NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - NYSE:NJR - US6460251068 - Common Stock
46.62 USD
0 (0%)
46.62 USD
0 (0%)
Overall NJR gets a fundamental rating of 5 out of 10. We evaluated NJR against 14 industry peers in the Gas Utilities industry. While NJR belongs to the best of the industry regarding profitability, there are concerns on its financial health. NJR is not valued too expensively and it also shows a decent growth rate. NJR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NJR was profitable.
In the past year NJR had a positive cash flow from operations.
Each year in the past 5 years NJR has been profitable.
In the past 5 years NJR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.66%, NJR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
NJR has a Return On Equity of 16.99%. This is amongst the best in the industry. NJR outperforms 92.86% of its industry peers.
NJR's Return On Invested Capital of 6.58% is fine compared to the rest of the industry. NJR outperforms 64.29% of its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.71%. This is below the industry average of 8.93%.
The 3 year average ROIC (5.71%) for NJR is below the current ROIC(6.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 16.99% | ||
| ROIC | 6.58% |
ROA(3y)4.2%
ROA(5y)3.54%
ROE(3y)13.86%
ROE(5y)11.75%
ROIC(3y)5.71%
ROIC(5y)5.1%
1.3 Margins
Looking at the Profit Margin, with a value of 19.64%, NJR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
NJR's Profit Margin has improved in the last couple of years.
The Operating Margin of NJR (26.64%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of NJR has grown nicely.
The Gross Margin of NJR (58.11%) is worse than 64.29% of its industry peers.
NJR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.64% | ||
| PM (TTM) | 19.64% | ||
| GM | 58.11% |
OM growth 3Y24%
OM growth 5Y32.05%
PM growth 3Y43.43%
PM growth 5Y27.54%
GM growth 3Y17.21%
GM growth 5Y23.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NJR is creating some value.
NJR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NJR has been increased compared to 5 years ago.
The debt/assets ratio for NJR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that NJR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
NJR has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
NJR has a worse Debt to Equity ratio (1.37) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC1.03
WACC6.4%
2.3 Liquidity
NJR has a Current Ratio of 0.76. This is a bad value and indicates that NJR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.76, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 0.48 indicates that NJR may have some problems paying its short term obligations.
NJR's Quick ratio of 0.48 is in line compared to the rest of the industry. NJR outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.34%, which is quite impressive.
The Earnings Per Share has been growing by 8.41% on average over the past years. This is quite good.
NJR shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.02%.
Measured over the past years, NJR shows a decrease in Revenue. The Revenue has been decreasing by -7.07% on average per year.
EPS 1Y (TTM)70.34%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%166.67%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
3.2 Future
The Earnings Per Share is expected to grow by 6.91% on average over the next years.
The Revenue is expected to grow by 1.45% on average over the next years.
EPS Next Y10.36%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue Next Year-4.43%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.60, the valuation of NJR can be described as very reasonable.
78.57% of the companies in the same industry are more expensive than NJR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, NJR is valued rather cheaply.
NJR is valuated correctly with a Price/Forward Earnings ratio of 14.80.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than 78.57% of the companies in the same industry.
NJR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
NJR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.43 |
4.3 Compensation for Growth
NJR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NJR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.12
PEG (5Y)1.38
EPS Next 2Y3.32%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, NJR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.77, NJR pays a bit more dividend than its industry peers.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
On average, the dividend of NJR grows each year by 7.48%, which is quite nice.
NJR has been paying a dividend for at least 10 years, so it has a reliable track record.
