Attractive Price to Earnings Ratio
Low Price to Sales Ratio
Strong Return on Equity
Positive Net Profit Margin
Adequate Current Ratio
Strong Interest Coverage
🏆 Strong Financial Performance
🌍 Global Manufacturing Footprint
💰 Robust Cash Flow Management
🚀 Growth in Intelligent Infrastructure
🔮 Strategic Acquisitions and Innovations
📈 Positive Long-Term Outlook
High Price to Cash Flow Ratio
Elevated Price to Book Ratio
Low Gross Profit Margin
Low Operating Profit Margin
High Debt to Equity Ratio
Low Quick Ratio
📉 Segment Weaknesses
⚠️ Market Uncertainties
Overall, Jabil demonstrates strong business quality with solid financials and a competitive manufacturing advantage, but faces challenges in certain sectors. Future prospects appear promising, particularly in the Intelligent Infrastructure segment, although market uncertainties may temper growth expectations.
Analysis Date: December 18, 2024
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$167.42
Current Market Price: $113.60
IV/P Ratio: 1.47x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
32.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for JBL
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (26.88)
P/B ratio ≤ 1.5 (9.58)
Current ratio ≥ 2.0 (1.02x)
Long-term debt < Net current assets (1.07x)
Margin of safety (32.0%)
JBL does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The return on equity (ROE) of 62.63% indicates an exceptionally high level of profitability relative to shareholder equity, showcasing effective management.
A net profit margin of 4.71% suggests that JBL is able to maintain a decent level of profitability from its revenues.
A gross profit margin of only 9.09% indicates limited pricing power or high cost of goods sold, which could impact overall profitability.
An operating profit margin of 4.18% signals that the company has limited operating efficiency, which could be a concern for long-term profitability.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
27.80%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
0.67%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
9.09%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
4.71%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 1.06 indicates that the company can cover its short-term liabilities with its short-term assets, suggesting good liquidity.
An interest coverage ratio of 7.01 means JBL can comfortably meet its interest obligations, indicating sound financial health.
A debt to equity ratio of 2.06 indicates a reliance on debt financing, which may pose risks if the company faces downturns.
A quick ratio of 0.72 suggests that the company may struggle to cover its short-term liabilities without relying on inventory sales.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
2.42x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q2 2025
Current Ratio
Current assets divided by current liabilities
1.02x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q2 2025
Jabil reported Q1 revenue of $7 billion, a 1% year-on-year increase excluding the Mobility Divestiture impacts, demonstrating resilience in a dynamic environment. Core operating income was $347 million with core operating margins at 5%. This reflects effective management and operational efficiency.
Jabil maintains a large-scale global manufacturing footprint, which is considered a significant competitive advantage. This allows for flexibility in responding to customer needs and geopolitical changes. The company can adapt quickly to shifts in demand and production requirements.
The company reported strong cash flow generation with $312 million from operations and $226 million in adjusted free cash flow in Q1. This financial health supports ongoing share buybacks and dividends.
The Regulated Industry segment saw a 7% decline in revenue year-on-year, primarily due to weakness in Renewable Energy and EV markets. This indicates vulnerability in certain sectors of their business model.
The Intelligent Infrastructure segment is projected to grow significantly, driven by demand in AI-related cloud and data center markets. Expected revenue growth of $1.5 billion year-on-year in this segment indicates strong future potential.
Jabil's acquisition of Mikros Technologies enhances its capabilities in liquid cooling solutions, positioning the company to capture growth in data center and thermal management markets. This strategic move indicates a focus on innovation.
The company anticipates strong free cash flow of $1.2 billion for FY'25 and improved margins in the second half of the fiscal year, driven by recovery in higher-margin segments and cost optimization initiatives.
The company faces uncertainty in the Automotive and Renewable Energy markets, particularly in the EV sector, which may impact future growth potential. The management remains prudent in forecasting.