NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
47.55 USD
+0.33 (+0.7%)
47.55 USD
0 (0%)
Taking everything into account, NJR scores 4 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 is quite expensive at the moment. It does show 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.
- 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
- With a decent Return On Assets value of 4.43%, NJR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- NJR's Return On Equity of 14.03% is fine compared to the rest of the industry. NJR outperforms 71.43% of its industry peers.
- NJR has a Return On Invested Capital (4.97%) which is comparable to the rest of the industry.
- NJR had an Average Return On Invested Capital over the past 3 years of 5.25%. This is in line with the industry average of 6.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 14.03% | ||
| ROIC | 4.97% |
ROA(3y)4.21%
ROA(5y)3.82%
ROE(3y)13.5%
ROE(5y)12.57%
ROIC(3y)5.25%
ROIC(5y)5.16%
1.3 Margins
- The Profit Margin of NJR (16.48%) is better than 85.71% of its industry peers.
- In the last couple of years the Profit Margin of NJR has grown nicely.
- Looking at the Operating Margin, with a value of 22.13%, 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.
- NJR's Gross Margin of 55.84% 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 | 22.13% | ||
| PM (TTM) | 16.48% | ||
| GM | 55.84% |
OM growth 3Y16.52%
OM growth 5Y13.56%
PM growth 3Y20.33%
PM growth 5Y14.59%
GM growth 3Y19.25%
GM growth 5Y10.95%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NJR is destroying value.
- NJR has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NJR has more shares outstanding
- Compared to 1 year ago, NJR has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.25, we must say that NJR is in the distress zone and has some risk of bankruptcy.
- NJR has a Altman-Z score of 1.25. This is in the better half of the industry: NJR outperforms 64.29% of its industry peers.
- A Debt/Equity ratio of 1.44 is on the high side and indicates that NJR has dependencies on debt financing.
- NJR has a worse Debt to Equity ratio (1.44) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.79
WACC6.3%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that NJR may have some problems paying its short term obligations.
- NJR has a better Current ratio (0.73) than 64.29% of its industry peers.
- NJR has a Quick Ratio of 0.73. 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 0.40 is on the low side compared to the rest of the industry. NJR is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.53%, which is quite good.
- The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
- The Revenue has grown by 13.35% in the past year. This is quite good.
- NJR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.83% yearly.
EPS 1Y (TTM)11.53%
EPS 3Y9.44%
EPS 5Y9.71%
EPS Q2Q%-82.02%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-11.18%
Revenue growth 5Y0.83%
Sales Q2Q%-15.08%
3.2 Future
- NJR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.25% yearly.
- Based on estimates for the next years, NJR will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y-4.28%
EPS Next 2Y2.03%
EPS Next 3Y4.85%
EPS Next 5Y6.25%
Revenue Next Year15.93%
Revenue Next 2Y10.52%
Revenue Next 3Y6.55%
Revenue Next 5Y5.64%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- Based on the Price/Earnings ratio of 14.45, the valuation of NJR can be described as correct.
- 71.43% of the companies in the same industry are more expensive than NJR, based on the Price/Earnings ratio.
- NJR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
- With a Price/Forward Earnings ratio of 15.10, NJR is valued correctly.
- 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.
- When comparing the Price/Forward Earnings ratio of NJR to the average of the S&P500 Index (24.31), we can say NJR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NJR is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.77 |
4.3 Compensation for Growth
- NJR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y2.03%
EPS Next 3Y4.85%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.08%, NJR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.88, NJR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
- On average, the dividend of NJR grows each year by 7.28%, which is quite nice.
- 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)7.28%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
- 53.65% 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.
