Jacobs Solutions Inc.

J

Heavy Construction Other Than Bldg Const - Contractors

Mkt Cap

$17.12B

PE

26.45

Debt

$3.002B

Cash

$1.034B

EV

$19.09B

FCF

$800.8M

Market Cap

$17.12B

P/E Ratio

26.45

Debt

$3.002B

Cash

$1.034B

EV

$19.09B

FCF

$800.8M

Charts data: {"Earnings":[{"time":"2014-09-25","value":328108000},{"time":"2015-10-01","value":302971000},{"time":"2016-09-29","value":210463000},{"time":"2017-09-28","value":287375000},{"time":"2018-09-27","value":162643000},{"time":"2019-09-26","value":846769000},{"time":"2020-10-01","value":491745000},{"time":"2021-09-30","value":419723000},{"time":"2022-09-29","value":644039000},{"time":"2023-09-28","value":665777000}],"Sales":[{"time":"2014-09-25","value":12695157000},{"time":"2015-10-01","value":12114832000},{"time":"2016-09-29","value":10964157000},{"time":"2017-09-28","value":10022788000},{"time":"2018-09-27","value":14984646000},{"time":"2019-09-26","value":12737868000},{"time":"2020-10-01","value":13566975000},{"time":"2021-09-30","value":14092632000},{"time":"2022-09-29","value":14922825000},{"time":"2023-09-28","value":16352414000}],"Net Margins":[{"time":"2014-09-25","value":0.025845131336304072},{"time":"2015-10-01","value":0.02500827085344642},{"time":"2016-09-29","value":0.019195547820046722},{"time":"2017-09-28","value":0.028672161877513522},{"time":"2018-09-27","value":0.0108539767973164},{"time":"2019-09-26","value":0.06647650925570904},{"time":"2020-10-01","value":0.03624573642982316},{"time":"2021-09-30","value":0.02978315193357777},{"time":"2022-09-29","value":0.04315798114633121},{"time":"2023-09-28","value":0.04071429453779729}],"Assets":[{"time":"2014-09-25","value":8453659000},{"time":"2015-10-01","value":7785926000},{"time":"2016-09-29","value":7360022000},{"time":"2017-09-28","value":7380859000},{"time":"2018-09-27","value":12645795000},{"time":"2019-09-26","value":11462711000},{"time":"2020-10-01","value":12354353000},{"time":"2021-09-30","value":14632609000},{"time":"2022-09-29","value":14660419000},{"time":"2023-09-28","value":14617109000}],"Stockholders Equity":[{"time":"2014-09-25","value":4505660000},{"time":"2015-10-01","value":4356458000},{"time":"2016-09-29","value":4330182000},{"time":"2017-09-28","value":4487351000},{"time":"2018-09-27","value":5944354000},{"time":"2019-09-26","value":5768658000},{"time":"2020-10-01","value":5855667000},{"time":"2021-09-30","value":5974837000},{"time":"2022-09-29","value":6104392000},{"time":"2023-09-28","value":6600082000}],"ROE":[{"time":"2014-09-25","value":0.07282129588118055},{"time":"2015-10-01","value":0.06954525901546624},{"time":"2016-09-29","value":0.048603730743880975},{"time":"2017-09-28","value":0.06404112359385303},{"time":"2018-09-27","value":0.027360920968031176},{"time":"2019-09-26","value":0.14678786643271277},{"time":"2020-10-01","value":0.08397762372757878},{"time":"2021-09-30","value":0.07024844359770818},{"time":"2022-09-29","value":0.1055042009097712},{"time":"2023-09-28","value":0.10087404974665466}],"ROA":[{"time":"2014-09-25","value":0.06548679098600972},{"time":"2015-10-01","value":0.057750356219671235},{"time":"2016-09-29","value":0.0460050255284563},{"time":"2017-09-28","value":0.054905804324401807},{"time":"2018-09-27","value":0.05124003670785427},{"time":"2019-09-26","value":0.037932213417925305},{"time":"2020-10-01","value":0.043383332174497524},{"time":"2021-09-30","value":0.04753779725816497},{"time":"2022-09-29","value":0.06260735112686752},{"time":"2023-09-28","value":0.07356016843002265}]}

Jacobs Solutions Inc. provides consulting, technical, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, South America, Mexico, the Middle East, and Africa. It operates through three segments: Critical Mission Solutions, People & Places Solutions, and PA Consulting. The company offers cybersecurity, data analytics, systems and software application integration and consulting, enterprise and mission IT, engineering and design, nuclear, enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.

Sector

10-K
9/29/23
10-Q
6/30/23
10-Q
3/31/23
10-Q
12/30/22
10-K
9/30/22
10-Q
7/1/22
10-Q
4/1/22
10-Q
12/31/21
10-K
10/1/21
10-Q
7/2/21
10-Q
4/2/21
10-Q
1/1/21
10-K
10/2/20
10-Q
6/26/20
10-Q
3/27/20
10-Q
12/27/19
10-K
9/27/19
10-Q
6/28/19
10-Q
3/29/19
10-Q
12/28/18
10-K
9/28/18
10-Q
6/29/18
10-Q
3/30/18
10-Q
12/29/17

DCF

Discounted Cash Flow Valuation of Jacobs Solutions Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$800.8M	$842.1M	$885.3M	$930.7M	$978.2M	$1.028B	$1.08B	$1.135B	$1.192B	$1.252B	$1.314B	$13.14B
DCF		$732.2M	$669.4M	$611.9M	$559.3M	$511.1M	$467M	$426.6M	$389.6M	$355.8M	$324.8M	$3.248B
Value	$8.296B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 15%

Earnings Stability 53%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	10-2015	09-2016	09-2017	09-2018	09-2019	10-2020	09-2021	09-2022	09-2023	TTM
Net Margin	2.5%	1.9%	2.9%	1.1%	6.6%	3.6%	3%	4.3%	4.1%	3.8%
ROA	5.8%	4.6%	5.5%	5.1%	3.8%	4.3%	4.8%	6.3%	7.4%	6.9%
ROE	7%	4.9%	6.4%	2.7%	15%	8.4%	7%	11%	10%	9.7%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.79%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.21%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.27%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.54%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.91%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.66%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	10-2015	09-2016	09-2017	09-2018	09-2019	10-2020	09-2021	09-2022	09-2023	TTM
Debt FCF	1.48	0.63	0.51	5.56	-2.39	2.44	4.57	9.82	3.42	3.75
Debt Equity	0.13	0.09	0.05	0.36	0.21	0.29	0.48	0.56	0.43	0.45
MIN
Graham Stability	-	-	100%	61%	100%	100%	84%	100%	100%	61%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.75.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.80.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.61.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	09-2016	09-2018	10-2020	09-2022	Trend
Revenue	5.9%	1.8%	6.4%	9.6%	1.4%
Net Income	18%	33%	11%	3.4%	3.3%
Stockholders Equity	6.2%	2.1%	4.1%	8.1%	0.33%
FCF	4.6%	17%	6.7%	140%	7.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +1.76%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.41%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +32.56%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +3.25%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +2.11%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.33%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +16.73%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +7.76%.