Heavy Construction Other Than Bldg Const - Contractors
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.
Discounted Cash Flow Valuation of Jacobs Solutions Inc.
Growth
%
%
Discount
%
%
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 |
In the chart Earnings are multiplied by this value.
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.
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% |
The average Net Margin over the past 5 years is +3.79%.
The trend of Net Margin over the past 5 years is +0.21%.
The average ROA over the past 5 years is +5.27%.
The trend of ROA over the past 5 years is +0.54%.
The average ROE over the past 5 years is +8.91%.
The trend of ROE over the past 5 years is +0.66%.
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.
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% |
The Debt/FCF trailing twelve month is 3.75.
The trend of Debt/FCF over the past 5 years is 0.80.
Graham’s Stability measure stands at 0.61.
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.
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% |
The Revenue CAGR over the past 5 years is +1.76%.
The trend of Revenue growth rate over the past 5 years is +1.41%.
The Earnings CAGR over the past 5 years is +32.56%.
The trend of Earnings growth rate over the past 5 years is +3.25%.
The Equity CAGR over the past 5 years is +2.11%.
The trend of Equity growth rate over the past 5 years is +0.33%.
The FCF CAGR over the past 5 years is +16.73%.
The trend of FCF growth rate over the past 5 years is +7.76%.