Breaking Down Jabil Inc. (JBL) Financial Health: Key Insights for Investors

Are you keeping a close watch on Jabil Inc. (JBL) and trying to gauge its financial stability? With a debt-to-equity ratio of 212.3% and a solid interest coverage ratio of 8.3x, how well is Jabil managing its debt? In fiscal year 2024, Jabil reported net revenues of $28.9 billion and core diluted earnings per share of $8.49, but can they maintain this performance amidst evolving market dynamics? Dive in to uncover key insights into Jabil's financial health, strategic initiatives, and future outlook.

Jabil Inc. (JBL) Revenue Analysis

Understanding Jabil Inc.'s (JBL) revenue streams involves examining its primary revenue sources, year-over-year growth, and the contributions from its business segments. A closer look reveals the dynamics shaping Jabil's financial performance.

Jabil Inc. reported preliminary, unaudited financial results for its fourth quarter and fiscal year ended August 31, 2024. According to the report, Jabil has undergone a substantial transformation this fiscal year. They sold their Mobility business, experienced growth in the AI datacenter sector, and faced challenges in multiple end-markets.

For the fiscal year 2024, Jabil's net revenue was $28.9 billion. This represents a -16.77% decrease compared to the previous fiscal year. In Q1 2025, Jabil reported revenue of $6.73 billion, a -0.58% decrease. The company's revenue in the last twelve months is $27.45 billion, down -14.45% year-over-year.

Here's a breakdown of Jabil's revenue growth over the past several years:

• 2024: $28.88 billion, down -16.77%
• 2023: $34.70 billion, up 3.66%
• 2022: $33.48 billion, up 14.32%
• 2021: $29.29 billion, up 7.40%
• 2020: $27.27 billion, up 7.85%

Jabil's revenue streams can be further dissected by business segment. While detailed breakdowns for fiscal year 2024 are not available in the search results, information from 2023 provides insight into the contribution of different segments:

In Q1 2025, Jabil's performance by segment was as follows:

• Regulated Industries: Revenue of roughly $3 billion, down 7% year-on-year.
• Intelligent Infrastructure: Revenue of $2.5 billion, up 5% year-on-year.
• Connected Living and Digital Commerce: Revenues were $1.5 billion, down 46% year-on-year due to the mobility divestiture. Excluding the Mobility divestiture from the prior year, revenue growth for this segment was approximately 12%.

Jabil is focusing on secular trends in areas such as datacenter power and cooling, electric and hybrid vehicles, healthcare and pharmaceutical delivery solutions, semiconductor equipment, and warehouse automation.

Explore more about Jabil's investor profile: Exploring Jabil Inc. (JBL) Investor Profile: Who’s Buying and Why?

Jabil Inc. (JBL) Profitability Metrics

Understanding Jabil Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins. These metrics reveal how efficiently Jabil manages its costs and generates profit from its revenue. Let's delve into these key areas, leveraging the most recent financial data available.

For the fiscal year 2024, Jabil reported a gross profit of $4.4 billion and net revenue of $35 billion, resulting in a gross margin of approximately 12.6%. This indicates the company's efficiency in converting revenue into profit after accounting for the cost of goods sold. The operating income stood at $1.4 billion, showcasing an operating margin of around 4.0%, reflecting the profitability after deducting operating expenses.

Analyzing trends in profitability over time offers valuable insights. While specific historical data for margin trends isn't detailed in the search results, consistent performance in maintaining or improving these margins year-over-year would suggest strong operational management. Investors often look for stable or increasing margins as indicators of a healthy and growing company.

When comparing Jabil's profitability ratios with industry averages, it's essential to consider the specific sector in which Jabil operates—primarily electronics manufacturing services (EMS). Industry averages can fluctuate, but generally, a gross margin around 10-15% and an operating margin of 3-5% are considered competitive in the EMS industry. Keeping these ranges in mind helps benchmark Jabil's performance effectively.

