NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
NYSE:NJR - New York Stock Exchange, Inc. - US6460251068 - Common Stock - Currency: USD
Taking everything into account, NJR scores 5 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NJR was profitable.
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
With an excellent Return On Assets value of 5.71%, NJR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
NJR has a Return On Equity of 16.75%. This is amongst the best in the industry. NJR outperforms 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.81%, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NJR is in line with the industry average of 6.56%.
The 3 year average ROIC (5.71%) for NJR is below the current ROIC(6.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.75% | ||
| ROIC | 6.81% |
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
Looking at the Profit Margin, with a value of 20.03%, NJR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
NJR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.31%, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of NJR has grown nicely.
With a Gross Margin value of 58.91%, 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 | 27.31% | ||
| PM (TTM) | 20.03% | ||
| GM | 58.91% |
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.
The number of shares outstanding for NJR has been increased compared to 1 year ago.
Compared to 5 years ago, NJR has more shares outstanding
Compared to 1 year ago, NJR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that NJR is in the distress zone and has some risk of bankruptcy.
NJR has a Altman-Z score of 1.42. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
NJR has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
NJR's Debt to Equity ratio of 1.26 is in line compared to the rest of the industry. NJR outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC1.03
WACC6.59%
2.3 Liquidity
NJR has a Current Ratio of 0.93. This is a bad value and indicates that NJR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.93, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
NJR has a Quick Ratio of 0.93. 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 0.73 is fine compared to the rest of the industry. NJR outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.76%, which is quite impressive.
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 20.48%.
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)51.76%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%26.24%
Revenue 1Y (TTM)20.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%38.78%
3.2 Future
The Earnings Per Share is expected to grow by 6.54% 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 1.41% yearly.
EPS Next Y8.58%
EPS Next 2Y3.37%
EPS Next 3Y5.63%
EPS Next 5Y6.54%
Revenue Next Year-8.57%
Revenue Next 2Y-2.74%
Revenue Next 3Y-0.51%
Revenue Next 5Y1.41%
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 decreasing.
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
NJR is valuated correctly with a Price/Earnings ratio of 12.17.
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.
The average S&P500 Price/Earnings ratio is at 26.68. NJR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 14.94, the valuation of NJR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NJR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NJR to the average of the S&P500 Index (22.50), we can say NJR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 14.94 |
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 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
NJR's 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)1.42
PEG (5Y)1.45
EPS Next 2Y3.37%
EPS Next 3Y5.63%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.89%.
Compared to an average industry Dividend Yield of 3.96, NJR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
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 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
NJR pays out 41.59% of its income as dividend. 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.
DP41.59%
EPS Next 2Y3.37%
EPS Next 3Y5.63%
47.08
+0.47 (+1.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.47%
Inst Owner Change1.98%
Ins Owners0.42%
Ins Owner Change0.79%
Market Cap4.72B
Analysts78.33
Price Target55.76 (18.44%)
Short Float %2.64%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP41.59%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.36%
Min EPS beat(2)8.79%
Max EPS beat(2)19.93%
EPS beat(4)3
Avg EPS beat(4)-60.51%
Min EPS beat(4)-271.29%
Max EPS beat(4)19.93%
EPS beat(8)5
Avg EPS beat(8)13.52%
EPS beat(12)7
Avg EPS beat(12)0.79%
EPS beat(16)8
Avg EPS beat(16)-1.4%
Revenue beat(2)1
Avg Revenue beat(2)-6.02%
Min Revenue beat(2)-35.53%
Max Revenue beat(2)23.5%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)1
Avg Revenue beat(8)-20.19%
Revenue beat(12)4
Avg Revenue beat(12)-5.43%
Revenue beat(16)8
Avg Revenue beat(16)2.59%
PT rev (1m)-0.61%
PT rev (3m)-1.32%
EPS NQ rev (1m)-300%
EPS NQ rev (3m)-516%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)-6.41%
Revenue NQ rev (3m)-24.84%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 14.94 | ||
| P/S | 2.28 | ||
| P/FCF | N/A | ||
| P/OCF | 9.39 | ||
| P/B | 1.91 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)3.87
EY8.22%
EPS(NY)3.15
Fwd EY6.7%
FCF(TTM)-0.66
FCFYN/A
OCF(TTM)5.01
OCFY10.65%
SpS20.67
BVpS24.71
TBVpS24.6
PEG (NY)1.42
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.75% | ||
| ROCE | 8.66% | ||
| ROIC | 6.81% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 6.91% | ||
| OM | 27.31% | ||
| PM (TTM) | 20.03% | ||
| GM | 58.91% | ||
| 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-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 317.1% | ||
| Cap/Sales | 27.46% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 67.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.42 |
F-Score8
WACC6.59%
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)51.76%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%26.24%
EPS Next Y8.58%
EPS Next 2Y3.37%
EPS Next 3Y5.63%
EPS Next 5Y6.54%
Revenue 1Y (TTM)20.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%38.78%
Revenue Next Year-8.57%
Revenue Next 2Y-2.74%
Revenue Next 3Y-0.51%
Revenue Next 5Y1.41%
EBIT growth 1Y50.92%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year39.05%
EBIT Next 3Y18.28%
EBIT Next 5Y15.05%
FCF growth 1Y64.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.6%
OCF growth 3Y3.01%
OCF growth 5Y17.1%