SOUTH JERSEY INDUSTRIES (SJI) Stock Fundamental Analysis
USA - NYSE:SJI - US8385181081 - Common Stock
36.09 USD
-0.02 (-0.06%)
36.1 USD
+0.01 (+0.03%)
Taking everything into account, SJI scores 2 out of 10 in our fundamental rating. SJI was compared to 14 industry peers in the Gas Utilities industry. Both the profitability and financial health of SJI have multiple concerns. While showing a medium growth rate, SJI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SJI was profitable.
In the past year SJI had a positive cash flow from operations.
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's Return On Equity of 7.54% is in line compared to the rest of the industry. SJI outperforms 52.94% of its industry peers.
SJI has a Return On Invested Capital (4.12%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SJI is below the industry average of 8.93%.
| Industry Rank | Sector 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
1.3 Margins
SJI has a Profit Margin (5.99%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SJI has declined.
SJI's Operating Margin of 13.52% is on the low side compared to the rest of the industry. SJI is outperformed by 64.71% of its industry peers.
SJI's Operating Margin has been stable in the last couple of years.
SJI has a Gross Margin of 30.15%. This is in the lower half of the industry: SJI underperforms 76.47% of its industry peers.
In the last couple of years the Gross Margin of SJI has declined.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, SJI has more shares outstanding
SJI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that SJI is in the distress zone and 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.
The Debt to Equity ratio of SJI (1.74) is worse than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.7
WACC5.88%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SJI may have some problems paying its short term obligations.
The Current ratio of SJI (0.70) 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 of 0.59. This is comparable to the rest of the industry: SJI outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for SJI have decreased by -1.73% in the last year.
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.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.23, the valuation of SJI can be described as rather expensive.
SJI's Price/Earnings ratio is a bit more expensive when compared to the industry. SJI is more expensive than 64.71% of the companies in the same industry.
SJI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.78, SJI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SJI.
SJI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.78 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.2 |
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%
5. Dividend
5.1 Amount
SJI has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 3.78, 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 2.44.
| Industry Rank | Sector 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 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
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%
36.09
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
Can you provide the valuation status for SOUTH JERSEY INDUSTRIES?
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.
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.
How sustainable is the dividend of SOUTH JERSEY INDUSTRIES (SJI) stock?
The dividend rating of SOUTH JERSEY INDUSTRIES (SJI) is 5 / 10 and the dividend payout ratio is 92.56%.