Operational efficiency is critical to Jabil's profitability. Effective cost management and favorable gross margin trends are indicative of strong operational performance. For instance, improvements in supply chain management, production processes, or pricing strategies can positively impact the gross margin. Here's a simplified overview of Jabil's financial highlights:

To gain a more holistic understanding of Jabil, it's important to also consider their strategic objectives. You can learn more about their mission and vision here: Mission Statement, Vision, & Core Values of Jabil Inc. (JBL).

Jabil Inc. (JBL) Debt vs. Equity Structure

Understanding how Jabil Inc. (JBL) finances its operations and growth is crucial for investors. This involves examining its debt levels, debt-to-equity ratio, and recent financing activities.

As of February 28, 2025, Jabil Inc.'s (JBL) balance sheet reflects a mix of debt and equity. While the most current data will provide the freshest insight, we will focus on the 2024 fiscal year for detailed figures. For the fiscal year 2024, Jabil's total debt was reported at approximately $3.44 billion. This consists of both short-term and long-term debt obligations. Specifically, long-term debt constitutes a significant portion, while short-term debt accounts for the remainder, reflecting the company's strategy in managing its financial obligations. It's essential to note that these figures are based on available financial statements and may be subject to change as new information is released.

The debt-to-equity ratio is a key metric to evaluate Jabil Inc.'s (JBL) financial leverage. A lower ratio generally indicates a more conservative financing approach. As of the end of fiscal year 2024, Jabil's debt-to-equity ratio stood at approximately 0.74. This ratio suggests that Jabil has a balanced approach to funding its operations, utilizing both debt and equity without being overly reliant on debt. When compared to industry standards, this ratio positions Jabil competitively, reflecting sound financial management practices.

Recent activities, such as debt issuances or refinancing, provide insights into Jabil Inc.'s (JBL) financial strategy. In recent years, Jabil has strategically managed its debt through various activities to optimize its capital structure. These actions aim to lower interest expenses, extend debt maturity profiles, and maintain financial flexibility. For example, Jabil has refinanced certain debt obligations to take advantage of favorable interest rates and market conditions. However, specific details on recent debt issuances, credit ratings, or refinancing activity will be based on the 2024 fiscal year, unless more current data is available. Keep an eye on the Mission Statement, Vision, & Core Values of Jabil Inc. (JBL).

Jabil Inc. (JBL) strategically balances debt and equity to fund its growth and operations. While debt can provide leverage and potentially lower the cost of capital, equity financing strengthens the balance sheet and provides a cushion during economic downturns. Jabil's approach involves carefully assessing market conditions, interest rates, and its own financial performance to determine the optimal mix of debt and equity. This balanced approach allows Jabil to invest in strategic initiatives, such as acquisitions, expansions, and research and development, while maintaining a healthy financial position.

Here's a breakdown of Jabil Inc.'s (JBL) debt and equity components based on the 2024 fiscal year:

• Total Debt: Approximately $3.44 billion
• Debt-to-Equity Ratio: Around 0.74

To provide a clearer picture, below is a sample table summarizing Jabil Inc.'s (JBL) debt and equity structure:

Note: The amounts and values are based on 2024 fiscal year data.

Jabil Inc. (JBL) Liquidity and Solvency

Understanding Jabil Inc.'s financial health requires a close examination of its liquidity and solvency, which indicates its ability to meet short-term and long-term obligations. These metrics are vital for investors assessing the company's stability and growth potential. For further insights, you might find this resource helpful: Breaking Down Jabil Inc. (JBL) Financial Health: Key Insights for Investors.

Here's an assessment of Jabil Inc.'s liquidity:

Current and Quick Ratios:

These ratios provide a snapshot of Jabil's capacity to cover its current liabilities with its current assets. For the fiscal year 2024, Jabil Inc. reported a current ratio of 1.2x and a quick ratio of 0.9x. A current ratio above 1 generally indicates good liquidity, suggesting that Jabil has sufficient current assets to cover its short-term liabilities. The quick ratio, which excludes inventory from current assets, offers a more conservative view. A quick ratio close to 1 suggests that Jabil can meet its short-term obligations even without relying on the sale of inventory.

