NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - NYSE:NJR - US6460251068 - Common Stock
45.71 USD
-0.34 (-0.74%)
45.71 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to NJR. NJR was compared to 14 industry peers in the Gas Utilities industry. NJR scores excellent on profitability, but there are concerns on its financial health. NJR is not valued too expensively and it also shows a decent growth rate. Finally NJR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NJR had positive earnings in the past year.
In the past year NJR had a positive cash flow from operations.
NJR had positive earnings in each of the past 5 years.
In the past 5 years NJR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, NJR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NJR has a Return On Equity of 16.99%. This is amongst the best in the industry. NJR outperforms 100.00% of its industry peers.
NJR has a better Return On Invested Capital (6.58%) than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NJR is in line with the industry average of 6.32%.
The 3 year average ROIC (5.71%) for NJR is below the current ROIC(6.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 16.99% | ||
| ROIC | 6.58% |
ROA(3y)4.2%
ROA(5y)3.54%
ROE(3y)13.86%
ROE(5y)11.75%
ROIC(3y)5.71%
ROIC(5y)5.1%
1.3 Margins
NJR has a better Profit Margin (19.64%) than 92.86% of its industry peers.
NJR's Profit Margin has improved in the last couple of years.
NJR has a Operating Margin of 26.64%. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of NJR has grown nicely.
Looking at the Gross Margin, with a value of 58.11%, NJR is doing worse than 64.29% of the companies in the same industry.
NJR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.64% | ||
| PM (TTM) | 19.64% | ||
| GM | 58.11% |
OM growth 3Y24%
OM growth 5Y32.05%
PM growth 3Y43.43%
PM growth 5Y27.54%
GM growth 3Y17.21%
GM growth 5Y23.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NJR is still creating some value.
NJR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NJR has more shares outstanding
The debt/assets ratio for NJR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that NJR is in the distress zone and has some risk of bankruptcy.
NJR has a Altman-Z score of 1.37. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that NJR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.37, NJR is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC1.04
WACC6.31%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NJR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 0.48 indicates that NJR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.48, NJR is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 70.34% over the past year.
The Earnings Per Share has been growing by 8.41% on average over the past years. This is quite good.
Looking at the last year, NJR shows a very strong growth in Revenue. The Revenue has grown by 21.02%.
Measured over the past years, NJR shows a decrease in Revenue. The Revenue has been decreasing by -7.07% on average per year.
EPS 1Y (TTM)70.34%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%166.67%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
3.2 Future
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y11.05%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue Next Year-4.38%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.37, the valuation of NJR can be described as reasonable.
Based on the Price/Earnings ratio, NJR is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of NJR to the average of the S&P500 Index (26.89), we can say NJR is valued rather cheaply.
A Price/Forward Earnings ratio of 14.51 indicates a correct valuation of NJR.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than 71.43% of the companies in the same industry.
NJR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NJR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)1.35
EPS Next 2Y3.32%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, NJR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.79, NJR pays a bit more dividend than its industry peers.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
5.2 History
The dividend of NJR is nicely growing with an annual growth rate of 7.48%!
NJR has paid a dividend for at least 10 years, which is a reliable track record.
NJR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.48%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
42.88% of the earnings are spent on dividend by NJR. This is a bit on the high side, but may be sustainable.
NJR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.88%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
45.71
-0.34 (-0.74%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0.04%
Ins Owners0.42%
Ins Owner Change-0.34%
Market Cap4.59B
Revenue(TTM)2.10B
Net Income(TTM)411.68M
Analysts81.82
Price Target55.69 (21.83%)
Short Float %2.19%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP42.88%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)96.83%
Min EPS beat(2)8.79%
Max EPS beat(2)184.87%
EPS beat(4)4
Avg EPS beat(4)53.52%
Min EPS beat(4)0.52%
Max EPS beat(4)184.87%
EPS beat(8)5
Avg EPS beat(8)-6.82%
EPS beat(12)8
Avg EPS beat(12)30.03%
EPS beat(16)9
Avg EPS beat(16)11.33%
Revenue beat(2)1
Avg Revenue beat(2)10.5%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)23.5%
Revenue beat(4)1
Avg Revenue beat(4)-4.56%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)1
Avg Revenue beat(8)-13.99%
Revenue beat(12)3
Avg Revenue beat(12)-8.29%
Revenue beat(16)7
Avg Revenue beat(16)1.44%
PT rev (1m)0.37%
PT rev (3m)0.49%
EPS NQ rev (1m)-13.67%
EPS NQ rev (3m)-24.78%
EPS NY rev (1m)0.94%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 14.51 | ||
| P/S | 2.19 | ||
| P/FCF | N/A | ||
| P/OCF | 10.21 | ||
| P/B | 1.89 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)4.02
EY8.79%
EPS(NY)3.15
Fwd EY6.89%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.79%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.03
PEG (5Y)1.35
Graham Number46.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 16.99% | ||
| ROCE | 8.55% | ||
| ROIC | 6.58% | ||
| ROICexc | 6.58% | ||
| ROICexgc | 6.59% | ||
| OM | 26.64% | ||
| PM (TTM) | 19.64% | ||
| GM | 58.11% | ||
| FCFM | N/A |
ROA(3y)4.2%
ROA(5y)3.54%
ROE(3y)13.86%
ROE(5y)11.75%
ROIC(3y)5.71%
ROIC(5y)5.1%
ROICexc(3y)5.71%
ROICexc(5y)5.12%
ROICexgc(3y)5.72%
ROICexgc(5y)5.13%
ROCE(3y)7.5%
ROCE(5y)6.69%
ROICexgc growth 3Y7.84%
ROICexgc growth 5Y11.43%
ROICexc growth 3Y7.86%
ROICexc growth 5Y11.48%
OM growth 3Y24%
OM growth 5Y32.05%
PM growth 3Y43.43%
PM growth 5Y27.54%
GM growth 3Y17.21%
GM growth 5Y23.25%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 305.66% | ||
| Cap/Sales | 27.06% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 60.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.37 |
F-Score7
WACC6.31%
ROIC/WACC1.04
Cap/Depr(3y)357.99%
Cap/Depr(5y)392.64%
Cap/Sales(3y)24.61%
Cap/Sales(5y)24.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.34%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%166.67%
EPS Next Y11.05%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
Revenue Next Year-4.38%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
EBIT growth 1Y48.43%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year43.39%
EBIT Next 3Y18.42%
EBIT Next 5Y15.89%
FCF growth 1Y-437.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.43%
OCF growth 3Y3.01%
OCF growth 5Y17.1%
NEW JERSEY RESOURCES CORP / NJR FAQ
What is the fundamental rating for NJR stock?
ChartMill assigns a fundamental rating of 5 / 10 to NJR.
What is the valuation status of NEW JERSEY RESOURCES CORP (NJR) stock?
ChartMill assigns a valuation rating of 5 / 10 to NEW JERSEY RESOURCES CORP (NJR). This can be considered as Fairly Valued.
Can you provide the profitability details for NEW JERSEY RESOURCES CORP?
NEW JERSEY RESOURCES CORP (NJR) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for NJR stock?
The Price/Earnings (PE) ratio for NEW JERSEY RESOURCES CORP (NJR) is 11.37 and the Price/Book (PB) ratio is 1.89.
What is the expected EPS growth for NEW JERSEY RESOURCES CORP (NJR) stock?
The Earnings per Share (EPS) of NEW JERSEY RESOURCES CORP (NJR) is expected to grow by 11.05% in the next year.