SOUTH JERSEY INDUSTRIES (SJI) Stock Fundamental Analysis

NYSE:SJI • US8385181081

36.09 USD
-0.02 (-0.06%)
At close: Jan 31, 2023
36.1 USD
+0.01 (+0.03%)
After Hours: 1/31/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

2

Overall SJI gets a fundamental rating of 2 out of 10. We evaluated SJI against 14 industry peers in the Gas Utilities industry. Both the profitability and financial health of SJI have multiple concerns. SJI is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • SJI had positive earnings in the past year.
  • SJI had a positive operating cash flow in the past year.
SJI Yearly Net Income VS EBIT VS OCF VS FCFSJI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 200M -200M

1.2 Ratios

  • SJI has a Return On Assets of 1.95%. This is comparable to the rest of the industry: SJI outperforms 47.06% of its industry peers.
  • SJI has a Return On Equity (7.54%) which is comparable to the rest of the industry.
  • SJI has a Return On Invested Capital (4.12%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SJI is below the industry average of 8.49%.
Industry RankSector Rank
ROA 1.95%
ROE 7.54%
ROIC 4.12%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.28%
ROIC(5y)N/A
SJI Yearly ROA, ROE, ROICSJI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 2 4 6 8

1.3 Margins

  • SJI has a Profit Margin (5.99%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of SJI has declined.
  • SJI has a worse Operating Margin (13.52%) than 64.71% of its industry peers.
  • In the last couple of years the Operating Margin of SJI has remained more or less at the same level.
  • The Gross Margin of SJI (30.15%) is worse than 76.47% of its industry peers.
  • SJI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 13.52%
PM (TTM) 5.99%
GM 30.15%
OM growth 3Y13.89%
OM growth 5Y-1.33%
PM growth 3Y60.06%
PM growth 5Y-17.34%
GM growth 3Y1.44%
GM growth 5Y-3.11%
SJI Yearly Profit, Operating, Gross MarginsSJI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SJI is destroying value.
  • SJI has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for SJI has been reduced compared to a year ago.
SJI Yearly Shares OutstandingSJI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
SJI Yearly Total Debt VS Total AssetsSJI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

  • SJI has an Altman-Z score of 0.92. This is a bad value and indicates that SJI is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of SJI (0.92) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.74 is on the high side and indicates that SJI has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.74, SJI is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Altman-Z 0.92
ROIC/WACC0.7
WACC5.88%
SJI Yearly LT Debt VS Equity VS FCFSJI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 1B 2B 3B

2.3 Liquidity

  • SJI has a Current Ratio of 0.70. This is a bad value and indicates that SJI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SJI has a Current ratio (0.70) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.59 indicates that SJI may have some problems paying its short term obligations.
  • SJI has a Quick ratio (0.59) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.59
SJI Yearly Current Assets VS Current LiabilitesSJI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • SJI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.73%.
  • Measured over the past 5 years, SJI shows a small growth in Earnings Per Share. The EPS has been growing by 3.99% on average per year.
  • SJI shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.66%.
  • Measured over the past years, SJI shows a quite strong growth in Revenue. The Revenue has been growing by 13.96% on average per year.
EPS 1Y (TTM)-1.73%
EPS 3Y5.24%
EPS 5Y3.99%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)40.66%
Revenue growth 3Y6.67%
Revenue growth 5Y13.96%
Sales Q2Q%66.43%

3.2 Future

  • Based on estimates for the next years, SJI will show a small growth in Earnings Per Share. The EPS will grow by 3.84% on average per year.
  • Based on estimates for the next years, SJI will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
EPS Next Y2.99%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
EPS Next 5Y3.84%
Revenue Next Year33.17%
Revenue Next 2Y12.56%
Revenue Next 3Y8.14%
Revenue Next 5Y5.82%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SJI Yearly Revenue VS EstimatesSJI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
SJI Yearly EPS VS EstimatesSJI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • SJI is valuated rather expensively with a Price/Earnings ratio of 21.23.
  • 64.71% of the companies in the same industry are cheaper than SJI, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of SJI to the average of the S&P500 Index (27.16), we can say SJI is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 19.78 indicates a rather expensive valuation of SJI.
  • SJI's Price/Forward Earnings is on the same level as the industry average.
  • SJI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.
Industry RankSector Rank
PE 21.23
Fwd PE 19.78
SJI Price Earnings VS Forward Price EarningsSJI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJI indicates a slightly more expensive valuation: SJI is more expensive than 70.59% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.2
SJI Per share dataSJI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SJI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.1
PEG (5Y)5.33
EPS Next 2Y3.91%
EPS Next 3Y4.69%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • SJI has a Yearly Dividend Yield of 3.47%.
  • SJI's Dividend Yield is comparable with the industry average which is at 3.61.
  • SJI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.47%

