Jacobs Solutions shares have fallen to $125.68 over the last six months, a 7.1% loss that contrasts with the S&P 500's 6.8% gain. The company's revenue declined at a 6.2% annual rate over the past five years, while earnings per share grew at just 2.2% annually, aided by cost management. Its five-year average return on invested capital was 8%, below the 25% or more generated by top business services firms. The stock now trades at 16.2 times forward earnings, and analysts suggest better opportunities exist elsewhere.
Jacobs Solutions Inc.Revenue decline, weak earnings growth, and below-average ROIC; analysts urge caution.