Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $18.48B
• Dividend Yield: 0.81%
• Average Volume (3M): 701.50K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.80
• Revenue Growth: -30.12%
• EPS Growth: -21.04%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Software - Services
• EPS (TTM): 1.62
• Shares Outstanding: 119,536,470
• 10 Day Avg. Volume: 685,515
• 30 Day Avg. Volume: 701,496
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 20.32
• 1Y Price Target: $158.50
• Price Target Upside: 2.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $170.00 ▲(9.96% Upside)

Jacobs Solutions' overall stock score reflects strong earnings call performance and strategic corporate actions, which are offset by valuation concerns and cash flow challenges. The company's robust backlog and market expansion efforts provide a positive outlook, but attention to revenue growth and cash flow is needed.

Positive Factors

Record Backlog Growth

The record backlog growth indicates strong demand for Jacobs' services, ensuring future revenue streams and reinforcing its market position in high-growth sectors.

Expansion in High-Growth Markets

Expansion in high-growth markets like Data Centers and PA Consulting enhances Jacobs' competitive edge and supports long-term revenue and profit growth.

Strategic Partnerships

Strategic partnerships, such as the joint venture with HDR, enable Jacobs to leverage expertise, expand service offerings, and capture significant projects, supporting sustainable growth.

Negative Factors

Declining Revenue Growth

The decline in revenue growth poses a risk to Jacobs' ability to maintain its market position and could impact long-term profitability if not addressed.

Cash Flow Challenges

Decreasing free cash flow limits Jacobs' financial flexibility and ability to invest in growth opportunities, potentially affecting its long-term strategic initiatives.

Dependency on Regulatory Environment

Jacobs' dependency on the regulatory environment, particularly in the Environmental sector, could lead to revenue volatility and impact growth if adverse regulations persist.

Jacobs Solutions Business Overview & Revenue Model

Company Description

Jacobs Solutions (J) is a global professional services firm specializing in engineering, architecture, and construction management. The company operates across various sectors, including infrastructure, water, environmental, and technology, providing innovative solutions to enhance community wellness and resilience. Jacobs is committed to delivering sustainable outcomes and driving the advancement of smart city initiatives through its core services that encompass project management, technical consulting, and integrated solutions.

How the Company Makes Money

Jacobs Solutions generates revenue through a diversified model primarily based on service contracts. Its key revenue streams include fees from engineering and consulting services, construction management, and project delivery across its various sectors. The company often engages in long-term contracts with government agencies, private corporations, and public sector clients, which provide a steady flow of income. Additionally, Jacobs benefits from strategic partnerships and collaborations with technology firms and other industry leaders, allowing it to leverage advanced technologies and expand its service offerings. The company's focus on sustainable solutions and smart infrastructure initiatives also opens up new revenue opportunities in emerging markets.

Jacobs Solutions Financial Statement Overview

Summary

Jacobs Solutions demonstrates strong profitability and operational efficiency, with stable margins and a balanced capital structure. However, declining revenue growth and cash flow challenges pose potential risks. The company should focus on reversing the revenue decline and improving cash flow generation.

Income Statement

Jacobs Solutions shows a strong gross profit margin of 30.81% in TTM, indicating efficient cost management. However, the revenue growth rate has declined by 13.49%, which is a concern. The net profit margin is stable at 6.47%, and both EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.79 in TTM suggests moderate leverage, which is manageable but should be monitored. Return on equity is 12.14%, indicating decent profitability. The equity ratio stands at 33.49%, showing a balanced capital structure.

Cash Flow

Free cash flow has decreased by 29.73% in TTM, which is a potential risk. The operating cash flow to net income ratio is low at 0.065, suggesting cash flow challenges. However, the free cash flow to net income ratio of 0.68 indicates some level of cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.71B	11.50B	10.85B	9.78B	14.09B	13.57B
Gross Profit	2.38B	2.83B	2.71B	2.58B	3.04B	2.59B
EBITDA	900.26M	1.26B	996.31M	878.74M	1.02B	685.04M
Net Income	499.13M	806.09M	665.78M	644.04M	477.03M	491.85M
Balance Sheet
Total Assets	11.41B	11.76B	14.62B	14.66B	14.63B	12.35B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.89B	770.85M	1.14B	1.01B	1.21B
Total Debt	3.00B	2.75B	3.47B	4.17B	3.82B	2.58B
Total Liabilities	6.67B	6.37B	7.38B	7.92B	8.00B	6.50B
Stockholders Equity	3.82B	4.55B	6.55B	6.06B	5.94B	5.82B
Cash Flow
Free Cash Flow	412.15M	933.56M	837.28M	347.09M	633.46M	688.58M
Operating Cash Flow	500.15M	1.05B	974.76M	474.71M	726.28M	806.85M
Investing Cash Flow	-83.03M	-127.19M	-145.66M	-538.42M	-1.38B	-429.09M
Financing Cash Flow	-380.83M	-751.64M	-1.09B	320.23M	798.98M	-208.31M

Jacobs Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 154.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Positive. The current price of 154.6 is above the 20-day moving average (MA) of 148.35, above the 50-day MA of 146.75, and above the 200-day MA of 131.98, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 68.06 is Neutral, neither overbought nor oversold. The STOCH value of 91.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for J.

Jacobs Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACM	80 Outperform	$17.07B	26.22	28.17%	0.81%	1.50%	164.17%
APG	78 Outperform	$14.53B	103.47	8.26%	―	7.59%	―
PWR	74 Outperform	$62.05B	65.32	13.47%	0.09%	18.26%	21.24%
J	73 Outperform	$18.48B	38.63	9.29%	0.81%	-30.12%	-21.04%
MTZ	73 Outperform	$17.03B	64.04	9.38%	―	7.08%	3273.27%
TTEK	73 Outperform	$8.87B	41.82	12.68%	0.73%	7.91%	-25.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Jacobs Solutions Corporate Events

Jacobs Solutions Distributes Amentum Shares to Shareholders

On May 30, 2025, Jacobs Solutions Inc. distributed 7,299,065 shares of common stock of Amentum Holdings, Inc. to its shareholders through a pro rata distribution. This strategic move, effective for shareholders as of May 16, 2025, allows Jacobs Solutions to potentially enhance its financial positioning and shareholder value by distributing shares of Amentum, a separate entity.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

Jacobs Solutions Announces Amentum Shares Distribution

On May 20, 2025, Jacobs Solutions Inc. announced a special pro rata dividend distribution of 7,299,065 shares of Amentum Holdings Inc. common stock to its shareholders, marking the company’s exit from holding any Amentum shares. This distribution, set for May 30, 2025, stems from the spin-off of Jacobs’ Critical Mission Solutions and parts of its Divergent Solutions business in 2024, which were merged with Amentum. The move is part of Jacobs’ strategy to return capital to investors and streamline its portfolio, potentially impacting its market positioning by focusing more on core operations.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.