JBL - Jabil: Margin Expansion Excellent FCF Growth And Impactful Buybacks
- Florida-based Jabil is a global leader in the diversified/electronic manufacturing services industry. JBL has been a big beneficiary of the multi-year secular trends in the technology sector.
- Despite its recent stock price appreciation, JBL is trading with TTM P/E of only 13.6x. The stock remains undervalued and has much further to run.
- While investors were disappointed in next quarter's revenue guidance (5% yoy increase), they missed the bigger catalyst: increasing margin.
- Free-cash-flow growth is excellent, and buybacks are meaningfully reducing share count. I reiterate my BUY rating on Jabil and have a one-year PT of $90.
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Jabil: Margin Expansion, Excellent FCF Growth, And Impactful Buybacks