SJW GROUP (SJW) Stock Fundamental Analysis
NASDAQ:SJW - Nasdaq - US7843051043 - Common Stock - Currency: USD
Overall SJW gets a fundamental rating of 3 out of 10. We evaluated SJW against 14 industry peers in the Water Utilities industry. There are concerns on the financial health of SJW while its profitability can be described as average. SJW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SJW had positive earnings in the past year.
SJW had a positive operating cash flow in the past year.
Each year in the past 5 years SJW has been profitable.
In the past 5 years SJW always reported a positive cash flow from operatings.
1.2 Ratios
SJW has a worse Return On Assets (2.02%) than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 6.87%, SJW is doing worse than 78.57% of the companies in the same industry.
SJW has a Return On Invested Capital of 2.98%. This is in the lower half of the industry: SJW underperforms 71.43% of its industry peers.
SJW had an Average Return On Invested Capital over the past 3 years of 2.84%. This is below the industry average of 5.21%.
The 3 year average ROIC (2.84%) for SJW is below the current ROIC(2.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 6.87% | ||
| ROIC | 2.98% |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.8%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.79%
1.3 Margins
With a Profit Margin value of 12.56%, SJW is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SJW has grown nicely.
The Operating Margin of SJW (22.78%) is worse than 64.29% of its industry peers.
SJW's Operating Margin has improved in the last couple of years.
SJW has a Gross Margin of 88.70%. This is amongst the best in the industry. SJW outperforms 92.86% of its industry peers.
SJW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.78% | ||
| PM (TTM) | 12.56% | ||
| GM | 88.7% |
OM growth 3Y7.27%
OM growth 5Y5.5%
PM growth 3Y6%
PM growth 5Y17.67%
GM growth 3Y1.66%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
SJW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SJW has been increased compared to 1 year ago.
Compared to 5 years ago, SJW has more shares outstanding
SJW has a better debt/assets ratio than last year.
2.2 Solvency
SJW has an Altman-Z score of 0.76. This is a bad value and indicates that SJW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.76, SJW is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.34 is on the high side and indicates that SJW has dependencies on debt financing.
SJW has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: SJW underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.39
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.73 indicates that SJW may have some problems paying its short term obligations.
SJW has a worse Current ratio (0.73) than 64.29% of its industry peers.
SJW has a Quick Ratio of 0.73. This is a bad value and indicates that SJW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SJW (0.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.74% over the past year.
Measured over the past years, SJW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.47% on average per year.
SJW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.65%.
Measured over the past years, SJW shows a quite strong growth in Revenue. The Revenue has been growing by 12.22% on average per year.
EPS 1Y (TTM)6.74%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%15.25%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%15.46%
3.2 Future
Based on estimates for the next years, SJW will show a small growth in Earnings Per Share. The EPS will grow by 5.45% on average per year.
SJW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y5.04%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
EPS Next 5Y5.45%
Revenue Next Year4.93%
Revenue Next 2Y4.46%
Revenue Next 3Y4.48%
Revenue Next 5Y4.23%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.16 indicates a rather expensive valuation of SJW.
Based on the Price/Earnings ratio, SJW is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SJW to the average of the S&P500 Index (28.29), we can say SJW is valued slightly cheaper.
SJW is valuated rather expensively with a Price/Forward Earnings ratio of 18.24.
Based on the Price/Forward Earnings ratio, SJW is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, SJW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJW is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.48 |
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)3.8
PEG (5Y)1.16
EPS Next 2Y5.49%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
SJW has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
SJW's Dividend Yield is a higher than the industry average which is at 3.34.
SJW's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of SJW has a limited annual growth rate of 5.79%.
SJW has been paying a dividend for at least 10 years, so it has a reliable track record.
SJW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.79%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SJW pays out 55.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SJW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.48%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
54.61
+0.24 (+0.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.64%
Inst Owner Change0.73%
Ins Owners8.19%
Ins Owner Change0.84%
Market Cap1.86B
Analysts80
Price Target61.4 (12.43%)
Short Float %1.46%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.59
Dividend Growth(5Y)5.79%
DP55.48%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.3%
Min EPS beat(2)0.73%
Max EPS beat(2)21.86%
EPS beat(4)3
Avg EPS beat(4)7.02%
Min EPS beat(4)-5.2%
Max EPS beat(4)21.86%
EPS beat(8)6
Avg EPS beat(8)18.76%
EPS beat(12)9
Avg EPS beat(12)13.88%
EPS beat(16)11
Avg EPS beat(16)8.63%
Revenue beat(2)2
Avg Revenue beat(2)4.42%
Min Revenue beat(2)4.37%
Max Revenue beat(2)4.47%
Revenue beat(4)4
Avg Revenue beat(4)4.96%
Min Revenue beat(4)4.37%
Max Revenue beat(4)5.71%
Revenue beat(8)7
Avg Revenue beat(8)4.13%
Revenue beat(12)10
Avg Revenue beat(12)3.57%
Revenue beat(16)10
Avg Revenue beat(16)1.01%
PT rev (1m)0%
PT rev (3m)-6.42%
EPS NQ rev (1m)3.57%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)0.56%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)2.6%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 18.24 | ||
| P/S | 2.49 | ||
| P/FCF | N/A | ||
| P/OCF | 9.54 | ||
| P/B | 1.36 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)2.85
EY5.22%
EPS(NY)2.99
Fwd EY5.48%
FCF(TTM)-5.32
FCFYN/A
OCF(TTM)5.73
OCFY10.48%
SpS21.92
BVpS40.03
TBVpS19.77
PEG (NY)3.8
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 6.87% | ||
| ROCE | 3.88% | ||
| ROIC | 2.98% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.53% | ||
| OM | 22.78% | ||
| PM (TTM) | 12.56% | ||
| GM | 88.7% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)1.91%
ROE(3y)6.8%
ROE(5y)6.59%
ROIC(3y)2.84%
ROIC(5y)2.79%
ROICexc(3y)2.85%
ROICexc(5y)2.8%
ROICexgc(3y)3.41%
ROICexgc(5y)3.42%
ROCE(3y)3.73%
ROCE(5y)3.68%
ROICexcg growth 3Y4.13%
ROICexcg growth 5Y7.45%
ROICexc growth 3Y6.1%
ROICexc growth 5Y9.16%
OM growth 3Y7.27%
OM growth 5Y5.5%
PM growth 3Y6%
PM growth 5Y17.67%
GM growth 3Y1.66%
GM growth 5Y0.21%
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.39 | ||
| Cap/Depr | 327.86% | ||
| Cap/Sales | 50.4% | ||
| Interest Coverage | 2.44 | ||
| Cash Conversion | 68.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.76 |
F-Score6
WACC7.66%
ROIC/WACC0.39
Cap/Depr(3y)273.96%
Cap/Depr(5y)262.79%
Cap/Sales(3y)44.13%
Cap/Sales(5y)42.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.74%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%15.25%
EPS Next Y5.04%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
EPS Next 5Y5.45%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%15.46%
Revenue Next Year4.93%
Revenue Next 2Y4.46%
Revenue Next 3Y4.48%
Revenue Next 5Y4.23%
EBIT growth 1Y14.05%
EBIT growth 3Y17.21%
EBIT growth 5Y18.39%
EBIT Next Year98.6%
EBIT Next 3Y34.4%
EBIT Next 5Y21.04%
FCF growth 1Y-85.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.46%
OCF growth 3Y14.56%
OCF growth 5Y8.51%