5.2 History

  • The dividend of SJI has a limited annual growth rate of 2.61%.
  • SJI has paid a dividend for at least 10 years, which is a reliable track record.
  • SJI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.61%
Div Incr Years16
Div Non Decr Years16
SJI Yearly Dividends per shareSJI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • SJI pays out 92.56% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of SJI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP92.56%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
SJI Yearly Income VS Free CF VS DividendSJI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 100M -100M -200M -300M
SJI Dividend Payout.SJI Dividend Payout, showing the Payout Ratio.SJI Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

SOUTH JERSEY INDUSTRIES

NYSE:SJI (1/31/2023, 8:04:00 PM)

After market: 36.1 +0.01 (+0.03%)

36.09

-0.02 (-0.06%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-02
Earnings (Next)02-22
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner Change0%
Market Cap4.42B
Revenue(TTM)2.58B
Net Income(TTM)154.75M
Analysts49.33
Price Target37.01 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.47%
Yearly Dividend1.21
Dividend Growth(5Y)2.61%
DP92.56%
Div Incr Years16
Div Non Decr Years16
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)106.85%
Min EPS beat(2)-1.43%
Max EPS beat(2)215.12%
EPS beat(4)3
Avg EPS beat(4)56.51%
Min EPS beat(4)-1.43%
Max EPS beat(4)215.12%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)52.95%
Min Revenue beat(2)52.11%
Max Revenue beat(2)53.8%
Revenue beat(4)4
Avg Revenue beat(4)37.39%
Min Revenue beat(4)16.92%
Max Revenue beat(4)53.8%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.79%
PT rev (3m)6.72%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.2%
Valuation
Industry RankSector Rank
PE 21.23
Fwd PE 19.78
P/S 1.71
P/FCF N/A
P/OCF 11.81
P/B 2.15
P/tB 3.29
EV/EBITDA 14.2
EPS(TTM)1.7
EY4.71%
EPS(NY)1.82
Fwd EY5.06%
FCF(TTM)-2.02
FCFYN/A
OCF(TTM)3.05
OCFY8.46%
SpS21.11
BVpS16.76
TBVpS10.98
PEG (NY)7.1
PEG (5Y)5.33
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 1.95%
ROE 7.54%
ROCE N/A
ROIC 4.12%
ROICexc 4.15%
ROICexgc 4.62%
OM 13.52%
PM (TTM) 5.99%
GM 30.15%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.28%
ROIC(5y)N/A
ROICexc(3y)3.78%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y5.44%
ROICexgc growth 5Y-1.67%
ROICexc growth 3Y7.53%
ROICexc growth 5Y-3.77%
OM growth 3Y13.89%
OM growth 5Y-1.33%
PM growth 3Y60.06%
PM growth 5Y-17.34%
GM growth 3Y1.44%
GM growth 5Y-3.11%
F-Score7
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 1.74
Debt/FCF N/A
Debt/EBITDA 6.77
Cap/Depr 293.63%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.7
Quick Ratio 0.59
Altman-Z 0.92
F-Score7
WACC5.88%
ROIC/WACC0.7
Cap/Depr(3y)304.83%
Cap/Depr(5y)278.44%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.73%
EPS 3Y5.24%
EPS 5Y3.99%
EPS Q2Q%-5.88%
EPS Next Y2.99%
EPS Next 2Y3.91%
EPS Next 3Y4.69%
EPS Next 5Y3.84%
Revenue 1Y (TTM)40.66%
Revenue growth 3Y6.67%
Revenue growth 5Y13.96%
Sales Q2Q%66.43%
Revenue Next Year33.17%
Revenue Next 2Y12.56%
Revenue Next 3Y8.14%
Revenue Next 5Y5.82%
EBIT growth 1Y15.84%
EBIT growth 3Y21.49%
EBIT growth 5Y12.45%
EBIT Next Year58.98%
EBIT Next 3Y25.98%
EBIT Next 5Y18.01%
FCF growth 1Y-4.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y47.34%
OCF growth 3Y23.9%
OCF growth 5Y0.79%

SOUTH JERSEY INDUSTRIES / SJI FAQ

What is the fundamental rating for SJI stock?

ChartMill assigns a fundamental rating of 3 / 10 to SJI.


What is the valuation status of SOUTH JERSEY INDUSTRIES (SJI) stock?

ChartMill assigns a valuation rating of 0 / 10 to SOUTH JERSEY INDUSTRIES (SJI). This can be considered as Overvalued.


What is the profitability of SJI stock?

SOUTH JERSEY INDUSTRIES (SJI) has a profitability rating of 3 / 10.


Can you provide the expected EPS growth for SJI stock?

The Earnings per Share (EPS) of SOUTH JERSEY INDUSTRIES (SJI) is expected to grow by 2.99% in the next year.


Can you provide the dividend sustainability for SJI stock?

The dividend rating of SOUTH JERSEY INDUSTRIES (SJI) is 5 / 10 and the dividend payout ratio is 92.56%.