Jabil Inc. [NYSE:JBL]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Jabil Inc. [JBL], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in August. On average, stock market experts give JBL an Hold rating. This is compared to its latest closing price of $27.53.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Jabil Inc. [JBL] is sitting at 2.55. This is compared to 1 month ago, when its average rating was 2.58.
For the quarter ending in Nov-18 Jabil Inc. [JBL] generated $6.51 billion in sales. That’s 6.64% higher than the average estimate of $6.1 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 21 Mar (In 37 Days).
Fundamental Analysis of Jabil Inc. [JBL]
Now let’s turn to look at profitability: with a current Operating Margin for Jabil Inc. [JBL] sitting at +2.40 and its Gross Margin at +7.33, this company’s Net Margin is now 0.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 11.88, and its Return on Invested Capital has reached 8.90%. Its Return on Equity is 4.01, and its Return on Assets is 0.75. These metrics suggest that this Jabil Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Jabil Inc. [JBL] has generated a Total Debt to Total Equity ratio of 129.15. Similarly, its Total Debt to Total Capital is 56.36, while its Total Debt to Total Assets stands at 20.91. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 127.86, and its Long-Term Debt to Total Capital is 55.80. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 4.20 and its Total Debt to EBITDA Value is 1.93. The Enterprise Value to Sales for this firm is now 0.24, and its Total Debt to Enterprise Value stands at 0.39. Jabil Inc. [JBL] has a Price to Book Ratio of 2.49, a Price to Cash Flow Ratio of 5.54 and P/E Ratio of 32.01. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Jabil Inc. [JBL] earns $111,032 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 14.30 and its Total Asset Turnover is 1.91. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.57 and its Current Ratio is 1.04. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Jabil Inc. [JBL] has 155.40M shares outstanding, amounting to a total market cap of $4.28B. Its stock price has been found in the range of 21.49 to 31.77. At its current price, it has moved by -11.80% from its 52-week high, and it has moved 30.39% from its 52-week low.
This stock’s Beta value is currently 0.58, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 74.41. This RSI suggests that Jabil Inc. is currently Overbought.
Conclusion: Is Jabil Inc. [JBL] a Reliable Buy?
Jabil Inc. [JBL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.