Last Updated: 18 Sep 2024
Executive Summary
Jabil Circuit Inc. (JBL) is a global manufacturing solutions and services provider. The company has a strong financial position with a market capitalization of $12.1 billion and an EBITDA of $2.26 billion. Jabil's trailing P/E ratio of 9.69 and forward P/E ratio of 11.89 indicate that the stock is undervalued relative to its peers. Analysts are bullish on Jabil, with 3 strong buy ratings, 5 buy ratings, and 3 hold ratings. The stock's recent price of $106.83 is below its 52-week high of $156.71, but above its 52-week low of $95.77.
Company Overview
Jabil is headquartered in Saint Petersburg, Florida and has a global presence with operations in over 100 countries. The company provides a wide range of services, including design, manufacturing, supply chain management, and aftermarket support. Jabil's customers include some of the world's largest technology and industrial companies.
Fundamental Analysis
Jabil's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.5% over the past five years. Net income has grown at a CAGR of 10.2% over the same period. Jabil's profit margin is 4.63%, and its operating margin is 4.76%. The company's return on assets (ROA) is 5.2%, and its return on equity (ROE) is 56%.
Jabil has a strong balance sheet with $2.26 billion in cash and equivalents and $4.65 billion in total debt. The company's debt-to-equity ratio is 0.42, which is below the industry average.
Technical Analysis
Jabil's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.47, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is below the signal line, which is a bearish indicator.
Short Term Outlook
Jabil's stock price is likely to remain under pressure in the short term. The company's earnings are expected to decline in the next quarter due to the impact of the COVID-19 pandemic. The stock's technical indicators are also bearish.
Long Term Outlook
Jabil's long-term outlook is positive. The company is a leader in the global manufacturing solutions market. The company's strong financial position and diverse customer base will allow it to weather the current economic downturn. Jabil is well-positioned to benefit from the growing demand for electronic products.
Analyst Recommendations
Analysts are bullish on Jabil. The consensus analyst rating is "buy." The average analyst target price is $133.99, which represents a potential upside of 25.4% from the current price.
