Company Overview
Jacobs Solutions Inc. operates within the Industrials sector, specifically focusing on the Engineering & Construction industry, where it delivers a comprehensive suite of services including consulting, planning, architecture, design, engineering, and infrastructure solutions. The company's operational footprint is extensive, serving clients across the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa to support both infrastructure and advanced facilities projects. As of the latest data, the company represents a significant entity in the market with a market capitalization of $14.87B and an annual revenue of $12.39B, supported by a workforce of 43,000 employees. These valuation and revenue figures indicate that Jacobs Solutions Inc. maintains a substantial position in the global engineering landscape, reflecting a robust scale that allows for diversified operations across multiple geographic regions and project types.
Financial Health
The company reported a trailing twelve-month revenue of $12.39B and generated a net income of $459.42M, with an EBITDA reaching $1.28B, highlighting a specific gap between top-line revenue and bottom-line profit that reveals a cost structure where operating expenses consume a significant portion of earnings. This results in a free cash flow of $1.09B, which demonstrates the company's strong financial flexibility to fund capital expenditures, reduce debt, or return capital to stakeholders without relying on external financing. Profitability is further detailed by three distinct margin metrics: a gross margin of 24.4%, an operating margin of 7.4%, and a profit margin of 3.5%, indicating that while the company maintains healthy pricing power on services, the low profit margin suggests intense competition or high overhead costs inherent to the engineering sector. Regarding liquidity and leverage, the company holds $1.55B in cash against $2.96B in total debt, resulting in a debt-to-equity ratio of 65.17%, which characterizes a balance sheet that is moderately leveraged but supported by significant cash reserves. Short-term liquidity is assessed through a current ratio of 1.33, indicating that the company possesses sufficient current assets to cover its current liabilities with a comfortable buffer. Finally, return metrics show a Return on Equity of 9.7% and a Return on Assets of 5.7%, figures that reveal management's effectiveness in generating returns relative to shareholder equity and total assets utilized.
Valuation Assessment
Valuation multiples for the stock include a trailing P/E ratio of 33.22 and a forward P/E of 15.68, where the substantial difference between these two figures implies that the market expects a significant increase in earnings growth in the coming year to justify the high current multiple. The price-to-book ratio stands at 4.30, suggesting that the market values the company at a premium of over four times its book value, likely reflecting the intangible value of its intellectual property and long-term contracts. Alternative valuation metrics such as a price-to-sales ratio of 1.20 and an EV/EBITDA of 13.52 provide additional context, indicating that the company trades at a moderate multiple relative to sales while its enterprise value relative to earnings remains elevated compared to historical averages. Price action over the past year is bounded by a 52-week high of $168.44 and a 52-week low of $105.18, placing the current trading price within a range that reflects volatility but also potential upside relative to the yearly low. The stock exhibits a beta of 0.73, which indicates that the stock's price volatility is significantly lower than the broader market, suggesting it may act as a defensive holding during periods of market turbulence.
Growth & Income
Revenue growth for the trailing twelve months stands at 12.3%, while earnings growth is listed as N/A, a situation that implies the company is currently prioritizing revenue expansion over immediate earnings acceleration or that specific earnings data points are not publicly disclosed for this period. As a dividend payer, the company offers a yield of 1.1% with a payout ratio of 33.8%, a level that is generally considered sustainable as it represents less than one-third of the reported earnings available to shareholders. This conservative payout approach suggests that the company retains the majority of its profits to reinvest into new projects and infrastructure developments rather than distributing them entirely as dividends. Overall, the company presents a growth profile driven by double-digit revenue expansion alongside a modest but consistent income stream through dividends, balancing capital allocation between organic growth and shareholder returns.