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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#437
Positioning
Market Dominance
Construction
Construction
$17.7B
Steven J. Demetriou
Jacobs Solutions Inc. provides consulting, technical, scientific, and project delivery services for the government and private sectors. The company operates in two segments, Critical Mission Solutions and People & Places Solutions. Jacobs Engineering is involved in the management and execution of wind-tunnel design-build projects.
Headcount
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = J ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$FER Ferrovial SE | 76 | 89 | 94 | 72 | - | - | 162.2% | 12.2% | 87.8% | 88.9% | 38.1% | 0.5% | 2.1% | - | $30.3B | VS | |
$CX CEMEX SAB DE CV | 74 | 81 | 87 | 87 | - | - | 7.8% | 3.5% | 33.6% | 11.2% | 5.9% | -2.1% | 1.1% | 60.0x | $32.6B | VS | |
$MWA Mueller Water Products, Inc. | 69 | 85 | 87 | 57 | 17.9x | 11.0x | 21.4% | 11.0% | 36.1% | 18.2% | 13.4% | 8.8% | 1.1% | 46.0x | $4.0B | VS | |
$TOL Toll Brothers, Inc. | 69 | 83 | 92 | 63 | 7.9x | 5.6x | 16.9% | 9.7% | 25.1% | 15.7% | 12.3% | 1.1% | 0.7% | 34.0x | $13.0B | VS | |
$GFF GRIFFON CORP | 68 | 86 | 82 | 60 | - | - | 34.2% | 2.3% | 42.0% | 8.2% | 2.0% | -4.0% | 0.9% | 1909.0x | $3.5B | VS | |
$FIX COMFORT SYSTEMS USA INC | 68 | 80 | 43 | 97 | 25.0x | 18.1x | 52.7% | 19.4% | 24.8% | 15.5% | 11.9% | 35.2% | 0.2% | 6.0x | $29.1B | VS | |
$BBU Brookfield Business Partners L.P. | 66 | 63 | 94 | 68 | - | - | 5.0% | 1.1% | 14.1% | 7.2% | 2.2% | -26.2% | 1.1% | 1081.0x | $1.7B | VS | |
$PHOE Phoenix Asia Holdings Ltd | 64 | 95 | 97 | 40 | - | - | 42.6% | 22.6% | 29.5% | 17.6% | 13.9% | 28.1% | 0.0% | 0.0x | $6M | VS | |
$EME EMCOR Group, Inc. | 64 | 75 | 42 | 80 | 24.6x | 16.0x | 36.5% | 14.0% | 19.4% | 9.4% | 6.9% | 16.4% | 0.1% | 3.0x | $29.1B | VS | |
$DY DYCOM INDUSTRIES INC | 64 | 68 | 58 | 89 | 19.9x | 9.7x | 29.4% | 11.8% | 22.1% | 10.4% | 7.3% | 14.1% | 0.0% | 63.0x | $8.5B | VS | |
$J JACOBS SOLUTIONS INC. | 63 | 86 | 80 | 41 | 33.6x | 17.7x | 14.0% | 4.2% | 26.4% | 7.0% | 4.0% | 15.7% | 19.5% | 237.0x | $17.7B | ||
| SECTOR BENCH | - | - | - | - | - | 19.1x | 10.7x | 14.2% | 5.9% | 23.7% | 7.3% | 5.4% | 1.9% | 0.0% | 0.4x | - | REF |
JACOBS SOLUTIONS INC. (J) receives a "Hold" rating with a composite score of 62.8/100. It ranks #437 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Steven J. Demetriou
Chief Executive Officer
Labor Force
60,000
86
59
77
Audit Verdict: High quality, disciplined capital allocation, and low volatility suggest strong governance.
No recent insider transactions available for J
60.0K
HQ Base
Wilmington, Texas
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Construction sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for J.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 86 | 95 | -9DRAG |
| MOMENTUM | 41 | 42 | -1NEUTRAL |
| VALUATION | 80 | 87 | -7DRAG |
| INVESTMENT | 59 | 96 | -37DRAG |
| STABILITY | 77 | 85 | -8DRAG |
| SHORT INT | 41 | 34 | +7ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 14.0% (sector 14.2%)
GM 26% vs sector 24%, OM 7% vs sector 7%
Capital turnover N/A
Rev growth 16%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns JACOBS SOLUTIONS INC. a Hold rating, with a composite score of 62.8/100 and 3 out of 5 stars. Ranked #437 of 7,333 stocks, J presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
JACOBS SOLUTIONS INC. scores an outstanding 86/100 on our quality factor, placing it among the highest-quality companies in our coverage universe. The company reports a return on equity of 14.0% (sector avg: 14.2%), gross margins of 26.4% (sector avg: 23.7%), net margins of 4.0% (sector avg: 5.4%). This level of profitability and capital efficiency typically reflects a durable competitive advantage and disciplined management.
J carries a solid value score of 80/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 33.61x, an EV/EBITDA of 17.72x, a P/B ratio of 4.70x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 59/100, J exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 15.7% vs. a sector average of 1.9% and a return on assets of 4.2% (sector: 5.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
J is currently showing below-average momentum at 41/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 15.7% year-over-year, while a beta of 0.95 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
J shows good financial stability with a score of 77/100. Key stability metrics include a beta of 0.95 and a debt-to-equity ratio of 237.00x (sector avg: 0.4x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 41/100 for J suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 237.00x). With a $17.7B market cap (large-cap), JACOBS SOLUTIONS INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
JACOBS SOLUTIONS INC. offers an attractive dividend yield of 19.5%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
JACOBS SOLUTIONS INC. is a large-cap company in the Construction sector, ranked #13 of 50 in its sector (74th percentile) and #437 of 7,333 overall (94th percentile). Key comparisons include ROE of 14.0% trailing the 14.2% sector median and operating margins of 7.0% below the 7.3% sector average. This above-median position indicates J is outperforming a majority of its Construction peers, though there is room to close the gap with sector leaders.
