Jacobs Solutions Inc. (J)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and trade at a sensible price. Jacobs is a 47,000-person engineering and consulting firm. In fiscal Q3 2026, the quarter ended 2026-06-26, revenue was $4.1B, but net income was $136.6M and diluted EPS $1.15; in fiscal Q3 2025, the quarter ended 2025-06-27, revenue was $3.0B, net income $179.6M, and diluted EPS $1.55. Fiscal Q2 2026, the quarter ended 2026-03-27, showed a $45.9M net loss and diluted EPS of -$0.34. For FY2025, the year ended 2025-09-26, revenue was $12.0B, net income $289.3M, and diluted EPS $2.38, versus FY2024 net income of $806.1M and diluted EPS of $6.32. That inconsistency matters. FairStock's calculations show ROE of 8.00%, ROCE of 4.55%, and D/E of 1.25—modest returns with meaningful leverage. The Piotroski F-score of 7/9 and TTM free cash flow of $644.5M are positives, but the Altman Z-score of 1.86 and 3.7% FCF yield do not provide much cushion. At the $147.14 close on 2026-10-26, FairStock shows P/E 48.88, P/B 5.28, EV/EBITDA 21.96, and a Graham Number of $43.45, giving a margin of safety of -233.86%. The computed Lynch category is Slow Grower — Shrinking, with profit -10.1% a year over five years and revenue -2.4%. A 0.68 beta and 1.00% dividend yield are not enough to offset the price. This may be a respectable engineering franchise, but the numbers do not show a wide moat or a bargain; I would want evidence that margins and returns are recovering.

In plain English: Jacobs helps design, plan, and manage large infrastructure and engineering projects. Sales improved in the latest reported quarter, but profits have been uneven and fell from a year earlier, and a recent quarter had a loss. At $147.14, the shares look expensive compared with the company's earnings and accounting value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-26) · fiscal Q2 2026 10-Q (period ended 2026-03-27) · fiscal Q1 2026 10-Q (period ended 2025-12-26) · fiscal Q3 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2025-09-26) · FY2024 10-K (period ended 2024-09-27) · FY2023 10-K (period ended 2023-09-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer