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Jabil (JBL)
NYSE:JBL
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Jabil (JBL) AI Stock Analysis

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JB

Jabil

(NYSE:JBL)

Rating:67Neutral
Price Target:
$230.00
▲(3.05%Upside)
Jabil's overall stock score is supported by strong earnings growth and strategic corporate actions, such as the U.S. expansion and new credit facility. However, high valuation metrics and financial leverage, along with overbought technical indicators, present risks that temper the outlook.
Positive Factors
Earnings
JBL recently reported a beat in F2Q and noted strength in Capital Equipment, AI-related cloud, and Data Center Infrastructure.
Financial Performance
Margins for Jabil have re-rated meaningfully higher with a path to further improvement, indicating a stronger financial position.
Growth Opportunities
Multiple avenues for growth including cloud, semicap, healthcare, and in the longer-term EVs indicate potential for strong expansion.
Negative Factors
Industry Challenges
Revenues in Regulated Industries declined 8% y/y given softness in EVs and renewable energy.
Macroeconomic Factors
JBL raised FY25 guidance which indicates confidence despite uncertainties related to macro, government policy and impact from tariffs.
Market Valuation
Jabil trades at a discount to peer Celestica, despite similar expected EPS growth.

Jabil (JBL) vs. SPDR S&P 500 ETF (SPY)

Jabil Business Overview & Revenue Model

Company DescriptionJabil 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 MoneyJabil makes money primarily through its diversified revenue streams from providing electronics manufacturing services and solutions. These include design, engineering, manufacturing, and supply chain management services for customers across various industries. The company's revenue is largely driven by its Electronics Manufacturing Services (EMS) segment, which serves industries such as consumer electronics, healthcare, and automotive. Jabil also benefits significantly from its Diversified Manufacturing Services (DMS) segment, which focuses on providing more complex and innovative product solutions. Key factors contributing to Jabil's earnings include long-term partnerships with major global brands, strategic investments in advanced manufacturing technologies, and a strong focus on operational efficiency and cost management. Additionally, Jabil's global presence enables it to capitalize on regional market opportunities and scale its operations effectively to meet customer demands.

Jabil Earnings Call Summary

Earnings Call Date:Jun 17, 2025
(Q3-2025)
|
% Change Since: 23.44%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance for Jabil Inc., highlighted by significant revenue growth driven by the Intelligent Infrastructure segment and robust free cash flow generation. However, challenges persist in the regulated industries and consumer product segments, as well as in the 5G market. The company's strategic U.S. manufacturing expansion and strong earnings growth contribute to a positive outlook.
Q3-2025 Updates
Positive Updates
Record Revenue Growth
Jabil Inc. reported $7.8 billion in net revenue for Q3, up 16% year over year, exceeding expectations by $800 million.
Intelligent Infrastructure Segment Surge
The Intelligent Infrastructure segment reported revenue of $3.4 billion, up 51% year over year, driven by AI-related cloud and data center infrastructure growth.
Strong Core Earnings Growth
Core diluted earnings per share for Q3 were $2.55, a 35% increase compared to Q3 of the previous year.
Significant Free Cash Flow Generation
Adjusted free cash flow for the quarter was $326 million, with year-to-date free cash flow reaching $813 million. The company is on track to generate over $1.2 billion in free cash flow for the year.
U.S. Manufacturing Expansion
Jabil announced a $500 million investment to open a new site in the Southeastern U.S. to support AI data center infrastructure demand, enhancing its U.S. footprint.
Negative Updates
Softness in Regulated Industries
The regulated industries segment, including EV and renewable markets, showed ongoing softness with revenue flat year over year and a decline in profitability.
Challenges in Consumer Products
The Connected Living and Digital Commerce segment saw a 7% year-over-year revenue decline, primarily due to softness in consumer-driven products.
5G Demand Weakness
Networking and communications end market faced lower demand due to softer 5G demand, affecting overall performance.
Company Guidance
During Jabil Inc.'s third-quarter fiscal 2025 conference call, the company reported strong financial metrics, surpassing expectations with $7.8 billion in net revenue, a 16% increase year over year, and $800 million above their March guidance midpoint. The Intelligent Infrastructure segment drove growth, with AI-related revenue contributing significantly, while the regulated and Connected Living and Digital Commerce segments performed as planned. Core operating income reached $420 million, translating to a 5.4% core operating margin, a 20 basis point improvement from last year. GAAP operating income stood at $403 million, with a GAAP diluted EPS of $2.30 and core diluted EPS rising 35% year over year to $2.55. Despite challenges in the EV and renewable markets, healthcare provided offsetting growth within regulated industries. Inventory days improved, and cash flow from operations was strong at $406 million, leading to a year-to-date adjusted free cash flow of $813 million. Looking ahead, Jabil anticipates Q4 revenue between $7.1 billion and $7.8 billion, with core operating income ranging from $428 million to $488 million, and core diluted EPS expected to be between $2.64 and $3.04. The company also announced a $500 million investment in a new U.S. site to support AI data center infrastructure growth, aiming to reach $8.5 billion in AI-related revenue for the fiscal year. For fiscal 2025, Jabil raised its revenue guidance to approximately $29 billion, maintaining a 5.4% core operating margin and projecting core diluted EPS of $9.33, with an expected free cash flow exceeding $1.2 billion.

