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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years NJR has been profitable.
Each year in the past 5 years NJR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.61%, NJR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Equity value of 14.34%, NJR belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
NJR has a Return On Invested Capital (5.48%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NJR is below the industry average of 7.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 14.34% | ||
| ROIC | 5.48% |
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
Looking at the Profit Margin, with a value of 18.25%, NJR belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of NJR has grown nicely.
NJR has a Operating Margin of 25.14%. This is in the better half of the industry: NJR outperforms 71.43% of its industry peers.
NJR's Operating Margin has improved in the last couple of years.
NJR has a worse Gross Margin (59.47%) than 64.29% of its industry peers.
NJR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.14% | ||
| PM (TTM) | 18.25% | ||
| GM | 59.47% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NJR is destroying value.
Compared to 1 year ago, NJR has more shares outstanding
NJR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NJR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that NJR is in the distress zone and has some risk of bankruptcy.
NJR has a Altman-Z score of 1.31. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 1.44, NJR is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.84
WACC6.54%
2.3 Liquidity
NJR has a Current Ratio of 0.89. 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 0.89, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that NJR may have some problems paying its short term obligations.
NJR has a Quick ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.17%, which is quite impressive.
The Earnings Per Share has been growing by 8.41% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.51% in the past year.
NJR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.07% yearly.
EPS 1Y (TTM)52.17%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%74.32%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%4.53%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y7.78%
EPS Next 2Y3.66%
EPS Next 3Y5.5%
EPS Next 5Y6.93%
Revenue Next Year-9.16%
Revenue Next 2Y-2.64%
Revenue Next 3Y-0.08%
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.
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
A Price/Earnings ratio of 13.65 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 78.57% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. NJR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 15.08, NJR is valued correctly.
64.29% of the companies in the same industry are more expensive than NJR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, NJR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 15.08 |
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 | 12.52 |
4.3 Compensation for Growth
NJR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)1.62
EPS Next 2Y3.66%
EPS Next 3Y5.5%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.80%.
Compared to an average industry Dividend Yield of 3.93, NJR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, NJR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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 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
50.90% 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.
DP50.9%
EPS Next 2Y3.66%
EPS Next 3Y5.5%
47.79
+0.39 (+0.82%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.47%
Inst Owner Change3.05%
Ins Owners0.42%
Ins Owner Change4.45%
Market Cap4.79B
Analysts80
Price Target56.1 (17.39%)
Short Float %2.3%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP50.9%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.22%
Min EPS beat(2)0.52%
Max EPS beat(2)19.93%
EPS beat(4)3
Avg EPS beat(4)-61.47%
Min EPS beat(4)-271.29%
Max EPS beat(4)19.93%
EPS beat(8)4
Avg EPS beat(8)11.78%
EPS beat(12)7
Avg EPS beat(12)0.51%
EPS beat(16)8
Avg EPS beat(16)1.06%
Revenue beat(2)0
Avg Revenue beat(2)-19.62%
Min Revenue beat(2)-35.53%
Max Revenue beat(2)-3.72%
Revenue beat(4)0
Avg Revenue beat(4)-11.48%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)-2.78%
Revenue beat(8)0
Avg Revenue beat(8)-27.63%
Revenue beat(12)4
Avg Revenue beat(12)-7.19%
Revenue beat(16)8
Avg Revenue beat(16)2.31%
PT rev (1m)-0.72%
PT rev (3m)3.77%
EPS NQ rev (1m)1.59%
EPS NQ rev (3m)8.5%
EPS NY rev (1m)1.51%
EPS NY rev (3m)9.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-10.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 15.08 | ||
| P/S | 2.64 | ||
| P/FCF | N/A | ||
| P/OCF | 12.88 | ||
| P/B | 2.07 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)3.5
EY7.32%
EPS(NY)3.17
Fwd EY6.63%
FCF(TTM)-1.86
FCFYN/A
OCF(TTM)3.71
OCFY7.76%
SpS18.12
BVpS23.06
TBVpS22.95
PEG (NY)1.76
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 14.34% | ||
| ROCE | 7.17% | ||
| ROIC | 5.48% | ||
| ROICexc | 5.49% | ||
| ROICexgc | 5.49% | ||
| OM | 25.14% | ||
| PM (TTM) | 18.25% | ||
| GM | 59.47% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.29 | ||
| Cap/Depr | 325.38% | ||
| Cap/Sales | 30.72% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 59.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.31 |
F-Score6
WACC6.54%
ROIC/WACC0.84
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 Y7.78%
EPS Next 2Y3.66%
EPS Next 3Y5.5%
EPS Next 5Y6.93%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%4.53%
Revenue Next Year-9.16%
Revenue Next 2Y-2.64%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.73%
EBIT growth 1Y23.5%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year39.6%
EBIT Next 3Y18.51%
EBIT Next 5Y15.01%
FCF growth 1Y31.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.81%
OCF growth 3Y3.01%
OCF growth 5Y17.1%