SJW GROUP (SJW) Stock Fundamental Analysis
NASDAQ:SJW - Nasdaq - US7843051043 - Common Stock - Currency: USD
SJW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SJW was profitable.
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
SJW's Return On Assets of 2.02% is on the low side compared to the rest of the industry. SJW is outperformed by 73.33% of its industry peers.
SJW has a worse Return On Equity (6.87%) than 80.00% of its industry peers.
The Return On Invested Capital of SJW (2.98%) is worse than 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 5.07%.
The 3 year average ROIC (2.84%) for SJW is below the current ROIC(2.98%), indicating increased profibility in the last year.
| 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
The Profit Margin of SJW (12.56%) is worse than 73.33% of its industry peers.
SJW's Profit Margin has improved in the last couple of years.
The Operating Margin of SJW (22.78%) is worse than 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.
SJW's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SJW is destroying value.
SJW has more shares outstanding than it did 1 year ago.
SJW has more shares outstanding than it did 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 0.77. 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 0.77, SJW is doing worse than 73.33% of the companies in the same industry.
A Debt/Equity ratio of 1.34 is on the high side and indicates that SJW has dependencies on debt financing.
The Debt to Equity ratio of SJW (1.34) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.4
WACC7.5%
2.3 Liquidity
SJW has a Current Ratio of 0.73. This is a bad value and indicates that SJW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.73, SJW is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that SJW may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, SJW is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.41% over the past year.
SJW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.47% yearly.
SJW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.65%.
SJW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.22% yearly.
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
The Earnings Per Share is expected to grow by 5.45% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of SJW.
73.33% of the companies in the same industry are more expensive than SJW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SJW to the average of the S&P500 Index (26.68), we can say SJW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.30, SJW is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SJW indicates a somewhat cheap valuation: SJW is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.50. SJW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJW is valued a bit 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 3.42, SJW pays a bit more dividend than its industry peers.
SJW's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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.
SJW's earnings are growing slower than its dividend. 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 Change5.03%
Ins OwnersN/A
Ins Owner Change0.41%
Market Cap1.88B
Analysts80
Price Target63.24 (15.28%)
Short Float %1.79%
Short Ratio2.06
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
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%
ROICexcg growth 3Y4.13%
ROICexcg 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%