Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $18.85B
• Dividend Yield: 0.78%
• Average Volume (3M): 958.31K
• Price to Earnings (P/E): 40.2
• Beta (1Y): 0.79
• 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: 1,399,963
• 30 Day Avg. Volume: 958,306
• 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: 0.97
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 20.32
• 1Y Price Target: $163.22
• Price Target Upside: 1.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $182.00 ▲(13.21% Upside)

Jacobs Solutions' overall stock score is driven by strong technical analysis and positive earnings call outcomes. The stock shows bullish momentum and positive future guidance, despite valuation concerns and cash flow challenges. The company's strategic focus on high-growth areas and record backlog support a positive outlook.

Positive Factors

Record Backlog

A record backlog indicates strong future revenue potential and business stability, showcasing Jacobs' ability to secure long-term contracts and maintain a steady income stream.

Strategic Partnerships

Strategic partnerships enhance Jacobs' service offerings and market reach, leveraging advanced technologies to drive growth in digital and smart infrastructure sectors.

Strong Financial Performance

Strong EPS growth and revenue increase reflect operational efficiency and effective cost management, indicating robust financial health and profitability.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic adjustments to reverse the trend and sustain growth.

Cash Flow Challenges

Decreasing cash flow can limit investment in growth opportunities and strain financial flexibility, impacting the company's ability to fund new projects and initiatives.

Environmental Sector Slowdown

Sector-specific slowdowns can affect overall performance and revenue diversification, highlighting the need for strategic focus on mitigating sectoral risks.

Jacobs Solutions Business Overview & Revenue Model

Company Description

Jacobs Solutions Inc. engages in the infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company offers consulting, planning, architecture, design, engineering, and infrastructure delivery services including project, program, and construction management and long-term operation of facilities. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors. The company was founded in 1947 and is headquartered in Dallas, Texas.

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: 160.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 160.77 is above the 20-day moving average (MA) of 155.55, above the 50-day MA of 150.33, and above the 200-day MA of 133.74, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 64.92 is Neutral, 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	$17.24B	26.94	28.17%	0.78%	1.50%	164.17%
J	77 Outperform	$18.85B	40.18	9.29%	0.78%	-30.12%	-21.04%
PWR	76 Outperform	$60.73B	66.28	13.47%	0.09%	18.26%	21.24%
APG	75 Outperform	$14.68B	100.60	8.26%	―	7.59%	―
MTZ	73 Outperform	$15.53B	60.81	9.38%	―	7.08%	3273.27%
TTEK	73 Outperform	$8.68B	41.85	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 Inc. Reports Strong Q3 2025 Results

Jacobs Solutions Inc. is a global provider of professional services, delivering solutions in sectors such as advanced manufacturing, energy, environmental, life sciences, transportation, and water. The company is known for its comprehensive approach to tackling complex challenges, offering services from advisory and consulting to lifecycle management.

Jacobs Solutions Inc. Reports Robust Earnings and Record Backlog Growth

Jacobs Solutions Inc. recently held its earnings call, revealing a robust financial performance marked by record backlog growth and significant achievements in high-growth markets such as Data Centers and PA Consulting. Despite some concerns about external factors like regulatory impacts on the Environmental sector and potential delays in IIJA funding, the overall sentiment was predominantly positive, with highlights significantly outweighing the lowlights.