Jacobs Story

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J -- USA Stock  

USD 110.29  0.72  0.65%

Jacobs Engineering is scheduled to announce its earnings today. The next earnings report is expected on the 2nd of February 2021. Jacobs Engineering Average Equity is increasing as compared to previous years. The last year's value of Average Equity was reported at 4.34 Billion. The current Enterprise Value is estimated to increase to about 7.2 B, while Enterprise Value over EBIT is projected to decrease to 18.69. While many traders are getting carried away by overanalyzing industrials space, it is reasonable to examine Jacobs Engineering Group as an investment alternative. What exactly are Jacobs Engineering shareholders getting in December?
Published over two months ago
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How much will Jacobs Engineering owe in December?
Jacobs Engineering has accumulated 3.1 B in total debt with debt to equity ratio (D/E) of 0.53, which looks OK as compared to the sector. The entity has a current ratio of 1.66, which is considered satisfactory as compared to similar companies. On a scale of 0 to 100, Jacobs Engineering holds a performance score of 9. The company retains a Market Volatility (i.e. Beta) of 1.0063, which attests to a somewhat significant risk relative to the market. Let's try to break down what Jacobs's beta means in this case. Jacobs Engineering returns are very sensitive to returns on the market. As the market goes up or down, Jacobs Engineering is expected to follow. Although it is vital to follow Jacobs Engineering current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Jacobs Engineering technical indicators, you can presently evaluate if the expected return of 0.28% will be sustainable into the future. Please utilizes Jacobs Engineering potential upside, rate of daily change, and the relationship between the sortino ratio and skewness to make a quick decision on whether Jacobs Engineering Group current trending patterns will revert.
Jacobs Engineering financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Jacobs Engineering, including all of Jacobs Engineering's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Jacobs Engineering assets, the company is considered highly leveraged. Understanding the composition and structure of overall Jacobs Engineering debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Jacobs Total Liabilities

Jacobs Engineering liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Jacobs Engineering has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Jacobs Engineering balance sheet include debt obligations and money owed to different Jacobs Engineering vendors, workers, and loan providers. Below is the chart of Jacobs short long-term liabilities accounts currently reported on its balance sheet.
You can use Jacobs Engineering Group financial leverage analysis tool to get a better grip on understanding its financial position

How important is Jacobs Engineering's Liquidity

Jacobs Engineering financial leverage refers to using borrowed capital as a funding source to finance Jacobs Engineering Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Jacobs Engineering financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Jacobs Engineering's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Jacobs Engineering, but it might be worth checking our own buy vs. sell analysis

Breaking down Jacobs Engineering Further

The firm reported the annual revenue of 13.44 B. Net Income to common stockholders was 306.14 M with gross profit before all taxes, overhead, and interest of 2.48 B.

Liabilities Breakdown

2.2 B
Current Liabilities
1.5 B
Long-Term Liabilities
Total Liabilities3.71 Billion
Current Liabilities2.17 Billion
Long-Term Liabilities1.54 Billion
Tax Liabilities33.65 Million

Jacobs Engineering is projected to stay under $107 in December

Semi deviation is down to 1.9. It may signify a possible volatility plunge. Jacobs Engineering Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.16. However, we do advice investors to further question Jacobs Engineering Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Although few other entities in the engineering & construction industry are either recovering or due for a correction, Jacobs Engineering may not be performing as strong as the other in terms of long-term growth potentials. While some traders may not share our view, we believe it may be a good time to increase your existing holdings in Jacobs as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Jacobs Engineering.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Jacobs Engineering Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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