JBL

Jabil Inc

TMT, Industrial/Transportation


Presented:03/03/2022
Price:$57.03
Cap:$8.18B
Current Price:$124.26
Cap:$14.10B

Presented

Date03/03/2022
Price$57.03
Market Cap$8.18B
Ent Value$10.78B
P/E Ratio11.63x
Book Value$15.30
Div Yield0.56%
Shares O/S143.48M
Ave Daily Vol1,315,955
Short Int1.55%

Current

Price$124.26
Market Cap$14.10B
Jabil, Inc. engages in the provision of electronic manufacturing services and solutions. It offers electronics design, production, product management, and repair services to companies in the automotive and transportation, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, healthcare, industrial and energy, mobility, networking and telecommunications, packaging, point of sale, and printing industries. The firm operates through the following segments: Electronics Manufacturing Services and Diversified Manufacturing Services. The Electronics Manufacturing Services segment focuses around leveraging IT, supply chain design and engineering, and technologies largely centered on core electronics. The Diversified Manufacturing Services segment provides engineering solutions, with an emphasis on material sciences and technologies. The company was founded by William E. Morean and James Golden in 1966 and is headquartered in St. Petersburg, FL.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Jabil Inc (JBL), Johnson & Johnson (JNJ), Tesla Inc (TSLA)

Highlights

The presenter is long shares of Jabil Inc (JBL), which has a share price in the high-$50 range and a market cap just above $8B. The company went through a CEO transition in 2013, appointing long-term executive Mark Mondello to the position. Since then, JBL has done very well, diversifying the business, executing in secular growth areas, and aggressively buying back stock. As investors have been rotating away from high multiple stocks, JBL’s low P/E may warrant a closer look. The company’s fiscal year ends August 31st, and consensus EPS is $6.63 for FY2022, $7.16 for FY2023, and $7.60 for FY2024. Based on his 2024 EPS forecast of ~$10, he has a $100 price target without any multiple expansion and sees upside to $120 – $130 if its earnings multiple expands to 12x – 13x. 

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Idea Discussion

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