J

Jacobs Engineering Group, Inc.

Industrial/Transportation


Presented:01/14/2020
Price:$92.58
Cap:$12.34B
Current Price:$138.34
Cap:$17.19B

Presented

Date01/14/2020
Price$92.58
Market Cap$12.34B
Ent Value$13.17B
P/E RatioN/A
Book Value$43.01
Div Yield0.73%
Shares O/S133.25M
Ave Daily Vol966,846
Short Int2.36%

Current

Price$138.34
Market Cap$17.19B
Jacobs Engineering Group, Inc. engages in the provision of a diverse range of technical, professional, and construction services to industrial, commercial, and governmental clients. Jacobs provides professional services through two lines of businesses: Critical Mission Solutions, and People and Places Solutions. Though the Critical Mission Solutions business, it provides cyber security, data analytics, software application development, enterprise and mission IT, systems integration and other technical consulting solutions to government agencies as well as selective aerospace, automotive and telecom customers. Its representative clients include national government departments/agencies in the US, Europe, United Kingdom, Australia, and Asia; state and local departments of transportation within the US; and private industry firms. The People and Places Solutions business provides end-to-end solutions for clients projects which includes connected mobility, water, smart cities, advanced manufacturing or the environment. Its clients include national, state and local government in the U.S., Europe, U.K., Middle East, Australia, New Zealand and Asia, as well as the private sector throughout the world. The company was founded by Joseph J. Jacobs in 1947 and is headquartered in Dallas, TX.

Publicly traded companies mentioned herein: Jacobs Engineering Group Inc (J), Worley Ltd (WOR AU)

Highlights

The presenter is long shares of Jacobs Engineering Group Inc (J), which is in the middle of a business transformation and not exposed to macro risk. While the Street estimates $6.52 EPS for FY2021 (ends September 30, 2021), he is slightly higher $7 – $8 and thinks this is an opportunity for investors to buy non-E&C assets at an E&C price (11x – 13x his 2021 earnings). Based on comps that he views as more appropriate, the presenter believes the stock has upside to ~$160 per share (18x – 20x his 2021 estimate) as the Street’s perception and coverage improves.

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Idea Discussion

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