Continue to hold Jabil Circuit (NYSE:JBL)?


USD 68.53  0.56  0.81%   

The predictive indicators we use to evaluate Jabil help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Jabil Circuit. We apply different methods to arrive at the intrinsic value of Jabil based on widely used predictive technical indicators. Today we will summarize Jabil Circuit. We will analyze why it could be a much better year for Jabil Circuit shareholders.
Published over two months ago
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The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Jabil Circuit has an asset utilization ratio of 308.64 percent. This denotes that the company is making $3.09 for each dollar of assets. An increasing asset utilization means that Jabil Circuit is more efficient with each dollar of assets it utilizes for everyday operations.
The company has Net Profit Margin of 2.69 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 6.89 %, which entails that for every 100 dollars of revenue, it generated 0.07 of operating income.
The successful prediction of Jabil Circuit stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Jabil Circuit, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Jabil Circuit based on Jabil Circuit hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Jabil Circuit's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Jabil Circuit's related companies.

Use Technical Analysis to project Jabil expected Price

Jabil Circuit technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Jabil Circuit technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Jabil Circuit trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Jabil utilize its cash?

To perform a cash flow analysis of Jabil Circuit, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Jabil Circuit is receiving and how much cash it distributes out in a given period. The Jabil Circuit cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Jabil Circuit Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 1.31 Billion

Breaking down Jabil Circuit Further

The company reported the last year's revenue of 31.86 B. Total Income to common stockholders was 856 M with profit before taxes, overhead, and interest of 2.36 B.

Jabil Circuit has a good chance to finish above $57 in 2 months

New standard deviation is at 1.98. Jabil Circuit has relatively low volatility with skewness of 0.02 and kurtosis of -0.5. However, we advise all investors to independently investigate Jabil Circuit to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Jabil Circuit's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Jabil Circuit's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Jabil Circuit

While many of the other players under the electronic components industry are still a bit expensive, Jabil Circuit may offer a potential longer-term growth to stakeholders. On the whole, as of the 26th of September 2022, our analysis shows that Jabil Circuit responds to the market. The company is undervalued and projects low chance of bankruptcy for the next 2 years. Our latest 90 days buy-or-sell advice on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Jabil Circuit. Please refer to our Terms of Use for any information regarding our disclosure principles.

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