Jacobs’ fiscal second-quarter adjusted EPS of $1.91 beat the FactSet consensus estimate by $0.06, but revenue of $4,269 million fell 1.3% short of expectations. While nothing in the earnings release materially changes our long-term outlook for Jacobs, we’ve modestly raised our fair value estimate to $159 from $157, mostly due to time value of money.
Management has shifted Jacobs' portfolio toward sectors with favorable long-term prospects, including transportation and water.
Jacobs’ M&A track record is mixed, as its serial acquisitions (over 80 deals since 1994) have been a drag on the firm’s returns on invested capital.
|
Metric
|
J
|
ATRL
|
KBR
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.02 | 26.04 | 23.18 |
Price/Book Value | 2.61 | 2.83 | 6.32 |
Price/Sales | 1.03 | 1.05 | 1.26 |
Price/Cash Flow | 19.13 | 30.72 | 24.35 |
|
Metric
|
J
|
ATRL
|
KBR
|
|---|---|---|---|
Quick Ratio | 1.12 | 0.86 | 0.89 |
Current Ratio | 1.17 | 0.92 | 1.10 |
Interest Coverage | 5.81 | 2.88 | −0.28 |
|
Metric
|
J
|
ATRL
|
KBR
|
|---|---|---|---|
Return on Assets (Normalized) | 6.52% | 3.64% | −2.37% |
Return on Equity (Normalized) | 14.80% | 11.96% | −9.10% |
Return on Invested Capital (Normalized) | 9.80% | 8.89% | −1.23% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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