NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
45.89 USD
-0.47 (-1.01%)
45.89 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 a medium profitability rating, but doesn't score so well on its financial health evaluation. NJR has a correct valuation and a medium growth rate. 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.
In the past 5 years NJR has always been profitable.
Each year in the past 5 years NJR had a positive operating cash flow.
1.2 Ratios
NJR has a Return On Assets of 4.43%. This is in the better half of the industry: NJR outperforms 78.57% of its industry peers.
The Return On Equity of NJR (14.03%) is better than 71.43% of its industry peers.
NJR has a Return On Invested Capital (4.97%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NJR 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.
The Operating Margin of NJR (22.13%) is better than 71.43% of its industry peers.
NJR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 55.84%, 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 | 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
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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that NJR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NJR (1.23) is better than 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.
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 | 1.23 |
ROIC/WACC0.8
WACC6.22%
2.3 Liquidity
A Current Ratio of 0.73 indicates that NJR may have some problems paying its short term obligations.
The Current ratio of NJR (0.73) is better than 64.29% of its industry peers.
A Quick Ratio of 0.40 indicates that NJR may have some problems paying its short term obligations.
NJR has a worse Quick ratio (0.40) than 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.
The Revenue has grown by 13.35% in the past year. This is quite good.
Measured over the past years, NJR shows a small growth in Revenue. The Revenue has been growing by 0.83% on average per year.
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.
The Revenue is expected to grow by 2.97% on average over the next years.
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
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 13.95, NJR is valued correctly.
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.
NJR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.37.
NJR is valuated correctly with a Price/Forward Earnings ratio of 14.57.
78.57% of the companies in the same industry are more expensive than NJR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.20. NJR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.95 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NJR indicates a slightly more expensive valuation: NJR is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.56 |
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)1.44
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.
Compared to an average S&P500 Dividend Yield of 2.32, NJR pays a better dividend.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
45.89
-0.47 (-1.01%)
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 Cap4.62B
Revenue(TTM)2.04B
Net Income(TTM)335.63M
Analysts81.82
Price Target55.69 (21.36%)
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 | 13.95 | ||
| Fwd PE | 14.57 | ||
| P/S | 2.27 | ||
| P/FCF | N/A | ||
| P/OCF | 10.64 | ||
| P/B | 1.93 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 12.56 |
EPS(TTM)3.29
EY7.17%
EPS(NY)3.15
Fwd EY6.86%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.31
OCFY9.4%
SpS20.21
BVpS23.74
TBVpS23.63
PEG (NY)N/A
PEG (5Y)1.44
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 | 1.23 |
F-Score6
WACC6.22%
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 13.95 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 decline by -4.28% in the next year.