NEW JERSEY RESOURCES CORP (NJR) Stock Fundamental Analysis
NYSE:NJR - New York Stock Exchange, Inc. - US6460251068 - Common Stock - Currency: USD
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. 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
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.
NJR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NJR's Return On Assets of 4.61% is amongst the best of the industry. NJR outperforms 85.71% of its industry peers.
The Return On Equity of NJR (14.34%) is better than 92.86% of its industry peers.
With a Return On Invested Capital value of 5.48%, NJR perfoms like the industry average, outperforming 57.14% 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 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
The Profit Margin of NJR (18.25%) is better than 92.86% of its industry peers.
In the last couple of years the Profit Margin of NJR has grown nicely.
NJR has a better Operating Margin (25.14%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 1.33, we must say that NJR is in the distress zone and has some risk of bankruptcy.
NJR's Altman-Z score of 1.33 is fine compared to the rest of the industry. NJR outperforms 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.
NJR has a Debt to Equity ratio of 1.44. This is in the lower half of the industry: NJR underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.83
WACC6.64%
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.
The Current ratio of NJR (0.89) is better than 78.57% of its industry peers.
NJR has a Quick 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.
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.
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.
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 6.54% on average over the next years.
The Revenue is expected to grow by 1.41% on average over the next years.
EPS Next Y7.85%
EPS Next 2Y3.31%
EPS Next 3Y5.13%
EPS Next 5Y6.54%
Revenue Next Year-8.72%
Revenue Next 2Y-2.74%
Revenue Next 3Y-0.51%
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 14.09, NJR is valued correctly.
78.57% of the companies in the same industry are more expensive than NJR, based on the Price/Earnings ratio.
NJR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.64.
A Price/Forward Earnings ratio of 15.66 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 64.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NJR to the average of the S&P500 Index (21.44), we can say NJR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 15.66 |
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 | 12.87 |
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)1.8
PEG (5Y)1.68
EPS Next 2Y3.31%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
NJR has a Yearly Dividend Yield of 3.62%.
NJR's Dividend Yield is comparable with the industry average which is at 3.86.
NJR's Dividend Yield is a higher than the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of NJR is nicely growing with an annual growth rate of 7.48%!
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)7.48%
Div Incr Years29
Div Non Decr Years34
5.3 Sustainability
NJR pays out 50.90% 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.
DP50.9%
EPS Next 2Y3.31%
EPS Next 3Y5.13%
49.31
-0.66 (-1.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.47%
Inst Owner Change0.09%
Ins Owners0.42%
Ins Owner Change4.96%
Market Cap4.95B
Analysts80
Price Target56.1 (13.77%)
Short Float %2.35%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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%
PT rev (3m)0.92%
EPS NQ rev (1m)1.57%
EPS NQ rev (3m)10.2%
EPS NY rev (1m)0.06%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)-13.3%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 15.66 | ||
| P/S | 2.72 | ||
| P/FCF | N/A | ||
| P/OCF | 13.29 | ||
| P/B | 2.14 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 12.87 |
EPS(TTM)3.5
EY7.1%
EPS(NY)3.15
Fwd EY6.39%
FCF(TTM)-1.86
FCFYN/A
OCF(TTM)3.71
OCFY7.52%
SpS18.12
BVpS23.06
TBVpS22.95
PEG (NY)1.8
PEG (5Y)1.68
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 | 1.33 |
F-Score6
WACC6.64%
ROIC/WACC0.83
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 Y7.85%
EPS Next 2Y3.31%
EPS Next 3Y5.13%
EPS Next 5Y6.54%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-5.91%
Revenue growth 5Y-7.07%
Sales Q2Q%4.53%
Revenue Next Year-8.72%
Revenue Next 2Y-2.74%
Revenue Next 3Y-0.51%
Revenue Next 5Y1.41%
EBIT growth 1Y23.5%
EBIT growth 3Y16.68%
EBIT growth 5Y22.72%
EBIT Next Year39.05%
EBIT Next 3Y18.28%
EBIT Next 5Y15.05%
FCF growth 1Y31.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.81%
OCF growth 3Y3.01%
OCF growth 5Y17.1%