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Jabil (JBL)
NYSE:JBL
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Jabil
(NYSE:JBL)80Outperform
Positive Factors
Financial Performance
Margins for Jabil have re-rated meaningfully higher with a path to further improvement, indicating a stronger financial position.
Growth Opportunities
Multiple avenues for growth including cloud, semicap, healthcare, and in the longer-term EVs indicate potential for strong expansion.
Negative Factors
Market Challenges
Regulated Industries in F2Q was guided down 8% year-over-year, reflecting softness in Renewables and EVs.
Jabil (JBL) vs. S&P 500 (SPY)
Market Cap
$15.14B
Dividend Yield0.23%
Average Volume (3M)1.26M
Price to Earnings (P/E)13.3
Beta (1Y)1.45
Revenue Growth-17.83%
EPS Growth76.43%
CountryUS
Employees138,000
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)10.42
Shares Outstanding109,534,980
10 Day Avg. Volume1,430,427
30 Day Avg. Volume1,261,538
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)N/A
Price to Sales (P/S)0.55
Price to Cash Flow (P/CF)12.10
P/FCF Ratio12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$173.00Price Target Upside23.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Jabil Business Overview & Revenue Model
Company DescriptionJabil Inc. is a global manufacturing services company headquartered in St. Petersburg, Florida. It operates in various sectors including healthcare, automotive, consumer electronics, and industrial. The company provides comprehensive design, manufacturing, and supply chain solutions for a wide array of industries. Jabil leverages its extensive engineering capabilities and global reach to deliver innovative and scalable solutions to its clients.
How the Company Makes MoneyJabil Inc. generates revenue primarily through its diversified manufacturing services and solutions. The company's revenue model revolves around offering end-to-end manufacturing and supply chain management services, which include design, engineering, production, and logistics. Key revenue streams for Jabil include its Electronics Manufacturing Services (EMS) segment, which caters to industries like consumer electronics and telecommunications, and its Diversified Manufacturing Services (DMS) segment, focusing on healthcare, automotive, and industrial markets. Jabil benefits from strategic partnerships with leading technology firms and original equipment manufacturers, enabling it to secure long-term contracts and sustain steady revenue growth. Additionally, Jabil's global presence and ability to innovate in manufacturing processes contribute significantly to its earnings.
Jabil Financial Statement Overview
Summary
Jabil presents a solid financial profile with strong profitability and cash flow generation, though leverage poses risk. High return on equity is a notable strength, but revenue decline and leverage require monitoring.Income Statement
Jabil's income statement reflects strong profitability with a TTM (Trailing-Twelve-Months) gross profit margin of approximately 9.1% and a net profit margin of 4.71%. The company demonstrated resilience in revenue growth over the years, although recent annual revenue has slightly decreased. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the decline in annual revenue from 2023 to 2024 requires attention.85
Very Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, with total debt significantly higher than stockholders' equity, indicating leverage risks. The return on equity is strong at 81.23% for TTM, suggesting good shareholder returns. However, a low equity ratio of 8.96% indicates potential vulnerability to financial instability.78
Positive
Cash Flow
Jabil's cash flow statement highlights robust operating cash flow, with a strong free cash flow to net income ratio of 0.84 for TTM. The cash flow from operations is consistent, supporting liquidity and operational needs. Despite capital expenditures, the company maintains positive free cash flow growth, although fluctuations in investing and financing cash flows merit attention.82
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 27.49B | 28.88B | 34.70B | 33.48B | 29.29B | 27.27B | Gross Profit |
| 2.50B | 2.68B | 2.87B | 2.63B | 2.36B | 1.93B | EBIT |
| 1.15B | 2.01B | 1.54B | 1.39B | 1.05B | 861.64M | EBITDA |
| 1.77B | 2.62B | 2.53B | 2.36B | 1.97B | 1.23B | Net Income Common Stockholders |
| 1.29B | 1.39B | 818.00M | 996.00M | 696.00M | 54.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.06B | 2.20B | 1.80B | 1.48B | 1.57B | 1.39B | Total Assets |
| 17.77B | 17.35B | 19.42B | 19.72B | 16.65B | 14.40B | Total Debt |
| 3.28B | 3.26B | 3.25B | 3.41B | 3.32B | 3.14B | Net Debt |
| 1.22B | 1.06B | 1.44B | 1.93B | 1.75B | 1.75B | Total Liabilities |
| 16.18B | 15.61B | 16.56B | 17.27B | 14.52B | 12.57B | Stockholders Equity |
| 1.59B | 1.74B | 2.87B | 2.45B | 2.14B | 1.81B |
| Cash Flow | Free Cash Flow | ||||
| 1.08B | 932.00M | 704.00M | 266.00M | 274.00M | 274.24M | Operating Cash Flow |
| 1.58B | 1.72B | 1.73B | 1.65B | 1.43B | 1.26B | Investing Cash Flow |
| 1.29B | 1.35B | -723.00M | -858.00M | -851.00M | -921.11M | Financing Cash Flow |
| -2.36B | -2.67B | -680.00M | -888.00M | -413.00M | -65.12M |
Jabil Technical Analysis
Negative
139.95
Price Trends
157.53
Negative
144.19
Negative
127.99
Positive
Market Momentum
-5.08
Positive
28.36
Positive
10.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBL, the sentiment is Negative. The current price of 139.95 is below the 20-day moving average (MA) of 158.37, below the 50-day MA of 157.53, and above the 200-day MA of 127.99, indicating a neutral trend. The MACD of -5.08 indicates Positive momentum. The RSI at 28.36 is Positive, neither overbought nor oversold. The STOCH value of 10.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JBL.
