April 13, 2025 a 10:46 am
📊 Dividend Analysis - Jacobs Engineering Group Inc.
Jacobs Engineering Group Inc. showcases a compelling dividend profile with consistent historical payouts and moderate growth over time. Backed by a robust balance sheet and stable cash flows, this firm presents a promising opportunity for income-focused investors seeking steady, albeit not exceptionally high, yield potential.
Overview
Jacobs Engineering Group Inc., positioned within the industrial sector, has demonstrated a stable dividend history spanning 12 years, offering a current dividend yield of approximately 0.89% with a last dividend per share of 1.14 USD. Notably, the company has maintained its dividend without cuts or suspensions, showcasing resilience in its payout policy.
| Metric | Value |
|---|---|
| Sector | Engineering Services |
| Dividend yield | 0.89 % |
| Current dividend per share | 1.14 USD |
| Dividend history | 12 years |
| Last cut or suspension | None |
🗣️ Dividend History
The historical consistency in dividend payments is a crucial indicator of a company's stability and commitment to shareholder returns. Over the years, Jacobs Engineering has responsibly managed its payouts, adapting to market conditions while maintaining investor trust.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.32 |
| 2024 | 1.06454 |
| 2023 | 0.99721 |
| 2022 | 0.92 |
| 2021 | 0.77088 |
📈 Dividend Growth
Steady dividend growth reflects a company's consistent financial health and its ability to enhance shareholder value over time. Jacobs Engineering Group has reported a calculated growth of 11.36% over the past three years and 12.30% over five years, indicating a stable yet modest uptrend in dividend distribution.
| Time | Growth |
|---|---|
| 3 years | 11.36 % |
| 5 years | 12.30 % |
The average dividend growth is 12.30% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is an essential measure of a company's dividend sustainability. With an EPS-based payout ratio of 22.93% and a free cash flow-based ratio of approximately 22.17%, Jacobs Engineering demonstrates a disciplined approach to maintaining its dividends within prudent limits, allowing room for reinvestment and growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 22.93 % |
| Free cash flow-based | 22.17 % |
The conservative payout ratios suggest that Jacobs Engineering is capable of sustaining its dividend payments while also capitalizing on further growth opportunities.
Cashflow & Capital Efficiency
Understanding a firm's cash flow and its efficiency in capital allocation are pivotal for assessing its operational health and investment capability. Jacobs Engineering exhibits a sound cash flow profile with a healthy free cash flow yield and disciplined capital expenditure relative to its operating cash flow.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.74% | 5.80% | 2.97% |
| Earnings Yield | 4.95% | 4.61% | 5.53% |
| CAPEX to Operating Cash Flow | 11.48% | 14.10% | 26.88% |
| Stock-based Compensation to Revenue | 0.65% | 0.68% | 0.55% |
| Free Cash Flow / Operating Cash Flow Ratio | 88.52% | 85.90% | 73.12% |
Overall, Jacobs demonstrates a robust cash flow situation, indicating a solid ability to fund its dividend policy along with future growth initiatives.
Balance Sheet & Leverage Analysis
A thorough analysis of the balance sheet and leverage provides insights into a company's financial health. Jacobs Engineering maintains a reasonable level of debt, with moderate leverage ratios that suggest a stable financial structure.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.60 | 0.55 | 0.69 |
| Debt-to-Assets | 0.23 | 0.24 | 0.28 |
| Debt-to-Capital | 0.38 | 0.35 | 0.41 |
| Net Debt to EBITDA | 1.55 | 2.65 | 3.44 |
| Current Ratio | 1.25 | 1.37 | 1.45 |
| Quick Ratio | 1.20 | 1.37 | 1.45 |
| Financial Leverage | 2.58 | 2.23 | 2.42 |
The company's balance sheet demonstrates solid financial stability with manageable debt levels and adequate liquidity, indicating resilience against potential financial challenges.
Fundamental Strength & Profitability
Fundamental indicators and profitability metrics are essential for assessing a company's operational success and capability to generate returns. Jacobs Engineering records consistent margins, indicating operational efficiency and strength in maintaining profitability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.72% | 10.17% | 10.63% |
| Return on Assets | 6.86% | 4.55% | 4.39% |
| Net Margin | 7.01% | 6.14% | 6.58% |
| EBIT Margin | 8.23% | 6.35% | 5.90% |
| EBITDA Margin | 10.91% | 9.18% | 8.98% |
| Gross Margin | 24.63% | 24.98% | 26.37% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
The robust profitability metrics illustrate Jacobs Engineering's capacity to generate significant returns and maintain streamlined operations, reinforcing its foundation for long-term growth and shareholder value.
Price Development
Dividend Scoring System
| Criteria | Score | Performance |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 33/40
Rating
In conclusion, Jacobs Engineering Group Inc. presents a strong dividend-paying stock with moderate growth potential and solid financial management. It is recommended for investors seeking stability and long-term income prospects, balanced by the consideration of its modest yield.