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JJacobs Solutions Inc.
$130.29$15.4B
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  4. Financial Ratios

Jacobs Solutions Inc. (J) Financial Ratios

Latest Ratios: P/E Ratio 54.7x · EV/EBITDA 15.3x · ROE 5.8%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

J Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$15.4B——————————
Enterprise Value$16.9B——————————
P/E Ratio →54.74——————————
P/S Ratio1.28——————————
P/B Ratio3.36——————————
P/FCF25.33——————————
P/OCF22.40——————————

P/E links to full P/E history page with 30-year chart

J EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue———————————
EV / EBITDA15.31——————————
EV / EBIT19.52——————————
EV / FCF———————————

J Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin24.8%24.8%24.6%25.0%26.4%21.6%19.1%19.4%18.9%17.7%16.1%
Operating Margin7.2%7.2%6.0%6.2%5.5%4.9%4.0%3.2%4.3%3.9%3.1%
Net Profit Margin2.4%2.4%7.0%6.1%6.6%3.4%3.6%6.7%1.2%2.9%1.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE5.8%5.8%12.8%9.5%9.6%7.6%8.5%14.5%3.4%6.7%4.8%
ROA2.5%2.5%6.1%4.5%4.4%3.5%4.1%7.0%1.8%4.0%2.8%
ROIC9.9%9.9%6.1%5.2%4.2%6.1%5.7%4.3%8.5%7.3%5.9%
ROCE11.1%11.1%7.3%6.0%4.7%6.6%6.0%4.5%8.7%7.1%5.9%

J Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.580.580.510.480.620.580.440.240.360.050.09
Debt / EBITDA2.462.462.753.524.954.073.592.442.540.460.83
Net Debt / Equity—0.320.300.370.450.420.290.130.25-0.12-0.06
Net Debt / EBITDA1.341.341.612.743.602.992.391.341.79-1.04-0.57
Debt / FCF—2.431.723.228.714.442.49—3.92-1.17-0.44
Interest Coverage4.734.735.604.105.7710.578.095.195.3121.2019.79

J Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.301.301.201.371.451.341.541.341.451.561.61
Quick Ratio1.301.301.201.371.451.341.541.341.451.561.61
Cash Ratio0.370.370.460.230.350.320.410.350.200.400.37
Asset Turnover—1.070.980.740.670.961.101.111.181.361.49
Inventory Turnover———————10778.19———
Days Sales Outstanding—90.6990.3081.77127.0580.3385.2181.3961.2476.5770.43

J Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.0%——————————
Payout Ratio52.7%52.7%17.7%19.3%18.0%23.4%19.9%10.7%45.9%18.5%2.8%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield1.8%——————————
FCF Yield3.9%——————————
Buyback Yield4.9%——————————
Total Shareholder Yield5.9%——————————
Shares Outstanding—$120M$126M$127M$129M$131M$133M$138M$139M$120M$121M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowDeteriorating
Top Statement Risk

Operational margin volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Valuation Disconnect Amid Structural Transition

Based on reported figures, Jacobs' TTM P/E of 52.81 appears significantly elevated compared to peers like AECOM, suggesting that the market is currently pricing in a recovery or growth trajectory that remains unsupported by the company's recent negative net income and volatile earnings performance.

The wide gap between the TTM P/E and the forward P/E of 17.36 indicates that investors are heavily discounting current earnings volatility as a temporary byproduct of the recent spin-off. However, given the lack of a clear PEG ratio and the ongoing margin compression, this valuation may be overly optimistic if the firm fails to achieve the expected operational efficiencies in its Divergent Solutions segment.

Capital Efficiency Decay Following Restructuring

As reported in financial statements, Jacobs' ROIC has trended downward into negative territory, reaching -0.8% in 2026Q2, which highlights a significant erosion in the company's ability to generate returns on invested capital compared to the more stable performance observed in previous fiscal periods.

The decline in ROIC suggests that the capital deployed into the business is currently failing to generate adequate returns, likely exacerbated by the integration costs and the loss of the higher-margin government services arm. This trend warrants further investigation into whether the current asset base is being utilized effectively or if the company is over-capitalized relative to its current project pipeline.

Working Capital Management Under Stress

According to recent quarterly data, Jacobs' asset turnover has remained suppressed at 0.31 in 2026Q2, while DSO has fluctuated significantly, indicating that the company is struggling to maintain efficient working capital cycles during its ongoing operational realignment and transition to a leaner business model.

The inability to optimize the cash conversion cycle, evidenced by the erratic DSO trends, suggests potential friction in project billing and collection processes. Investors should monitor whether these inefficiencies are structural or merely temporary bottlenecks resulting from the recent corporate separation and the associated changes in client contract structures.

Rising Debt Burden Constrains Flexibility

Based on the latest quarterly filings, Jacobs' debt-to-equity ratio has climbed to 1.39 in 2026Q2, a sharp increase from historical levels, which suggests that the company's financial flexibility is becoming increasingly constrained as it navigates a period of negative operating margins and reduced cash flow generation.

The rising leverage profile, combined with an interest coverage ratio that has turned negative, indicates that debt service may become a significant burden if operational performance does not improve rapidly. This shift in the balance sheet risk profile suggests that the company has less room for error in its capital allocation and project execution strategies.

Misapplication of Traditional P/E Multiples

The P/E ratio is frequently misapplied to Jacobs, as it fails to account for the significant impact of pass-through costs and non-recurring restructuring charges that distort net income, making it a poor metric for assessing the underlying earning power of this engineering-focused business model.

Analysts should instead prioritize metrics like EV/EBITDA or free cash flow yield, which better capture the operational reality of a project-based firm. Relying on P/E in the current environment obscures the true margin profile and the potential for cash flow volatility inherent in the company's current contract mix.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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J — Frequently Asked Questions

Quick answers to the most common questions about buying J stock.

What is Jacobs Solutions Inc.'s P/E ratio?

Jacobs Solutions Inc.'s current P/E ratio is 54.7x. This places it at the 50th percentile of its historical range.

What is Jacobs Solutions Inc.'s EV/EBITDA?

Jacobs Solutions Inc.'s current EV/EBITDA is 15.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.

What is Jacobs Solutions Inc.'s ROE?

Jacobs Solutions Inc.'s return on equity (ROE) is 5.8%. The historical average is 11.9%.

Is J stock overvalued?

Based on historical data, Jacobs Solutions Inc. is trading at a P/E of 54.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Jacobs Solutions Inc.'s dividend yield?

Jacobs Solutions Inc.'s current dividend yield is 0.98% with a payout ratio of 52.7%.

What are Jacobs Solutions Inc.'s profit margins?

Jacobs Solutions Inc. has 24.8% gross margin and 7.2% operating margin.

How much debt does Jacobs Solutions Inc. have?

Jacobs Solutions Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.