SJW GROUP (SJW) Stock Fundamental Analysis
NASDAQ:SJW - Nasdaq - US7843051043 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SJW. SJW was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SJW was profitable.
SJW had a positive operating cash flow in the past year.
SJW had positive earnings in each of the past 5 years.
SJW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SJW has a Return On Assets of 1.98%. This is in the lower half of the industry: SJW underperforms 71.43% of its industry peers.
SJW's Return On Equity of 6.75% is on the low side compared to the rest of the industry. SJW is outperformed by 78.57% of its industry peers.
The Return On Invested Capital of SJW (2.93%) is worse than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SJW is below the industry average of 5.69%.
The 3 year average ROIC (2.84%) for SJW is below the current ROIC(2.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 6.75% | ||
| ROIC | 2.93% |
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 12.47%, SJW is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SJW has grown nicely.
SJW has a Operating Margin (22.62%) which is in line with its industry peers.
SJW's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 88.67%, SJW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SJW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.62% | ||
| PM (TTM) | 12.47% | ||
| GM | 88.67% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SJW is destroying value.
Compared to 1 year ago, SJW has more shares outstanding
SJW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SJW has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that SJW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.75, SJW is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
SJW has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
SJW has a Debt to Equity ratio of 1.32. This is in the lower half of the industry: SJW underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.38
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.77 indicates that SJW may have some problems paying its short term obligations.
With a Current ratio value of 0.77, SJW is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that SJW may have some problems paying its short term obligations.
SJW has a Quick ratio of 0.77. This is comparable to the rest of the industry: SJW outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
SJW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.99%, which is quite good.
The Earnings Per Share has been growing by 16.95% on average over the past years. This is quite good.
Looking at the last year, SJW shows a quite strong growth in Revenue. The Revenue has grown by 11.65% in the last year.
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)8.99%
EPS 3Y12.94%
EPS 5Y16.95%
EPS Q2Q%25.42%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%15.46%
3.2 Future
The Earnings Per Share is expected to grow by 5.02% on average over the next years.
SJW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y2.3%
EPS Next 2Y3.67%
EPS Next 3Y4.47%
EPS Next 5Y5.02%
Revenue Next Year5.5%
Revenue Next 2Y3.2%
Revenue Next 3Y3.03%
Revenue Next 5Y3.09%
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
With a Price/Earnings ratio of 18.68, SJW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SJW indicates a somewhat cheap valuation: SJW is cheaper than 64.29% of the companies listed in the same industry.
SJW is valuated rather cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.26, which indicates a rather expensive current valuation of SJW.
SJW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SJW is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. SJW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 18.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJW indicates a somewhat cheap valuation: SJW is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SJW does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)8.11
PEG (5Y)1.1
EPS Next 2Y3.67%
EPS Next 3Y4.47%
5. Dividend
5.1 Amount
SJW has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.42, SJW pays a bit more dividend than its industry peers.
SJW's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
The dividend of SJW is nicely growing with an annual growth rate of 10.05%!
SJW has paid a dividend for at least 10 years, which is a reliable track record.
SJW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.05%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SJW pays out 56.60% 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.
DP56.6%
EPS Next 2Y3.67%
EPS Next 3Y4.47%
54.35
+1.68 (+3.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.64%
Inst Owner Change2.13%
Ins Owners8.19%
Ins Owner Change0.19%
Market Cap1.81B
Analysts75.56
Price Target60.59 (11.48%)
Short Float %2.04%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.53
Dividend Growth(5Y)10.05%
DP56.6%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.71%
Min EPS beat(2)0.73%
Max EPS beat(2)10.68%
EPS beat(4)2
Avg EPS beat(4)0.79%
Min EPS beat(4)-5.2%
Max EPS beat(4)10.68%
EPS beat(8)6
Avg EPS beat(8)16.65%
EPS beat(12)9
Avg EPS beat(12)13.94%
EPS beat(16)11
Avg EPS beat(16)9.03%
Revenue beat(2)2
Avg Revenue beat(2)5.04%
Min Revenue beat(2)4.37%
Max Revenue beat(2)5.71%
Revenue beat(4)4
Avg Revenue beat(4)5.18%
Min Revenue beat(4)4.37%
Max Revenue beat(4)5.71%
Revenue beat(8)7
Avg Revenue beat(8)4.55%
Revenue beat(12)9
Avg Revenue beat(12)3.04%
Revenue beat(16)10
Avg Revenue beat(16)0.94%
PT rev (1m)-1.33%
PT rev (3m)-8.33%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)0.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 18.26 | ||
| P/S | 2.5 | ||
| P/FCF | N/A | ||
| P/OCF | 9.74 | ||
| P/B | 1.35 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)2.91
EY5.35%
EPS(NY)2.98
Fwd EY5.48%
FCF(TTM)-4.95
FCFYN/A
OCF(TTM)5.58
OCFY10.27%
SpS21.71
BVpS40.11
TBVpS18.92
PEG (NY)8.11
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 6.75% | ||
| ROCE | 3.79% | ||
| ROIC | 2.93% | ||
| ROICexc | 2.93% | ||
| ROICexgc | 3.49% | ||
| OM | 22.62% | ||
| PM (TTM) | 12.47% | ||
| GM | 88.67% | ||
| 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 3Y4.22%
ROICexcg growth 5Y7.5%
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-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.38 | ||
| Cap/Depr | 308.65% | ||
| Cap/Sales | 48.5% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 67.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.75 |
F-Score5
WACC7.73%
ROIC/WACC0.38
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
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)8.99%
EPS 3Y12.94%
EPS 5Y16.95%
EPS Q2Q%25.42%
EPS Next Y2.3%
EPS Next 2Y3.67%
EPS Next 3Y4.47%
EPS Next 5Y5.02%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%15.46%
Revenue Next Year5.5%
Revenue Next 2Y3.2%
Revenue Next 3Y3.03%
Revenue Next 5Y3.09%
EBIT growth 1Y0.39%
EBIT growth 3Y17.21%
EBIT growth 5Y18.39%
EBIT Next Year95.69%
EBIT Next 3Y27.95%
EBIT Next 5Y22.17%
FCF growth 1Y-114.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.4%
OCF growth 3YN/A
OCF growth 5YN/A