SJW GROUP (SJW) Stock Fundamental Analysis
USA - NASDAQ:SJW - US7843051043 - Common Stock
54.86 USD
-0.37 (-0.67%)
54.86 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to SJW. SJW was compared to 15 industry peers in the Water Utilities industry. There are concerns on the financial health of SJW while its profitability can be described as average. 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.
In the past year SJW had a positive cash flow from operations.
Each year in the past 5 years SJW has been profitable.
In the past 5 years SJW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.02%, SJW is doing worse than 73.33% of the companies in the same industry.
The Return On Equity of SJW (6.87%) is worse than 80.00% of its industry peers.
SJW's Return On Invested Capital of 2.98% is on the low side compared to the rest of the industry. SJW is outperformed by 73.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJW is below the industry average of 4.86%.
The last Return On Invested Capital (2.98%) for SJW is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 6.87% | ||
| ROIC | 2.98% |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.8%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.79%
1.3 Margins
SJW has a Profit Margin of 12.56%. This is in the lower half of the industry: SJW underperforms 73.33% of its industry peers.
In the last couple of years the Profit Margin of SJW has grown nicely.
SJW has a Operating Margin of 22.78%. This is in the lower half of the industry: SJW underperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of SJW has grown nicely.
Looking at the Gross Margin, with a value of 88.70%, SJW belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Gross Margin of SJW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.78% | ||
| PM (TTM) | 12.56% | ||
| GM | 88.7% |
OM growth 3Y7.27%
OM growth 5Y5.5%
PM growth 3Y6%
PM growth 5Y17.67%
GM growth 3Y1.66%
GM growth 5Y0.21%
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.
The number of shares outstanding for SJW has been increased compared to 1 year ago.
Compared to 5 years ago, SJW has more shares outstanding
SJW has a better debt/assets ratio than last year.
2.2 Solvency
SJW has an Altman-Z score of 0.77. This is a bad value and indicates that SJW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.77, SJW is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
SJW has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.34, SJW is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.4
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.73 indicates that SJW may have some problems paying its short term obligations.
SJW's Current ratio of 0.73 is on the low side compared to the rest of the industry. SJW is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.73 indicates that SJW may have some problems paying its short term obligations.
SJW has a Quick ratio of 0.73. This is in the lower half of the industry: SJW underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
SJW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.41%, which is quite good.
Measured over the past years, SJW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.47% on average per year.
Looking at the last year, SJW shows a quite strong growth in Revenue. The Revenue has grown by 11.65% in the last year.
The Revenue has been growing by 12.22% on average over the past years. This is quite good.
EPS 1Y (TTM)12.41%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%38.89%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%12.2%
3.2 Future
SJW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
Based on estimates for the next years, SJW will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y5.04%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
EPS Next 5Y5.45%
Revenue Next Year9.73%
Revenue Next 2Y7.67%
Revenue Next 3Y4.35%
Revenue Next 5Y4.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of SJW.
Based on the Price/Earnings ratio, SJW is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SJW to the average of the S&P500 Index (26.06), we can say SJW is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.30, which indicates a rather expensive current valuation of SJW.
SJW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SJW is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SJW to the average of the S&P500 Index (32.73), we can say SJW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
SJW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SJW is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.64
PEG (5Y)1.11
EPS Next 2Y5.49%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, SJW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.39, SJW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, SJW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of SJW has a limited annual growth rate of 5.79%.
SJW has paid a dividend for at least 10 years, which is 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)5.79%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SJW pays out 55.48% of its income as dividend. 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.
