Today’s Stock: Jacobs Solutions Inc. (J)Today’s Stock: Jacobs Solutions Inc. (J)
Jacobs Solutions Inc. engages in the infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company provides consulting, planning, architecture, design, engineering, and infrastructure delivery services including project, program, and construction management and long-term operation of facilities. It also offers consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors.
My Thoughts 💭My Thoughts 💭
Construction is right up my alley! I already buy shares of Skanska which is based in Sweden and Ansel naturally is going with an American construction company which will be viral to bring manufacturing back to the States!
At 190.6k sats per share ($72,573), and a 1.9k sat per share yearly dividend. It would take
100 years to break even.
The company trades at a PE 35 which means investors are paying $35 access $1 of earnings. A very expensive stock by historical standards.
Let’s review some key fundamentals to determine if this stock is worth spending sats on.
PE:PE:
Expected Growth:Expected Growth:
Revenues and expenses:Revenues and expenses:
Balance Sheet:Balance Sheet:
Dividend:Dividend:
Bitcoin per share:Bitcoin per share:
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Ownership breakdown :Ownership breakdown :
Leadership:Leadership:
The company’s fundamentals are quite basic. The balance sheet is satisfactory, and the growth prospects are decent (projected to grow slower than Bitcoin). Margins are thin but profitable, and the dividend payment is marginal and lags inflation, resulting in a negative real return. Construction is a high-labor, capital-intensive business, so growth will be slow and steady. However, it may erode the investors’ purchasing power in the long run.
The negatives are the elevated valuation and the heavy institutional ownership. One misstep, and the stock will be heavily dumped.
From a Bitcoin perspective, paying 190,000 sats for one share is not a wise investment. Institutional investors like this stock for its predictability and cash flow to meet dividend and debt payments. But over the long run, with one share of this company, can you protect purchasing power over a 10-20-year span better than Bitcoin? I highly doubt it!
Here is the performance according to Simply Wall Street
Picking stocks that will lead the American reindustrialization trade is challenging. I commend Ansel for attempting this. However, this business is not particularly lucrative. It won’t significantly increase or decrease your wealth, but it will provide a stable income. If you want to invest in this company to support its mission in a morally and ethically sound manner, you can do so by burning Sats. If you’re not interested in this approach, you can skip this investment if you’re a Bitcoin enthusiast.