JEC  Jacobs Engineering Group Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Military/Government/Technical

Market Cap.

7.08B

Vuru Grade

66.98/100

Current Price

$58.82
+0.52 (+0.89%)

Growth Price

$83.88
Undervalued by 42.61%

Stability Price

$34.29
Overvalued by 41.71%

Company Metrics

  • P/E 31.29
  • P/S 0.7
  • P/B 1.66
  • EPS 1.88
  • Cash ROIC 8.65%
  • Cash Ratio 0.37
  • Dividend 0.6 / 1.03%
  • Avg. Vol. 769,005.00
  • Shares 120.37M
  • Market Cap. 7.08B

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) Ex-Dividend Date Scheduled for October 12 ...
Nasdaq - Oct 11, 2017
Jacobs Engineering Group Inc. ( JEC ) will begin trading ex-dividend on October 12, 2017. A cash dividend payment of $0.15 per share is scheduled to be paid on November 10, 2017.
Robert W. Baird Reaffirms Hold Rating for Jacobs Engineering Group Inc. (JEC) - The Ledger Gazette
Jacobs Engineering Group Inc (NYSE:JEC): Institutional Investors Are Worried - Weekly Register
Ex-Dividend Reminder: Science Applications International, Jacobs Engineering ...
Nasdaq - Oct 10, 2017
Looking at the universe of stocks we cover at Dividend Channel , on 10/12/17, Science Applications International Corp (Symbol: SAIC), Jacobs Engineering Group, Inc. (Symbol: JEC), and Raven Industries, Inc. (Symbol: RAVN) will all trade ex-dividend for ...
Minsur Selects Jacobs to Lead Pre-Feasibility and Conceptual Studies for Tin ...
Business Wire (press release) - Oct 5, 2017
DALLAS--(BUSINESS WIRE)--Jacobs Engineering Group Inc. (NYSE:JEC) has been selected by Minsur S.A., one of the world's largest tin producers, to perform the pre-feasibility and conceptual studies for the company's proposed tin mine development ...
Jacobs receives contract from Ferring Pharmaceuticals
Seeking Alpha - Sep 27, 2017
Jacobs Engineering Group (NYSE:JEC) received an engineering, procurement, construction management and validation (EPCmV) services contract for the new Ferring Pharmaceuticals research and development headquarters, in Copenhagen, Denmark.
Wells Fargo & Company MN Has $129.34 Million Holdings in Jacobs Engineering ... - StockNewsTimes
Jacobs Declares Quarterly Dividend - Business Wire (press release)
Jacobs Engineering Group Inc.: Sasol Group Technology Selects Jacobs Matasis ...
The Wall Street Transcript - Oct 12, 2017
DALLAS--(BUSINESS WIRE)-- Jacobs Engineering Group Inc. (NYSE:JEC), through its South African joint venture Jacobs Matasis (Proprietary) Limited, was awarded a two-year agreement with Sasol Group Technology for project management services and ...
KBR, Inc. (KBR) vs. Jacobs Engineering Group Inc. (JEC)?: Which Should You Choose? - Economic News
Gotham Asset Management LLC Sells 30570 Shares of Jacobs Engineering Group Inc ... - The Ledger Gazette
Jacobs Engineering Group Selects Coreworx Interface Management for ...
PR Newswire (press release) - Sep 26, 2017
HOUSTON, Sept. 26, 2017 /PRNewswire/ -- Coreworx announced today that Jacobs Engineering Group Inc. has selected Coreworx Interface Management for a petrochemical production facility project located in the US and scheduled for operation in 2019.
Jacobs Engineering (JEC) Secures Contract from Invex Infraestructura for ...
StreetInsider.com - Oct 17, 2017
Jacobs Engineering Group Inc. (NYSE: JEC) has been awarded a contract by Invex Infraestructura 4, S.A.P.I. de C.V. (INI4) for a greenfield fuel storage and distribution terminal in Tula Hidalgo, Mexico.
Jacobs Engineering Group Inc (JEC): Indicators in Focus
Morgan Research - 7 hours ago
Checking up on some indicators, we can see that Jacobs Engineering Group Inc (JEC)'s last month opinion signal is 80% Buy.
Jacobs wins framework agreement from Dounreay Site Restoration Limited
Seeking Alpha - Oct 10, 2017
Jacobs Engineering Group (NYSE:JEC) has been awarded a four-year framework agreement from Dounreay Site Restoration Limited (DSRL) to provide mechanical, electrical, control and instrumentation services for one of the most complex nuclear ...
Is It Too Late To Buy Jacobs Engineering Group Inc (JEC)?
Simply Wall St - Oct 8, 2017
Jacobs Engineering Group Inc (NYSE:JEC), a construction and engineering company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months.
Jacobs Engineering Group Inc. (JEC) Stake Increased by Suntrust Banks Inc. - StockNewsTimes
Royal Bank of Canada Sells 97016 Shares of Jacobs Engineering Group Inc. (JEC) - The Ledger Gazette
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.

$58.82 Current Price

$83.88 Growth Price (DCF)

Undervalued by 42.61%


Growth Rate Assumed by Market: -8.42%


Future Free Cash Flow Growth Rate: 10.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$34.29 Stability Price (EPV)

Overvalued by 41.71%


Discount Rate: 15.0%

$73.89 Book Price

Undervalued by 25.61%


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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