Jabil Risk Analysis
Jabil disclosed 33 risk factors in its most recent earnings report. Jabil reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jabil Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $15.14B | 13.26 | 62.69% | 0.23% | -17.83% | 76.43% | |
79 Outperform | $15.14B | 25.19 | 20.73% | ― | 23.03% | 87.92% | |
74 Outperform | $4.14B | 18.65 | 10.55% | ― | -8.92% | -12.11% | |
73 Outperform | $3.37B | 28.93 | 9.27% | ― | -3.53% | -3.90% | |
71 Outperform | $13.20B | 14.05 | 18.45% | ― | -12.94% | 47.70% | |
69 Neutral | $2.32B | 42.40 | 3.66% | ― | 9.41% | ― | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
JBL
Jabil
139.95
-7.53
-5.11%
FLEX
Flex
34.70
5.92
20.57%
PLXS
Plexus
124.76
31.26
33.43%
SANM
Sanmina-Sci
76.28
11.58
17.90%
TTMI
TTM Technologies
22.96
8.25
56.08%
TSE:CLS
Celestica
130.38
71.52
121.51%
Jabil Earnings Call Summary
Earnings Call Date: Dec 18, 2024 | % Change Since: 4.52% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced performance with solid revenue and cash flow growth, particularly in the AI and Intelligent Infrastructure segments. However, challenges remain in renewable energy, EV markets, and the connected living segment post mobility divestiture.Highlights
Strong Revenue and Core Operating Margins
Q1 revenue came in at $7 billion, up 1% year-on-year excluding the Mobility divestiture. Core operating margins were at 5% despite hurricane impacts.
Intelligent Infrastructure Growth
The Intelligent Infrastructure segment saw revenue of $2.5 billion, up 5% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure.
Connected Living and Digital Commerce Growth
Excluding the Mobility divestiture, this segment showed a revenue growth of approximately 12% year-on-year.
Robust Free Cash Flow
Adjusted free cash flow for Q1 was $226 million, with an expectation of $1.2 billion for the year.
AI Revenue Growth
AI-related revenues are projected to increase from $5-6 billion to $6.5 billion, indicating a strong growth trajectory.
Lowlights
Regulated Industries Segment Decline
Revenue was down 7% year-on-year due to continued weakness in renewable energy and EV markets.
Renewable Energy and EV Market Challenges
Continued softness in renewable energy and EV markets is expected, impacting revenue projections for the Regulated Industries segment.
Connected Living Revenue Decrease
The segment's revenues are expected to be down 20% year-over-year, primarily due to the mobility divestiture.
Company Guidance
During the Jabil Q1 2025 earnings call, the company provided guidance for the upcoming quarter and fiscal year. Revenue for Q2 FY '25 is anticipated to be between $6.1 billion and $6.7 billion, with core operating income projected between $286 million and $346 million. GAAP operating income is expected to range from $183 million to $263 million. Core diluted EPS is estimated to range from $1.60 to $2, while GAAP diluted EPS is anticipated to be between $0.69 and $1.27. For the full fiscal year 2025, Jabil forecasts approximately $27.3 billion in revenue with core operating margins of 5.4%, and core EPS is expected to be $8.70. The company continues to manage its inventory efficiently with net inventory days within the target range of 55 to 60 days, and it anticipates robust free cash flow for the year at $1.2 billion. The company remains committed to completing the current $1 billion share repurchase authorization by the end of FY '25.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.