While J currently exhibits a HOLD profile, superior opportunities exist within the CONSTRUCTION sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Construction Alpha →Quant Factor Profile
Key factor gap
Quality (86) vs Momentum (41) — closing this gap could shift the rating.
RANK #13 OF 50 IN INDUSTRIALS
EV/EBITDA 66% ABOVE SECTOR MEDIAN
ROE IN LINE WITH SECTOR BENCHMARKS
Gross Margin 11% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF DEC 26, 2025 (Q3 FY2025)
We rate JACOBS SOLUTIONS INC. (J) as a Hold with a composite score of 62.8/100 at a current price of $134.50. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in quality (86th percentile) and value (80th percentile), which together account for the majority of the composite score. All factors score above the 40th percentile, indicating no material weakness in the quantitative profile. We assign a No Moat rating (38/100), High uncertainty, and Poor capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
JACOBS SOLUTIONS INC. holds an above-average position (#13 of 50) within the Construction sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 62.8/100 places it at rank #437 in our full 7,333-stock universe. With a $17.7B market capitalization, JACOBS SOLUTIONS INC. operates at meaningful scale within the Construction sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 16%, though momentum at the 41th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 26% (+2.6pp vs sector) narrow to operating margins of 7% (-0.4pp vs sector) and net margins of 4.0%, yielding a gross-to-net conversion rate of 15%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $134.50, JACOBS SOLUTIONS INC. appears undervalued relative to its fundamentals. Our value factor score of 80/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.
The stock currently trades at a P/E of 33.6x (a 76% premium to the sector median of 19.1x), EV/EBITDA of 17.7x (at a premium), P/B of 4.7x, P/S of 1.3x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Revenue growth of 16% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
A value factor score of 80/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
A 19.49% dividend yield provides income while you wait, and dividends historically account for a significant portion of total equity returns.
Elevated leverage (237% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
We assign a High uncertainty rating to JACOBS SOLUTIONS INC.. Key risk factors include significant leverage (237% debt-to-equity), the combination of leverage (237% D/E) and thin margins (4.0% net) amplifies downside risk. The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: significant leverage (237% debt-to-equity); the combination of leverage (237% D/E) and thin margins (4.0% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 77th percentile and quality factor at the 86th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: above-average stability (77th percentile) suggests predictable business dynamics; a 19.49% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate JACOBS SOLUTIONS INC.'s capital allocation as Poor. Key concerns include elevated leverage (237% D/E). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — JACOBS SOLUTIONS INC. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, JACOBS SOLUTIONS INC. receives a Hold rating with a composite score of 62.8/100 (rank #437 of 7,333). Our quantitative framework assigns a No Moat (38/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 68/100.
Our analysis supports a neutral stance on JACOBS SOLUTIONS INC.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign JACOBS SOLUTIONS INC. a meaningful economic moat, scoring 38/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, growth durability, reached only 13.3/20.
The strongest moat sources are growth durability (13.3/20) and margin superiority (12.9/20). Rev growth 16%, 11yr history. GM 26% vs sector 24%, OM 7% vs sector 7%. These pillars form the core of JACOBS SOLUTIONS INC.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and financial resilience (3.3/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect JACOBS SOLUTIONS INC.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include robust top-line growth of 16% expanding the revenue base. The margin cascade from 26% gross to 7% operating to 4.0% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 86th percentile.
The margin profile shows gross margins of 26%, operating margins of 7%, net margins of 4.0%. Return metrics include ROE of 14.0% and ROA of 4.2%. Relative to the Construction sector, gross margins are 2.6 percentage points above the sector median of 24%, and ROE of 14.0% compares to a sector median of 14.2%.
The balance sheet reflects high leverage with D/E of 237%, which may limit financial flexibility, a dividend yield of 19.49%, revenue growth of 16%. The sector median D/E is 0%, putting JACOBS SOLUTIONS INC. at higher leverage than the typical peer. Elevated leverage in combination with the current margin profile warrants close monitoring for any deterioration in debt-servicing capacity.
Above 50MA
37.18%
Net New Highs
+51081
Executives from J.B. Hunt Transport Services (NASDAQ:JBHT) told investors at the Barclays 43rd Annual Industrial Select Conference that early first-quarter demand trends appeared stronger than expected, though they cautioned that winter storms have complicated read-throughs on underlying market cond
President Trump announced a $600 billion investment commitment from Saudi Arabia into the U.S., including deals with major companies in tech, defense, and infrastructure.
Jacobs Solutions reported Q3 FY2025 earnings with non-GAAP EPS of $1.62, beating analyst estimates by 5.9%. Revenue was $3.03 billion, slightly below forecasts, but the company showed strong performance in digital consulting, life sciences, and infrastructure sectors.
Jacobs (NYSE: J) has been selected by Natural England and Defra (Department for Environment, Food & Rural Affairs) to provide coordination and field delivery services for the England Ecosystem Survey. This is a cornerstone project within the U.K. government's Natural Capital and Ecosystem Assessment program, which is assessing England's land, freshwater and coastal ecosystems to produce a baseline of England's natural assets by 2029.