SJW GROUP (SJW)
US7843051043 - Common Stock
We assign a fundamental rating of 3 out of 10 to SJW. SJW was compared to 14 industry peers in the Water Utilities industry. While SJW is still in line with the averages on profitability rating, there are concerns on its financial health. SJW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SJW had positive earnings in the past year.
SJW had a positive operating cash flow in the past year.
In the past 5 years SJW has always been profitable.
Each year in the past 5 years SJW had a positive operating cash flow.
1.2 Ratios
SJW has a Return On Assets of 1.95%. This is in the lower half of the industry: SJW underperforms 78.57% of its industry peers.
The Return On Equity of SJW (6.87%) is worse than 71.43% of its industry peers.
SJW's Return On Invested Capital of 3.28% is in line compared to the rest of the industry. SJW outperforms 57.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SJW is below the industry average of 5.15%.
The 3 year average ROIC (3.10%) for SJW is below the current ROIC(3.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 6.87% | ||
| ROIC | 3.28% |
ROA(3y)1.88%
ROA(5y)1.65%
ROE(3y)6.46%
ROE(5y)5.74%
ROIC(3y)3.1%
ROIC(5y)2.99%
1.3 Margins
SJW has a Profit Margin of 12.48%. This is in the lower half of the industry: SJW underperforms 78.57% of its industry peers.
SJW's Profit Margin has improved in the last couple of years.
SJW has a worse Operating Margin (22.30%) than 64.29% of its industry peers.
In the last couple of years the Operating Margin of SJW has remained more or less at the same level.
With an excellent Gross Margin value of 89.07%, SJW belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SJW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.3% | ||
| PM (TTM) | 12.48% | ||
| GM | 89.07% |
OM growth 3Y2.25%
OM growth 5Y-0.74%
PM growth 3Y5.18%
PM growth 5Y5.38%
GM growth 3Y1.61%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
SJW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SJW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SJW has been increased compared to 5 years ago.
Compared to 1 year ago, SJW has an improved debt to assets ratio.
2.2 Solvency
SJW has an Altman-Z score of 0.73. This is a bad value and indicates that SJW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.73, SJW is doing worse than 78.57% of the companies in the same industry.
SJW has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
SJW's Debt to Equity ratio of 1.42 is on the low side compared to the rest of the industry. SJW is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.73 |
ROIC/WACC0.42
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.55 indicates that SJW may have some problems paying its short term obligations.
SJW has a worse Current ratio (0.55) than 92.86% of its industry peers.
SJW has a Quick Ratio of 0.55. This is a bad value and indicates that SJW is not financially healthy enough and could expect problems in meeting its short term obligations.
SJW has a Quick ratio of 0.55. This is in the lower half of the industry: SJW underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
SJW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
Measured over the past 5 years, SJW shows a small growth in Earnings Per Share. The EPS has been growing by 5.95% on average per year.
Looking at the last year, SJW shows a small growth in Revenue. The Revenue has grown by 7.69% in the last year.
SJW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.01% yearly.
EPS 1Y (TTM)0%
EPS 3Y7.65%
EPS 5Y5.95%
EPS growth Q2Q-2.7%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y5.9%
Revenue growth 5Y11.01%
Revenue growth Q2Q8.8%
3.2 Future
SJW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.43% yearly.
Based on estimates for the next years, SJW will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y4.53%
EPS Next 2Y6.47%
EPS Next 3Y6.35%
EPS Next 5Y6.43%
Revenue Next Year7.22%
Revenue Next 2Y5.53%
Revenue Next 3Y4.95%
Revenue Next 5Y4.61%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.02, the valuation of SJW can be described as rather expensive.
SJW's Price/Earnings ratio is a bit cheaper when compared to the industry. SJW is cheaper than 71.43% of the companies in the same industry.
SJW is valuated rather cheaply when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.47 indicates a rather expensive valuation of SJW.
85.71% of the companies in the same industry are more expensive than SJW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.58, SJW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJW indicates a rather cheap valuation: SJW is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SJW does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.64
PEG (5Y)3.53
EPS Next 2Y6.47%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
SJW has a Yearly Dividend Yield of 2.89%.
SJW's Dividend Yield is a higher than the industry average which is at 3.70.
SJW's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of SJW is nicely growing with an annual growth rate of 10.05%!
SJW has been paying a dividend for at least 10 years, so it has a reliable track record.
SJW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.05%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
57.58% of the earnings are spent on dividend by SJW. This is a bit on the high side, but may be sustainable.
The dividend of SJW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.58%
EPS Next 2Y6.47%
EPS Next 3Y6.35%
SJW GROUP
NYSE:SJW (5/6/2024, 6:00:00 PM)
After market: 55.9 0 (0%)55.9
+0.37 (+0.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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 | 21.02 | ||
| Fwd PE | 18.47 | ||
| 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)4.64
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 6.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.3% | ||
| PM (TTM) | 12.48% | ||
| GM | 89.07% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| 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)0%
EPS 3Y7.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.69%
Revenue growth 3Y5.9%
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