Jabil (JBL) AI Stock Analysis

• Market Cap: $18.16B
• Dividend Yield: 0.19%
• Average Volume (3M): 924.36K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.53
• Revenue Growth: -14.45%
• EPS Growth: -64.32%
• Country: US
• Employees: 138,000
• Sector: Technology
• Sector Strength: 81
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.94
• Shares Outstanding: 107,345,345
• 10 Day Avg. Volume: 793,594
• 30 Day Avg. Volume: 924,359
• PEG Ratio: -0.58
• Price to Book (P/B): 12.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.24
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 2.33
• 1Y Price Target: $163.71
• Price Target Upside: -2.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: ―

Jabil's stock is moderately positioned with an overall score of 64. The company's strong cash flow and operational efficiency provide a solid foundation, yet high leverage and valuation concerns weigh on the score. Technical indicators suggest mixed market sentiment, with the potential for growth in AI-related segments offering a positive outlook. However, challenges in certain markets and inventory management require careful monitoring.

Positive Factors

Business Strategy and Partnerships

The warrant issue with Amazon shows growth potential as it incentivizes Amazon to deepen the relationship with Jabil and provide more business opportunities.

Financial Performance

JBL recently reported a beat in F2Q and noted strength in Capital Equipment, AI-related cloud, and Data Center Infrastructure.

Guidance and Growth Potential

JBL raised FY25 guidance which indicates confidence despite uncertainties related to macro, government policy and impact from tariffs.

Negative Factors

Regulated Industries

Revenues in Regulated Industries declined 8% y/y given softness in EVs and renewable energy.

Sector Performance

Regulated Industries in F2Q was guided down 8% year-over-year, reflecting softness in Renewables and EVs.

Jabil Business Overview & Revenue Model

Company Description

Jabil Inc. provides manufacturing services and solutions worldwide. The company operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also specializes in the three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various industrial design, mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida.

How the Company Makes Money

Jabil makes money primarily through its diversified revenue streams from providing electronics manufacturing services and solutions. These include design, engineering, manufacturing, and supply chain management services for customers across various industries. The company's revenue is largely driven by its Electronics Manufacturing Services (EMS) segment, which serves industries such as consumer electronics, healthcare, and automotive. Jabil also benefits significantly from its Diversified Manufacturing Services (DMS) segment, which focuses on providing more complex and innovative product solutions. Key factors contributing to Jabil's earnings include long-term partnerships with major global brands, strategic investments in advanced manufacturing technologies, and a strong focus on operational efficiency and cost management. Additionally, Jabil's global presence enables it to capitalize on regional market opportunities and scale its operations effectively to meet customer demands.

Jabil Financial Statement Overview

Summary

Jabil's financial performance shows strengths in operational efficiency and cash flow generation, with EBIT and EBITDA margins at 3.9% and 4.7% respectively. However, high leverage with a debt-to-equity ratio of 2.42 and declining revenue are concerns. The net profit margin of 1.8% points to competitive pressures, and a low equity ratio suggests limited financial cushion.

Income Statement

Jabil's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue has declined compared to the previous year, indicating a challenge in maintaining growth. The gross profit margin is approximately 8.9%, which is modest, and the net profit margin stands at 1.8%, reflecting competitive pressure in the industry. The EBIT and EBITDA margins are relatively healthy at 3.9% and 4.7%, respectively, suggesting efficient operational management. However, the overall decline in revenue and net income affects the score.

Balance Sheet

Jabil's balance sheet indicates a cautious approach. The debt-to-equity ratio is high at 2.42, signifying significant leverage, which could pose risks if not managed well. The return on equity (ROE) is 35.6%, showing strong profitability relative to equity. However, the equity ratio is low at 7.8%, suggesting limited financial cushion. High leverage coupled with low equity raises concerns about financial stability.

Cash Flow

The cash flow statement reveals positive trends. Free cash flow has seen significant growth, with a healthy free cash flow to net income ratio of 3.03, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is 3.50, highlighting robust operational cash flow. These strong cash flow metrics bolster the company's financial flexibility despite the revenue challenges.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
27.45B	28.88B	34.70B	33.48B	29.29B	27.27B
	Gross Profit
2.44B	2.68B	2.87B	2.63B	2.36B	1.93B
	EBIT
1.08B	2.01B	1.54B	1.39B	1.05B	861.64M
	EBITDA
1.73B	2.62B	2.53B	2.36B	1.97B	1.23B
	Net Income Common Stockholders
484.00M	1.39B	818.00M	996.00M	696.00M	54.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	2.20B	1.80B	1.48B	1.57B	1.39B
	Total Assets
17.40B	17.35B	19.42B	19.72B	16.65B	14.40B
	Total Debt
3.29B	3.26B	3.25B	3.41B	3.32B	3.14B
	Net Debt
1.70B	1.06B	1.44B	1.93B	1.75B	1.75B
	Total Liabilities
16.04B	15.61B	16.56B	17.27B	14.52B	12.57B
	Stockholders Equity
1.36B	1.74B	2.87B	2.45B	2.14B	1.81B
Cash Flow		Free Cash Flow
1.35B	932.00M	704.00M	266.00M	274.00M	274.24M
	Operating Cash Flow
1.70B	1.72B	1.73B	1.65B	1.43B	1.26B
	Investing Cash Flow
-710.00M	1.35B	-723.00M	-858.00M	-851.00M	-921.11M
	Financing Cash Flow
-1.96B	-2.67B	-680.00M	-888.00M	-413.00M	-65.12M

Jabil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 168.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBL, the sentiment is Positive. The current price of 168.55 is above the 20-day moving average (MA) of 161.24, above the 50-day MA of 146.72, and above the 200-day MA of 137.18, indicating a bullish trend. The MACD of 6.45 indicates Positive momentum. The RSI at 71.01 is Negative, neither overbought nor oversold. The STOCH value of 74.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBL.

Jabil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	80 Outperform	$15.66B	19.86	16.23%	―	-8.07%	-8.00%
SANM	79 Outperform	$4.49B	19.42	11.03%	―	-1.50%	1.84%
PLXS	76 Outperform	$3.60B	25.40	10.93%	―	-0.69%	42.26%
ESE	74 Outperform	$4.72B	40.01	9.66%	0.17%	8.40%	20.03%
TTMI	73 Outperform	$3.03B	40.01	5.02%	―	11.65%	―
JBL	64 Neutral	$18.16B	40.54	24.10%	0.19%	-14.45%	-64.32%
Sector *	61 Neutral	$11.48B	10.48	-6.95%	2.94%	7.54%	-9.55%

Jabil Corporate Events

Jabil Appoints Sujatha Chandrasekaran to Board

On April 16, 2025, Jabil Inc. announced the appointment of Sujatha Chandrasekaran to its Board of Directors, expanding the Board from nine to ten members. Ms. Chandrasekaran, who has extensive leadership experience in healthcare, retail, consumer, supply chain, and manufacturing sectors, is expected to bring valuable insights to Jabil’s Board. Her appointment is seen as a strategic move to enhance the company’s commitments to shareholders, customers, and communities.