NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
46.36 USD
-0.89 (-1.88%)
46.36 USD
0 (0%)
NJR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of NJR while its profitability can be described as average. NJR has a decent growth rate and is not valued too expensively. Finally NJR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NJR was profitable.
NJR had a positive operating cash flow in the past year.
NJR had positive earnings in each of the past 5 years.
NJR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.43%, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
NJR's Return On Equity of 14.03% is fine compared to the rest of the industry. NJR outperforms 71.43% of its industry peers.
With a Return On Invested Capital value of 4.97%, NJR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
NJR had an Average Return On Invested Capital over the past 3 years of 5.25%. This is below the industry average of 8.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 14.03% | ||
| ROIC | 4.97% |
ROA(3y)4.21%
ROA(5y)3.82%
ROE(3y)13.5%
ROE(5y)12.57%
ROIC(3y)5.25%
ROIC(5y)5.16%
1.3 Margins
NJR has a better Profit Margin (16.48%) than 85.71% of its industry peers.
NJR's Profit Margin has improved in the last couple of years.
NJR has a better Operating Margin (22.13%) than 71.43% of its industry peers.
NJR's Operating Margin has improved in the last couple of years.
NJR has a worse Gross Margin (55.84%) than 64.29% of its industry peers.
In the last couple of years the Gross Margin of NJR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.13% | ||
| PM (TTM) | 16.48% | ||
| GM | 55.84% |
OM growth 3Y16.52%
OM growth 5Y13.56%
PM growth 3Y20.33%
PM growth 5Y14.59%
GM growth 3Y19.25%
GM growth 5Y10.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NJR is destroying value.
The number of shares outstanding for NJR has been increased compared to 1 year ago.
NJR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NJR has an improved debt to assets ratio.
2.2 Solvency
NJR has an Altman-Z score of 1.25. This is a bad value and indicates that NJR is not financially healthy and even has some risk of bankruptcy.
NJR's Altman-Z score of 1.25 is fine compared to the rest of the industry. NJR outperforms 64.29% of its industry peers.
NJR has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
NJR's Debt to Equity ratio of 1.44 is on the low side compared to the rest of the industry. NJR is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.8
WACC6.23%
2.3 Liquidity
NJR has a Current Ratio of 0.73. 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 0.73, NJR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 0.40 indicates that NJR may have some problems paying its short term obligations.
NJR has a Quick ratio of 0.40. This is in the lower half of the industry: NJR underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.53%, which is quite good.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
NJR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.35%.
The Revenue has been growing slightly by 0.83% on average over the past years.
EPS 1Y (TTM)11.53%
EPS 3Y9.44%
EPS 5Y9.71%
EPS Q2Q%-82.02%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-11.18%
Revenue growth 5Y0.83%
Sales Q2Q%-15.08%
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 5.79% on average per year.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.97% yearly.
EPS Next Y-4.28%
EPS Next 2Y3.06%
EPS Next 3Y4.74%
EPS Next 5Y5.79%
Revenue Next Year2.29%
Revenue Next 2Y3.14%
Revenue Next 3Y2.89%
Revenue Next 5Y2.97%
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
The Price/Earnings ratio is 14.09, which indicates a correct valuation of NJR.
NJR's Price/Earnings ratio is a bit cheaper when compared to the industry. NJR is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. NJR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.72, the valuation of NJR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NJR indicates a somewhat cheap valuation: NJR is cheaper than 78.57% of the companies listed in the same industry.
NJR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NJR is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.77 |
4.3 Compensation for Growth
NJR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y3.06%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.97%.
NJR's Dividend Yield is a higher than the industry average which is at 3.71.
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 | 3.97% |
5.2 History
On average, the dividend of NJR grows each year by 7.28%, which is quite nice.
