Jacobs Solutions Stock To $91?
Jacobs Solutions (J) stock has fallen 11% during the past day, and is currently trading at $129.17. Our multi-factor assessment suggests that it may be time to sell J stock. We have, overall, a pessimistic view of the stock, and a price of $91 may not be out of reach. We believe there is a near-equal mix of good and bad in Jacobs Solutions stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | High |
| What you get: | |
| Growth | Moderate |
| Profitability | Very Weak |
| Financial Stability | Very Strong |
| Downturn Resilience | Very Weak |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $16 Bil in market cap, Jacobs Solutions provides consulting, technical, scientific, and project delivery services across government and private sectors, specializing in critical mission solutions, people and places solutions, and wind-tunnel design-build project management.
[1] Valuation Looks High
| J | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 1.3 | 3.1 |
| Price-to-Earnings Ratio | 31.7 | 22.8 |
| Price-to-Free Cash Flow Ratio | 37.9 | 19.9 |
This table highlights how J is valued vs broader market. For more details see: J Valuation Ratios
[2] Growth Is Moderate
- Jacobs Solutions has seen its top line grow at an average rate of 1.1% over the last 3 years
- Its revenues have grown 61% from $7.3 Bil to $12 Bil in the last 12 months
- Also, its quarterly revenues grew 5.1% to $3.0 Bil in the most recent quarter from $2.9 Bil a year ago.
| J | S&P 500 | |
|---|---|---|
| 3-Year Average | 1.1% | 5.5% |
| Latest Twelve Months* | 61.5% | 6.1% |
| Most Recent Quarter (YoY)* | 5.1% | 7.1% |
This table highlights how J is growing vs broader market. For more details see: J Revenue Comparison
[3] Profitability Appears Very Weak
- J last 12 month operating income was $848 Mil representing operating margin of 7.2%
- With cash flow margin of 4.2%, it generated nearly $500 Mil in operating cash flow over this period
- For the same period, J generated nearly $493 Mil in net income, suggesting net margin of about 4.2%
| J | S&P 500 | |
|---|---|---|
| Current Operating Margin | 7.2% | 18.8% |
| Current OCF Margin | 4.2% | 20.5% |
| Current Net Income Margin | 4.2% | 13.1% |
This table highlights how J profitability vs broader market. For more details see: J Operating Income Comparison
[4] Financial Stability Looks Very Strong
- J Debt was $3.0 Bil at the end of the most recent quarter, while its current Market Cap is $16 Bil. This implies Debt-to-Equity Ratio of 19.2%
- J Cash (including cash equivalents) makes up $1.3 Bil of $11 Bil in total Assets. This yields a Cash-to-Assets Ratio of 11.3%
| J | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 19.2% | 21.4% |
| Current Cash-to-Assets Ratio | 11.3% | 7.0% |
[5] Downturn Resilience Is Very Weak
J has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- J stock fell 26.8% from a high of $148.16 on 21 April 2022 to $108.49 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 March 2024
- Since then, the stock increased to a high of $164.44 on 21 October 2025 , and currently trades at $129.17
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.8% | -25.4% |
| Time to Full Recovery | 524 days | 464 days |
2020 Covid Pandemic
- J stock fell 39.3% from a high of $103.86 on 21 February 2020 to $63.01 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 November 2020
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.3% | -33.9% |
| Time to Full Recovery | 238 days | 148 days |
2008 Global Financial Crisis
- J stock fell 74.1% from a high of $101.58 on 3 January 2008 to $26.27 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 February 2020
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -74.1% | -56.8% |
| Time to Full Recovery | 4109 days | 1480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read J Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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