SOUTH JERSEY INDUSTRIES (SJI)
US8385181081 - Common Stock
We assign a fundamental rating of 3 out of 10 to SJI. SJI was compared to 14 industry peers in the Gas Utilities industry. Both the profitability and financial health of SJI have multiple concerns. SJI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SJI was profitable.
In the past year SJI had a positive cash flow from operations.
SJI had positive earnings in 4 of the past 5 years.
SJI had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Invested Capital, with a value of 4.12%, SJI is in line with its industry, outperforming 47.06% of the companies in the same 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 5.43%.
| Industry Rank | Sector 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
1.3 Margins
SJI has a Profit Margin (5.99%) which is comparable to the rest of the industry.
SJI's Profit Margin has declined in the last couple of years.
SJI's Operating Margin of 13.52% is on the low side compared to the rest of the industry. SJI is outperformed by 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.
Looking at the Gross Margin, with a value of 30.15%, SJI is doing worse than 76.47% of the companies in the same industry.
SJI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
SJI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SJI has been increased compared to 1 year ago.
SJI has a better debt/assets ratio than last year.
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.
The Altman-Z score of SJI (0.92) is comparable to the rest of the industry.
SJI has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
SJI has a worse Debt to Equity ratio (1.74) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.7
WACC5.88%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SJI may have some problems paying its short term obligations.
SJI's Current ratio of 0.70 is in line compared 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.59 |
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.
The Revenue has grown by 40.66% in the past year. This is a very strong growth!
The Revenue has been growing by 13.96% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.73%
EPS 3Y5.24%
EPS 5Y3.99%
EPS growth Q2Q-5.88%
Revenue 1Y (TTM)40.66%
Revenue growth 3Y6.67%
Revenue growth 5Y13.96%
Revenue growth Q2Q66.43%
3.2 Future
SJI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.23 indicates a rather expensive valuation of SJI.
64.71% of the companies in the same industry are cheaper than SJI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.83. SJI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 19.78 indicates a rather expensive valuation of SJI.
SJI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.47. SJI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJI is valued a bit more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.2 |
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%
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.
Compared to an average industry Dividend Yield of 4.52, SJI has a dividend in line with its industry peers.
SJI's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector 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
5.3 Sustainability
SJI pays out 92.56% of its income as dividend. This is not a sustainable payout ratio.
SJI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP92.56%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
SOUTH JERSEY INDUSTRIES
NYSE:SJI (1/31/2023, 7:04:00 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.1
PEG (5Y)5.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 7.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.52% | ||
| PM (TTM) | 5.99% | ||
| GM | 30.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.73%
EPS 3Y5.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)40.66%
Revenue growth 3Y6.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y