Jacobs Solutions Inc.

Valuation Analysis

About the Company

Jacobs Solutions Inc. engages in the infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company provides consulting, planning, architecture, design, engineering, and infrastructure delivery services including project, program, and construction management and long-term operation of facilities. It also offers consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors. The company was founded in 1947 and is headquartered in Dallas, Texas.

Jacobs Solutions Inc. Stock at a Glance

Jacobs Solutions Inc. (J) is currently trading at $127.00 with a market capitalization of $15B. The trailing P/E ratio stands at 37.46x, with a forward P/E of 15.35x. The 52-week range spans from $105.68 to $168.44; the current price is 24.6% below the yearly high. Year-over-year revenue growth stands at +27.0%. The net profit margin stands at 2.9%.

💰 Dividend

Jacobs Solutions Inc. pays an annual dividend of $1.44 per share, representing a yield of 1.13%. The payout ratio stands at 38.94%.

📊 Analyst Rating

15 analysts rate Jacobs Solutions Inc. (J) on consensus: Buy. The average price target is $158.27, implying +24.62% from the current price. Analyst price targets range from $131.00 to $181.00.

Jacobs Solutions Inc.: The Investment Case in Detail

Jacobs Solutions Inc. (J) operates in the Industrials — specifically Engineering & Construction — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 27% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. Wall Street consensus sits at Buy with an average price target implying roughly 24.62% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 2.9%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.4, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 15.35x is meaningfully below the trailing 37.46x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 24.62% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.91%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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