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)7.28%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
NJR pays out 53.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
NJR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.65%
EPS Next 2Y3.06%
EPS Next 3Y4.74%
46.36
-0.89 (-1.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0.22%
Ins Owners0.42%
Ins Owner Change3.53%
Market Cap4.67B
Revenue(TTM)2.04B
Net Income(TTM)335.63M
Analysts81.82
Price Target55.69 (20.13%)
Short Float %2.22%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend1.8
Dividend Growth(5Y)7.28%
DP53.65%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)87.23%
Min EPS beat(2)-10.41%
Max EPS beat(2)184.87%
EPS beat(4)3
Avg EPS beat(4)50.79%
Min EPS beat(4)-10.41%
Max EPS beat(4)184.87%
EPS beat(8)5
Avg EPS beat(8)-8.06%
EPS beat(12)7
Avg EPS beat(12)27.82%
EPS beat(16)9
Avg EPS beat(16)11.42%
Revenue beat(2)1
Avg Revenue beat(2)4.26%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)11.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)2
Avg Revenue beat(8)-5.51%
Revenue beat(12)3
Avg Revenue beat(12)-13.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.29%
PT rev (1m)0%
PT rev (3m)0.37%
EPS NQ rev (1m)-8.15%
EPS NQ rev (3m)-8.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 14.72 | ||
| P/S | 2.29 | ||
| P/FCF | N/A | ||
| P/OCF | 10.75 | ||
| P/B | 1.95 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)3.29
EY7.1%
EPS(NY)3.15
Fwd EY6.79%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.31
OCFY9.3%
SpS20.21
BVpS23.74
TBVpS23.63
PEG (NY)N/A
PEG (5Y)1.45
Graham Number41.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 14.03% | ||
| ROCE | 6.63% | ||
| ROIC | 4.97% | ||
| ROICexc | 4.97% | ||
| ROICexgc | 4.98% | ||
| OM | 22.13% | ||
| PM (TTM) | 16.48% | ||
| GM | 55.84% | ||
| FCFM | N/A |
ROA(3y)4.21%
ROA(5y)3.82%
ROE(3y)13.5%
ROE(5y)12.57%
ROIC(3y)5.25%
ROIC(5y)5.16%
ROICexc(3y)5.25%
ROICexc(5y)5.16%
ROICexgc(3y)5.26%
ROICexgc(5y)5.17%
ROCE(3y)7.08%
ROCE(5y)7.06%
ROICexgc growth 3Y-4%
ROICexgc growth 5Y6.14%
ROICexc growth 3Y-4%
ROICexc growth 5Y6.17%
OM growth 3Y16.52%
OM growth 5Y13.56%
PM growth 3Y20.33%
PM growth 5Y14.59%
GM growth 3Y19.25%
GM growth 5Y10.95%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 349.65% | ||
| Cap/Sales | 32.41% | ||
| Interest Coverage | 3.46 | ||
| Cash Conversion | 67.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.25 |
F-Score6
WACC6.23%
ROIC/WACC0.8
Cap/Depr(3y)330.29%
Cap/Depr(5y)387.83%
Cap/Sales(3y)29%
Cap/Sales(5y)26.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.53%
EPS 3Y9.44%
EPS 5Y9.71%
EPS Q2Q%-82.02%
EPS Next Y-4.28%
EPS Next 2Y3.06%
EPS Next 3Y4.74%
EPS Next 5Y5.79%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-11.18%
Revenue growth 5Y0.83%
Sales Q2Q%-15.08%
Revenue Next Year2.29%
Revenue Next 2Y3.14%
Revenue Next 3Y2.89%
Revenue Next 5Y2.97%
EBIT growth 1Y-1.62%
EBIT growth 3Y3.5%
EBIT growth 5Y14.51%
EBIT Next Year39.4%
EBIT Next 3Y22.07%
EBIT Next 5Y18.13%
FCF growth 1Y-136.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.65%
OCF growth 3Y10.33%
OCF growth 5Y15.27%
NEW JERSEY RESOURCES CORP / NJR FAQ
What is the fundamental rating for NJR stock?
ChartMill assigns a fundamental rating of 4 / 10 to NJR.
What is the valuation status of NEW JERSEY RESOURCES CORP (NJR) stock?
ChartMill assigns a valuation rating of 4 / 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 6 / 10.
Can you provide the PE and PB ratios for NJR stock?
The Price/Earnings (PE) ratio for NEW JERSEY RESOURCES CORP (NJR) is 14.09 and the Price/Book (PB) ratio is 1.95.
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 decline by -4.28% in the next year.