Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $16.04B
• Dividend Yield: 0.96%
• Average Volume (3M): 601.14K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.71
• Revenue Growth: -22.81%
• EPS Growth: -30.13%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 1.42
• Shares Outstanding: 119,981,840
• 10 Day Avg. Volume: 495,523
• 30 Day Avg. Volume: 601,145
• PEG Ratio: -1.42
• Price to Book (P/B): 4.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.51
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 7.08
• Enterprise Value/Ebitda: 4.25
• 1Y Price Target: $144.90
• Price Target Upside: 4.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $141.00 ▲(1.22%Upside)

Jacobs Solutions' strong earnings call performance and strategic corporate actions are significant strengths, driving optimism. However, concerns over financial performance, particularly declining equity and high valuation, moderate the overall score.

Positive Factors

Backlog Growth

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

Earnings Growth

Long-term visible earnings growth could drive J’s share appreciation.

Market Positioning

Jacobs Solutions' end-to-end solutions, use of digital/AI platforms, and global footprint are enabling the company to be more competitive and well positioned to capitalize on global end market trends.

Negative Factors

Legal and Ownership Challenges

The company faced challenges with AMTM ownership and legal reserves, but reiterated its FY25 guidance.

Procurement Cycle

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

Revenue Performance

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 shows solid revenue growth and profitability, though recent declines in revenue and net margins are concerning. The balance sheet is stable with moderate leverage, but declining equity warrants caution. Strong cash generation persists despite volatility.

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	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
EBITDA	1.26B	996.31M	878.74M	1.02B	685.04M
Net Income	806.09M	665.78M	644.04M	477.03M	385.88M
Balance Sheet
Total Assets	11.76B	14.62B	14.66B	14.63B	12.35B
Cash, Cash Equivalents and Short-Term Investments	1.89B	926.58M	1.14B	1.01B	1.21B
Total Debt	2.75B	3.57B	4.17B	3.82B	2.58B
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 Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 139.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 139.3 is above the 20-day moving average (MA) of 131.79, above the 50-day MA of 128.14, and above the 200-day MA of 129.70, indicating a bullish trend. The MACD of 2.44 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 74.59 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	81 Outperform	$24.61B	24.29	37.76%	0.18%	14.30%	49.19%
ACM	80 Outperform	$14.96B	24.66	28.07%	0.92%	4.55%	―
PWR	77 Outperform	$57.28B	62.50	13.48%	0.10%	15.77%	19.58%
FIX	77 Outperform	$19.01B	32.33	37.81%	0.33%	31.47%	64.96%
MTZ	73 Outperform	$13.56B	64.37	7.70%	―	3.03%	―
J	71 Outperform	$16.04B	36.88	8.46%	0.96%	-22.81%	-30.13%
Sector *	63 Neutral	kr59.49B	12.36	1.88%	2.32%	0.55%	-4.48%

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.