DP53.65%
EPS Next 2Y2.03%
EPS Next 3Y4.85%
47.55
+0.33 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-19 2025-11-19/amc
Earnings (Next)02-02 2026-02-02
Inst Owners78.81%
Inst Owner Change0.18%
Ins Owners0.47%
Ins Owner Change3.73%
Market Cap4.79B
Revenue(TTM)2.04B
Net Income(TTM)335.63M
Analysts83.64
Price Target57.12 (20.13%)
Short Float %2.6%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend1.8
Dividend Growth(5Y)7.28%
DP53.65%
Div Incr Years29
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)87.23%
Min EPS beat(2)-10.41%
Max EPS beat(2)184.87%
EPS beat(4)3
Avg EPS beat(4)50.79%
Min EPS beat(4)-10.41%
Max EPS beat(4)184.87%
EPS beat(8)5
Avg EPS beat(8)-8.06%
EPS beat(12)7
Avg EPS beat(12)27.82%
EPS beat(16)9
Avg EPS beat(16)11.42%
Revenue beat(2)1
Avg Revenue beat(2)4.26%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)11.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)2
Avg Revenue beat(8)-5.51%
Revenue beat(12)3
Avg Revenue beat(12)-13.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.29%
PT rev (1m)1.08%
PT rev (3m)2.56%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)-2.46%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)13.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 15.1 | ||
| P/S | 2.35 | ||
| P/FCF | N/A | ||
| P/OCF | 11.03 | ||
| P/B | 2 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)3.29
EY6.92%
EPS(NY)3.15
Fwd EY6.62%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.31
OCFY9.07%
SpS20.21
BVpS23.74
TBVpS23.63
PEG (NY)N/A
PEG (5Y)1.49
Graham Number41.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 14.03% | ||
| ROCE | 6.63% | ||
| ROIC | 4.97% | ||
| ROICexc | 4.97% | ||
| ROICexgc | 4.98% | ||
| OM | 22.13% | ||
| PM (TTM) | 16.48% | ||
| GM | 55.84% | ||
| FCFM | N/A |
ROA(3y)4.21%
ROA(5y)3.82%
ROE(3y)13.5%
ROE(5y)12.57%
ROIC(3y)5.25%
ROIC(5y)5.16%
ROICexc(3y)5.25%
ROICexc(5y)5.16%
ROICexgc(3y)5.26%
ROICexgc(5y)5.17%
ROCE(3y)7.08%
ROCE(5y)7.06%
ROICexgc growth 3Y-4%
ROICexgc growth 5Y6.14%
ROICexc growth 3Y-4%
ROICexc growth 5Y6.17%
OM growth 3Y16.52%
OM growth 5Y13.56%
PM growth 3Y20.33%
PM growth 5Y14.59%
GM growth 3Y19.25%
GM growth 5Y10.95%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 349.65% | ||
| Cap/Sales | 32.41% | ||
| Interest Coverage | 3.46 | ||
| Cash Conversion | 67.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.25 |
F-Score6
WACC6.3%
ROIC/WACC0.79
Cap/Depr(3y)330.29%
Cap/Depr(5y)387.83%
Cap/Sales(3y)29%
Cap/Sales(5y)26.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.53%
EPS 3Y9.44%
EPS 5Y9.71%
EPS Q2Q%-82.02%
EPS Next Y-4.28%
EPS Next 2Y2.03%
EPS Next 3Y4.85%
EPS Next 5Y6.25%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-11.18%
Revenue growth 5Y0.83%
Sales Q2Q%-15.08%
Revenue Next Year15.93%
Revenue Next 2Y10.52%
Revenue Next 3Y6.55%
Revenue Next 5Y5.64%
EBIT growth 1Y-1.62%
EBIT growth 3Y3.5%
EBIT growth 5Y14.51%
EBIT Next Year38.89%
EBIT Next 3Y23.18%
EBIT Next 5Y17.18%
FCF growth 1Y-136.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.65%
OCF growth 3Y10.33%
OCF growth 5Y15.27%
NEW JERSEY RESOURCES CORP / NJR FAQ
What is the fundamental rating for NJR stock?
ChartMill assigns a fundamental rating of 4 / 10 to NJR.
What is the valuation status for NJR stock?
ChartMill assigns a valuation rating of 3 / 10 to NEW JERSEY RESOURCES CORP (NJR). This can be considered as Overvalued.
How profitable is NEW JERSEY RESOURCES CORP (NJR) stock?
NEW JERSEY RESOURCES CORP (NJR) has a profitability rating of 7 / 10.
How financially healthy is NEW JERSEY RESOURCES CORP?
The financial health rating of NEW JERSEY RESOURCES CORP (NJR) is 1 / 10.
What is the earnings growth outlook for NEW JERSEY RESOURCES CORP?
The Earnings per Share (EPS) of NEW JERSEY RESOURCES CORP (NJR) is expected to decline by -4.28% in the next year.