NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - NYSE:NJR - US6460251068 - Common Stock
47.78 USD
+0.5 (+1.06%)
47.78 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. 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
In the past year NJR was profitable.
NJR had a positive operating cash flow in the past year.
Each year in the past 5 years NJR has been profitable.
NJR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NJR's Return On Assets of 5.66% is amongst the best of the industry. NJR outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 16.99%, NJR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of NJR (6.58%) is better than 64.29% of its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.71%. This is in line with the industry average of 6.32%.
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 92.86% of its industry peers.
In the last couple of years the Profit Margin of NJR has grown nicely.
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.
NJR's Operating Margin has improved in the last couple of years.
NJR's Gross Margin of 58.11% is on the low side compared to the rest of the industry. NJR is outperformed by 64.29% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NJR is creating some value.
NJR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NJR has more shares outstanding
NJR has a worse debt/assets ratio than last year.
2.2 Solvency
NJR has an Altman-Z score of 1.39. This is a bad value and indicates that NJR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NJR (1.39) is better than 78.57% 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.
NJR has a Debt to Equity ratio of 1.37. This is in the lower half of the industry: NJR underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC1.02
WACC6.44%
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.
NJR has a Quick Ratio of 0.76. This is a bad value and indicates that NJR is not financially healthy enough and could expect problems in meeting its short term obligations.
NJR's Quick ratio of 0.48 is in line compared to the rest of the industry. NJR outperforms 42.86% of its industry peers.
| 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.
The Revenue has grown by 21.02% in the past year. This is a very strong growth!
The Revenue has been decreasing by -7.07% on average over the past years.
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
NJR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y9.72%
EPS Next 2Y3.87%
EPS Next 3Y6.31%
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
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 11.89 indicates a reasonable valuation of NJR.
Based on the Price/Earnings ratio, NJR is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
NJR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
NJR is valuated correctly with a Price/Forward Earnings ratio of 15.01.
64.29% of the companies in the same industry are more expensive than NJR, based on the Price/Forward Earnings ratio.
NJR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 15.01 |
4.2 Price Multiples
NJR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NJR is more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.52 |
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)1.22
PEG (5Y)1.41
EPS Next 2Y3.87%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 4.06%, which is a nice return.
NJR's Dividend Yield is comparable with the industry average which is at 3.97.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 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.
The dividend of NJR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.88%
EPS Next 2Y3.87%
EPS Next 3Y6.31%
47.78
+0.5 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.37%
Inst Owner Change1.03%
Ins Owners0.42%
Ins Owner Change-0.29%
Market Cap4.80B
Analysts81.82
Price Target55.49 (16.14%)
Short Float %2.16%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)0.74%
PT rev (3m)-1.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 15.01 | ||
| P/S | 2.29 | ||
| P/FCF | N/A | ||
| P/OCF | 10.67 | ||
| P/B | 1.98 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)4.02
EY8.41%
EPS(NY)3.18
Fwd EY6.66%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.37%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.22
PEG (5Y)1.41
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%
ROICexcg growth 3Y7.84%
ROICexcg 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 | 1.39 |
F-Score7
WACC6.44%
ROIC/WACC1.02
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 Y9.72%
EPS Next 2Y3.87%
EPS Next 3Y6.31%
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 Year42.74%
EBIT Next 3Y18.28%
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%