Jabil (JBL) AI Stock Analysis

• Market Cap: $23.33B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.49
• Revenue Growth: -6.13%
• EPS Growth: -53.35%
• Country: US
• Employees: 138,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.55
• Shares Outstanding: 107,345,345
• 10 Day Avg. Volume: 2,656,263
• 30 Day Avg. Volume: 1,563,021
• PEG Ratio: 0.11
• Price to Book (P/B): 7.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.35
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 0.74
• 1Y Price Target: $220.00
• Price Target Upside: 0.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $230.00 ▲(5.46%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

A significant share buyback authorization and a strong Free Cash Flow target demonstrate confidence in capital returns and financial strength.

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.

Valuation

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

Jabil Business Overview & Revenue Model

Company Description

Jabil Inc. (JBL) is a leading global manufacturing solutions provider with operations spanning across multiple sectors, including healthcare, automotive, consumer electronics, and industrial. The company offers comprehensive design, manufacturing, supply chain, and product management services to a wide range of industries, facilitating the production of innovative, high-quality products. Jabil leverages its extensive expertise and advanced technologies to deliver tailored solutions that meet the unique needs of its clients worldwide.

How the Company Makes Money

Jabil 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 Financial Statement Overview

Summary

Jabil's financial performance reflects both strengths and challenges. While operational efficiency and cash flow generation are commendable, high leverage and declining revenue pose potential risks. The company needs to focus on growth and managing leverage to enhance financial stability.

Income Statement

Jabil's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue has declined compared to the previous year, indicating a challenge in maintaining growth. The gross profit margin is approximately 8.9%, which is modest, and the net profit margin stands at 1.8%, reflecting competitive pressure in the industry. The EBIT and EBITDA margins are relatively healthy at 3.9% and 4.7%, respectively, suggesting efficient operational management. However, the overall decline in revenue and net income affects the score.

Balance Sheet

Jabil's balance sheet indicates a cautious approach. The debt-to-equity ratio is high at 2.42, signifying significant leverage, which could pose risks if not managed well. The return on equity (ROE) is 35.6%, showing strong profitability relative to equity. However, the equity ratio is low at 7.8%, suggesting limited financial cushion. High leverage coupled with low equity raises concerns about financial stability.

Cash Flow

The cash flow statement reveals positive trends. Free cash flow has seen significant growth, with a healthy free cash flow to net income ratio of 3.03, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is 3.50, highlighting robust operational cash flow. These strong cash flow metrics bolster the company's financial flexibility despite the revenue challenges.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	27.45B	28.88B	34.70B	33.48B	29.29B	27.27B
Gross Profit	2.44B	2.68B	2.87B	2.63B	2.36B	1.93B
EBITDA	1.73B	2.62B	2.53B	2.36B	1.97B	1.23B
Net Income	484.00M	1.39B	818.00M	996.00M	696.00M	54.00M
Balance Sheet
Total Assets	17.40B	17.35B	19.42B	19.72B	16.65B	14.40B
Cash, Cash Equivalents and Short-Term Investments	1.59B	2.20B	1.80B	1.48B	1.57B	1.39B
Total Debt	3.29B	3.26B	3.25B	3.41B	3.32B	3.14B
Total Liabilities	16.04B	15.61B	16.56B	17.27B	14.52B	12.57B
Stockholders Equity	1.36B	1.74B	2.87B	2.45B	2.14B	1.81B
Cash Flow
Free Cash Flow	1.35B	932.00M	704.00M	266.00M	274.00M	274.24M
Operating Cash Flow	1.70B	1.72B	1.73B	1.65B	1.43B	1.26B
Investing Cash Flow	-710.00M	1.35B	-723.00M	-858.00M	-851.00M	-921.11M
Financing Cash Flow	-1.96B	-2.67B	-680.00M	-888.00M	-413.00M	-65.12M

Jabil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 218.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 218.1 is above the 20-day moving average (MA) of 191.27, above the 50-day MA of 169.73, and above the 200-day MA of 146.08, indicating a bullish trend. The MACD of 14.24 indicates Negative momentum. The RSI at 90.56 is Negative, neither overbought nor oversold. The STOCH value of 96.10 is Negative, 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	79 Outperform	$5.24B	22.64	11.03%	―	-1.50%	1.84%
TTMI	76 Outperform	$4.09B	54.51	5.02%	―	11.65%	―
ESE	74 Outperform	$5.02B	42.61	9.66%	0.16%	8.40%	20.03%
PLXS	74 Outperform	$3.67B	26.35	10.93%	―	-0.69%	42.26%
FLEX	69 Neutral	$18.64B	23.64	16.23%	―	-8.07%	-8.00%
JBL	67 Neutral	$23.33B	42.27	32.41%	0.15%	-6.13%	-53.35%
Sector *	56 Neutral	$3.16B	5.05	-5.68%	5.76%	8.05%	-41.83%

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.

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.

Jabil Appoints Sujatha Chandrasekaran to Board

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.