NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - NYSE:NJR - US6460251068 - Common Stock
46.03 USD
-0.11 (-0.24%)
46.03 USD
0 (0%)
NJR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. While NJR belongs to the best of the industry regarding profitability, there are concerns on its financial health. NJR has a correct valuation and a medium growth rate. NJR also has an excellent dividend rating.
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.
In the past 5 years NJR has always been profitable.
Each year in the past 5 years NJR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NJR (5.66%) is better than 92.86% of its industry peers.
NJR has a better Return On Equity (16.99%) than 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.58%, NJR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
NJR had an Average Return On Invested Capital over the past 3 years of 5.71%. This is below the industry average of 8.93%.
The last Return On Invested Capital (6.58%) for NJR is above the 3 year average (5.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 16.99% | ||
| ROIC | 6.58% |
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 19.64%, NJR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NJR's Profit Margin has improved in the last couple of years.
NJR has a Operating Margin of 26.64%. 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.
Looking at the Gross Margin, with a value of 58.11%, NJR is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Gross Margin of NJR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.64% | ||
| PM (TTM) | 19.64% | ||
| GM | 58.11% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NJR is creating some value.
The number of shares outstanding for NJR has been increased compared to 1 year ago.
The number of shares outstanding for NJR has been increased compared to 5 years ago.
The debt/assets ratio for NJR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that NJR is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.37, NJR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that NJR has dependencies on debt financing.
NJR's Debt to Equity ratio of 1.37 is on the low side compared to the rest of the industry. NJR is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC1.03
WACC6.38%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NJR may have some problems paying its short term obligations.
With a decent Current ratio value of 0.76, NJR is doing good in the industry, outperforming 78.57% of the companies in the same industry.
NJR has a Quick Ratio of 0.76. 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 Quick ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
NJR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.34%, which is quite impressive.
Measured over the past years, NJR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.41% on average per year.
Looking at the last year, NJR shows a very strong growth in Revenue. The Revenue has grown by 21.02%.
NJR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.07% yearly.
EPS 1Y (TTM)70.34%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%166.67%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
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 6.91% on average per year.
The Revenue is expected to grow by 1.45% on average over the next years.
EPS Next Y10.36%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue Next Year-4.43%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
NJR is valuated reasonably with a Price/Earnings ratio of 11.45.
85.71% of the companies in the same industry are more expensive than NJR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NJR to the average of the S&P500 Index (26.34), we can say NJR is valued rather cheaply.
The Price/Forward Earnings ratio is 14.62, 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 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 (34.43), we can say NJR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NJR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.36 |
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 excellent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)1.11
PEG (5Y)1.36
EPS Next 2Y3.32%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 4.20%, which is a nice return.
NJR's Dividend Yield is a higher than the industry average which is at 3.84.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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 42.88% 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.
DP42.88%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
46.03
-0.11 (-0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.21%
Inst Owner Change0.01%
Ins Owners0.42%
Ins Owner Change3.53%
Market Cap4.62B
Revenue(TTM)2.10B
Net Income(TTM)411.68M
Analysts81.82
Price Target55.69 (20.99%)
Short Float %2.19%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend1.68
Dividend Growth(5Y)7.48%
DP42.88%
Div Incr Years29
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)96.83%
Min EPS beat(2)8.79%
Max EPS beat(2)184.87%
EPS beat(4)4
Avg EPS beat(4)53.52%
Min EPS beat(4)0.52%
Max EPS beat(4)184.87%
EPS beat(8)5
Avg EPS beat(8)-6.82%
EPS beat(12)8
Avg EPS beat(12)30.03%
EPS beat(16)9
Avg EPS beat(16)11.33%
Revenue beat(2)1
Avg Revenue beat(2)10.5%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)23.5%
Revenue beat(4)1
Avg Revenue beat(4)-4.56%
Min Revenue beat(4)-35.53%
Max Revenue beat(4)23.5%
Revenue beat(8)1
Avg Revenue beat(8)-13.99%
Revenue beat(12)3
Avg Revenue beat(12)-8.29%
Revenue beat(16)7
Avg Revenue beat(16)1.44%
PT rev (1m)0%
PT rev (3m)1.11%
EPS NQ rev (1m)-13.28%
EPS NQ rev (3m)-29.87%
EPS NY rev (1m)0.32%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-14.71%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 14.62 | ||
| P/S | 2.21 | ||
| P/FCF | N/A | ||
| P/OCF | 10.28 | ||
| P/B | 1.91 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)4.02
EY8.73%
EPS(NY)3.15
Fwd EY6.84%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.48
OCFY9.73%
SpS20.87
BVpS24.13
TBVpS24.02
PEG (NY)1.11
PEG (5Y)1.36
Graham Number46.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 16.99% | ||
| ROCE | 8.55% | ||
| ROIC | 6.58% | ||
| ROICexc | 6.58% | ||
| ROICexgc | 6.59% | ||
| OM | 26.64% | ||
| PM (TTM) | 19.64% | ||
| GM | 58.11% | ||
| 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%
ROICexgc growth 3Y7.84%
ROICexgc 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-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 305.66% | ||
| Cap/Sales | 27.06% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 60.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.37 |
F-Score7
WACC6.38%
ROIC/WACC1.03
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)70.34%
EPS 3Y11.12%
EPS 5Y8.41%
EPS Q2Q%166.67%
EPS Next Y10.36%
EPS Next 2Y3.32%
EPS Next 3Y5.81%
EPS Next 5Y6.91%
Revenue 1Y (TTM)21.02%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%8.46%
Revenue Next Year-4.43%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.55%
Revenue Next 5Y1.45%
EBIT growth 1Y48.43%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year43.39%
EBIT Next 3Y18.42%
EBIT Next 5Y15.89%
FCF growth 1Y-437.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.43%
OCF growth 3Y3.01%
OCF growth 5Y17.1%
NEW JERSEY RESOURCES CORP / NJR FAQ
What is the fundamental rating for NJR stock?
ChartMill assigns a fundamental rating of 5 / 10 to NJR.
What is the valuation status of NEW JERSEY RESOURCES CORP (NJR) stock?
ChartMill assigns a valuation rating of 5 / 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 8 / 10.
Can you provide the PE and PB ratios for NJR stock?
The Price/Earnings (PE) ratio for NEW JERSEY RESOURCES CORP (NJR) is 11.45 and the Price/Book (PB) ratio is 1.91.
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 grow by 10.36% in the next year.