JEC Investment Analysis Report & Stock Research, Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc. (JEC)

JEC Stock Report

2-Year Price History

View Larger JEC Chart
NYSE:JEC
$36.32
(2/9 11:08AM)
+0.2%
Open$36.74 Mkt Cap$4.5 Billion
High$37 52Wk High$49.73
Low$36.18 52Wk Low$30.16
Volume315,448 Avg Vol 10D2.2 Million

Ockham's Rating/Recommendation Summary

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JEC Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at JEC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.86x and 0.45x respectively.

Utilizing this range we can see that JEC’s current Price to Sales per share ratio of 0.42x is well below its normal historic Price to Sales levels. At a price of $35.93, JEC is 37% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

JEC Cash Earnings

Looking at JEC specifically in their Cash Earnings capabilities, Ockham views JEC as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for JEC, the current level of Cash Earnings compared to its historical levels helps identify where JEC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 22.21 and a historical low Cash Earnings per share ratio of 11.70, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for JEC? From the Ockham perspective, we are looking specifically at JEC to see if the market is recognizing the huge disparity between JEC's past stock price to Cash Earnings ratio to today's levels. At a difference of 41% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at JEC. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

JEC Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As far as our investing methodology goes, it is not necessary to pay a dividend in order to get a favorable rating, so as for right now JEC gets a neutral rating for the dividend portion of the model. As you can see, we are not receiving historical dividend information from our data provider on JEC at this time.

Peer Comparison

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Jacobs Engineering Group Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including JEC) 17.98 5.62 » 32.81 1.39 0.55 » 2.43 14.76% 12.30%
*10 year range does not include current year values
Jacobs Engineering Group Inc. JEC $4.5 Billion $36.23 10.04 6.65 » 27.46 0.42 0.26 » 1.13 20.07% 15.30%
Iron Mountain, Inc. IRM $4.4 Billion $21.80 9.49 7.26 » 23.68 1.50 1.00 » 2.86 15.27% 7.52%
DeVry Inc. DV $4.3 Billion $59.96 18.24 8.34 » 32.16 3.27 1.17 » 5.10 13.24% 11.86%
Hertz Global Holdings, Inc. HTZ $4.0 Billion $9.85 3.85 0.38 » 4.67 0.59 0.06 » 1.02 n/a 4.29%
Manpower Inc. MAN $4.0 Billion $50.82 27.24 5.42 » 33.33 0.25 0.08 » 0.38 12.08% 13.30%
Robert Half International, Inc. RHI $4.0 Billion $26.37 31.06 6.70 » 70.23 1.31 0.44 » 2.77 18.43% 24.52%
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Mad Money

See Who is Talking About News from JEC on Mad Money

Jacobs Engineering Group Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Jacobs Engineering Group Inc. has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on JEC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.

“… JACOBS ENGINEERING simply isn't designed to win these competitive bids. So-called elephant projects. They're called elephants because they're so big. …”

Mad Money

Mad Money: What is Happening with Jacobs Engineering Group Inc. Now?

The latest news from Mad Money on JEC is available through Ockham's news analytics platform RazorWire.

Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; JEC has received less coverage from the financial media in business television and blogs. We consider JEC as Undervalued at the current price of $35.90. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.

“… The stock got crushed on huge volume after JACOBS ENGINEERING announce the a disappointing quarter. That decline happened on very big volume. That's the truth. …”

Mad Money

Holding JEC Stock? See What Is Being Discussed on Mad Money

The latest news from Mad Money on JEC is available through Ockham's news analytics platform RazorWire.

Based on our methodology, Jacobs Engineering Group Inc. should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; JEC has received less coverage from the financial media in business television and blogs.

“… Volume is like a polygraph for low volume means a move isn't telling the truth and is likely that's why little would buy fluor here and buy even more if how about JACOBS ENGINEERIN... …”

Mad Money

See More News on JEC from Mad Money

News has broken via the television and viral blogs regarding JEC, so investors should take an interest in learning what was said.

At present, Ockham has a valuation stance of Undervalued on JEC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Jacobs Engineering Group Inc. has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… Our method puts beyond the contenders, fluor, flr for all you home gamers, and JACOBS ENGINEERING. Jec. Two high-quality infrastructure companies. …”

Fast Money

News on JEC From the Pundits on Fast Money

The latest news on Fast Money in regards to JEC came through on RazorWire recently.

Based on our methodology, Jacobs Engineering Group Inc. should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of JEC, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… JACOBS ENGINEERING drops 14%. > > these engineering stocks have been under pressure all throughout this earnings season. All comes down to the backlog. …”

Squawk On The Street

JEC's Back in the News After More than a Month on Squawk On The Street

It's been at least a month since we noticed any major news coverage of JEC, so the story in Squawk On The Street may get the ball rolling.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Jacobs Engineering Group Inc. has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on JEC, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. However, the JEC has fallen in price since the report, and barring a change in fundamentals could be upgraded on our next report. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. Investors are headed for the exit following today's news as the stock is trading down $5.13.

