SOUTH JERSEY INDUSTRIES (SJI) Fundamental Analysis & Valuation

NYSE:SJI • US8385181081

36.09 USD
-0.02 (-0.06%)
At close: Jan 31, 2023
36.1 USD
+0.01 (+0.03%)
After Hours: 1/31/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This SJI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

SJI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 15 industry peers in the Gas Utilities industry. SJI may be in some trouble as it scores bad on both profitability and health. SJI is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. SJI Profitability Analysis

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 2016 2017 2018 2019 2020 2021 0 200M -200M

1.2 Ratios

  • SJI has a Return On Assets (1.95%) which is in line with its industry peers.
  • SJI's Return On Equity of 7.54% is in line compared to the rest of the industry. SJI outperforms 52.94% of its industry peers.
  • The Return On Invested Capital of SJI (4.12%) 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 in line with the industry average of 6.13%.
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 2016 2017 2018 2019 2020 2021 0 2 4 6 8

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.99%, SJI is in line with its industry, outperforming 41.18% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SJI has declined.
  • SJI has a worse Operating Margin (13.52%) than 64.71% of its industry peers.
  • In the last couple of years the Operating Margin of SJI has remained more or less at the same level.
  • The Gross Margin of SJI (30.15%) is worse than 76.47% of its industry peers.
  • In the last couple of years the Gross Margin of SJI has declined.
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 2016 2017 2018 2019 2020 2021 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. SJI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SJI is destroying value.
  • Compared to 1 year ago, SJI has more shares outstanding
  • Compared to 1 year ago, SJI has an improved debt to assets ratio.
SJI Yearly Shares OutstandingSJI Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

  • SJI has an Altman-Z score of 0.92. This is a bad value and indicates that SJI is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.92, SJI is in line with its industry, outperforming 47.06% of the companies in the same industry.
  • SJI has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.74, SJI is doing worse than 76.47% of the companies in the same industry.
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 2016 2017 2018 2019 2020 2021 0 1B 2B 3B

2.3 Liquidity

  • SJI has a Current 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 has a Current ratio of 0.70. This is comparable to the rest of the industry: SJI outperforms 47.06% of its industry peers.
  • A Quick Ratio of 0.59 indicates that SJI may have some problems paying its short term obligations.
  • SJI has a Quick ratio (0.59) which is comparable to the rest of the industry.
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 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. SJI Growth Analysis

3.1 Past

  • The earnings per share for SJI have decreased by -1.73% in the last year.
  • The Earnings Per Share has been growing slightly by 3.99% on average over the past years.
  • Looking at the last year, SJI shows a very strong growth in Revenue. The Revenue has grown by 40.66%.
  • SJI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.96% yearly.
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

  • The Earnings Per Share is expected to grow by 3.84% on average over the next years.
  • The Revenue is expected to grow by 5.82% on average over the next years.
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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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1

4. SJI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.23, which indicates a rather expensive current valuation of SJI.
  • SJI's Price/Earnings ratio is a bit more expensive when compared to the industry. SJI is more expensive than 64.71% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.45, SJI is valued at the same level.
  • SJI is valuated rather expensively with a Price/Forward Earnings ratio of 19.78.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SJI.
  • The average S&P500 Price/Forward Earnings ratio is at 24.65. SJI is around the same levels.
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 5 10 15 20 25

4.2 Price Multiples

  • 70.59% of the companies in the same industry are cheaper than SJI, based on the Enterprise Value to EBITDA ratio.
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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SJI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.47%, SJI has a reasonable but not impressive dividend return.
  • SJI's Dividend Yield is comparable with the industry average which is at 3.56.
  • SJI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
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 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • SJI pays out 92.56% of its income as dividend. 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 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

More info and screens

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SJI Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)02-22
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner Change0%
Market Cap4.42B
Revenue(TTM)2.58B
Net Income(TTM)154.75M
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
Graham NumberN/A
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
ROICexgc growth 3Y5.44%
ROICexgc 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%

SOUTH JERSEY INDUSTRIES / SJI FAQ

What is the fundamental rating for SJI stock?

ChartMill assigns a fundamental rating of 3 / 10 to SJI.


What is the valuation status of SOUTH JERSEY INDUSTRIES (SJI) stock?

ChartMill assigns a valuation rating of 0 / 10 to SOUTH JERSEY INDUSTRIES (SJI). This can be considered as Overvalued.


What is the profitability of SJI stock?

SOUTH JERSEY INDUSTRIES (SJI) has a profitability rating of 3 / 10.


Can you provide the expected EPS growth for SJI stock?

The Earnings per Share (EPS) of SOUTH JERSEY INDUSTRIES (SJI) is expected to grow by 2.99% in the next year.


Can you provide the dividend sustainability for SJI stock?

The dividend rating of SOUTH JERSEY INDUSTRIES (SJI) is 5 / 10 and the dividend payout ratio is 92.56%.