NEW JERSEY RESOURCES CORP (NJR)
US6460251068 - Common Stock
We assign a fundamental rating of 4 out of 10 to NJR. NJR was compared to 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NJR had positive earnings in the past year.
NJR had a positive operating cash flow in the past year.
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
NJR's Return On Assets of 4.15% is fine compared to the rest of the industry. NJR outperforms 78.57% of its industry peers.
With an excellent Return On Equity value of 13.17%, NJR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NJR has a Return On Invested Capital of 5.78%. This is comparable to the rest of the industry: NJR outperforms 57.14% of its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.71%. This is in line with the industry average of 6.27%.
The last Return On Invested Capital (5.78%) for NJR is above the 3 year average (5.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 13.17% | ||
| ROIC | 5.78% |
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
NJR's Profit Margin of 16.13% is amongst the best of the industry. NJR outperforms 92.86% of its industry peers.
NJR's Profit Margin has improved in the last couple of years.
The Operating Margin of NJR (25.50%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of NJR has grown nicely.
Looking at the Gross Margin, with a value of 60.10%, NJR is in line with its industry, outperforming 42.86% of the companies in the same industry.
NJR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.5% | ||
| PM (TTM) | 16.13% | ||
| GM | 60.1% |
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
NJR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NJR has more shares outstanding than it did 1 year ago.
NJR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NJR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, 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 1.26, NJR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
NJR has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NJR (1.44) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.87
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.62 indicates that NJR may have some problems paying its short term obligations.
NJR's Current ratio of 0.62 is in line compared to the rest of the industry. NJR outperforms 50.00% of its industry peers.
NJR has a Quick Ratio of 0.62. This is a bad value and indicates that NJR is not financially healthy enough and could expect problems in meeting its short term obligations.
NJR has a Quick ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.26% over the past year.
The Earnings Per Share has been growing by 8.41% on average over the past years. This is quite good.
NJR shows a decrease in Revenue. In the last year, the revenue decreased by -8.48%.
The Revenue has been decreasing by -7.07% on average over the past years.
EPS 1Y (TTM)9.26%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%196.67%
Revenue 1Y (TTM)-8.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%19.45%
3.2 Future
Based on estimates for the next years, NJR will show a small growth in Earnings Per Share. The EPS will grow by 5.73% on average per year.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
EPS Next Y3.87%
EPS Next 2Y3.02%
EPS Next 3Y5.97%
EPS Next 5Y5.73%
Revenue Next Year-4.14%
Revenue Next 2Y-0.22%
Revenue Next 3Y1.27%
Revenue Next 5Y3.93%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NJR is valuated correctly with a Price/Earnings ratio of 15.83.
Based on the Price/Earnings ratio, NJR is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. NJR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.24, the valuation of NJR can be described as correct.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.00. NJR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NJR is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NJR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)4.09
PEG (5Y)1.88
EPS Next 2Y3.02%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.91%, NJR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.25, NJR has a dividend in line with its industry peers.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
The dividend of NJR is nicely growing with an annual growth rate of 7.48%!
NJR has paid a dividend for at least 10 years, which is a reliable track record.
NJR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.48%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
56.96% of the earnings are spent on dividend by NJR. 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.
DP56.96%
EPS Next 2Y3.02%
EPS Next 3Y5.97%
NEW JERSEY RESOURCES CORP
NYSE:NJR (12/26/2024, 4:10:03 PM)
After market: 46.71 0 (0%)46.71
-0.12 (-0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.27%
Inst Owner Change1.72%
Ins Owners0.34%
Ins Owner Change1.6%
Market Cap4.66B
Analysts78.18
Price Target54.06 (15.74%)
Short Float %2.1%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Dividend Growth(5Y)7.48%
DP56.96%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-135.39%
Min EPS beat(2)-271.29%
Max EPS beat(2)0.52%
EPS beat(4)2
Avg EPS beat(4)-66.92%
Min EPS beat(4)-271.29%
Max EPS beat(4)4.97%
EPS beat(8)4
Avg EPS beat(8)16.34%
EPS beat(12)6
Avg EPS beat(12)-1.7%
EPS beat(16)7
Avg EPS beat(16)-0.63%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-3.72%
Revenue beat(4)0
Avg Revenue beat(4)-10.13%
Min Revenue beat(4)-30.12%
Max Revenue beat(4)-2.78%
Revenue beat(8)1
Avg Revenue beat(8)-20.21%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)2.86%
PT rev (1m)8.16%
PT rev (3m)6%
EPS NQ rev (1m)2.87%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)5.06%
EPS NY rev (3m)5.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.88%
Revenue NY rev (3m)-5.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 15.24 | ||
| P/S | 2.59 | ||
| P/FCF | N/A | ||
| P/OCF | 10.9 | ||
| P/B | 2.12 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)2.95
EY6.32%
EPS(NY)3.06
Fwd EY6.56%
FCF(TTM)-0.96
FCFYN/A
OCF(TTM)4.28
OCFY9.17%
SpS18.01
BVpS22.06
TBVpS21.95
PEG (NY)4.09
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 13.17% | ||
| ROCE | 7.52% | ||
| ROIC | 5.78% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.79% | ||
| OM | 25.5% | ||
| PM (TTM) | 16.13% | ||
| GM | 60.1% | ||
| 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%
ROICexcg growth 3Y7.84%
ROICexcg 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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 313.95% | ||
| Cap/Sales | 29.11% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 68.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.26 |
F-Score6
WACC6.66%
ROIC/WACC0.87
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)9.26%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%196.67%
EPS Next Y3.87%
EPS Next 2Y3.02%
EPS Next 3Y5.97%
EPS Next 5Y5.73%
Revenue 1Y (TTM)-8.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%19.45%
Revenue Next Year-4.14%
Revenue Next 2Y-0.22%
Revenue Next 3Y1.27%
Revenue Next 5Y3.93%
EBIT growth 1Y12.56%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year38.54%
EBIT Next 3Y20.1%
EBIT Next 5Y14.46%
FCF growth 1Y-346.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.77%
OCF growth 3Y3.01%
OCF growth 5Y17.1%