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SOUTH JERSEY INDUSTRIES (SJI) Stock Fundamental Analysis

NYSE:SJI - New York Stock Exchange, Inc. - US8385181081 - Common Stock - Currency: USD

36.09  -0.02 (-0.06%)

After market: 36.1 +0.01 (+0.03%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SJI. SJI was compared to 14 industry peers in the Gas Utilities industry. SJI may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, SJI is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year SJI was profitable.
SJI had a positive operating cash flow in the past year.
SJI Yearly Net Income VS EBIT VS OCF VS FCFSJI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 200M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of 1.95%, SJI is in line with its industry, outperforming 47.06% of the companies in the same industry.
The Return On Equity of SJI (7.54%) is comparable to the rest of the industry.
SJI has a Return On Invested Capital (4.12%) which is comparable to the rest of the industry.
SJI had an Average Return On Invested Capital over the past 3 years of 4.28%. This is below the industry average of 6.29%.
Industry RankSector Rank
ROA 1.95%
ROE 7.54%
ROIC 4.12%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.28%
ROIC(5y)N/A
SJI Yearly ROA, ROE, ROICSJI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 2 4 6 8 10

1.3 Margins

The Profit Margin of SJI (5.99%) is comparable to the rest of the industry.
SJI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.52%, SJI is doing worse than 64.71% of the companies in the same industry.
SJI's Operating Margin has been stable in the last couple of years.
SJI has a worse Gross Margin (30.15%) than 76.47% of its industry peers.
SJI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 13.52%
PM (TTM) 5.99%
GM 30.15%
OM growth 3Y13.89%
OM growth 5Y-1.33%
PM growth 3Y60.06%
PM growth 5Y-17.34%
GM growth 3Y1.44%
GM growth 5Y-3.11%
SJI Yearly Profit, Operating, Gross MarginsSJI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 10 20 30 40

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SJI is destroying value.
The number of shares outstanding for SJI has been increased compared to 1 year ago.
Compared to 1 year ago, SJI has an improved debt to assets ratio.
SJI Yearly Shares OutstandingSJI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
SJI Yearly Total Debt VS Total AssetsSJI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.92, we must say that SJI is in the distress zone and has some risk of bankruptcy.
SJI's Altman-Z score of 0.92 is in line compared to the rest of the industry. SJI outperforms 47.06% of its industry peers.
SJI has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
SJI's Debt to Equity ratio of 1.74 is on the low side compared to the rest of the industry. SJI is outperformed by 76.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Altman-Z 0.92
ROIC/WACC0.7
WACC5.88%
SJI Yearly LT Debt VS Equity VS FCFSJI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 0.70 indicates that SJI may have some problems paying its short term obligations.
SJI has a Current ratio (0.70) which is comparable to the rest of the industry.
SJI has a Quick Ratio of 0.70. This is a bad value and indicates that SJI is not financially healthy enough and could expect problems in meeting its short term obligations.
SJI's Quick ratio of 0.59 is in line compared to the rest of the industry. SJI outperforms 52.94% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.59
SJI Yearly Current Assets VS Current LiabilitesSJI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

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4

3. Growth

3.1 Past

The earnings per share for SJI have decreased by -1.73% in the last year.
Measured over the past 5 years, SJI shows a small growth in Earnings Per Share. The EPS has been growing by 3.99% on average per year.
Looking at the last year, SJI shows a very strong growth in Revenue. The Revenue has grown by 40.66%.
Measured over the past years, SJI shows a quite strong growth in Revenue. The Revenue has been growing by 13.96% on average per year.
EPS 1Y (TTM)-1.73%
EPS 3Y5.24%
EPS 5Y3.99%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)40.66%
Revenue growth 3Y6.67%
Revenue growth 5Y13.96%
Sales Q2Q%66.43%

3.2 Future

Based on estimates for the next years, SJI will show a small growth in Earnings Per Share. The EPS will grow by 3.84% on average per year.
Based on estimates for the next years, SJI will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
EPS Next Y2.99%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
EPS Next 5Y3.84%
Revenue Next Year33.17%
Revenue Next 2Y12.56%
Revenue Next 3Y8.14%
Revenue Next 5Y5.82%