“… The JACOBS ENGINEERING, down more than 10%, big miss on the fourth quarter results, both on the top and bottom lines, and the forecast for the coming year looks to be light. …”

Mad Money

Jacobs Engineering Group Inc. (JEC) Discussed on CNBC's Mad Money

Jacobs Engineering Group Inc. is in the news. Find out how this impacts JEC trading on Ockham Research.

Lafayette jefferson high school. Ba-ba-ba-ba-boo-yah. >> how early can you get in the game? The answer is never too early because of compound interest and compound dividends. And you can be a little more speculative when you're younger. How can I help? >> caller: for sure. Go broncos. I'm 18 years old and i'm in jec, JACOBS ENGINEERING. And i've been getting slaughtered the past few days. >> you know why you're getting slaughtered? Because it's now becoming clear that congress is not doing enough to be able to do which means you've got to take a little off the table. Come back and congratulations but I do think the next move in that stock is continuation of helen in north carolina. Helen. >> caller: hey, how are you? Boo-yah! >> holy -- >> caller: i'm helen from pirate country. >> argh! >> caller: hey your show is wonderful, and I never feed my husband dinner until after your show is over. >> I like that. You're fasting during the show. I think that's gp. >> caller: what about allergan? >> remember we had the ceo. The stock was in the low 40s. Telling us to buy it. No one believed him except me. Because I think in the end what they make is not just botox but they've got a lot of products against obesity. They've got like a dry eye thing

“… caller: for sure. Go broncos. I'm 18 years old and i'm in jec, JACOBS ENGINEERING. And i've been getting slaughtered the past few days. >> you know why you're getting slaughtered? Because it's now becoming clear that congress is not doing enough to be able to do which means you've got to take a little off the table. Come back and congratulations but I do think the next move in that stock is continuation of helen in north carolina. Helen. >> caller: hey, how are you? Boo-yah! >> holy -- >> caller: i'm helen from pirate country. >> argh! >> caller: hey your show is wonderful, and I never feed my husband dinner until after your show is over. >> I like that. You're fasting during the show. I think that's gp. >> caller: what about allergan? >> remember we had the ceo. The stock was in the low 40s. Telling us to buy it. No one believed him except me. Because I think in the end what they make is not just botox but they've got a lot of products against obesity. They've got like a dry eye thing …”

Fox Business

Jacobs Engineering Group Inc. (JEC) Discussed on Fox Business's Fox Business

Jacobs Engineering Group Inc. is in the news. Find out how this impacts JEC trading on Ockham Research.

Arrow tos. Goldman sachs coming out and talking about engineering and adding it to cautious. JACOBS ENGINEERING added this to america buy list from accelerating. To a buy from a sell is good. Up 30% as a result. See the other names.

“… Arrow tos. Goldman sachs coming out and talking about engineering and adding it to cautious. JACOBS ENGINEERING added this to america buy list from accelerating. To a buy from a sell is good. Up 30% as a result. See the other names. …”

Mad Money

Jacobs Engineering Group Inc. (JEC) Discussed on CNBC's Mad Money

Jacobs Engineering Group Inc. is in the news. Find out how this impacts JEC trading on Ockham Research.

How about sam in tennessee? >> caller: jim, big vanderbilt >> vandy! Oh, man, big willy dice boo-yah >> caller: i'm invested in JACOBS ENGINEERING, jec. I took a miss. What's your thoughts? >> they hold up pretty well, even though a lot of people were disappointed by the quarter. Cpi had a disappointing quarter the other day.

“… appointed by the quarter. Cpi had a disappointing quarter the other day. …”

Squawk On The Street

Jacobs Engineering Group Inc. (JEC) Discussed on CNBC's Squawk On The Street

Jacobs Engineering Group Inc. is in the news. Find out how this impacts JEC trading on Ockham Research.

They raised the 2010 forecast and the net was up 46%. Maybe they raise rates. Look closer at that one. JACOBS ENGINEERING down about 7% and cut the forecast. The stock is there and looks like it headed back further. This was rallying early in the year late last year as an obama

“… e last year as an obama …”

View All Jacobs Engineering Group Inc. Stock News

Key Fundamentals

JEC - Jacobs Engineering Group Inc. Fundamentals
Price (2/9 11:08AM) $36.32
Volume (2/9 11:08AM) 315,448
Last Close Price $36.23
10 Day Average Volume 2.2 Million
13 Week Price Range $33.70 - $46.18
52 Week Price Range $30.16 - $49.73
LTM Revenue $10.7 Billion
 
Shares Outstanding (09/2009) 124.6 Million
Market Capitalization $4.5 Billion
Shares Held By Institutions 101.2 Million
Institutional Holders 668
% Shares Held By Institutions 81.70%
Earnings Per Share (EPS) $3.21
P/E Ratio 12.70
Book Value Per Share $21.82
 
Gross Margin 34.50%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.37
Fiscal Year Ends September

About Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc. is considered to operate in the Services sector. They specifically operate in the Technical Services business segment contained within the Diversified Services industry.

The Company provides a range of technical, professional & construction services including engineering, design & architectural services; construction management services; operations & maintenance services; process, scientific & systems consulting services.