SOUTH JERSEY INDUSTRIES (SJI) Stock Fundamental Analysis

USA • New York Stock Exchange • 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
Fundamental Rating

2

Taking everything into account, SJI scores 2 out of 10 in our fundamental rating. SJI was compared to 14 industry peers in the Gas Utilities industry. SJI has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, SJI is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • SJI had positive earnings in the past year.
  • 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 comparable to the rest of the 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for SJI is below the industry average of 8.42%.
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

  • SJI's Profit Margin of 5.99% is in line compared to the rest of the industry. SJI outperforms 41.18% of its industry peers.
  • 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.
  • SJI's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of SJI (30.15%) is worse 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 2016 2017 2018 2019 2020 2021 0 10 20 30 40

More info and screens

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.
  • The debt/assets ratio for SJI has been reduced compared to a year ago.
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.
  • A Debt/Equity ratio of 1.74 is on the high side and indicates that SJI has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.74, SJI is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
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's Current ratio of 0.70 is in line compared to the rest of the industry. SJI outperforms 47.06% of its industry peers.
  • 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.
  • With a Quick ratio value of 0.59, SJI perfoms like the industry average, outperforming 52.94% of the companies in the same 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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4

3. Growth

3.1 Past

  • SJI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.73%.
  • The Earnings Per Share has been growing slightly by 3.99% on average over the past years.
  • SJI shows a strong growth in Revenue. In the last year, 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.
  • 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 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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4. Valuation

4.1 Price/Earnings Ratio

  • SJI is valuated rather expensively with a Price/Earnings ratio of 21.23.
  • 64.71% of the companies in the same industry are cheaper than SJI, based on the Price/Earnings ratio.
  • SJI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.41.
  • SJI is valuated rather expensively with a Price/Forward Earnings ratio of 19.78.
  • SJI's Price/Forward Earnings ratio is in line with the industry average.
  • SJI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJI indicates a slightly more expensive valuation: SJI is more expensive than 70.59% of the companies listed in the same industry.
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%

More info and screens

6

5. Dividend

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 3.89.
  • Compared to an average S&P500 Dividend Yield of 1.83, SJI pays a better dividend.
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
  • 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%
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

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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%.