NEW JERSEY RESOURCES CORP (NJR)
US6460251068 - Common Stock
NJR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. While NJR belongs to the best of the industry regarding profitability, there are concerns on its financial health. NJR is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years NJR has been profitable.
Each year in the past 5 years NJR had a positive operating cash flow.
1.2 Ratios
NJR has a Return On Assets of 3.74%. This is in the better half of the industry: NJR outperforms 64.29% of its industry peers.
NJR has a Return On Equity of 11.41%. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
NJR has a Return On Invested Capital (5.01%) which is in line with its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.34%. This is in line with the industry average of 5.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 11.41% | ||
| ROIC | 5.01% |
ROA(3y)3.5%
ROA(5y)3.28%
ROE(3y)11.88%
ROE(5y)10.71%
ROIC(3y)5.34%
ROIC(5y)4.63%
1.3 Margins
NJR has a better Profit Margin (14.46%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of NJR has grown nicely.
NJR has a Operating Margin of 21.80%. 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 57.41% is in line compared to the rest of the industry. NJR outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of NJR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.8% | ||
| PM (TTM) | 14.46% | ||
| GM | 57.41% |
OM growth 3Y20.96%
OM growth 5Y24.77%
PM growth 3Y17.35%
PM growth 5Y10.99%
GM growth 3Y14.7%
GM growth 5Y17.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NJR is destroying value.
NJR has more shares outstanding than it did 1 year ago.
NJR has more shares outstanding than it did 5 years ago.
NJR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that NJR is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.26, NJR is doing good in the industry, outperforming 64.29% of the companies in the same industry.
NJR has a debt to FCF ratio of 4828.22. This is a negative value and a sign of low solvency as NJR would need 4828.22 years to pay back of all of its debts.
The Debt to FCF ratio of NJR (4828.22) is worse than 64.29% of its industry peers.
NJR has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
NJR's Debt to Equity ratio of 1.34 is in line compared to the rest of the industry. NJR outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 4828.22 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.77
WACC6.47%
2.3 Liquidity
A Current Ratio of 0.70 indicates that NJR may have some problems paying its short term obligations.
NJR's Current ratio of 0.70 is in line compared to the rest of the industry. NJR outperforms 42.86% of its industry peers.
A Quick Ratio of 0.56 indicates that NJR may have some problems paying its short term obligations.
NJR's Quick ratio of 0.56 is in line compared to the rest of the industry. NJR outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
NJR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.61%.
NJR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.26% yearly.
Looking at the last year, NJR shows a very negative growth in Revenue. The Revenue has decreased by -35.93% in the last year.
Measured over the past years, NJR shows a decrease in Revenue. The Revenue has been decreasing by -7.60% on average per year.
EPS 1Y (TTM)-7.61%
EPS 3Y9.26%
EPS 5Y5.26%
EPS growth Q2Q21.55%
Revenue 1Y (TTM)-35.93%
Revenue growth 3Y0.16%
Revenue growth 5Y-7.6%
Revenue growth Q2Q2.16%
3.2 Future
The Earnings Per Share is expected to grow by 6.45% on average over the next years.
NJR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.48% yearly.
EPS Next Y8.92%
EPS Next 2Y4.15%
EPS Next 3Y4.58%
EPS Next 5Y6.45%
Revenue Next Year-28.98%
Revenue Next 2Y-15.47%
Revenue Next 3Y-9.75%
Revenue Next 5Y-2.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
NJR is valuated rather expensively with a Price/Earnings ratio of 17.44.
The rest of the industry has a similar Price/Earnings ratio as NJR.
The average S&P500 Price/Earnings ratio is at 28.83. NJR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.19, which indicates a correct valuation of NJR.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.47, NJR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NJR is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NJR indicates a slightly more expensive valuation: NJR is more expensive than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6874.82 | ||
| EV/EBITDA | 13.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NJR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)3.32
EPS Next 2Y4.15%
EPS Next 3Y4.58%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.52, NJR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
On average, the dividend of NJR grows each year by 7.30%, which is quite nice.
NJR has paid a dividend for at least 10 years, which is a reliable track record.
NJR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.3%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
63.51% of the earnings are spent on dividend by NJR. This is not a sustainable payout ratio.
The dividend of NJR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP63.51%
EPS Next 2Y4.15%
EPS Next 3Y4.58%
NEW JERSEY RESOURCES CORP
NYSE:NJR (5/16/2024, 7:07:11 PM)
After market: 44.48 0 (0%)44.48
+0.36 (+0.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 15.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.96
PEG (5Y)3.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 11.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.8% | ||
| PM (TTM) | 14.46% | ||
| GM | 57.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.61%
EPS 3Y9.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-35.93%
Revenue growth 3Y0.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y