DP55.48%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
54.86
-0.37 (-0.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change0.96%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.88B
Revenue(TTM)748.44M
Net Income(TTM)93.97M
Analysts80
Price Target63.24 (15.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.59
Dividend Growth(5Y)5.79%
DP55.48%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.3%
Min EPS beat(2)0.73%
Max EPS beat(2)21.86%
EPS beat(4)3
Avg EPS beat(4)7.02%
Min EPS beat(4)-5.2%
Max EPS beat(4)21.86%
EPS beat(8)6
Avg EPS beat(8)18.76%
EPS beat(12)9
Avg EPS beat(12)13.88%
EPS beat(16)11
Avg EPS beat(16)8.63%
Revenue beat(2)2
Avg Revenue beat(2)4.42%
Min Revenue beat(2)4.37%
Max Revenue beat(2)4.47%
Revenue beat(4)4
Avg Revenue beat(4)4.96%
Min Revenue beat(4)4.37%
Max Revenue beat(4)5.71%
Revenue beat(8)7
Avg Revenue beat(8)4.13%
Revenue beat(12)10
Avg Revenue beat(12)3.57%
Revenue beat(16)10
Avg Revenue beat(16)1.01%
PT rev (1m)2.99%
PT rev (3m)2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)4.57%
Revenue NY rev (3m)4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 | ||
| P/S | 2.51 | ||
| P/FCF | N/A | ||
| P/OCF | 9.59 | ||
| P/B | 1.37 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)2.99
EY5.45%
EPS(NY)3.17
Fwd EY5.78%
FCF(TTM)-5.32
FCFYN/A
OCF(TTM)5.72
OCFY10.43%
SpS21.9
BVpS39.99
TBVpS19.75
PEG (NY)3.64
PEG (5Y)1.11
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 6.87% | ||
| ROCE | 3.88% | ||
| ROIC | 2.98% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.53% | ||
| OM | 22.78% | ||
| PM (TTM) | 12.56% | ||
| GM | 88.7% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.8%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.79%
ROICexc(3y)2.85%
ROICexc(5y)2.8%
ROICexgc(3y)3.41%
ROICexgc(5y)3.42%
ROCE(3y)3.73%
ROCE(5y)3.68%
ROICexgc growth 3Y4.13%
ROICexgc growth 5Y7.45%
ROICexc growth 3Y6.1%
ROICexc growth 5Y9.16%
OM growth 3Y7.27%
OM growth 5Y5.5%
PM growth 3Y6%
PM growth 5Y17.67%
GM growth 3Y1.66%
GM growth 5Y0.21%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.39 | ||
| Cap/Depr | 327.86% | ||
| Cap/Sales | 50.4% | ||
| Interest Coverage | 2.44 | ||
| Cash Conversion | 68.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.77 |
F-Score6
WACC7.5%
ROIC/WACC0.4
Cap/Depr(3y)273.96%
Cap/Depr(5y)262.79%
Cap/Sales(3y)44.13%
Cap/Sales(5y)42.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.41%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%38.89%
EPS Next Y5.04%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
EPS Next 5Y5.45%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%12.2%
Revenue Next Year9.73%
Revenue Next 2Y7.67%
Revenue Next 3Y4.35%
Revenue Next 5Y4.23%
EBIT growth 1Y14.05%
EBIT growth 3Y17.21%
EBIT growth 5Y18.39%
EBIT Next Year98.6%
EBIT Next 3Y34.4%
EBIT Next 5Y21.04%
FCF growth 1Y-85.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.46%
OCF growth 3Y14.56%
OCF growth 5Y8.51%
SJW GROUP / SJW FAQ
What is the ChartMill fundamental rating of SJW GROUP (SJW) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SJW.
What is the valuation status of SJW GROUP (SJW) stock?
ChartMill assigns a valuation rating of 2 / 10 to SJW GROUP (SJW). This can be considered as Overvalued.
How profitable is SJW GROUP (SJW) stock?
SJW GROUP (SJW) has a profitability rating of 5 / 10.
What is the expected EPS growth for SJW GROUP (SJW) stock?
The Earnings per Share (EPS) of SJW GROUP (SJW) is expected to grow by 5.04% in the next year.
Is the dividend of SJW GROUP sustainable?
The dividend rating of SJW GROUP (SJW) is 6 / 10 and the dividend payout ratio is 55.48%.