NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - NYSE:NJR - US6460251068 - Common Stock
46.16 USD
+0.07 (+0.15%)
46.16 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. NJR has an excellent profitability rating, but 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
NJR had positive earnings in the past year.
NJR had a positive operating cash flow in the past year.
In the past 5 years NJR has always 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 100.00% of the companies in the same industry.
The Return On Equity of NJR (16.99%) is better than 100.00% of its industry peers.
With a decent Return On Invested Capital value of 6.58%, NJR is doing good in the industry, outperforming 64.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NJR is in line with the industry average of 6.32%.
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
The Profit Margin of NJR (19.64%) is better than 92.86% of its industry peers.
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.
With a Gross Margin value of 58.11%, NJR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
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.
Compared to 5 years ago, NJR has more shares outstanding
NJR has a worse debt/assets ratio than last year.
2.2 Solvency
NJR has an Altman-Z score of 1.37. This is a bad value and indicates that NJR is not financially healthy and even has some risk of bankruptcy.
NJR has a better Altman-Z score (1.37) than 71.43% of its industry peers.
NJR has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NJR (1.37) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC1.04
WACC6.3%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NJR may have some problems paying 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 42.86% 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
Based on estimates for the next years, NJR will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
The Revenue is expected to grow by 1.45% on average over the next years.
EPS Next Y10.01%
EPS Next 2Y3.89%
EPS Next 3Y6.31%
EPS Next 5Y6.91%
Revenue Next Year-4.38%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.48, which indicates a very decent valuation of NJR.
Based on the Price/Earnings ratio, NJR is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NJR to the average of the S&P500 Index (27.57), we can say NJR is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.50, NJR is valued correctly.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, NJR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NJR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.36 |
4.3 Compensation for Growth
The 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)1.15
PEG (5Y)1.37
EPS Next 2Y3.89%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 4.09%, which is a nice return.
NJR's Dividend Yield is a higher than the industry average which is at 3.84.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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 2Y3.89%
EPS Next 3Y6.31%
46.16
+0.07 (+0.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change-0.34%
Market Cap4.64B
Revenue(TTM)2.10B
Net Income(TTM)411.68M
Analysts81.82
Price Target55.69 (20.65%)
Short Float %2.15%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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)0.37%
PT rev (3m)0.49%
EPS NQ rev (1m)-13.67%
EPS NQ rev (3m)-19.99%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 14.5 | ||
| P/S | 2.21 | ||
| P/FCF | N/A | ||
| P/OCF | 10.31 | ||
| P/B | 1.91 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)4.02
EY8.71%
EPS(NY)3.18
Fwd EY6.9%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.7%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.15
PEG (5Y)1.37
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 | 1.37 |
F-Score7
WACC6.3%
ROIC/WACC1.04
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 Y10.01%
EPS Next 2Y3.89%
EPS Next 3Y6.31%
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-4.38%
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%