NJR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.48%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
NJR pays out 42.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NJR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.88%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
46.62
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0.21%
Ins Owners0.42%
Ins Owner Change8.51%
Market Cap4.68B
Revenue(TTM)2.10B
Net Income(TTM)411.68M
Analysts81.82
Price Target55.69 (19.46%)
Short Float %2.19%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP42.88%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)96.83%
Min EPS beat(2)8.79%
Max EPS beat(2)184.87%
EPS beat(4)4
Avg EPS beat(4)53.52%
Min EPS beat(4)0.52%
Max EPS beat(4)184.87%
EPS beat(8)5
Avg EPS beat(8)-6.82%
EPS beat(12)8
Avg EPS beat(12)30.03%
EPS beat(16)9
Avg EPS beat(16)11.33%
Revenue beat(2)1
Avg Revenue beat(2)10.5%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)23.5%
Revenue beat(4)1
Avg Revenue beat(4)-4.56%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)1
Avg Revenue beat(8)-13.99%
Revenue beat(12)3
Avg Revenue beat(12)-8.29%
Revenue beat(16)7
Avg Revenue beat(16)1.44%
PT rev (1m)0%
PT rev (3m)1.11%
EPS NQ rev (1m)-6.77%
EPS NQ rev (3m)-20.22%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 14.8 | ||
| P/S | 2.23 | ||
| P/FCF | N/A | ||
| P/OCF | 10.41 | ||
| P/B | 1.93 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)4.02
EY8.62%
EPS(NY)3.15
Fwd EY6.75%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.6%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.12
PEG (5Y)1.38
Graham Number46.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 16.99% | ||
| ROCE | 8.55% | ||
| ROIC | 6.58% | ||
| ROICexc | 6.58% | ||
| ROICexgc | 6.59% | ||
| OM | 26.64% | ||
| PM (TTM) | 19.64% | ||
| GM | 58.11% | ||
| FCFM | N/A |
ROA(3y)4.2%
ROA(5y)3.54%
ROE(3y)13.86%
ROE(5y)11.75%
ROIC(3y)5.71%
ROIC(5y)5.1%
ROICexc(3y)5.71%
ROICexc(5y)5.12%
ROICexgc(3y)5.72%
ROICexgc(5y)5.13%
ROCE(3y)7.5%
ROCE(5y)6.69%
ROICexgc growth 3Y7.84%
ROICexgc growth 5Y11.43%
ROICexc growth 3Y7.86%
ROICexc growth 5Y11.48%
OM growth 3Y24%
OM growth 5Y32.05%
PM growth 3Y43.43%
PM growth 5Y27.54%
GM growth 3Y17.21%
GM growth 5Y23.25%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 305.66% | ||
| Cap/Sales | 27.06% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 60.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.38 |
F-Score7
WACC6.4%
ROIC/WACC1.03
Cap/Depr(3y)357.99%
Cap/Depr(5y)392.64%
Cap/Sales(3y)24.61%
Cap/Sales(5y)24.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.34%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%166.67%
EPS Next Y10.36%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
Revenue Next Year-4.43%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
EBIT growth 1Y48.43%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year43.39%
EBIT Next 3Y18.42%
EBIT Next 5Y15.89%
FCF growth 1Y-437.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.43%
OCF growth 3Y3.01%
OCF growth 5Y17.1%
NEW JERSEY RESOURCES CORP / NJR FAQ
What is the fundamental rating for NJR stock?
ChartMill assigns a fundamental rating of 5 / 10 to NJR.
What is the valuation status of NEW JERSEY RESOURCES CORP (NJR) stock?
ChartMill assigns a valuation rating of 5 / 10 to NEW JERSEY RESOURCES CORP (NJR). This can be considered as Fairly Valued.
Can you provide the profitability details for NEW JERSEY RESOURCES CORP?
NEW JERSEY RESOURCES CORP (NJR) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for NJR stock?
The Price/Earnings (PE) ratio for NEW JERSEY RESOURCES CORP (NJR) is 11.6 and the Price/Book (PB) ratio is 1.93.
What is the expected EPS growth for NEW JERSEY RESOURCES CORP (NJR) stock?
The Earnings per Share (EPS) of NEW JERSEY RESOURCES CORP (NJR) is expected to grow by 10.36% in the next year.