NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
NYSE:NJR - New York Stock Exchange, Inc. - US6460251068 - Common Stock - Currency: USD
NJR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
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
The Return On Assets of NJR (5.66%) is better than 100.00% of its industry peers.
The Return On Equity of NJR (16.99%) is better than 100.00% of its industry peers.
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 6.38%.
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
With an excellent Profit Margin value of 19.64%, NJR belongs to the best 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.
NJR has a better Operating Margin (26.64%) than 71.43% of its industry peers.
NJR's Operating Margin has improved in the last couple of years.
NJR has a Gross Margin of 58.11%. This is in the lower half of the industry: NJR underperforms 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
NJR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NJR has more shares outstanding
Compared to 5 years ago, NJR has more shares outstanding
NJR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that NJR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
NJR has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external 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 | 1.38 |
ROIC/WACC1.01
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NJR may have some problems paying its short term obligations.
The Current ratio of NJR (0.76) is better than 64.29% of its industry peers.
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 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 | 0.76 | ||
| 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.
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 21.02%.
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)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
Based on estimates for the next years, NJR will show a small growth in Earnings Per Share. The EPS will grow by 6.54% on average per year.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.41% yearly.
EPS Next Y9.16%
EPS Next 2Y3.11%
EPS Next 3Y5.54%
EPS Next 5Y6.54%
Revenue Next Year-4.29%
Revenue Next 2Y-0.71%
Revenue Next 3Y0.73%
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.
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 reasonably with a Price/Earnings ratio of 11.85.
Based on the Price/Earnings ratio, NJR is valued cheaper than 85.71% of the companies in the same industry.
NJR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.41.
Based on the Price/Forward Earnings ratio of 15.19, 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 (33.87), we can say NJR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than NJR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.5 |
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)1.29
PEG (5Y)1.41
EPS Next 2Y3.11%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.83%, NJR has a reasonable but not impressive dividend return.
NJR's Dividend Yield is comparable with the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.39, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
On average, the dividend of NJR grows each year by 7.48%, which is quite nice.
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 2Y3.11%
EPS Next 3Y5.54%
NYSE:NJR (8/12/2025, 3:20:06 PM)
47.64
+0.44 (+0.93%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.37%
Inst Owner Change-0.72%
Ins Owners0.42%
Ins Owner Change-0.29%
Market Cap4.78B
Analysts80
Price Target55.08 (15.62%)
Short Float %2.66%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)-2.11%
PT rev (3m)-1.22%
EPS NQ rev (1m)-59.09%
EPS NQ rev (3m)-250%
EPS NY rev (1m)0%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)2.29%
Revenue NY rev (3m)4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 15.19 | ||
| P/S | 2.28 | ||
| P/FCF | N/A | ||
| P/OCF | 10.63 | ||
| P/B | 1.97 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)4.02
EY8.44%
EPS(NY)3.14
Fwd EY6.58%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.4%
SpS20.88
BVpS24.15
TBVpS24.04
PEG (NY)1.29
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 | 1.38 |
F-Score7
WACC6.5%
ROIC/WACC1.01
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 Y9.16%
EPS Next 2Y3.11%
EPS Next 3Y5.54%
EPS Next 5Y6.54%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
Revenue Next Year-4.29%
Revenue Next 2Y-0.71%
Revenue Next 3Y0.73%
Revenue Next 5Y1.41%
EBIT growth 1Y48.43%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year42.74%
EBIT Next 3Y18.28%
EBIT Next 5Y15.06%
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%