JBL – Market expectations are for Uniform ROA to remain near historical lows, but management is confident about their DMS segment, diversification, and consignment model

• Jabil Inc. (JBL:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with a 15.4x Uniform P/E. At these levels, the market has expectations for profitability to remain near historical lows, but management is confident about their DMS segment, diversified income, and new consignment model
  
  

• Specifically, management is confident in their ability to diversify their income and cash flow and that they uniquely connect their core factories under a single IT system. In addition, they are confident in the potential of the Diversified Manufacturing Services (DMS) segment’s connected devices and mobility divisions. Moreover, management is confident their cloud business’ switch to a consignment model will lighten the balance sheet