Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Jabil Inc. (NYSE:JBL) due to its excellent fundamentals in more than one area. JBL is a financially-sound company with a strong history of dividend payments and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Jabil here.
Reasonable growth potential with adequate balance sheet and pays a dividend
One reason why investors are attracted to JBL is its earnings growth potential in the near future of 24% which is expected to flow into an impressive return on equity of 28% over the next couple of years. JBL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. JBL appears to have made good use of debt, producing operating cash levels of 0.83x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, JBL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.1%.
For Jabil, I've compiled three important aspects you should further research:
- Historical Performance: What has JBL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is JBL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JBL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JBL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.