SOUTH JERSEY INDUSTRIES (SJI) Fundamental Analysis & Valuation

NYSE:SJI • US8385181081

Current stock price

36.09 USD
-0.02 (-0.06%)
At close:
36.1 USD
+0.01 (+0.03%)
After Hours:

This SJI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. SJI Profitability Analysis

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

  • The Return On Assets of SJI (1.95%) is comparable to the rest of the industry.
  • SJI has a Return On Equity of 7.54%. This is comparable to the rest of the industry: SJI outperforms 52.94% of its industry peers.
  • The Return On Invested Capital of SJI (4.12%) is comparable to the rest of the industry.
  • SJI had an Average Return On Invested Capital over the past 3 years of 4.28%. This is in line with the industry average of 6.19%.
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

  • The Profit Margin of SJI (5.99%) is comparable to the rest of the industry.
  • SJI's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 13.52%, SJI is doing worse than 64.71% of the companies in the same industry.
  • SJI's Operating Margin has been stable in the last couple of years.
  • SJI has a worse Gross Margin (30.15%) than 76.47% of its industry peers.
  • In the last couple of years the Gross Margin of SJI has declined.
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. SJI Health Analysis

2.1 Basic Checks

  • SJI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • SJI has more shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, SJI has an improved debt to assets ratio.
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.
  • SJI has a Altman-Z score of 0.92. This is comparable to the rest of the industry: SJI outperforms 47.06% of its industry peers.
  • SJI has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
  • SJI has a worse Debt to Equity ratio (1.74) than 76.47% of its industry peers.
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 in line with its industry peers.
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. SJI Growth Analysis

3.1 Past

  • The earnings per share for SJI have decreased by -1.73% in the last year.
  • The Earnings Per Share has been growing slightly by 3.99% on average over the past years.
  • The Revenue has grown by 40.66% in the past year. This is a very strong growth!
  • The Revenue has been growing by 13.96% on average over the past years. This is quite good.
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

  • SJI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
  • The Revenue is expected to grow by 5.82% on average over the next years.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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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1

4. SJI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.23 indicates a rather expensive valuation of SJI.
  • Based on the Price/Earnings ratio, SJI is valued a bit more expensive than 64.71% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.21. SJI is around the same levels.
  • Based on the Price/Forward Earnings ratio of 19.78, the valuation of SJI can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SJI.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.10, SJI is valued at the same level.
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

  • SJI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SJI is more expensive than 70.59% of the companies 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. SJI Dividend Analysis

5.1 Amount

  • SJI has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.69, SJI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, SJI pays a better dividend.
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 been paying a dividend for at least 10 years, so it has a reliable track record.
  • SJI has not decreased their dividend for at least 10 years, which is a reliable track record.
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

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SJI Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis FAQ

What is the fundamental rating for SJI stock?

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


What is the valuation status for SJI stock?

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


How profitable is SOUTH JERSEY INDUSTRIES (SJI) stock?

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


What is the valuation of SOUTH JERSEY INDUSTRIES based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SOUTH JERSEY INDUSTRIES (SJI) is 21.23 and the Price/Book (PB) ratio is 2.15.


Can you provide the financial health for SJI stock?

The financial health rating of SOUTH JERSEY INDUSTRIES (SJI) is 2 / 10.