Jabil Financial Statement Overview

Summary
Jabil's financial performance is characterized by strong cash flow generation and efficient profit conversion. However, declining revenue and profitability margins, coupled with high debt levels, raise concerns about financial stability and leverage.
Income Statement
70
Positive
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
65
Positive
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
75
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue28.88B34.70B33.48B29.29B27.27B
Gross Profit2.68B2.87B2.63B2.36B1.93B
EBITDA2.62B2.39B2.30B1.97B1.23B
Net Income1.39B818.00M996.00M696.00M54.00M
Balance Sheet
Total Assets17.35B19.42B19.72B16.65B14.40B
Cash, Cash Equivalents and Short-Term Investments2.20B1.80B1.48B1.57B1.41B
Total Debt3.26B3.25B3.41B3.32B3.14B
Total Liabilities15.61B16.56B17.27B14.52B12.57B
Stockholders Equity1.74B2.87B2.45B2.14B1.81B
Cash Flow
Free Cash Flow932.00M704.00M266.00M274.00M274.24M
Operating Cash Flow1.72B1.73B1.65B1.43B1.26B
Investing Cash Flow1.35B-723.00M-858.00M-851.00M-921.11M
Financing Cash Flow-2.67B-680.00M-888.00M-413.00M-65.12M

Jabil Technical Analysis

Technical Analysis Sentiment
Positive
Last Price223.20
Price Trends
50DMA
191.40
Positive
100DMA
165.48
Positive
200DMA
153.77
Positive
Market Momentum
MACD
9.11
Positive
RSI
73.06
Negative
STOCH
68.38
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 223.2 is above the 20-day moving average (MA) of 219.41, above the 50-day MA of 191.40, and above the 200-day MA of 153.77, indicating a bullish trend. The MACD of 9.11 indicates Positive momentum. The RSI at 73.06 is Negative, neither overbought nor oversold. The STOCH value of 68.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBL.

Jabil Risk Analysis

Jabil disclosed 33 risk factors in its most recent earnings report. Jabil reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Jabil Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$5.42B23.6011.03%-1.50%1.84%
ESESE
77
Outperform
$5.07B42.999.66%0.20%8.40%20.03%
77
Outperform
$19.83B25.1316.23%-8.07%-8.00%
74
Outperform
$3.65B26.2010.93%-0.69%42.26%
74
Outperform
$4.58B63.395.02%11.65%
JBJBL
67
Neutral
$24.04B43.5432.41%0.14%-6.13%-53.35%
63
Neutral
$34.61B5.36-11.67%1.95%5.33%-20.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JBL
Jabil
223.20
110.17
97.47%
ESE
Esco Technologies
192.99
72.77
60.53%
FLEX
Flex
53.29
23.81
80.77%
PLXS
Plexus
135.56
17.19
14.52%
SANM
Sanmina-Sci
102.00
29.25
40.21%
TTMI
TTM Technologies
47.47
25.70
118.05%

Jabil Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Jabil Secures New $3.2 Billion Credit Facility
Positive
Jun 24, 2025

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.

The most recent analyst rating on (JBL) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Jabil stock, see the JBL Stock Forecast page.

Executive/Board Changes
Jabil Appoints Sujatha Chandrasekaran to Board
Positive
Apr 22, 2025

On April 16, 2025, Jabil Inc. announced the appointment of Sujatha Chandrasekaran to its Board of Directors, expanding the Board from nine to ten members. Ms. Chandrasekaran, who has extensive leadership experience in healthcare, retail, consumer, supply chain, and manufacturing sectors, is expected to bring valuable insights to Jabil’s Board. Her appointment is seen as a strategic move to enhance the company’s commitments to shareholders, customers, and communities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025