July 09, 2025 a 02:47 am
J: Dividend Analysis - Jacobs Engineering Group Inc.
Jacobs Engineering Group Inc. has consistently delivered a moderate dividend yield, signaling a stable source of passive income for investors. With a strong track record of dividend payments over the years, the company is committed to returning capital to shareholders. Its current dividend sustainability is backed by solid financial fundamentals, making it a reliable choice for investors seeking steady dividend growth. However, the relatively average payout ratios suggest room for potential improvement in shareholder returns.
📊 Overview
Jacobs Engineering Group Inc., a key player in the Engineering sector, offers an impressive dividend yield of 1.16%, with a current dividend per share at USD 1.14. Having maintained a stable dividend history for 12 years without recent cuts or suspensions, it represents a consistent earning vehicle for dividend-seeking investors.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Engineering | 1.16 % | 1.14 USD | 12 years | None |
📈 Dividend History
The company's dividend history underlines its commitment to consistently distribute earnings back to shareholders. An unbroken chain of payments reassures investors about the reliability and dependability of their income streams. This track record is particularly crucial during volatile market conditions.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.64 |
| 2024 | 1.06454 |
| 2023 | 0.99721 |
| 2022 | 0.92 |
| 2021 | 0.77088 |
📈 Dividend Growth
Dividend growth is a critical indicator of a company's financial health and its ability to increase shareholder value over time. Jacobs exhibits a 3-year dividend growth rate of 11.36% and a 5-year growth rate of 12.30%. These figures highlight a pattern of sustainable growth and a commitment to enhancing shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 11.36% |
| 5 years | 12.30% |
The average dividend growth of 12.30% over 5 years showcases moderate but steady dividend growth, reinforcing confidence in the company's ability to generate increasing shareholder returns.
✅ Payout Ratio
Payout ratios are critical for assessing the sustainability of dividends. Jacobs possesses a commendable EPS-based payout ratio of 30.29% and a free cash flow-based ratio of 23.30%, reflecting the firm's robustness in maintaining dividend payments while achieving earnings and cash flow growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 30.29% |
| Free cash flow-based | 23.30% |
The payout ratios highlight a prudent approach in balancing dividend payments with retained earnings, providing a buffer for reinvestment and growth opportunities.
📉 Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency metrics is crucial for understanding the core financial health of a company. Jacob's ratios indicate a strategic allocation of resources that supports ongoing operations and sustainable growth.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.80% | 5.86% | 3.01% |
| Earnings Yield | 5.00% | 4.66% | 5.58% |
| 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% |
The cash flow metrics reveal Jacob's effectiveness in generating operating cash and managing capital expenditures, supporting sustainable financial operations.
💪 Balance Sheet & Leverage Analysis
A thorough understanding of leverage ratios is imperative to evaluate financial stability. Jacobs' metrics present a sound debt structure, providing confidence in its ability to manage its liabilities effectively.
| Year | 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 | 1.28 | 2.65 | 3.44 |
| Current Ratio | 1.20 | 1.37 | 1.45 |
| Quick Ratio | 1.20 | 1.37 | 1.45 |
| Financial Leverage | 2.58 | 2.23 | 2.42 |
Jacobs maintains an optimal leverage position, facilitating its growth and investment strategies while ensuring long-term financial resilience.
📊 Fundamental Strength & Profitability
Jacobs exhibits robust profitability metrics that demonstrate its capability to generate significant returns from its investments, contributing to shareholder value appreciation.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.72% | 10.17% | 10.63% |
| Return on Assets | 6.85% | 4.55% | 4.39% |
| Margins: Net | 7.01% | 6.14% | 6.58% |
| EBIT | 8.23% | 6.35% | 5.91% |
| EBITDA | 10.91% | 9.18% | 8.98% |
| Gross | 24.63% | 24.98% | 26.37% |
| Research & Development to Revenue | 0% | 0% | 0% |
With strong return metrics and stable profit margins, Jacobs is positioned as a competitive player within its industry, delivering consistent growth and opportunity for capital appreciation.
📈 Price Development
⭐ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🗣️ Rating
Jacobs Engineering Group Inc. offers a well-rounded dividend profile characterized by steady growth and a sound financial foundation. For dividend-focused investors, it presents a resilient option with potential for capital appreciation. Overall, Jacobs secures a recommendation for inclusion in a diversified income portfolio.