Jabil (JBL) AI Stock Analysis

• Market Cap: $23.70B
• Dividend Yield: 0.14%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 42.9
• Beta (1Y): 1.51
• Revenue Growth: -6.13%
• EPS Growth: -53.35%
• Country: US
• Employees: 138,000
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.55
• Shares Outstanding: 107,318,840
• 10 Day Avg. Volume: 1,253,357
• 30 Day Avg. Volume: 1,736,671
• PEG Ratio: 1.89
• Price to Book (P/B): 18.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.84
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 4.08
• 1Y Price Target: $231.13
• Price Target Upside: 4.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $230.00 ▲(4.15%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 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 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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	28.88B	34.70B	33.48B	29.29B	27.27B
Gross Profit	2.68B	2.87B	2.63B	2.36B	1.93B
EBITDA	2.62B	2.39B	2.30B	1.97B	1.23B
Net Income	1.39B	818.00M	996.00M	696.00M	54.00M
Balance Sheet
Total Assets	17.35B	19.42B	19.72B	16.65B	14.40B
Cash, Cash Equivalents and Short-Term Investments	2.20B	1.80B	1.48B	1.57B	1.41B
Total Debt	3.26B	3.25B	3.41B	3.32B	3.14B
Total Liabilities	15.61B	16.56B	17.27B	14.52B	12.57B
Stockholders Equity	1.74B	2.87B	2.45B	2.14B	1.81B
Cash Flow
Free Cash Flow	932.00M	704.00M	266.00M	274.00M	274.24M
Operating Cash Flow	1.72B	1.73B	1.65B	1.43B	1.26B
Investing Cash Flow	1.35B	-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 Price: 220.84
• 50DMA: Positive
• 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 220.84 is above the 20-day moving average (MA) of 220.04, above the 50-day MA of 192.73, and above the 200-day MA of 154.28, indicating a bullish trend. The MACD of 8.50 indicates Positive momentum. The RSI at 67.39 is Neutral, neither overbought nor oversold. The STOCH value of 66.23 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	77 Outperform	$5.33B	23.06	11.03%	―	-1.50%	1.84%
ESE	77 Outperform	$4.87B	41.33	9.66%	0.21%	8.40%	20.03%
FLEX	77 Outperform	$19.83B	25.24	16.23%	―	-8.07%	-8.00%
PLXS	74 Outperform	$3.62B	25.98	10.93%	―	-0.69%	42.26%
TTMI	74 Outperform	$4.58B	63.39	5.02%	―	11.65%	―
JBL	67 Neutral	$23.70B	42.93	32.41%	0.14%	-6.13%	-53.35%
Sector *	57 Neutral	HK$14.26B	5.54	-5.75%	5.30%	9.41%	-43.20%

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.