Jabil Stock Story

JBL
 Stock
  

USD 60.57  0.55  0.90%   

On Semiconductor would recover faster from the latest slide as its shares price went up 3.39% to Jabil Circuit's 4.56%While many traders are getting carried away by overanalyzing competition within technology space, it is quite reasonable to summarize both, Jabil Circuit and On Semiconductor as potential medium-term investments. We are going to summarize some of the competitive aspects of both Jabil and On Semiconductor.
Published over a month ago
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Will On Semiconductor stakeholders switch to Jabil (NYSE:JBL)?

By analyzing existing fundamental drivers between Jabil Circuit and On Semiconductor, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in On Semiconductor with a short position in Jabil Circuit. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Jabil Circuit has an asset utilization ratio of 297.79 percent. This denotes that the company is making $2.98 for each dollar of assets. An increasing asset utilization means that Jabil Circuit is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Jabil or 3M is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Jabil Circuit dividends

A dividend is the distribution of a portion of Jabil Circuit earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Jabil Circuit dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Jabil one year expected dividend income is about $0.24 per share.
Jabil Circuit Dividend Yield is relatively stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.004618. Dividends per Basic Common Share is expected to hike to 0.38 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (62 M).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-57.5 M-62 M
Dividend Yield 0.0045  0.004618 
Dividends per Basic Common Share 0.37  0.38 
Investing in dividend-paying stocks, such as Jabil Circuit is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Jabil Circuit must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Jabil Circuit. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Jabil Circuit's Liquidity

Jabil Circuit financial leverage refers to using borrowed capital as a funding source to finance Jabil Circuit ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Jabil Circuit 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 Jabil Circuit's total debt and its cash.

Correlation Between Jabil and 3M Company

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Jabil Circuit together with similar or unrelated positions with a negative correlation. For example, you can also add 3M to your portfolio. If 3M is not perfectly correlated to Jabil Circuit it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Jabil Circuit for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between JBL and MMM for more information.

Note

Are you currently holding both Jabil Circuit and 3M in your portfolio?
Please note if you are using this as a pair-trade strategy between Jabil Circuit and 3M, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking down Jabil Circuit Further

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Jabil Circuit revenue. Based on the latest financial disclosure, Jabil Circuit reported 30.74 B of revenue. This is much higher than that of the Technology sector and significantly higher than that of the Electronic Components industry. The revenue for all United States stocks is significantly lower than that of the entity. As for On Semiconductor we see revenue of 6.74 B, which is 338.02% higher than that of the Electronic Components

Jabil30.74 Billion
Sector1.54 Billion
On Semiconductor6.74 Billion
30.7 B
Jabil
Sector
6.7 B
On Semiconductor

Does Jabil Circuit have anything more to reveal in June?

New Information Ratio is up to 0.1. Price may pull down again.
As of the 16th of June 2022, Jabil Circuit retains the Downside Deviation of 2.41, risk adjusted performance of 0.0901, and Market Risk Adjusted Performance of 0.1151. Jabil Circuit technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We have analyzed nineteen technical drivers for Jabil Circuit, which can be compared to its competitors. Please check out Jabil Circuit jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if Jabil Circuit is priced fairly, providing market reflects its last-minute price of 56.13 per share. Given that Jabil Circuit has jensen alpha of 0.3024, we strongly advise you to confirm Jabil Circuit's regular market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While some firms in the electronic components industry are either recovering or due for a correction, Jabil Circuit may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 16th of June 2022, we believe Jabil Circuit is currently undervalued. It responds to the market and projects low odds of distress in the next two years. Our concluding 90 days 'Buy-vs-Sell' recommendation on the company is Strong Buy.

Editorial Staff

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 Raphi Shpitalnik do not own shares of Jabil Circuit. Please refer to our Terms of Use for any information regarding our disclosure principles.

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