Jacobs Solutions Inc. presents a promising dividend profile with a current yield of 1.23%, reflecting its commitment to shareholder returns. Over its 13-year dividend history, the company has demonstrated stability, with no recent cuts or suspensions. However, the modest dividend growth rate suggests a steady approach to increases. Investors should consider the growth potential along with the solid payout ratios and overall financial health.
The company operates in a sector where stability and gradual growth are preferred. The current dividend yield of 1.23% and a dividend track record of 13 years underline a stable income source for investors. The last cut or suspension of dividends being unrecorded signifies the company's resilience in maintaining its payout.
| Metric | Value |
|---|---|
| Sector | Engineering & Construction |
| Dividend Yield | 1.23% |
| Current Dividend Per Share | 1.27 USD |
| Dividend History | 13 years |
| Last Cut or Suspension | None |
Understanding dividend payments over time reveals a company's commitment to its shareholders. Regular increments indicate financial health and a nod towards shareholder value maximization.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.72 |
| 2025 | 1.28 |
| 2024 | 1.06 |
| 2023 | 0.99 |
| 2022 | 0.92 |
Dividend growth is pivotal for long-term investors seeking income that keeps pace with inflation. Jacobs Solutions has managed to grow its dividends, indicating an optimistic forward-looking investment.
| Time | Growth |
|---|---|
| 3 years | 11.64% |
| 5 years | 12.91% |
The average dividend growth is 12.91% over 5 years. This shows moderate but steady dividend growth.
Payout ratios are crucial for assessing a company's ability to sustainably pay dividends. A low ratio suggests room for growth, whereas a high ratio may indicate risk.
| Key Figure | Ratio |
|---|---|
| EPS-based | 39.33% |
| Free Cash Flow-based | 31.08% |
The EPS-based payout ratio of 39.33% and free cash flow-based ratio of 31.08% are both within a comfortable range, indicating financial flexibility in maintaining or growing dividends.
The financial metrics point towards the capability of the company to generate cash flow and efficiently manage its capital investments, ensuring continued investor returns.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 5.86% | 5.79% | 3.42% |
| Earnings Yield | 4.66% | 5.00% | 1.63% |
| CAPEX to Operating Cash Flow | 14.10% | 11.48% | 11.54% |
| Stock-based Compensation to Revenue | 0.68% | 0.65% | 0.51% |
| Free Cash Flow / Operating Cash Flow Ratio | 85.90% | 88.52% | 88.46% |
The results reflect a solid ability to cover dividends with cash flow and effective capital utilization. Continued attention to capital efficiency enhances potential returns.
Analyzing leverage and liquidity ratios offers insight into the company's ability to manage debt and maintain financial stability through volatile markets.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.53 | 0.60 | 0.74 |
| Debt-to-Assets | 0.24 | 0.23 | 0.24 |
| Debt-to-Capital | 0.35 | 0.38 | 0.43 |
| Net Debt to EBITDA | 2.71 | 1.28 | 1.59 |
| Current Ratio | 1.37 | 1.20 | 1.30 |
| Quick Ratio | 1.37 | 1.20 | 1.30 |
| Financial Leverage | 2.23 | 2.58 | 3.09 |
The company's balance sheet portrays manageable leverage with improvement over recent years, instilling confidence in its ability to handle obligations without compromising growth.
Key profitability and efficiency indicators measure a company's ability to generate earnings relative to revenue and investment.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 10.17% | 17.72% | 7.97% |
| Return on Assets | 4.55% | 6.86% | 2.58% |
| ROIC | 4.79% | 6.63% | 6.50% |
| Net Margin | 6.14% | 7.01% | 2.41% |
| EBIT Margin | 6.35% | 8.23% | 5.73% |
| EBITDA Margin | 9.18% | 10.91% | 7.70% |
| Gross Margin | 24.98% | 24.63% | 24.81% |
Profitability ratios underscore the company's robust margin controls and effective use of resources to drive earnings, cementing its position as a lucrative investment.
This scoring system evaluates various dividend-related attributes rigorously, providing a composite score indicative of investment quality.
| Criteria | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Jacobs Solutions Inc. maintains a stable dividend policy with a potential for moderate growth. Its commitment to shareholder returns, efficient cash flow management, and robust balance sheet position it as a reliable income investment. Recommend considering for a balanced portfolio with a focus on stability and gradual growth.
Don't leave your profits to chance. Historically, this stock follows specific seasonal patterns that institutional traders use to maximize returns.