NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
48.08 USD
+0.2 (+0.42%)
48.08 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 is still in line with the averages on profitability rating, there are concerns on its financial health. NJR has a correct valuation and a medium growth rate. Finally 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.
NJR had a positive operating cash flow in each of the past 5 years.
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.
NJR has a Return On Equity of 14.03%. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
NJR's Return On Invested Capital of 4.97% is in line compared to the rest of the industry. NJR outperforms 57.14% of its industry peers.
NJR had an Average Return On Invested Capital over the past 3 years of 5.25%. This 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's Profit Margin of 16.48% is amongst the best of the industry. NJR outperforms 85.71% of its industry peers.
NJR's Profit Margin has improved in the last couple of years.
NJR has a better Operating Margin (22.13%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of NJR has grown nicely.
The Gross Margin of NJR (55.84%) is worse than 64.29% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NJR 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.
The debt/assets ratio for NJR has been reduced compared to a year ago.
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.
A Debt/Equity ratio of 1.44 is on the high side and indicates that NJR has dependencies on debt 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/WACC0.8
WACC6.24%
2.3 Liquidity
A Current Ratio of 0.73 indicates that NJR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, NJR is in the better half of 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.
Looking at the Quick ratio, with a value of 0.40, NJR is doing worse than 64.29% of the companies in the same industry.
| 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.
Looking at the last year, NJR shows a quite strong growth in Revenue. The Revenue has grown by 13.35% in the last year.
NJR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.83% yearly.
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
Based on estimates for the next years, NJR will show a small growth in Earnings Per Share. The EPS will grow by 5.79% on average per year.
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.
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 14.61, the valuation of NJR can be described as correct.
71.43% of the companies in the same industry are more expensive than NJR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, NJR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.27, the valuation of NJR can be described as correct.
NJR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NJR is cheaper than 78.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NJR to the average of the S&P500 Index (36.59), we can say NJR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.61 | ||
| Fwd PE | 15.27 |
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 | 12.9 |
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)1.51
EPS Next 2Y3.06%
EPS Next 3Y4.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.97%, NJR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.72, NJR pays a bit more dividend than its industry peers.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| 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%
48.08
+0.2 (+0.42%)
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 Cap4.84B
Revenue(TTM)2.04B
Net Income(TTM)335.63M
Analysts81.82
Price Target55.69 (15.83%)
Short Float %2.36%
Short Ratio4.13
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 | 14.61 | ||
| Fwd PE | 15.27 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | 11.15 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)3.29
EY6.84%
EPS(NY)3.15
Fwd EY6.55%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.31
OCFY8.97%
SpS20.21
BVpS23.74
TBVpS23.63
PEG (NY)N/A
PEG (5Y)1.51
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 | 1.26 |
F-Score6
WACC6.24%
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 14.61 and the Price/Book (PB) ratio is 2.03.
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.