NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
NYSE:NJR - US6460251068 - Common Stock
47.05 USD
+0.2 (+0.43%)
47.05 USD
0 (0%)
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 belongs to the best of the industry regarding profitability, there are 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.
In the past 5 years NJR has always 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.
NJR has a better Return On Invested Capital (6.58%) than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NJR 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.
Looking at the Operating Margin, with a value of 26.64%, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
NJR's Operating Margin has improved in the last couple of years.
NJR has a worse Gross Margin (58.11%) than 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.
Compared to 1 year ago, NJR has more shares outstanding
The number of shares outstanding for NJR has been increased compared to 5 years ago.
The debt/assets ratio for NJR is higher compared to a year ago.
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.
NJR's Altman-Z score of 1.38 is fine compared to the rest of the industry. NJR outperforms 78.57% of its industry peers.
NJR has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NJR (1.37) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC1.02
WACC6.44%
2.3 Liquidity
NJR has a Current 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 has a better Current ratio (0.76) than 78.57% of its industry peers.
A Quick Ratio of 0.48 indicates that NJR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.48, NJR is in line with its industry, outperforming 42.86% of the companies in the same industry.
| 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.
Measured over the past years, NJR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.41% on average per year.
Looking at the last year, NJR shows a very strong growth in Revenue. The Revenue has grown by 21.02%.
NJR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.07% yearly.
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 6.91% on average per year.
Based on estimates for the next years, NJR will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 11.70, which indicates a very decent valuation of NJR.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.06, NJR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.78, the valuation of NJR can be described as correct.
NJR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NJR to the average of the S&P500 Index (22.69), we can say NJR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA 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 | N/A | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The 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)1.2
PEG (5Y)1.39
EPS Next 2Y3.87%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.82%.
NJR's Dividend Yield is comparable with the industry average which is at 3.96.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
On average, the dividend of NJR grows each year by 7.48%, 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)7.48%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
NJR pays out 42.88% 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.
DP42.88%
EPS Next 2Y3.87%
EPS Next 3Y6.31%
47.05
+0.2 (+0.43%)
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 Cap4.73B
Analysts80
Price Target55.49 (17.94%)
Short Float %2.33%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)0.12%
PT rev (3m)-0.49%
EPS NQ rev (1m)-12.87%
EPS NQ rev (3m)-36.67%
EPS NY rev (1m)0.51%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-13.99%
Revenue NQ rev (3m)-43.15%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 14.78 | ||
| P/S | 2.25 | ||
| P/FCF | N/A | ||
| P/OCF | 10.51 | ||
| P/B | 1.95 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)4.02
EY8.54%
EPS(NY)3.18
Fwd EY6.76%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.51%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.2
PEG (5Y)1.39
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
WACC6.44%
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%