Jabil (JBL) AI Stock Analysis

• Market Cap: $23.16B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 35.5
• Beta (1Y): 1.49
• Revenue Growth: 3.18%
• EPS Growth: -46.01%
• Country: US
• Employees: 138,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.29
• Shares Outstanding: 107,318,840
• 10 Day Avg. Volume: 2,060,267
• 30 Day Avg. Volume: 1,588,906
• PEG Ratio: 0.11
• Price to Book (P/B): 7.70
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 14.35
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 9.42
• Enterprise Value/Ebitda: 12.97
• 1Y Price Target: $248.50
• Price Target Upside: 15.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $229.00 ▲(6.10% Upside)

Jabil's overall stock score reflects a strong earnings call and robust cash flow generation, which are offset by concerns over valuation, high leverage, and declining profitability margins. The company's strategic focus on AI and industrial automation offers growth potential, but financial stability remains a concern.

Positive Factors

Revenue Growth

The significant revenue growth in Q3, driven by AI demand, indicates strong market positioning and potential for sustained expansion in high-demand sectors.

AI Infrastructure Expansion

The strategic investment in AI infrastructure positions Jabil to capitalize on growing demand in AI and data centers, supporting long-term growth prospects.

Cash Flow Generation

Strong cash flow generation enhances Jabil's financial flexibility, enabling strategic investments and shareholder returns, crucial for long-term stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile markets, potentially impacting Jabil's long-term financial health.

Declining Profit Margins

Decreasing profit margins suggest pressure on operational efficiencies, which could affect Jabil's ability to maintain profitability over the long term.

Regulated Industries Stagnation

Stagnation in regulated industries, like EV and renewables, may hinder growth in these sectors, challenging Jabil's diversification strategy.

Jabil Business Overview & Revenue Model

Company Description

Jabil (JBL) is a global manufacturing services company that specializes in electronic manufacturing services (EMS) and solutions. With a presence in diverse sectors including automotive, healthcare, industrial, and consumer electronics, Jabil provides a range of services such as design, engineering, manufacturing, and supply chain management. The company is known for its ability to deliver high-quality products and services, leveraging advanced technologies and innovative practices to meet the needs of its customers.

How the Company Makes Money

Jabil generates revenue primarily through its contract manufacturing services, which involve producing electronic components and assemblies for a variety of industries. Key revenue streams include the production of consumer electronics, medical devices, and automotive components. The company benefits from long-term contracts with major clients, which provide a stable revenue base. Additionally, Jabil's engineering and design services add value by offering integrated solutions that enhance customer products. Strategic partnerships with technology firms and OEMs (Original Equipment Manufacturers) also play a crucial role in expanding Jabil's market reach and driving earnings, as these collaborations often lead to large-scale manufacturing agreements.

Jabil Financial Statement Overview

Summary

Jabil's financial performance is mixed. Strong cash flow generation and efficient profit conversion are positives, but declining revenue and profitability margins, along with high debt levels and a low equity ratio, raise concerns about financial stability.

Income Statement

Jabil's income statement reflects moderate performance. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 8.86% and a net profit margin of 2.02%, indicating stable profitability. However, the net profit margin has declined from the previous year (4.80%). Revenue declined by 1.28% since last year, showing a slight downturn. The EBIT margin is at 4.08% and EBITDA margin at 3.67%, which are decent but show a decrease from previous levels, indicating potential pressure on operational efficiencies.

Balance Sheet

The balance sheet highlights some areas of concern for Jabil. The debt-to-equity ratio stands high at 2.59, indicating significant leverage which could pose risks in volatile market conditions. Return on equity is moderate at 44.91%, but it reflects a decrease from the previous year's performance. The equity ratio is low at 6.91%, suggesting a heavy reliance on liabilities to finance assets. These metrics suggest potential risks regarding financial stability.

Cash Flow

Jabil's cash flow statement is relatively strong, with a free cash flow of $1.25 billion, showing a substantial growth rate of 34.10% from the previous year. The operating cash flow to net income ratio is robust at 2.75, indicating strong cash generation relative to net income. The free cash flow to net income ratio is high at 2.17, highlighting efficient cash management. Despite these strengths, the company should monitor its capital expenditures to sustain free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.51B	28.88B	34.70B	33.48B	29.29B	27.27B
Gross Profit	2.53B	2.68B	2.87B	2.63B	2.36B	1.93B
EBITDA	1.84B	2.62B	2.39B	2.30B	1.94B	1.23B
Net Income	577.00M	1.39B	818.00M	996.00M	696.00M	54.00M
Balance Sheet
Total Assets	18.59B	17.35B	19.42B	19.72B	16.65B	14.40B
Cash, Cash Equivalents and Short-Term Investments	1.52B	2.20B	1.80B	1.48B	1.57B	1.39B
Total Debt	3.33B	3.26B	3.25B	3.41B	3.32B	3.14B
Total Liabilities	17.30B	15.61B	16.56B	17.27B	14.52B	12.57B
Stockholders Equity	1.28B	1.74B	2.87B	2.45B	2.14B	1.81B
Cash Flow
Free Cash Flow	1.16B	932.00M	704.00M	266.00M	274.00M	274.24M
Operating Cash Flow	1.59B	1.72B	1.73B	1.65B	1.43B	1.26B
Investing Cash Flow	-694.00M	1.35B	-723.00M	-858.00M	-851.00M	-921.11M
Financing Cash Flow	-1.84B	-2.67B	-680.00M	-888.00M	-413.00M	-65.12M

Jabil Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 215.84
• 50DMA: Negative
• 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 JBL, the sentiment is Neutral. The current price of 215.84 is above the 20-day moving average (MA) of 215.01, below the 50-day MA of 216.96, and above the 200-day MA of 175.01, indicating a neutral trend. The MACD of 2.34 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JBL.

Jabil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	80 Outperform	6.08B	24.43	10.13%	―	5.87%	20.66%
TTMI	79 Outperform	5.76B	62.60	3.60%	―	14.24%	424.78%
PLXS	77 Outperform	3.87B	24.38	11.46%	―	2.31%	48.63%
FLEX	74 Outperform	21.34B	24.97	17.51%	―	-3.63%	2.26%
BHE	69 Neutral	1.39B	36.85	1.89%	1.76%	-5.95%	-43.46%
JBL	68 Neutral	$23.16B	35.51	40.43%	0.15%	3.18%	-46.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Jabil Corporate Events

Jabil Secures New $3.2 Billion Credit Facility

Jabil Inc. has entered into a new senior unsecured credit agreement on June 18, 2025, establishing a five-year revolving credit facility initially amounting to $3.2 billion, with the potential to increase by up to $1.0 billion at the lenders’ discretion. This agreement, replacing the company’s previous credit agreement dated January 22, 2020, involves several major financial institutions and offers flexibility in currency options and interest rates based on Jabil’s credit ratings. The move signifies Jabil’s strategic financial management, enhancing its liquidity position without incurring early termination penalties, and reflects its ongoing relationships with major financial service providers.