NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - NYSE:NJR - US6460251068 - Common Stock
46.14 USD
+0.48 (+1.05%)
46.14 USD
0 (0%)
Overall NJR gets a fundamental rating of 5 out of 10. We evaluated NJR against 14 industry peers in the Gas Utilities industry. While NJR has a great profitability rating, there are quite some concerns on its financial health. NJR is not valued too expensively and it also shows a decent growth rate. NJR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NJR had positive earnings in the past year.
NJR had a positive operating cash flow in the past year.
NJR had positive earnings in each of the past 5 years.
Each year in the past 5 years NJR had a positive operating cash flow.
1.2 Ratios
NJR's Return On Assets of 5.66% is amongst the best of the industry. NJR outperforms 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 16.99%, NJR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
NJR has a Return On Invested Capital of 6.58%. This is in the better half of the industry: NJR outperforms 64.29% of its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.71%. This is below the industry average of 8.93%.
The last Return On Invested Capital (6.58%) for NJR is above the 3 year average (5.71%), which is a sign of increasing profitability.
| 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's Profit Margin of 19.64% is amongst the best of the industry. NJR outperforms 85.71% of its industry peers.
NJR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.64%, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
NJR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.11%, NJR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NJR has grown nicely.
| 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.
NJR has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of NJR (1.37) is better than 71.43% of its industry peers.
NJR has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.37, NJR is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC1.03
WACC6.38%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NJR may have some problems paying its short term obligations.
NJR's Current ratio of 0.76 is fine compared to the rest of the industry. NJR outperforms 78.57% of its industry peers.
A Quick Ratio of 0.48 indicates that NJR may have some problems paying its short term obligations.
With a Quick ratio value of 0.48, NJR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.34%, which is quite impressive.
NJR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.41% yearly.
The Revenue has grown by 21.02% in the past year. This is a very strong growth!
NJR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.07% yearly.
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 Y10.36%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue Next Year-4.43%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.48 indicates a reasonable valuation of NJR.
NJR's Price/Earnings ratio is rather cheap when compared to the industry. NJR is 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 (26.35), we can say NJR is valued rather cheaply.
NJR is valuated correctly with a Price/Forward Earnings ratio of 14.65.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
NJR is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
NJR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NJR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.11
PEG (5Y)1.36
EPS Next 2Y3.32%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, NJR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.84, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of NJR is nicely growing with an annual growth rate of 7.48%!
NJR has been paying a dividend for at least 10 years, so it has a reliable track record.
NJR has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of NJR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.88%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
46.14
+0.48 (+1.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0.01%
Ins Owners0.42%
Ins Owner Change3.53%
Market Cap4.63B
Revenue(TTM)2.10B
Net Income(TTM)411.68M
Analysts81.82
Price Target55.69 (20.7%)
Short Float %2.19%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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%
PT rev (3m)1.11%
EPS NQ rev (1m)-13.28%
EPS NQ rev (3m)-29.87%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-14.71%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 14.65 | ||
| P/S | 2.21 | ||
| P/FCF | N/A | ||
| P/OCF | 10.31 | ||
| P/B | 1.91 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 10.3 |
EPS(TTM)4.02
EY8.71%
EPS(NY)3.15
Fwd EY6.83%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.7%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.11
PEG (5Y)1.36
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
WACC6.38%
ROIC/WACC1.03
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 Y10.36%
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-4.43%
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 11.48 and the Price/Book (PB) ratio is 1.91.
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 10.36% in the next year.