Jabil Inc

JBL

Printed Circuit Boards

Mkt Cap

$15.13B

PE

10.03

Debt

$2.878B

Cash

$2.566B

EV

$15.44B

FCF

$873M

Market Cap

$15.13B

P/E Ratio

10.03

Debt

$2.878B

Cash

$2.566B

EV

$15.44B

FCF

$873M

Charts data: {"Earnings":[{"time":"2014-08-30","value":241313000},{"time":"2015-08-30","value":284019000},{"time":"2016-08-30","value":254095000},{"time":"2017-08-30","value":127167000},{"time":"2018-08-30","value":86330000},{"time":"2019-08-30","value":287111000},{"time":"2020-08-30","value":53912000},{"time":"2021-08-30","value":696000000},{"time":"2022-08-30","value":996000000},{"time":"2023-08-30","value":818000000}],"Sales":[{"time":"2014-08-30","value":15762146000},{"time":"2015-08-30","value":17899196000},{"time":"2016-08-30","value":18353086000},{"time":"2017-08-30","value":19063121000},{"time":"2018-08-30","value":22095416000},{"time":"2019-08-30","value":25282320000},{"time":"2020-08-30","value":27266438000},{"time":"2021-08-30","value":29285000000},{"time":"2022-08-30","value":33478000000},{"time":"2023-08-30","value":34702000000}],"Net Margins":[{"time":"2014-08-30","value":0.015309653901188328},{"time":"2015-08-30","value":0.01586769595684633},{"time":"2016-08-30","value":0.013844810622039258},{"time":"2017-08-30","value":0.006670838421473588},{"time":"2018-08-30","value":0.003907145264882091},{"time":"2019-08-30","value":0.011356196741438286},{"time":"2020-08-30","value":0.001977229295590425},{"time":"2021-08-30","value":0.02376643332764214},{"time":"2022-08-30","value":0.029750881175697474},{"time":"2023-08-30","value":0.02357212840758458}],"Assets":[{"time":"2014-08-30","value":8479746000},{"time":"2015-08-30","value":9603207000},{"time":"2016-08-30","value":10322677000},{"time":"2017-08-30","value":11095995000},{"time":"2018-08-30","value":12045641000},{"time":"2019-08-30","value":12970475000},{"time":"2020-08-30","value":14397416000},{"time":"2021-08-30","value":16654000000},{"time":"2022-08-30","value":19717000000},{"time":"2023-08-30","value":19424000000}],"Stockholders Equity":[{"time":"2014-08-30","value":2260368000},{"time":"2015-08-30","value":2335011000},{"time":"2016-08-30","value":2457497000},{"time":"2017-08-30","value":2368344000},{"time":"2018-08-30","value":1963380000},{"time":"2019-08-30","value":1900758000},{"time":"2020-08-30","value":1825399000},{"time":"2021-08-30","value":2137000000},{"time":"2022-08-30","value":2452000000},{"time":"2023-08-30","value":2867000000}],"ROE":[{"time":"2014-08-30","value":0.1067582800676704},{"time":"2015-08-30","value":0.121634973025823},{"time":"2016-08-30","value":0.10339585358598606},{"time":"2017-08-30","value":0.05369448019375564},{"time":"2018-08-30","value":0.043970092391691876},{"time":"2019-08-30","value":0.15105079131588556},{"time":"2020-08-30","value":0.029534364815582786},{"time":"2021-08-30","value":0.3256902199344876},{"time":"2022-08-30","value":0.4061990212071778},{"time":"2023-08-30","value":0.2853156609696547}],"ROA":[{"time":"2014-08-30","value":0.024066051035019208},{"time":"2015-08-30","value":0.05783599166403473},{"time":"2016-08-30","value":0.0506489740984824},{"time":"2017-08-30","value":0.0369709971931314},{"time":"2018-08-30","value":0.04500823160842997},{"time":"2019-08-30","value":0.05407327025417342},{"time":"2020-08-30","value":0.03471775768651819},{"time":"2021-08-30","value":0.06334814458988831},{"time":"2022-08-30","value":0.07064969315818836},{"time":"2023-08-30","value":0.07912891268533773}]}

Jabil Inc. provides manufacturing services and solutions worldwide. It operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. The company offers electronics design, production, and product management services; electronic circuit design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also provides three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as various industrial design, mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida.

Sector

10-K
8/31/23
10-Q
5/31/23
10-Q
2/28/23
10-Q
11/30/22
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8/31/22
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5/31/22
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2/28/22
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11/30/21
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11/30/20
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11/30/19
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5/31/19
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2/28/19
10-Q
11/30/18
10-K
8/31/18
10-Q
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Jabil 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	$873M	$978M	$1.088B	$1.202B	$1.318B	$1.435B	$1.552B	$1.666B	$1.775B	$1.878B	$1.972B	$19.72B
DCF		$850.4M	$822.6M	$790.1M	$753.6M	$713.6M	$670.9M	$626.3M	$580.3M	$533.8M	$487.4M	$4.874B
Value	$11.7B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 25%

Earnings Stability 38%

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	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Net Margin	1.6%	1.4%	0.67%	0.39%	1.1%	0.2%	2.4%	3%	2.4%	4.7%
ROA	5.8%	5.1%	3.7%	4.5%	5.4%	3.5%	6.3%	7.1%	7.9%	13%
ROE	12%	10%	5.4%	4.4%	15%	3%	33%	41%	29%	57%

What is the average Net Margin?

The average Net Margin over the past 5 years is +1.57%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.5%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.78%.

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

The trend of ROA over the past 5 years is +0.71%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +20.7%.

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

The trend of ROE over the past 5 years is +6.48%.

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	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Debt FCF	7.20	-269.63	4.67	-24.75	15.31	10.13	10.50	11.94	4.08	3.30
Debt Equity	0.85	0.88	1.07	1.30	1.51	1.52	1.35	1.29	1.00	1.08
MIN
Graham Stability	-	-	49%	39%	100%	32%	100%	100%	100%	32%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.30.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 3.84.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.32.

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	08-2016	08-2018	08-2020	08-2022	Trend
Revenue	9.5%	9.4%	8.4%	3.7%	-0.088%
Net Income	18%	57%	150%	-18%	41%
Stockholders Equity	2.2%	7.9%	16%	17%	2.3%
FCF	-	-	37%	160%	35%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.45%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.09%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +56.79%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +40.86%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.87%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.29%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +35.26%.