	792.79M	1.26B	996.31M	878.74M	1.02B	685.04M
Net Income	492.52M	806.09M	665.78M	644.04M	477.03M	491.85M
Balance Sheet
Total Assets	10.95B	11.76B	14.62B	14.66B	14.63B	12.35B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.89B	926.58M	1.14B	1.01B	1.21B
Total Debt	3.00B	2.75B	3.57B	4.17B	3.82B	2.58B
Total Liabilities	7.13B	6.37B	7.38B	7.92B	8.00B	6.50B
Stockholders Equity	3.82B	4.55B	6.55B	6.06B	5.94B	5.82B
Cash Flow
Free Cash Flow	141.61M	933.56M	837.28M	347.09M	633.46M	688.58M
Operating Cash Flow	207.56M	1.05B	974.76M	474.71M	726.28M	806.85M
Investing Cash Flow	-56.58M	-127.19M	-145.66M	-538.42M	-1.38B	-429.09M
Financing Cash Flow	-152.44M	-751.64M	-1.09B	320.23M	798.98M	-208.31M

Jacobs Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Positive. The current price of 145.21 is above the 20-day moving average (MA) of 139.42, above the 50-day MA of 132.77, and above the 200-day MA of 130.23, indicating a bullish trend. The MACD of 2.91 indicates Positive momentum. The RSI at 67.99 is Neutral, neither overbought nor oversold. The STOCH value of 54.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for J.

Jacobs Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	80 Outperform	$27.98B	26.11	38.14%	0.16%	13.77%	37.96%
ACM	80 Outperform	$15.74B	24.42	28.17%	0.90%	4.55%	―
PWR	76 Outperform	$57.33B	60.35	13.47%	0.10%	18.26%	21.24%
FIX	74 Outperform	$24.40B	35.53	40.09%	0.22%	26.33%	63.32%
J	72 Outperform	$17.42B	36.29	9.29%	0.81%	-22.81%	-30.13%
MTZ	72 Outperform	$14.02B	52.73	9.38%	―	7.08%	3273.27%
Sector *	64 Neutral	$10.64B	16.04	5.48%	2.12%	2.74%	-23.62%

Jacobs Solutions Corporate Events

Jacobs Solutions Distributes Amentum Shares to Shareholders

On May 30, 2025, Jacobs Solutions Inc. distributed 7,299,065 shares of common stock of Amentum Holdings, Inc. to its shareholders through a pro rata distribution. This strategic move, effective for shareholders as of May 16, 2025, allows Jacobs Solutions to potentially enhance its financial positioning and shareholder value by distributing shares of Amentum, a separate entity.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

Jacobs Solutions Announces Amentum Shares Distribution

On May 20, 2025, Jacobs Solutions Inc. announced a special pro rata dividend distribution of 7,299,065 shares of Amentum Holdings Inc. common stock to its shareholders, marking the company’s exit from holding any Amentum shares. This distribution, set for May 30, 2025, stems from the spin-off of Jacobs’ Critical Mission Solutions and parts of its Divergent Solutions business in 2024, which were merged with Amentum. The move is part of Jacobs’ strategy to return capital to investors and streamline its portfolio, potentially impacting its market positioning by focusing more on core operations.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.