Jabil Circuit Inc (NYSE:JBL)
Background: Jabil Circuit is a worldwide independent provider of electronic manufacturing services. It designs and manufactures electronic circuit board assemblies and systems for major original equipment manufacturers in the communications, computer peripherals, personal computer, automotive and consumer products industries. The company was founded in 1966 and is headquartered in St. Petersburg, Florida. Jabil Circuit trades an average of 2.9 million shares per day with a marketcap of $4.6 billion.
52 Week High: $27.40
52 Week Low: $15.65
Book Value: $9.80
Price To Book: 2.3
JBL is forecast to report lower fourth-quarter earnings after the market closes on September 25, 2012. The consensus estimate is currently 50 cents a share, falling 4 cents (7.4%) from 54 cents during the same period last year.
Nine out of 10 analysts rate JBL a buy or strong buy. The average analyst target price for JBL is $26.67.
In the previous JBL earnings release on June 19, 2012, the closing price was $19.42. In comparison to a recent price (JBL was trading around $21.59 at the time of this writing), shares are up 13%.
From a technical perspective, the chart on JBL looks interesting. The shares have bounced around the 200 day moving average for the last couple of weeks. As of this writing, the shares are just under the highly followed key average, but not to the point of calling JBL in a bearish trend.
The trailing twelve month price-to-earnings ratio is relatively cheap at 10.6. The mean fiscal year estimate price-to-earnings ratio is even cheaper at 9.1, based on earnings of $2.45 per share this year.
This stock currently has an annualized dividend of 32 cents, yielding 1.43%. Reviewing the dividend payment history of a company is essential research. While past payments don't guarantee future dividends, the history does provided color. The average dividend during the last three years was $0.29. Over the last five years, the dividend has expanded by an average of 2.7% per year.
After adding in the dividend (even as small as it is), it's hard to make a case for JBL being anything other than cheap. The dividend payout ratio is super low and under 20%. A simple buy and hold strategy is about all that is needed here. If you own JBL and don't need to cash out, you might as well disregard this quarter.
Currently, the short interest based on the float is small and not a big concern. Short interest is 3%.
I used Zacks.com, WSJ.com, Tradestation, and Reuters for my data. P/E is generally adjusted P/E based on an average number of shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.