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 decreasing: in the next years the growth will be less than in the last years.
SJI Yearly Revenue VS EstimatesSJI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
SJI Yearly EPS VS EstimatesSJI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.23, the valuation of SJI can be described as rather expensive.
Based on the Price/Earnings ratio, SJI is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.50, SJI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.78, SJI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SJI.
The average S&P500 Price/Forward Earnings ratio is at 36.44. SJI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.23
Fwd PE 19.78
SJI Price Earnings VS Forward Price EarningsSJI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SJI is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.2
SJI Per share dataSJI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SJI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.1
PEG (5Y)5.33
EPS Next 2Y3.91%
EPS Next 3Y4.69%

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5

5. Dividend

5.1 Amount

SJI has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
SJI's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.35, SJI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.47%

5.2 History

The dividend of SJI has a limited annual growth rate of 2.61%.
SJI has paid a dividend for at least 10 years, which is a reliable track record.
SJI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.61%
Div Incr Years16
Div Non Decr Years16
SJI Yearly Dividends per shareSJI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

92.56% of the earnings are spent on dividend by SJI. This is not a sustainable payout ratio.
The dividend of SJI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP92.56%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
SJI Yearly Income VS Free CF VS DividendSJI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 0 100M -100M -200M -300M
SJI Dividend Payout.SJI Dividend Payout, showing the Payout Ratio.SJI Dividend Payout.PayoutRetained Earnings

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SOUTH JERSEY INDUSTRIES

NYSE:SJI (1/31/2023, 8:04:00 PM)

After market: 36.1 +0.01 (+0.03%)

36.09

-0.02 (-0.06%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-02 2022-11-02/amc
Earnings (Next)02-22 2023-02-22/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner Change0%
Market Cap4.42B
Analysts49.33
Price Target37.01 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.47%
Yearly Dividend1.21
Dividend Growth(5Y)2.61%
DP92.56%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)106.85%
Min EPS beat(2)-1.43%
Max EPS beat(2)215.12%
EPS beat(4)3
Avg EPS beat(4)56.51%
Min EPS beat(4)-1.43%
Max EPS beat(4)215.12%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)52.95%
Min Revenue beat(2)52.11%
Max Revenue beat(2)53.8%
Revenue beat(4)4
Avg Revenue beat(4)37.39%
Min Revenue beat(4)16.92%
Max Revenue beat(4)53.8%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.79%
PT rev (3m)6.72%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.2%
Valuation
Industry RankSector Rank
PE 21.23
Fwd PE 19.78
P/S 1.71
P/FCF N/A
P/OCF 11.81
P/B 2.15
P/tB 3.29
EV/EBITDA 14.2
EPS(TTM)1.7
EY4.71%
EPS(NY)1.82
Fwd EY5.06%
FCF(TTM)-2.02
FCFYN/A
OCF(TTM)3.05
OCFY8.46%
SpS21.11
BVpS16.76
TBVpS10.98
PEG (NY)7.1
PEG (5Y)5.33
Profitability
Industry RankSector Rank
ROA 1.95%
ROE 7.54%
ROCE N/A
ROIC 4.12%
ROICexc 4.15%
ROICexgc 4.62%
OM 13.52%
PM (TTM) 5.99%
GM 30.15%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.28%
ROIC(5y)N/A
ROICexc(3y)3.78%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y5.44%
ROICexcg growth 5Y-1.67%
ROICexc growth 3Y7.53%
ROICexc growth 5Y-3.77%
OM growth 3Y13.89%
OM growth 5Y-1.33%
PM growth 3Y60.06%
PM growth 5Y-17.34%
GM growth 3Y1.44%
GM growth 5Y-3.11%
F-Score7
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Debt/EBITDA 6.77
Cap/Depr 293.63%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.7
Quick Ratio 0.59
Altman-Z 0.92
F-Score7
WACC5.88%
ROIC/WACC0.7
Cap/Depr(3y)304.83%
Cap/Depr(5y)278.44%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.73%
EPS 3Y5.24%
EPS 5Y3.99%
EPS Q2Q%-5.88%
EPS Next Y2.99%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
EPS Next 5Y3.84%
Revenue 1Y (TTM)40.66%
Revenue growth 3Y6.67%
Revenue growth 5Y13.96%
Sales Q2Q%66.43%
Revenue Next Year33.17%
Revenue Next 2Y12.56%
Revenue Next 3Y8.14%
Revenue Next 5Y5.82%
EBIT growth 1Y15.84%
EBIT growth 3Y21.49%
EBIT growth 5Y12.45%
EBIT Next Year58.98%
EBIT Next 3Y25.98%
EBIT Next 5Y18.01%
FCF growth 1Y-4.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.34%
OCF growth 3Y23.9%
OCF growth 5Y0.79%