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 5 out of 10. We evaluated NJR against 14 industry peers in the Gas Utilities industry. NJR scores excellent on profitability, 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
In the past year NJR was profitable.
NJR had a positive operating cash flow in the past year.
In the past 5 years NJR has always been profitable.
In the past 5 years NJR always reported a positive cash flow from operatings.
1.2 Ratios
NJR's Return On Assets of 5.71% is amongst the best of the industry. NJR outperforms 100.00% of its industry peers.
NJR has a better Return On Equity (16.75%) than 100.00% of its industry peers.
With a decent Return On Invested Capital value of 6.81%, NJR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NJR is in line with the industry average of 6.29%.
The 3 year average ROIC (5.71%) for NJR is below the current ROIC(6.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.75% | ||
| ROIC | 6.81% |
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 20.03%, 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.
The Operating Margin of NJR (27.31%) is better than 71.43% of its industry peers.
NJR's Operating Margin has improved in the last couple of years.
NJR has a Gross Margin of 58.91%. This is in the lower half of the industry: NJR underperforms 64.29% of its industry peers.
NJR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.31% | ||
| PM (TTM) | 20.03% | ||
| GM | 58.91% |
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 just above the Cost of Capital (WACC), so NJR is still creating some value.
Compared to 1 year ago, NJR has more shares outstanding
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 1.41. This is a bad value and indicates that NJR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, NJR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
NJR has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
NJR has a Debt to Equity ratio of 1.26. This is comparable to the rest of the industry: NJR outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC1.04
WACC6.55%
2.3 Liquidity
NJR has a Current Ratio of 0.93. 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 has a better Current ratio (0.93) than 71.43% of its industry peers.
NJR has a Quick Ratio of 0.93. 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 Quick ratio value of 0.73, NJR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.76% over the past year.
NJR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.41% yearly.
The Revenue has grown by 20.48% in the past year. This is a very strong growth!
Measured over the past years, NJR shows a decrease in Revenue. The Revenue has been decreasing by -7.07% on average per year.
EPS 1Y (TTM)51.76%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%26.24%
Revenue 1Y (TTM)20.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%38.78%
3.2 Future
NJR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.54% yearly.
Based on estimates for the next years, NJR will show a small growth in Revenue. The Revenue will grow by 1.41% on average per year.
EPS Next Y9.16%
EPS Next 2Y3.11%
EPS Next 3Y5.54%
EPS Next 5Y6.54%
Revenue Next Year-6.43%
Revenue Next 2Y-1.89%
Revenue Next 3Y0.05%
Revenue Next 5Y1.41%
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
With a Price/Earnings ratio of 11.86, the valuation of NJR can be described as very reasonable.
NJR's Price/Earnings ratio is rather cheap when compared to the industry. NJR is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of NJR to the average of the S&P500 Index (27.19), we can say NJR is valued rather cheaply.
The Price/Forward Earnings ratio is 14.64, which indicates a correct valuation of NJR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NJR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, NJR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NJR is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NJR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)1.41
EPS Next 2Y3.11%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 3.95, NJR has a dividend in line with its industry peers.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
NJR pays out 41.59% 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.
DP41.59%
EPS Next 2Y3.11%
EPS Next 3Y5.54%
45.91
-0.33 (-0.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners77.39%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change0.46%
Market Cap4.61B
Analysts80
Price Target56.27 (22.57%)
Short Float %2.79%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP41.59%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.36%
Min EPS beat(2)8.79%
Max EPS beat(2)19.93%
EPS beat(4)3
Avg EPS beat(4)-60.51%
Min EPS beat(4)-271.29%
Max EPS beat(4)19.93%
EPS beat(8)5
Avg EPS beat(8)13.52%
EPS beat(12)7
Avg EPS beat(12)0.79%
EPS beat(16)8
Avg EPS beat(16)-1.4%
Revenue beat(2)1
Avg Revenue beat(2)-6.02%
Min Revenue beat(2)-35.53%
Max Revenue beat(2)23.5%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)1
Avg Revenue beat(8)-20.19%
Revenue beat(12)4
Avg Revenue beat(12)-5.43%
Revenue beat(16)8
Avg Revenue beat(16)2.59%
PT rev (1m)0%
PT rev (3m)0.3%
EPS NQ rev (1m)-55.31%
EPS NQ rev (3m)-269.23%
EPS NY rev (1m)0.53%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 14.64 | ||
| P/S | 2.22 | ||
| P/FCF | N/A | ||
| P/OCF | 9.16 | ||
| P/B | 1.86 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)3.87
EY8.43%
EPS(NY)3.14
Fwd EY6.83%
FCF(TTM)-0.66
FCFYN/A
OCF(TTM)5.01
OCFY10.91%
SpS20.65
BVpS24.69
TBVpS24.58
PEG (NY)1.3
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 16.75% | ||
| ROCE | 8.66% | ||
| ROIC | 6.81% | ||
| ROICexc | 6.9% | ||
| ROICexgc | 6.91% | ||
| OM | 27.31% | ||
| PM (TTM) | 20.03% | ||
| GM | 58.91% | ||
| 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-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 317.1% | ||
| Cap/Sales | 27.46% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 67.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.41 |
F-Score8
WACC6.55%
ROIC/WACC1.04
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)51.76%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%26.24%
EPS Next Y9.16%
EPS Next 2Y3.11%
EPS Next 3Y5.54%
EPS Next 5Y6.54%
Revenue 1Y (TTM)20.48%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%38.78%
Revenue Next Year-6.43%
Revenue Next 2Y-1.89%
Revenue Next 3Y0.05%
Revenue Next 5Y1.41%
EBIT growth 1Y50.92%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year40.17%
EBIT Next 3Y18.29%
EBIT Next 5Y15.06%
FCF growth 1Y64.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.6%
OCF growth 3Y3.01%
OCF growth 5Y17.1%