JEC  Jacobs Engineering Group Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Military/Government/Technical

Market Cap.

6.79B

Vuru Grade

66.98/100

Current Price

$56.10
-0.70 (-1.23%)

Growth Price

$83.42
Undervalued by 48.70%

Stability Price

$34.10
Overvalued by 39.22%

Company Metrics

  • P/E 30.32
  • P/S 0.64
  • P/B 1.69
  • EPS 1.85
  • Cash ROIC 8.65%
  • Cash Ratio 0.37
  • Dividend 0.60 / 1.03 %
  • Avg. Vol. 1.01M
  • Shares 121.03M
  • Market Cap. 6.79B

Company Description

Jacobs Engineering Group Inc. provides professional, technical, and construction services. Its principal services comprise various aspects of engineering and construction, operations, and maintenance, as well as scientific and specialty consulting services. The company serves a range of companies and organizations, including industrial, commercial, and government clients across multiple markets an... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Jacobs Engineering Group Inc. (JEC) Moves Lower on Volume Spike for February 23
Equities.com - 12 hours ago
Jacobs Engineering Group Inc. (JEC) traded on unusually high volume on Feb. 23, as the stock lost 1.23% to close at $56.10.
Agree To Buy Jacobs Engineering Group At $52.50, Earn 6.8% Annualized Using ... - Nasdaq
The Tredje AP fonden Has $1240000 Stake in Jacobs Engineering Group Inc. (JEC) - DailyQuint
Jacobs Engineering Group Inc. Reports 12% Decline In Q1 Earnings
Nasdaq - Feb 8, 2017
(RTTNews.com) - Jacobs Engineering Group Inc. ( JEC ) reported earnings for first quarter that decreased from last year. The company said its earnings dropped to $83.34 million, or $0.68 per share.
Jacobs Joint Venture Receives Letter of Intent from Oil Search for Facilities ...
Business Wire (press release) - Feb 20, 2017
DALLAS--(BUSINESS WIRE)--Jacobs Engineering Group Inc. (NYSE:JEC), in a joint venture with Monadelphous Group Limited has received a letter of intent from Oil Search Limited to enter into a new proposed five year contract to provide engineering, ...
Monadelphous Jacobs joint venture receives LOI from Oil Search - LNG Industry
Jacobs Engineering Group Inc. (JEC) Ex-Dividend Date Scheduled for February 15 ...
Nasdaq - Feb 14, 2017
Jacobs Engineering Group Inc. ( JEC ) will begin trading ex-dividend on February 15, 2017. A cash dividend payment of $0.15 per share is scheduled to be paid on March 17, 2017.
Jacobs Engineering Group Inc. (JEC) Moves Higher on Volume Spike for February 16 - Equities.com
Dividend Growth of Jacobs Engineering Group Inc.(JEC) - Highland Mirror
Jacobs Engineering Group Inc. Reports Earnings for the First Quarter of Fiscal ...
Business Wire (press release) - Feb 8, 2017
Jacobs' reported U.S. GAAP net earnings of $61 million, or $0.50 per share, on revenue of $2.6 billion for the first quarter ended December 30, 2016.
Jacobs Engineering Group Inc. (JEC) Rises 2.91% for January 25
Equities.com - Jan 25, 2017
Among the biggest risers on the S&P 500 on Wednesday January 25 was Jacobs Engineering Group Inc. ($JEC), popping some 2.91% to a price of $61.87 a share with some 1.43 million shares trading hands.
Jacobs Engineering Group Inc. (JEC) Upgraded at Zacks Investment Research - The Cerbat Gem
Jacobs Engineering Group Inc (NYSE:JEC) Option Trading Long Puts and Earnings - CML News
Jacobs Engineering Group Inc. (NYSE:JEC) Files An 8-K Results of Operations ...
Market Exclusive - Feb 8, 2017
Jacobs Engineering Group Inc. is a technical professional services company. The Company provides a range of technical, professional and construction services to industrial, commercial and governmental clients.
Jacobs acquires Aquenta Consulting in Australia
Seeking Alpha - Jan 30, 2017
Jacobs Engineering Group (NYSE:JEC) has acquired Aquenta Consulting from Amec Foster Wheeler for an undisclosed term. “The acquisition of Aquenta further strengthens our Asia Pacific Buildings and Infrastructure business, expands our global capability ...
Jacobs (JEC) Boosts Inorganic Growth on Aquenta Buyout - Zacks.com
The Jacobs Engineering Group Inc. (JEC) Upgraded at Zacks Investment Research - DailyQuint
Jacobs Engineering Group Inc (NYSE:JEC) Shares Are Attractively Valued
Stock Market Daily - Feb 13, 2017
Jacobs Engineering Group Inc (NYSE:JEC) shares are attractively valued, according to S&P Capital IQ analyst Corridore. He expects an improving condition of elevated spending on infrastructure to play out in the next couple of years.
Stock Returns: EMCOR Group Inc (NYSE:EME) versus Jacobs Engineering Group Inc ... - CML News
Brokerages Set Jacobs Engineering Group Inc. (JEC) Target Price at $56.90 - The Cerbat Gem
Jacobs (JEC) Q1 Earnings: What's in Store for the Stock?
Yahoo Finance - Feb 6, 2017
Jacobs Engineering Group Inc. JEC is slated to report first-quarter fiscal 2017 (ended Dec 31, 2016) results on Feb 8, 2017, before the market opens.
Construction Stock Earnings on Feb 8: JEC, OC, CAA, RYN - Zacks.com
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for JEC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate JEC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$56.10 Current Price

