Jabil (JBL) AI Stock Analysis

• Market Cap: $22.32B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.47
• Revenue Growth: -6.13%
• EPS Growth: -53.35%
• Country: US
• Employees: 138,000
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.55
• Shares Outstanding: 107,318,840
• 10 Day Avg. Volume: 1,381,321
• 30 Day Avg. Volume: 1,356,247
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $230.44
• Price Target Upside: 9.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: $225.00 ▲(7.09% Upside)

Jabil's overall stock score reflects a combination of strong earnings call performance and strategic financial management, offset by technical weaknesses and valuation concerns. The company's focus on AI and industrial automation positions it well for future growth, but high leverage and declining profitability margins pose risks.

Positive Factors

Earnings Performance

JBL recently reported a beat in F2Q and noted strength in Capital Equipment, AI-related cloud, and Data Center Infrastructure.

Growth Prospects

Jabil can benefit from new program ramps in healthcare and continued strong revenues in Digital Commerce.

Market Opportunities

There is a large opportunity in optical transceivers and AI-related switching.

Negative Factors

Industry Challenges

Revenues in Regulated Industries declined 8% y/y given softness in EVs and renewable energy.

Market Valuation

Jabil trades at a discount to peer Celestica, despite similar expected EPS growth.

Jabil Business Overview & Revenue Model

Company Description

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 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, mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as 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 development services. Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility 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.

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 pose challenges. High debt levels and a low equity ratio raise concerns about financial leverage and 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	1.25B	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: Positive
• Last Price: 210.10
• 50DMA: Negative
• 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 JBL, the sentiment is Positive. The current price of 210.1 is below the 20-day moving average (MA) of 211.63, below the 50-day MA of 217.62, and above the 200-day MA of 168.58, indicating a neutral trend. The MACD of -2.90 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 65.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBL.

Jabil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	80 Outperform	$6.39B	25.66	11.58%	―	5.87%	20.66%
TTMI	79 Outperform	$4.76B	53.53	5.89%	―	14.24%	424.78%
PLXS	76 Outperform	$3.72B	23.65	12.12%	―	2.31%	48.63%
FLEX	74 Outperform	$20.71B	24.23	17.67%	―	-3.63%	2.26%
BHE	69 Neutral	$1.45B	37.35	3.49%	1.68%	-5.95%	-43.46%
JBL	67 Neutral	$22.32B	40.43	32.41%	0.15%	-6.13%	-53.35%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%

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.