NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
NYSE:NJR - New York Stock Exchange, Inc. - US6460251068 - Common Stock - Currency: USD
Overall NJR gets a fundamental rating of 4 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.
1. Profitability
1.1 Basic Checks
NJR had positive earnings in the past year.
In the past year NJR had a positive cash flow from operations.
NJR had positive earnings in each of the past 5 years.
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 4.15%, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
With an excellent Return On Equity value of 13.17%, NJR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NJR's Return On Invested Capital of 5.78% is in line compared to the rest of the industry. NJR outperforms 57.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NJR is below the industry average of 7.81%.
The 3 year average ROIC (5.71%) for NJR is below the current ROIC(5.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 13.17% | ||
| ROIC | 5.78% |
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
With an excellent Profit Margin value of 16.13%, NJR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
NJR's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 25.50%, NJR is doing good in 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.
NJR has a Gross Margin (60.10%) which is comparable to the rest of the industry.
NJR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.5% | ||
| PM (TTM) | 16.13% | ||
| GM | 60.1% |
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
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.
Compared to 5 years ago, NJR has more shares outstanding
Compared to 1 year ago, NJR has a worse debt to assets ratio.
2.2 Solvency
NJR has an Altman-Z score of 1.26. 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 1.26 is fine compared to the rest of the industry. NJR outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that NJR has dependencies on debt financing.
NJR has a Debt to Equity ratio of 1.44. This is in the lower half of the industry: NJR underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.87
WACC6.63%
2.3 Liquidity
NJR has a Current Ratio of 0.62. 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 0.62, NJR is in line with its industry, outperforming 50.00% of the companies in the same industry.
NJR has a Quick Ratio of 0.62. 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 0.36 is in line compared to the rest of the industry. NJR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.17% over the past year.
The Earnings Per Share has been growing by 8.41% on average over the past years. This is quite good.
Looking at the last year, NJR shows a decrease in Revenue. The Revenue has decreased by -8.48% in the last year.
The Revenue has been decreasing by -7.07% on average over the past years.
EPS 1Y (TTM)52.17%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%74.32%
Revenue 1Y (TTM)-8.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%4.53%
3.2 Future
NJR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.93% yearly.
Based on estimates for the next years, NJR will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y6.18%
EPS Next 2Y3.4%
EPS Next 3Y6.18%
EPS Next 5Y6.93%
Revenue Next Year-9.35%
Revenue Next 2Y-2.84%
Revenue Next 3Y-0.44%
Revenue Next 5Y1.73%
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 stable.
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
Based on the Price/Earnings ratio of 13.42, the valuation of NJR can be described as correct.
Based on the Price/Earnings ratio, NJR is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.58, NJR is valued rather cheaply.
The Price/Forward Earnings ratio is 14.90, which indicates a correct valuation of NJR.
NJR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NJR is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.03, NJR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NJR is valued a bit more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)1.6
EPS Next 2Y3.4%
EPS Next 3Y6.18%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.74%.
NJR's Dividend Yield is comparable with the industry average which is at 3.89.
Compared to an average S&P500 Dividend Yield of 2.28, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
On average, the dividend of NJR grows each year by 7.48%, 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)7.48%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
56.96% of the earnings are spent on dividend by NJR. 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.
DP56.96%
EPS Next 2Y3.4%
EPS Next 3Y6.18%
NEW JERSEY RESOURCES CORP
NYSE:NJR (2/5/2025, 7:06:13 PM)
After market: 46.98 0 (0%)46.98
+0.46 (+0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.27%
Inst Owner Change-0.07%
Ins Owners0.34%
Ins Owner Change4.31%
Market Cap4.69B
Analysts80
Price Target56.51 (20.29%)
Short Float %2.38%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP56.96%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-135.39%
Min EPS beat(2)-271.29%
Max EPS beat(2)0.52%
EPS beat(4)2
Avg EPS beat(4)-66.92%
Min EPS beat(4)-271.29%
Max EPS beat(4)4.97%
EPS beat(8)4
Avg EPS beat(8)16.34%
EPS beat(12)6
Avg EPS beat(12)-1.7%
EPS beat(16)7
Avg EPS beat(16)-0.63%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)-3.72%
Revenue beat(4)0
Avg Revenue beat(4)-10.13%
Min Revenue beat(4)-30.12%
Max Revenue beat(4)-2.78%
Revenue beat(8)1
Avg Revenue beat(8)-20.21%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)2.86%
PT rev (1m)1.65%
PT rev (3m)13.06%
EPS NQ rev (1m)18.99%
EPS NQ rev (3m)22.41%
EPS NY rev (1m)2.22%
EPS NY rev (3m)7.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.44%
Revenue NY rev (3m)-11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 14.9 | ||
| P/S | 2.61 | ||
| P/FCF | N/A | ||
| P/OCF | 10.97 | ||
| P/B | 2.13 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)3.5
EY7.45%
EPS(NY)3.15
Fwd EY6.71%
FCF(TTM)-0.96
FCFYN/A
OCF(TTM)4.28
OCFY9.12%
SpS18.01
BVpS22.06
TBVpS21.95
PEG (NY)2.17
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 13.17% | ||
| ROCE | 7.52% | ||
| ROIC | 5.78% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.79% | ||
| OM | 25.5% | ||
| PM (TTM) | 16.13% | ||
| GM | 60.1% | ||
| 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%
ROICexcg growth 3Y7.84%
ROICexcg 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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 313.95% | ||
| Cap/Sales | 29.11% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 68.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.26 |
F-Score6
WACC6.63%
ROIC/WACC0.87
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)52.17%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%74.32%
EPS Next Y6.18%
EPS Next 2Y3.4%
EPS Next 3Y6.18%
EPS Next 5Y6.93%
Revenue 1Y (TTM)-8.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%4.53%
Revenue Next Year-9.35%
Revenue Next 2Y-2.84%
Revenue Next 3Y-0.44%
Revenue Next 5Y1.73%
EBIT growth 1Y12.56%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year39.6%
EBIT Next 3Y18.51%
EBIT Next 5Y15.01%
FCF growth 1Y-346.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.77%
OCF growth 3Y3.01%
OCF growth 5Y17.1%