NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NJR - US6460251068 - Common Stock
45.81 USD
+0.07 (+0.15%)
45.81 USD
0 (0%)
NJR gets a fundamental rating of 4 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 is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years NJR has always been profitable.
NJR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NJR (4.43%) is better than 71.43% of its industry peers.
The Return On Equity of NJR (14.03%) is better than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.97%, NJR is in line with its industry, outperforming 57.14% 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 6.27%.
| 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
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 Operating Margin of 22.13%. 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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Based on the Altman-Z score of 1.23, we must say that NJR is in the distress zone and has some risk of bankruptcy.
NJR has a better Altman-Z score (1.23) 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.
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 | 1.23 |
ROIC/WACC0.79
WACC6.26%
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.
NJR's Current ratio of 0.73 is fine compared to the rest of the industry. NJR outperforms 64.29% of its industry peers.
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
The Earnings Per Share has grown by an nice 11.53% 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 9.71% yearly.
The Revenue has grown by 13.35% in the past year. This is quite good.
Measured over the past years, NJR shows a small growth in Revenue. The Revenue has been growing by 0.83% on average per year.
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.
NJR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y-4.28%
EPS Next 2Y2.03%
EPS Next 3Y4.85%
EPS Next 5Y5.79%
Revenue Next Year15.93%
Revenue Next 2Y10.52%
Revenue Next 3Y6.55%
Revenue Next 5Y3.01%
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.
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 correctly with a Price/Earnings ratio of 13.92.
Based on the Price/Earnings ratio, NJR is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NJR to the average of the S&P500 Index (27.17), we can say NJR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.55, the valuation of NJR can be described as correct.
Based on the Price/Forward Earnings ratio, NJR is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, NJR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 14.55 |
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 | 12.54 |
4.3 Compensation for Growth
The decent profitability rating of NJR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y2.03%
EPS Next 3Y4.85%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 4.12%, which is a nice return.
NJR's Dividend Yield is a higher than the industry average which is at 3.88.
NJR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
The dividend of NJR is nicely growing with an annual growth rate of 7.28%!
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.
The dividend of NJR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.65%
EPS Next 2Y2.03%
EPS Next 3Y4.85%
45.81
+0.07 (+0.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.81%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change3.4%
Market Cap4.61B
Revenue(TTM)2.04B
Net Income(TTM)335.63M
Analysts81.82
Price Target57.12 (24.69%)
Short Float %2.6%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend1.8
Dividend Growth(5Y)7.28%
DP53.65%
Div Incr Years29
Div Non Decr Years34
Ex-DateN/A
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)2.56%
PT rev (3m)2.56%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)-2.46%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)13.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 14.55 | ||
| P/S | 2.27 | ||
| P/FCF | N/A | ||
| P/OCF | 10.62 | ||
| P/B | 1.93 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)3.29
EY7.18%
EPS(NY)3.15
Fwd EY6.87%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.31
OCFY9.41%
SpS20.21
BVpS23.74
TBVpS23.63
PEG (NY)N/A
PEG (5Y)1.43
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 | 1.23 |
F-Score6
WACC6.26%
ROIC/WACC0.79
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 2Y2.03%
EPS Next 3Y4.85%
EPS Next 5Y5.79%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y-11.18%
Revenue growth 5Y0.83%
Sales Q2Q%-15.08%
Revenue Next Year15.93%
Revenue Next 2Y10.52%
Revenue Next 3Y6.55%
Revenue Next 5Y3.01%
EBIT growth 1Y-1.62%
EBIT growth 3Y3.5%
EBIT growth 5Y14.51%
EBIT Next Year38.89%
EBIT Next 3Y23.18%
EBIT Next 5Y18.84%
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 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.