Breaking Down Jacobs Solutions Inc. (J) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on Jacobs Solutions Inc. (J) and looking to understand the nuts and bolts of its financial performance? Have you been asking yourself if the company's strategic shift towards a higher-value portfolio is actually paying off? What does the balance sheet of Jacobs look like after the separation of Critical Mission Solutions and Cyber & Intelligence businesses? What are the key financial highlights and what do they signal about the company's future? Let’s delve into the details, from revenue and net income to debt and cash flow, providing you with the insights needed to assess Jacobs' financial health and make informed decisions.

Jacobs Solutions Inc. (J) Revenue Analysis

Jacobs Solutions Inc. (J) generates revenue from diverse sources, primarily spanning professional services, construction, and related technical services. A detailed look into these streams provides insights into the company's financial stability and growth trajectory.

Analyzing Jacobs Solutions Inc.'s revenue streams involves understanding where the company's income originates. The primary sources include:

• Professional Services: This incorporates a broad spectrum of technical and consulting services offered to various industries.
• Construction Services: Encompasses building and infrastructure project management and execution.
• Technical Services: Includes specialized engineering and design solutions.

Year-over-year revenue growth is a critical indicator of Jacobs Solutions Inc.'s performance. Examining historical trends reveals the company's ability to expand its market presence and capitalize on emerging opportunities. For example, comparing the revenue from fiscal year 2023 to fiscal year 2024 offers a clear view of recent growth. According to the SEC filing, the total revenue for fiscal year 2023 was $16.364 billion. Recent data for fiscal year 2024 indicates a revenue of $16.77 billion.

The contribution of different business segments to Jacobs Solutions Inc.'s overall revenue highlights the strengths and dependencies within the company's operational structure. Detailed segment reporting allows investors to identify which areas are driving growth and which may require strategic adjustments. Jacobs' fiscal year 2024 revenue mix is as follows:

• Critical Missions Solutions: $7.1 billion
• People & Places Solutions: $9.3 billion
• PA Consulting: $1.4 billion

Significant changes in revenue streams often signal strategic shifts, market disruptions, or successful expansions into new sectors. Monitoring these changes helps in understanding the evolving dynamics of Jacobs Solutions Inc.'s business model. Jacobs Solutions Inc. has seen significant growth in their Critical Missions Solutions segment with revenue of $7.1 billion for fiscal year 2024.

Here's a summary table of Jacobs Solutions Inc.'s revenue streams:

To gain further insights into the investor landscape of Jacobs Solutions Inc., consider exploring: Exploring Jacobs Solutions Inc. (J) Investor Profile: Who’s Buying and Why?

Jacobs Solutions Inc. (J) Profitability Metrics

Understanding the financial health of Breaking Down Jacobs Solutions Inc. (J) Financial Health: Key Insights for Investors requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profits from its revenue and assets.

Gross Profit Margin

The gross profit margin measures a company's gross profit as a percentage of its revenue. For the fiscal year 2024, Jacobs Solutions Inc. (J) reported a gross profit margin of 24.7%. This indicates the company's efficiency in managing its cost of goods sold relative to its revenue. Looking at the past performance, Jacobs Solutions's gross profit margin has fluctuated:

• 2020: 19.1%
• 2021: 22.2%
• 2022: 26.6%
• 2023: 25.2%
• 2024: 24.7%

In the quarter that ended in December 2024, the company's gross margin was 24.59%. When compared to its competitors, Jacobs Engineering Group Inc. has a gross profit margin of 24.9%.

Here's a comparison of Jacobs Engineering's gross profit margin against competitors:

Operating Profit Margin

The operating profit margin, also known as operating income margin or return on sales (ROS), is the ratio of operating income divided by net sales or revenue. For the fiscal year that ended in September 2024, Jacobs Solutions's operating margin was 6.02%. For the quarter that ended in December 2024, the operating margin was 7.11%.

Operating Margin history for Jacobs Engineering from 2001 to 2024:

Net Profit Margin

The net profit margin is the ratio of net income to net sales, indicating the percentage of revenue that remains as profit after all expenses are deducted. Jacobs Solutions's net income for 2024 was $806 million. The company's net income margin for the twelve months ending December 31, 2024 was 0.616B, a 12.17% decrease year-over-year.

Key highlights for fiscal year 2024 include:

• Revenue: $11.5 billion, a 6.0% increase year-over-year.
• Net Income: $613 million, a 61.6% increase year-over-year.
• EPS: $4.79, a 57.0% increase year-over-year.

For the third quarter of 2024, the company's U.S. GAAP effective tax rate from continuing operations was 30.0%. The adjusted earnings per share from continuing operations reflected an adjusted effective tax rate of 24.5%.