Working Capital Trends:

Analyzing the trend of Jabil's working capital—the difference between its current assets and current liabilities—helps in understanding its operational efficiency. Monitoring changes in working capital over time can reveal whether the company is becoming more or less efficient in managing its short-term resources.

Cash Flow Statements Overview:

An overview of Jabil Inc.'s cash flow statements reveals trends in operating, investing, and financing activities. Here’s a snapshot based on the 2024 fiscal year:

• Operating Cash Flow: Jabil generated $954 million in cash from its operations. This indicates the company's core business is healthy and capable of generating cash.
• Investing Cash Flow: The company used $449 million for investing activities. This usually includes capital expenditures like purchasing property, plant, and equipment (PP&E).
• Financing Cash Flow: Jabil's financing activities resulted in a cash outflow of $812 million. This often includes activities related to debt, equity, and dividends.

The trends in these cash flows provide insights into how Jabil manages its resources and funds its growth.

Potential Liquidity Concerns or Strengths:

While Jabil demonstrates solid cash generation from operations, consistent capital expenditures and financing activities, particularly related to debt management, are crucial to monitor. Effective management of working capital and strategic investment decisions will be vital for maintaining and improving Jabil’s liquidity position.

Here's a summary of Jabil's key financial data for the fiscal year 2024:

These figures provide a clear view of Jabil's financial activities and its capability to handle its financial obligations.

Jabil Inc. (JBL) Valuation Analysis

When evaluating whether Jabil Inc. (JBL) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus on stock valuation.

Here’s a breakdown of these elements:

Valuation Ratios:

• Price-to-Earnings (P/E): The trailing P/E ratio for Jabil is 30.41 as of February 28, 2025. The forward P/E ratio is 15.31.
• Price-to-Book (P/B): The price-to-book ratio is 10.67 as of February 28, 2025.
• EV/EBITDA: As of April 19, 2025, the EV/EBITDA ratio for Jabil is approximately 7.97.

Stock Price Trends:

• Over the last 52 weeks, Jabil's stock price has fluctuated between a low of $95.84 and a high of $174.80.
• The stock closed at $135.04 on April 17, 2025.
• Over the last 12 months, the stock price has increased by about 1.69%.

Dividend Yield and Payout Ratios:

• Jabil's annual dividend is $0.32 per share.
• The dividend yield is approximately 0.24%.
• The payout ratio is 8.06%, suggesting the company retains a significant portion of its earnings for reinvestment.
• Jabil's latest ex-dividend date was May 15, 2025, with the last dividend payment of $0.08 per share paid on June 3, 2025.

Analyst Consensus:

• The consensus rating for Jabil is 'Moderate Buy.'
• Based on ratings from 7 Wall Street analysts, the average price target for Jabil is $163.71.
• The high forecast is $184.00, and the low forecast is $146.00.
• This average price target represents a potential increase of 21.23% from the current price of $135.04.

Here is a summary of analyst ratings:

In the current month, analysts have given 12 buy ratings and 2 hold ratings.

For more insights into Jabil's investor profile, you can explore: Exploring Jabil Inc. (JBL) Investor Profile: Who’s Buying and Why?

Jabil Inc. (JBL) Risk Factors

Several internal and external risk factors can significantly impact Jabil Inc.'s financial health. These include industry competition, regulatory changes, market conditions, operational challenges, financial risks, and strategic uncertainties. Understanding these risks is crucial for investors and stakeholders.

Industry Competition: The electronics manufacturing services (EMS) industry is highly competitive. Jabil faces competition from other large EMS providers, as well as smaller, more specialized firms. Increased competition could lead to pricing pressures, reduced profit margins, and loss of market share.

Regulatory Changes: Changes in regulations related to environmental compliance, trade, and labor laws can affect Jabil's operations and financial performance. For instance, new tariffs or trade restrictions could increase the cost of materials and impact supply chain efficiency.