$83.42 Growth Price (DCF)

Undervalued by 48.70%


Growth Rate Assumed by Market: -11.38%


Future Free Cash Flow Growth Rate: 10.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$34.10 Stability Price (EPV)

Overvalued by 39.22%


Discount Rate: 15.0%

$74.30 Book Price

Undervalued by 32.45%


Poor Cash Return on Invested Capital over the past 5 years

JEC has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

JEC has only created $8.65 of cash for every $100 invested.
Figures in USD. Fiscal year ends in September
20122013201420152016
Free Cash Flow 197.23M 321.25M 589.57M 396.17M 602.46M
divided by
Invested Capital 4.06B 4.13B 5.37B 5.34B 4.92B
Cash ROIC 4.86% 7.78% 10.98% 7.41% 12.24%

Poor Return on Equity over the past 5 years

JEC has shown an inability to deliver strong results for shareholders. This could be due to poor management, JEC operating in a highly competitive industry, or having a weak business in general.

JEC has only generated $8.30 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in September
20122013201420152016
Net Income 390.95M 440.18M 352.11M 328.88M 214.52M
divided by
Stockholders' Equity 3.72B 4.21B 4.47B 4.29B 4.27B
Return on Equity 10.50% 10.45% 7.88% 7.66% 5.03%

Excellent Business Performance over the past 10 years

JEC has been able to maintain profitability in good times and bad. This could mean JEC has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

JEC has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Free Cash Flow 296.24M 198.63M 477.94M 147.90M 137.74M 197.23M 321.25M 589.57M 396.17M 602.46M

Good Balance Sheet

JEC's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Cash 613.35M 604.42M 1.03B 938.84M 905.63M 1.03B 1.26B 732.65M 460.86M 655.72M
Current Assets 2.28B 2.75B 2.82B 2.77B 3.16B 3.61B 4.04B 3.89B 3.28B 2.86B
Total Assets 3.39B 4.28B 4.43B 4.68B 6.05B 6.84B 7.27B 8.45B 7.79B 7.36B
Current Liabilities 1.28B 1.58B 1.30B 1.24B 2.06B 1.75B 1.89B 2.35B 1.98B 1.78B
Total Liabilities 1.55B 2.03B 1.80B 1.82B 2.74B 3.12B 3.06B 3.98B 3.49B 3.09B
Stockholder' Equity 1.84B 2.25B 2.63B 2.86B 3.31B 3.72B 4.21B 4.47B 4.29B 4.27B
Current Ratio 1.78 1.74 2.17 2.23 1.53 2.07 2.14 1.66 1.66 1.61
TL-to-TA 0.46 0.48 0.41 0.39 0.45 0.46 0.42 0.47 0.45 0.42

Consistent Reinvestment of Profits over the past 10 years

JEC has consistently retained profits. This may put JEC in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, JEC can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Retained Earnings 1.27B 1.62B 2.01B 2.25B 2.56B 2.92B 3.30B 3.53B 3.50B 3.59B
Retained Earnings Growth - 27.38% 23.98% 12.05% 13.90% 13.89% 13.03% 6.85% -0.88% 2.59%

Highly Competitive Industry over the past 10 years

It's likely that JEC is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely JEC invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.10 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income 287.13M 420.74M 399.85M 245.97M 331.03M 390.95M 440.18M 352.11M 328.88M 214.52M
divided by
Revenue 8.47B 11.25B 11.47B 9.92B 10.38B 10.89B 11.82B 12.70B 12.11B 10.96B
Net Profit Margin 3.39% 3.74% 3.49% 2.48% 3.19% 3.59% 3.72% 2.77% 2.71% 1.96%

Weak Pricing Power over the past 10 years

JEC is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that JEC has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $15.19 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit 1.21B 1.73B 1.56B 1.33B 1.56B 1.73B 1.84B 2.07B 1.97B 1.77B
divided by
Revenue 8.47B 11.25B 11.47B 9.92B 10.38B 10.89B 11.82B 12.70B 12.11B 10.96B
Gross Margin 14.29% 15.41% 13.61% 13.44% 15.02% 15.85% 15.59% 16.34% 16.25% 16.12%

Medium Capital Intensity over the past 10 years

JEC has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

26.92% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure 64.62M 114.79M 55.53M 49.08M 98.75M 102.57M 127.27M 132.15M 88.40M 77.72M
divided by
Net Income 287.13M 420.74M 399.85M 245.97M 331.03M 390.95M 440.18M 352.11M 328.88M 214.52M
Capital Expenditure Ratio 22.51% 27.28% 13.89% 19.95% 29.83% 26.24% 28.91% 37.53% 26.88% 36.23%

No Dividend History over the past 10 years

JEC has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 122.18M 124.48M 124.53M 125.79M 127.24M 128.69M 130.95M 132.37M 126.11M 121.48M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 98.08 46.68 37.92 45.98 40.58 41.73 61.68 45.16 42.42 57.00
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

JEC has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Shares Outstanding 122.18M 124.48M 124.53M 125.79M 127.24M 128.69M 130.95M 132.37M 126.11M 121.48M
Stock Bought Back - -1.85% -0.04% -1.00% -1.14% -1.13% -1.72% -1.08% 4.96% 3.81%
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