NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
46.42 USD
+0.11 (+0.24%)
46.42 USD
0 (0%)
Taking everything into account, NJR scores 4 out of 10 in our fundamental rating. NJR was compared to 14 industry peers in the Gas Utilities industry. NJR has an excellent profitability rating, but there are concerns on its financial health. NJR is quite expensive at the moment. It does show a decent growth rate. 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.
Each year in the past 5 years NJR has been profitable.
NJR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.43%, NJR is doing good in the industry, outperforming 71.43% 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.
The Return On Invested Capital of NJR (4.97%) is comparable to the rest of the industry.
NJR had an Average Return On Invested Capital over the past 3 years of 5.25%. This is in line with the industry average of 6.28%.
| 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
The Profit Margin of NJR (16.48%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of NJR has grown nicely.
NJR has a Operating Margin of 22.13%. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
NJR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.84%, NJR is doing worse than 64.29% of the companies in the same industry.
NJR's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NJR is destroying value.
Compared to 1 year ago, NJR has more shares outstanding
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
Based on the Altman-Z score of 1.24, 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 1.24, NJR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that NJR has dependencies on debt financing.
With a Debt to Equity ratio value of 1.44, NJR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.79
WACC6.28%
2.3 Liquidity
A Current Ratio of 0.73 indicates that NJR may have some problems paying its short term obligations.
With a decent Current ratio value of 0.73, NJR is doing good in the industry, outperforming 64.29% of the companies in the same industry.
NJR has a Quick 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.
The Quick ratio of NJR (0.40) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.53% over the past year.
Measured over the past years, NJR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
The Revenue has grown by 13.35% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 5.79% on average over the next years.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y-4.8%
EPS Next 2Y1.36%
EPS Next 3Y2.91%
EPS Next 5Y5.79%
Revenue Next Year14.24%
Revenue Next 2Y9.36%
Revenue Next 3Y1.85%
Revenue Next 5Y3.01%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.11, NJR is valued correctly.
Based on the Price/Earnings ratio, NJR is valued a bit cheaper than 71.43% of the companies in the same industry.
NJR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
Based on the Price/Forward Earnings ratio of 14.82, the valuation of NJR can be described as correct.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, NJR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NJR is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
The decent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y1.36%
EPS Next 3Y2.91%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.98%.
NJR's Dividend Yield is a higher than the industry average which is at 3.80.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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.
The dividend of NJR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.65%
EPS Next 2Y1.36%
EPS Next 3Y2.91%
46.42
+0.11 (+0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.72%
Inst Owner Change0.21%
Ins Owners0.47%
Ins Owner Change3.61%
Market Cap4.68B
Revenue(TTM)2.04B
Net Income(TTM)335.63M
Analysts81.82
Price Target56.51 (21.74%)
Short Float %2.1%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)1.47%
PT rev (3m)1.84%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-4%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)11.51%
Revenue NY rev (3m)11.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 14.82 | ||
| P/S | 2.3 | ||
| P/FCF | N/A | ||
| P/OCF | 10.76 | ||
| P/B | 1.96 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)3.29
EY7.09%
EPS(NY)3.13
Fwd EY6.75%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.31
OCFY9.29%
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 | 1.24 |
F-Score6
WACC6.28%
ROIC/WACC0.79
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-4.8%
EPS Next 2Y1.36%
EPS Next 3Y2.91%
EPS Next 5Y5.79%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-11.18%
Revenue growth 5Y0.83%
Sales Q2Q%-15.08%
Revenue Next Year14.24%
Revenue Next 2Y9.36%
Revenue Next 3Y1.85%
Revenue Next 5Y3.01%
EBIT growth 1Y-1.62%
EBIT growth 3Y3.5%
EBIT growth 5Y14.51%
EBIT Next Year39.88%
EBIT Next 3Y23.05%
EBIT Next 5Y18.84%
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 3 / 10 to NEW JERSEY RESOURCES CORP (NJR). This can be considered as Overvalued.
Can you provide the profitability details for NEW JERSEY RESOURCES CORP?
NEW JERSEY RESOURCES CORP (NJR) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for NJR stock?
The Price/Earnings (PE) ratio for NEW JERSEY RESOURCES CORP (NJR) is 14.11 and the Price/Book (PB) ratio is 1.96.
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 -4.8% in the next year.