Jabil

Methodology

Jabil's electronics manufacturing services business generates cyclical earnings tied to customer product cycles and component availability. The company's diversification across healthcare, automotive, and cloud infrastructure provides some stability. This calculation works best when normalizing for customer inventory cycles—neither peak order periods nor destocking phases represent sustainable earnings baselines for this contract manufacturer.

Methodology

Jabil often shows low PEG ratios reflecting the low-margin nature of contract manufacturing and cyclical customer demand. The company's transition toward higher-value healthcare and automotive electronics provides growth offsets. Compare to other EMS providers to assess whether Jabil's end-market mix and operational efficiency justify valuations despite structural margin pressures in electronics manufacturing.

Methodology

Jabil pays a minimal dividend as management prioritizes reinvestment in manufacturing capabilities and strategic acquisitions to move up the value chain. The company focuses capital on expanding higher-margin segments. Total return depends primarily on earnings growth from diversifying beyond commodity consumer electronics into more stable healthcare and automotive manufacturing.