Jacobs Engineering Stock Analysis, Valuation (NYSE:JEC)

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$50.87 $1.29 (2.6%) JEC stock closing price Aug 22, 2017 (Closing)
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Jacobs Engineering
Updated on : Aug 22, 2017
previous close
JEC 50.9 (0%)
S&P 500 2452.5 (0%)
Closing Price On: Aug 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Engineering R and D Services
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.6%
Operating Profit
Operating Margin:
3.7%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
284.4M
Debt/Equity Ratio:
 0.07
Compared to the industry
Cash Flow
Operating cash flow:
$179.6M
Net Income:
$89M
Dividend Yield
JEC dividend yield:
0.59%
PROS      CONS
Low Debt Burden
Cash Flow
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
JEC PS :
0.6
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.7%
Return on Equity:
5.4%
Free Cash Flow Margin:
6.1%
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Jacobs Engineering Analysis Video

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View Jacobs Engineering stock analysis video. This is our JEC analyst opinion covering the buy and sell arguments for JEC stock.

Jacobs Engineering Group Inc Stock Rating (2.7/5)

Our Jacobs Engineering stock opinion is based on fundamentals of the company. This Jacobs Engineering stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy JEC stock?

  • With its debt/equity ratio of  0.07, Jacobs Engineering has a lower debt burden when compared to the Construction average.
  • The operating cash flow looks good at 2 times the net income.
  • The price to earnings multiple of 16.8 is attractive when compared with the industry average PE ratio of 19.6.
  • The lower PS ratio 0.6 for JEC stock versus Engineering R and D Services industry average of 0.9 is a positive for the company.

Should you sell JEC stock?

  • Jacobs Engineering sales shrank by -6.6% year-over-year in 2017 Q3.
  • Sales declined by -1.6% annually over the last 5 years.
  • Jacobs Engineering had a poor average operating margin of 3.7% over the last 4 quarters.
  • Jacobs Engineering has a low return on equity of 5.4% over the last twelve months.

Comments on this video and Jacobs Engineering stock

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