NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
48.83 USD
+0.79 (+1.64%)
48.83 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 scores excellent on profitability, but there are concerns on its financial health. NJR is valued correctly, but it does not seem to be growing. 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.
Of the past 5 years NJR 4 years were profitable.
Of the past 5 years NJR 4 years had a positive operating cash flow.
1.2 Ratios
NJR has a better Return On Assets (5.66%) than 92.86% of its industry peers.
The Return On Equity of NJR (16.99%) is better than 92.86% of its industry peers.
NJR has a better Return On Invested Capital (6.58%) than 64.29% of its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.71%. This is below the industry average of 8.93%.
The last Return On Invested Capital (6.58%) for NJR is above the 3 year average (5.71%), which is a sign of increasing profitability.
| 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
NJR has a better Profit Margin (19.64%) than 85.71% of its industry peers.
NJR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.64%, NJR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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.
There is no outstanding debt for NJR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that NJR is in the distress zone and has some risk of bankruptcy.
NJR's Altman-Z score of 1.39 is fine compared to the rest of the industry. NJR outperforms 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.
Looking at the Debt to Equity ratio, with a value of 1.37, NJR is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC1.02
WACC6.42%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NJR may have some problems paying its short term obligations.
The Current ratio of NJR (0.76) is better than 78.57% of its industry peers.
NJR has a Quick Ratio of 0.76. 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's Quick ratio of 0.48 is in line compared to the rest of the industry. NJR outperforms 57.14% 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 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.
EPS 1Y (TTM)11.53%
EPS 3Y9.44%
EPS 5Y9.71%
EPS Q2Q%-82.02%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.08%
3.2 Future
The Earnings Per Share is expected to grow by 5.79% on average over the next years.
Based on estimates for the next years, NJR will show a small growth in Revenue. The Revenue will grow by 2.97% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.84, 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 25.45. NJR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.51, NJR is valued correctly.
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 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
NJR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
The decent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y3.06%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.96%.
Compared to an average industry Dividend Yield of 3.81, NJR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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 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
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 2Y3.06%
EPS Next 3Y4.74%
48.83
+0.79 (+1.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0.21%
Ins Owners0.42%
Ins Owner Change8.51%
Market Cap4.90B
Revenue(TTM)N/A
Net Income(TTM)411.68M
Analysts81.82
Price Target55.69 (14.05%)
Short Float %2.36%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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%
PT rev (3m)1.11%
EPS NQ rev (1m)-6.77%
EPS NQ rev (3m)-20.22%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 15.51 | ||
| P/S | 2.34 | ||
| P/FCF | N/A | ||
| P/OCF | 10.91 | ||
| P/B | 2.02 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)3.29
EY6.74%
EPS(NY)3.15
Fwd EY6.45%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.17%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)N/A
PEG (5Y)1.53
Graham Number42.26
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 | 1.39 |
F-Score7
WACC6.42%
ROIC/WACC1.02
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-15.08%
Revenue Next Year2.29%
Revenue Next 2Y3.14%
Revenue Next 3Y2.89%
Revenue Next 5Y2.97%
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%
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 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 14.84 and the Price/Book (PB) ratio is 2.02.
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.