Jabil Inc.
Jabil Inc. Fundamental Analysis
Jabil Inc. (JBL) shows weak financial fundamentals with a PE ratio of 41.27, profit margin of 2.26%, and ROE of 51.13%. The company generates $31.1B in annual revenue with weak year-over-year growth of -16.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JBL's fundamental strength across five key dimensions:
Efficiency Score
WeakJBL struggles to generate sufficient returns from assets.
Valuation Score
WeakJBL trades at a premium to fair value.
Growth Score
ModerateJBL shows steady but slowing expansion.
Financial Health Score
WeakJBL carries high financial risk with limited liquidity.
Profitability Score
ModerateJBL maintains healthy but balanced margins.
Key Financial Metrics
Is JBL Expensive or Cheap?
P/E Ratio
JBL trades at 41.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JBL's PEG of 5.18 indicates potential overvaluation.
Price to Book
The market values Jabil Inc. at 21.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.65 times EBITDA. This signals the market has high growth expectations.
How Well Does JBL Make Money?
Net Profit Margin
For every $100 in sales, Jabil Inc. keeps $2.26 as profit after all expenses.
Operating Margin
Core operations generate 4.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $51.13 in profit for every $100 of shareholder equity.
ROA
Jabil Inc. generates $3.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jabil Inc. generates limited operating cash flow of $1.65B, signaling weaker underlying cash strength.
Free Cash Flow
Jabil Inc. produces free cash flow of $1.18B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.07 in free cash annually.
FCF Yield
JBL converts 4.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How JBL Stacks Against Its Sector Peers
| Metric | JBL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.27 | 35.19 | Worse (Expensive) |
| ROE | 51.13% | 1155.00% | Weak |
| Net Margin | 2.26% | -127067.00% (disorted) | Weak |
| Debt/Equity | 2.51 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.99 | 4.71 | Weak Liquidity |
| ROA | 3.65% | -314918.00% (disorted) | Weak |
JBL outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Jabil Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.24%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
514.62%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
82.86%
Industry Style: Growth, Innovation, High Beta
High Growth