NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
47.93 USD
-0.4 (-0.83%)
47.93 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. While NJR has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, NJR is valued expensive at the moment. NJR also has an excellent dividend rating.
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
- The Return On Assets of NJR (4.43%) is better than 71.43% of its industry peers.
- 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 in line with the industry average of 6.27%.
| 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.
- The Operating Margin of NJR (22.13%) is better than 71.43% of its industry peers.
- In the last couple of years the Operating Margin of NJR has grown nicely.
- 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
- 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.
- The number of shares outstanding for NJR has been increased compared to 5 years ago.
- NJR has a better debt/assets ratio than last year.
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 has a better Altman-Z score (1.26) 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 | 1.26 |
ROIC/WACC0.78
WACC6.38%
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.
- 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
- 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.
- NJR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
- 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
- NJR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.25% yearly.
- Based on estimates for the next years, NJR will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y-4.28%
EPS Next 2Y2.03%
EPS Next 3Y4.85%
EPS Next 5Y6.25%
Revenue Next Year15.93%
Revenue Next 2Y10.52%
Revenue Next 3Y6.55%
Revenue Next 5Y5.64%
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 14.57, which indicates a correct valuation of NJR.
- Compared to the rest of the industry, the Price/Earnings ratio of NJR indicates a somewhat cheap valuation: NJR is cheaper than 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NJR is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.22, 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 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NJR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 15.22 |
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 | 12.94 |
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)1.5
EPS Next 2Y2.03%
EPS Next 3Y4.85%
5. Dividend
5.1 Amount
- NJR has a Yearly Dividend Yield of 4.00%.
- Compared to an average industry Dividend Yield of 3.79, NJR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
- 53.65% of the earnings are spent on dividend by NJR. 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 2Y2.03%
EPS Next 3Y4.85%
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 for NJR stock?
ChartMill assigns a valuation rating of 3 / 10 to NEW JERSEY RESOURCES CORP (NJR). This can be considered as Overvalued.
How profitable is NEW JERSEY RESOURCES CORP (NJR) stock?
NEW JERSEY RESOURCES CORP (NJR) has a profitability rating of 7 / 10.
How financially healthy is NEW JERSEY RESOURCES CORP?
The financial health rating of NEW JERSEY RESOURCES CORP (NJR) is 1 / 10.
What is the earnings growth outlook for NEW JERSEY RESOURCES CORP?
The Earnings per Share (EPS) of NEW JERSEY RESOURCES CORP (NJR) is expected to decline by -4.28% in the next year.