Market Conditions: Economic downturns, fluctuations in demand for electronic products, and changes in consumer preferences can all impact Jabil's revenue and profitability. A slowdown in key markets, such as smartphones or automotive electronics, could reduce demand for Jabil's services.

Operational Risks:

• Supply Chain Disruptions: Disruptions to the supply chain, whether due to natural disasters, geopolitical events, or other unforeseen circumstances, can impact Jabil's ability to fulfill orders and maintain production schedules.
• Manufacturing Complexities: The complexity of manufacturing electronic products can lead to production delays, quality issues, and increased costs. Managing this complexity requires efficient processes and skilled workforce.
• Geographic Concentration: Jabil's operations are spread across various regions, exposing it to regional economic and political risks.

Financial Risks:

• Debt Levels: High levels of debt can increase Jabil's financial vulnerability and limit its ability to invest in growth opportunities. Monitoring debt levels and interest expenses is essential.
• Currency Fluctuations: As a global company, Jabil is exposed to currency fluctuations, which can impact revenue and earnings. Hedging strategies can help mitigate this risk.
• Credit Risk: The risk that customers may not be able to pay their debts.

Strategic Risks:

• Technological Changes: Rapid technological advancements can render existing manufacturing processes obsolete. Jabil must continuously invest in new technologies and adapt to changing customer needs.
• Acquisitions and Integrations: Jabil's growth strategy involves acquisitions, which can pose integration challenges and divert management's attention. Successful integration is crucial for realizing the expected benefits of acquisitions.
• Customer Concentration: Dependence on a few large customers can create vulnerability. Losing a major customer could significantly impact revenue.

Mitigation strategies often involve diversifying the customer base, hedging against currency fluctuations, investing in advanced technologies, and maintaining a strong balance sheet. Monitoring these risks and mitigation efforts is essential for assessing Jabil's financial health and investment potential.

For more insights, read: Breaking Down Jabil Inc. (JBL) Financial Health: Key Insights for Investors

Jabil Inc. (JBL) Growth Opportunities

Jabil Inc.'s future growth prospects are anchored in several key drivers, including strategic market expansions, product innovations, and targeted acquisitions. These elements collectively contribute to the company's potential for increased revenue and earnings.

Analyzing Jabil's growth trajectory involves understanding its revenue growth projections and earnings estimates. While specific figures fluctuate based on market conditions and internal strategies, several factors underpin these projections:

• Product Innovations: Jabil's focus on innovation allows it to capture new market segments and increase its revenue streams.
• Market Expansions: Expanding into emerging markets and strengthening its presence in existing markets provides Jabil with a broader customer base and diversified revenue sources.
• Acquisitions: Strategic acquisitions enable Jabil to integrate new technologies, expand its capabilities, and enhance its market position.

Strategic initiatives and partnerships are critical in propelling Jabil's growth. These collaborations often lead to the development of new products, access to new markets, and enhanced operational efficiencies. For example, partnerships with technology firms can accelerate the integration of advanced manufacturing techniques, while alliances with regional players can facilitate market penetration.

Jabil's competitive advantages play a crucial role in positioning the company for sustained growth. These advantages include:

• Global Scale and Reach: Jabil's extensive global footprint allows it to serve customers across various geographies, providing a competitive edge in terms of responsiveness and cost-effectiveness.
• Technological Expertise: Jabil's deep technological expertise in areas such as automation, advanced materials, and digital manufacturing enables it to deliver innovative solutions to its customers.
• Strong Customer Relationships: Jabil's long-standing relationships with key customers provide a stable revenue base and opportunities for future growth through expanded services and solutions.

To illustrate Jabil's financial outlook, consider the following projections based on available data and market analysis. Please note that these are estimates and subject to change:

These projections reflect Jabil's ability to leverage its strategic initiatives and competitive advantages to drive growth in the coming years. Investors should monitor these trends and consider how they align with their investment objectives.

For additional insights into Jabil's strategic direction, refer to Mission Statement, Vision, & Core Values of Jabil Inc. (JBL).