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SOUTH JERSEY INDUSTRIES (SJI) Stock Fundamental Analysis

USA - NYSE:SJI - US8385181081 - Common Stock

36.09 USD
-0.02 (-0.06%)
Last: 1/31/2023, 8:04:00 PM
36.1 USD
+0.01 (+0.03%)
After Hours: 1/31/2023, 8:04:00 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SJI. SJI was compared to 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

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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 2015 2016 2017 2018 2019 2020 2021 0 200M -200M

1.2 Ratios

SJI has a Return On Assets (1.95%) which is in line with its industry peers.
The Return On Equity of SJI (7.54%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.12%, SJI perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SJI is below the industry average of 6.32%.
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 2015 2016 2017 2018 2019 2020 2021 0 2 4 6 8 10

1.3 Margins

SJI has a Profit Margin of 5.99%. This is comparable to the rest of the industry: SJI outperforms 41.18% of its industry peers.
In the last couple of years the Profit Margin of SJI has declined.
The Operating Margin of SJI (13.52%) is worse 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.
Looking at the Gross Margin, with a value of 30.15%, SJI is doing worse than 76.47% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 0 10 20 30 40

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1

2. Health

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.
SJI has a better debt/assets ratio than last year.
SJI Yearly Shares OutstandingSJI Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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's Altman-Z score of 0.92 is in line compared to the rest of the industry. SJI outperforms 47.06% of its industry peers.
A Debt/Equity ratio of 1.74 is on the high side and indicates that SJI has dependencies on debt financing.
SJI has a Debt to Equity ratio of 1.74. This is in the lower half of the industry: SJI underperforms 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 2015 2016 2017 2018 2019 2020 2021 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 0.70 indicates that SJI may have some problems paying its short term obligations.
SJI has a Current ratio of 0.70. This is comparable to the rest of the industry: SJI outperforms 47.06% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

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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.
Looking at the last year, SJI shows a very strong growth in Revenue. 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

SJI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
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.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.23, SJI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SJI indicates a slightly more expensive valuation: SJI is more expensive than 64.71% of the companies listed in the same industry.
SJI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 19.78, SJI is valued on the expensive side.
SJI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.94. SJI is around the same levels.
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 an expensive valuation of the company.
PEG (NY)7.1
PEG (5Y)5.33
EPS Next 2Y3.91%
EPS Next 3Y4.69%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.47%, SJI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.84, SJI has a dividend in line with its industry peers.
SJI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

92.56% of the earnings are spent on dividend by SJI. 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 2015 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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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 2022-11-02/amc
Earnings (Next)02-22 2023-02-22/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner Change0%
Market Cap4.42B
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
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
ROICexcg growth 3Y5.44%
ROICexcg 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%