Jacobs Solutions Price To Earning vs. Price To Sales

J Stock  USD 136.18  0.75  0.55%   
Based on Jacobs Solutions' profitability indicators, Jacobs Solutions may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in December. Profitability indicators assess Jacobs Solutions' ability to earn profits and add value for shareholders. The value of Price To Sales Ratio is estimated to pull down to 0.78. The value of Days Sales Outstanding is estimated to pull down to 83.29. At this time, Jacobs Solutions' Non Operating Income Net Other is relatively stable compared to the past year. Net Income Per Share is expected to hike to 5.01 this year, although the value of Net Income From Continuing Ops will most likely fall to nearly 419.8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.2463
Moderately Down
Slightly volatile
Net Profit Margin0.04320.0701
Way Down
Slightly volatile
Operating Profit Margin0.06150.0602
Fairly Up
Slightly volatile
Pretax Profit Margin0.05870.0676
Fairly Down
Slightly volatile
Return On Assets0.04390.0686
Way Down
Slightly volatile
Return On Equity0.110.1772
Way Down
Slightly volatile
For Jacobs Solutions profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jacobs Solutions to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jacobs Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jacobs Solutions's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jacobs Solutions over time as well as its relative position and ranking within its peers.
  

Jacobs Solutions' Revenue Breakdown by Earning Segment

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For more information on how to buy Jacobs Stock please use our How to buy in Jacobs Stock guide.
Is Construction & Engineering space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Jacobs Solutions. If investors know Jacobs will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Jacobs Solutions listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.09)
Earnings Share
4.79
Revenue Per Share
134.766
Quarterly Revenue Growth
0.011
Return On Assets
0.0498
The market value of Jacobs Solutions is measured differently than its book value, which is the value of Jacobs that is recorded on the company's balance sheet. Investors also form their own opinion of Jacobs Solutions' value that differs from its market value or its book value, called intrinsic value, which is Jacobs Solutions' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Jacobs Solutions' market value can be influenced by many factors that don't directly affect Jacobs Solutions' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Jacobs Solutions' value and its price as these two are different measures arrived at by different means. Investors typically determine if Jacobs Solutions is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jacobs Solutions' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Jacobs Solutions Price To Sales vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jacobs Solutions's current stock value. Our valuation model uses many indicators to compare Jacobs Solutions value to that of its competitors to determine the firm's financial worth.
Jacobs Solutions is rated below average in price to earning category among its peers. It is rated below average in price to sales category among its peers fabricating about  0.03  of Price To Sales per Price To Earning. The ratio of Price To Earning to Price To Sales for Jacobs Solutions is roughly  38.66 . At this time, Jacobs Solutions' Price To Sales Ratio is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Jacobs Solutions by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Jacobs Price To Sales vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Jacobs Solutions

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
38.39 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Jacobs Solutions

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.99 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Jacobs Price To Sales Comparison

Jacobs Solutions is currently under evaluation in price to sales category among its peers.

Jacobs Solutions Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jacobs Solutions, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jacobs Solutions will eventually generate negative long term returns. The profitability progress is the general direction of Jacobs Solutions' change in net profit over the period of time. It can combine multiple indicators of Jacobs Solutions, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-699.4 M-664.5 M
Operating Income692.4 M727.1 M
Income Before Tax777.3 M816.2 M
Total Other Income Expense Net84.8 M89.1 M
Net Income852.6 M895.3 M
Income Tax Expense131.5 M98.7 M
Net Income From Continuing Ops828.6 M419.8 M
Non Operating Income Net Other67.6 M70.9 M
Net Income Applicable To Common Shares775.2 M455.5 M
Interest Income29.9 M26.3 M
Net Interest Income-127.9 M-121.5 M
Change To Netincome121.4 M63.8 M
Net Income Per Share 4.79  5.01 
Income Quality 1.24  0.66 
Net Income Per E B T 1.04  0.73 

Jacobs Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Jacobs Solutions. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Jacobs Solutions position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Jacobs Solutions' important profitability drivers and their relationship over time.

Use Jacobs Solutions in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Jacobs Solutions position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jacobs Solutions will appreciate offsetting losses from the drop in the long position's value.

Jacobs Solutions Pair Trading

Jacobs Solutions Pair Trading Analysis

The ability to find closely correlated positions to Jacobs Solutions could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Jacobs Solutions when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Jacobs Solutions - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Jacobs Solutions to buy it.
The correlation of Jacobs Solutions is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Jacobs Solutions moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Jacobs Solutions moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Jacobs Solutions can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Jacobs Solutions position

In addition to having Jacobs Solutions in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Airlines
Airlines Theme
Domestic and international airlines and airline services. The Airlines theme has 37 constituents at this time.
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Check out Risk vs Return Analysis.
For more information on how to buy Jacobs Stock please use our How to buy in Jacobs Stock guide.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
To fully project Jacobs Solutions' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jacobs Solutions at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Jacobs Solutions' income statement, its balance sheet, and the statement of cash flows.
Potential Jacobs Solutions investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Jacobs Solutions investors may work on each financial statement separately, they are all related. The changes in Jacobs Solutions's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jacobs Solutions's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.