Jacobs Solutions Inc. (J) Debt vs. Equity Structure

Understanding how Jacobs Solutions Inc. (J) finances its operations and growth is crucial for investors. The balance between debt and equity reveals insights into the company's financial strategy, risk profile, and long-term sustainability.

As of the fiscal year 2024, Jacobs Solutions Inc. (J) exhibits the following debt characteristics:

• Long-Term Debt: The company holds a substantial amount of long-term debt, reflecting its investments in infrastructure projects and strategic initiatives.
• Short-Term Debt: A portion of Jacobs Solutions Inc.'s (J) debt is short-term, used to manage immediate financial obligations and working capital needs.

The debt-to-equity ratio is a key metric in assessing Jacobs Solutions Inc.'s (J) financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A lower ratio generally suggests less risk, while a higher ratio indicates greater financial risk.

Here's a simplified overview of how to interpret the debt-to-equity ratio:

• Debt-to-Equity Ratio: Jacobs Solutions Inc.'s (J) debt-to-equity ratio can be compared against industry averages to determine if the company is more or less leveraged than its peers.
• Industry Standards: Comparing Jacobs Solutions Inc.'s (J) ratio to industry standards provides context on whether its debt levels are typical or outliers.

Recent activities in debt markets, such as new debt issuances or refinancing, can significantly impact Jacobs Solutions Inc.'s (J) financial health. Credit ratings from agencies like Standard & Poor's and Moody's provide an external assessment of the company's creditworthiness.

Monitoring these activities helps in understanding the company's approach to managing its debt obligations:

• Debt Issuances: Any recent debt issuances by Jacobs Solutions Inc. (J) and the purpose of these issuances (e.g., acquisitions, capital expenditures).
• Credit Ratings: The latest credit ratings assigned to Jacobs Solutions Inc. (J) by major rating agencies.
• Refinancing: Any refinancing activities undertaken by the company to lower interest rates or extend debt maturities.

Jacobs Solutions Inc. (J) strategically balances debt financing with equity funding to optimize its capital structure. Equity funding can reduce financial risk but may dilute existing shareholders' ownership. The company's approach reflects its growth strategies and financial risk tolerance.

Further insights into Jacobs Solutions Inc. (J) can be found here: Exploring Jacobs Solutions Inc. (J) Investor Profile: Who’s Buying and Why?

Jacobs Solutions Inc. (J) Liquidity and Solvency

Understanding Jacobs Solutions Inc.'s (J) financial health requires a close examination of its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here's an overview of key liquidity measures for Jacobs Solutions Inc. (J):

• Current Ratio: The current ratio, a basic liquidity metric, assesses a company's capacity to cover current liabilities with its current assets.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.
• Working Capital: Monitoring trends in working capital—the difference between current assets and current liabilities—is crucial for assessing liquidity management.

Analyzing Jacobs Solutions Inc.'s (J) cash flow statements provides further insights into its liquidity. The cash flow statement is divided into three main sections:

• Operating Activities: Cash flow from operating activities indicates the cash generated from the company's core business operations.
• Investing Activities: Cash flow from investing activities relates to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends.

For the fiscal year 2024, Jacobs Solutions Inc. (J) reported the following key figures:

• The company’s total assets amounted to $13.8 billion.
• The total liabilities were $9.73 billion.
• The total equity was $4.07 billion.

Jacobs Solutions Inc. (J)'s financial data can be further illustrated in the following table:

Potential liquidity concerns or strengths can be identified by examining these ratios and trends over time. Consistent positive cash flow from operations and a healthy current ratio typically indicate strong liquidity. Conversely, declining working capital or negative operating cash flow may signal potential liquidity issues.

To gain more insight into the values and principles that guide Jacobs Solutions Inc. (J), refer to Mission Statement, Vision, & Core Values of Jacobs Solutions Inc. (J).

Jacobs Solutions Inc. (J) Valuation Analysis

Determining whether Jacobs Solutions Inc. (J) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, dividend information, and analyst ratings.

Here’s a breakdown of essential valuation metrics:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio assesses the company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization.

These ratios provide insights into whether the company’s stock price is reasonable compared to its earnings, asset value, and overall cash flow generation.

Analyzing stock price trends is crucial for understanding market sentiment and historical performance. Examining the stock's behavior over the last 12 months, or even longer, can reveal patterns, volatility, and overall investor confidence. As of April 18, 2025, Jacobs Solutions Inc. (J) had a stock price of $158.95.

Here’s a brief overview of its stock performance:

• 1-Year Target Estimate: Analysts project a 1-year target price of $174.00.
• Stock Rating: The consensus among analysts is a 'Moderate Buy.'

Dividend yield and payout ratios are essential for investors seeking income. As of November 26, 2024, Jacobs Solutions Inc. (J) announced a quarterly dividend of $0.29 per share, or $1.16 per share on an annualized basis. The dividend is payable on December 20, 2024, to shareholders of record as of the close of business on November 29, 2024. The company’s dividend payout ratio provides insight into the sustainability of its dividend payments relative to its earnings.

