Jabil Announces $300M Debt Offering with 5.45% Senior Notes Maturing in 2029
April 13, 2023
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Jabil Inc ($NYSE:JBL)., a technology supply chain company, recently announced a $300 million debt offering, with 5.45% senior notes maturing in 2029. The notes will be sold in a private placement to qualified institutional buyers. The goal of the offering is to support Jabil’s financial stability and provide funds for general corporate purposes. This offering will help to reduce the company’s need for additional external financing sources and strengthen its balance sheet.
Jabil Inc. is a technology supply chain services company. It provides end-to-end design, manufacturing, supply chain and product management services to global companies in the automotive, healthcare, industrial, computing and infrastructure markets. It employs a variety of technologies, processes and materials to create better products for its customers.
Stock Price
The company plans to use the proceeds from the offering to finance acquisitions and investments, strengthen its balance sheet and increase financial flexibility. The offering was well received by investors, as JABIL INC stock opened at $83.2 and closed at $83.1, up by 0.1% from previous closing price of 83.0. This positive response is indicative of investor confidence in the company’s long-term prospects.
Overall, this debt offering is seen as a positive move for JABIL INC as it will help them gain access to additional funds for investments and acquisitions. This will enable them to further their growth strategy and build on their competitive advantages in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Jabil Inc. More…
| Total Revenues | Net Income | Net Margin |
| 35.13k | 963 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Jabil Inc. More…
| Operations | Investing | Financing |
| 2.03k | -1.05k | -878 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Jabil Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.57k | 16.89k | 18.84 |
Key Ratios Snapshot
Some of the financial key ratios for Jabil Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.1% | 31.4% | 4.2% |
| FCF Margin | ROE | ROA |
| 2.0% | 35.6% | 4.7% |
Analysis
At GoodWhale, we specialize in analyzing financials for investors. Our team of data scientists and analysts have recently completed a comprehensive review of JABIL INC‘s financials, and we have some interesting insights to share. According to our Risk Rating, JABIL INC is a medium risk investment in terms of financial and business aspects. Although there are some areas of improvement, such as increasing the company’s liquidity ratios, overall the company has a relatively solid financial foundation. We also detected one risk warning in non-financial areas. To find out more information about this warning, we invite you to register on our website at goodwhale.com. With GoodWhale, you will have access to comprehensive reports and insights that you can use to make the right decisions with your investments. More…
Peers
It is headquartered in St. Petersburg, Florida, and it has been in business since 1966. The company has more than 100,000 employees, and its revenue was $17.9 billion in 2017. Jabil Inc‘s main competitors are Flex Ltd, Venture Corp Ltd, and Suzhou Etron Technologies Co Ltd.
– Flex Ltd ($NASDAQ:FLEX)
Flex Ltd is a leading manufacturer of electronic components and assemblies. The company has a market capitalization of 7.97 billion as of 2022 and a return on equity of 18.46%. Flex Ltd is a diversified company that operates in a variety of industries, including automotive, consumer electronics, communications, computing, and industrial. The company has a strong global presence and is headquartered in Singapore. Flex Ltd is a publicly traded company on the Singapore Stock Exchange.
– Venture Corp Ltd ($SGX:V03)
Venture Corp Ltd is a Singapore-based company that provides electronic manufacturing services. The company has a market cap of 4.64B as of 2022 and a Return on Equity of 12.65%. The company’s primary businesses are in the areas of original design manufacturing, precision engineering, and electronics manufacturing services. The company also provides value-added services such as product development, assembly, and testing.
– Suzhou Etron Technologies Co Ltd ($SHSE:603380)
As of 2022, Suzhou Etron Technologies Co Ltd has a market cap of 4.81B and a Return on Equity of 13.48%. The company is engaged in the research, development, production and sales of optoelectronic products and solutions. The company’s products are used in a wide range of applications, including telecommunications, data communications, consumer electronics, automotive electronics, industrial electronics and medical electronics.
Summary
Jabil Inc. recently announced the issuance of $300 million in senior notes due 2029. These notes are unsecured obligations of Jabil and will rank equally with all of Jabil’s other senior unsecured indebtedness. The net proceeds of this offering are expected to be used to refinance existing debt and for general corporate purposes. This is an attractive investment opportunity for investors who are seeking a relatively high yield and the security of investing in a publicly traded company with a solid track record of performance. The company also has a history of returning cash to shareholders through dividends and share repurchases.
Additionally, Jabil’s diverse customer base and operations in multiple markets provide potential growth opportunities that could further drive returns for shareholders.
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