Analyst consensus is a vital indicator of market sentiment. Ratings such as 'buy,' 'hold,' or 'sell' reflect professional analysts' opinions on the stock's potential. The consensus for Jacobs Solutions Inc. (J) is a 'Moderate Buy,' with a 1-year target estimate of $174.00, suggesting potential upside from its current price of $158.95 (as of April 18, 2025).

For additional insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Jacobs Solutions Inc. (J).

Below is a summary of key stock information as of April 18, 2025:

These data points are essential for investors aiming to assess whether Jacobs Solutions Inc. (J) is fairly valued in the current market conditions.

Jacobs Solutions Inc. (J) Risk Factors

Identifying and understanding the risks that Jacobs Solutions Inc. (J) faces is crucial for investors. These risks can stem from both internal and external factors, influencing the company's financial stability and future prospects. Evaluating these risks is essential for making informed investment decisions.

Here's an overview of the key risks impacting Jacobs Solutions Inc.'s (J) financial health:

• Industry Competition: The engineering and construction industries are highly competitive. Jacobs Solutions Inc. (J) faces competition from both large, multinational corporations and smaller, specialized firms. Intense competition can lead to pressure on pricing and profit margins.
• Regulatory Changes: Changes in government regulations and policies can significantly impact Jacobs Solutions Inc.'s (J) operations. This includes environmental regulations, labor laws, and international trade policies. Compliance with these regulations can be costly and time-consuming.
• Market Conditions: Economic downturns, fluctuations in commodity prices, and changes in infrastructure spending can all affect Jacobs Solutions Inc.'s (J) financial performance. A slowdown in key markets can reduce demand for the company's services.

Operational, financial, and strategic risks are often detailed in Jacobs Solutions Inc.'s (J) earnings reports and filings. These risks can include:

• Project Execution Risks: The successful completion of large and complex projects is critical. Delays, cost overruns, or technical challenges can negatively impact profitability.
• Financial Risks: These include risks related to debt levels, interest rates, and currency exchange rates. Changes in these factors can affect the company's financial stability.
• Strategic Risks: These involve risks related to acquisitions, divestitures, and changes in business strategy. The success of these initiatives can significantly impact the company's long-term performance.

Mitigation strategies are crucial for managing these risks. While specific strategies can vary, they often include:

• Diversification: Expanding into new markets and service offerings can reduce reliance on any single area.
• Risk Management Processes: Implementing robust risk management processes can help identify, assess, and mitigate potential risks.
• Financial Planning: Maintaining a strong balance sheet and managing debt levels can provide a buffer against financial risks.

Understanding these risks and mitigation strategies is vital for assessing the overall financial health and investment potential of Jacobs Solutions Inc. (J). You might also be interested in reading about Mission Statement, Vision, & Core Values of Jacobs Solutions Inc. (J).

Jacobs Solutions Inc. (J) Growth Opportunities

Jacobs Solutions Inc. (J) demonstrates promising future growth prospects driven by several key factors. A comprehensive analysis reveals that product innovations, strategic market expansions, and well-executed acquisitions are central to their growth trajectory.

Jacobs Solutions Inc. is focused on capitalizing on key growth drivers, positioning itself for sustained expansion. These drivers include:

• Product Innovations: Continuous development and introduction of new and enhanced service offerings.
• Market Expansions: Strategic initiatives to penetrate new geographic regions and market segments.
• Acquisitions: Targeted acquisitions to enhance capabilities and market presence.

Future revenue growth projections and earnings estimates for Jacobs Solutions Inc. (J) reflect a positive outlook. While specific figures can vary based on market conditions and internal performance, the general trend anticipates steady growth. Strategic initiatives and partnerships are expected to further fuel this growth.

Jacobs Solutions Inc. (J) leverages several strategic initiatives and partnerships to drive future growth:

• Technology Integration: Incorporating advanced technologies to improve service delivery and efficiency.
• Strategic Alliances: Forming alliances with key industry players to expand market reach and service offerings.
• Sustainability Initiatives: Focusing on sustainable solutions to meet growing market demand for environmentally responsible practices.

Jacobs Solutions Inc.'s competitive advantages significantly position the company for sustained growth. These advantages include:

• Strong Market Position: Established presence and reputation in key markets.
• Diversified Service Offerings: Broad range of services that cater to various client needs.
• Experienced Management Team: Skilled leadership driving strategic decision-making and operational excellence.

Here's a snapshot of how Jacobs Solutions Inc. is positioned for growth, considering various influencing factors:

For more detailed insights into Jacobs Solutions Inc.'s financial health, you can explore: Breaking Down Jacobs Solutions Inc. (J) Financial Health: Key Insights for Investors.