54.86 USD
-0.37 (-0.67%)
54.86 USD
0 (0%)
SJW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 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.
- In the past year SJW had a positive cash flow from operations.
- In the past 5 years SJW has always been profitable.
- Each year in the past 5 years SJW had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.02%, SJW is doing worse than 73.33% of the companies in the same industry.
- The Return On Equity of SJW (6.87%) is worse than 80.00% of its industry peers.
- SJW has a worse Return On Invested Capital (2.98%) than 73.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SJW is below the industry average of 4.99%.
- 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
- Looking at the Profit Margin, with a value of 12.56%, SJW is doing worse than 73.33% of the companies in the same industry.
- SJW's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 22.78%, SJW is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of SJW has grown nicely.
- Looking at the Gross Margin, with a value of 88.70%, SJW belongs to the top of the industry, outperforming 86.67% 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 | 22.78% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SJW is destroying value.
- SJW has more shares outstanding than it did 1 year ago.
- SJW has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SJW has an improved debt to assets ratio.
2.2 Solvency
- SJW has an Altman-Z score of 0.77. This is a bad value and indicates that SJW is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of SJW (0.77) is worse than 73.33% of its industry peers.
- A Debt/Equity ratio of 1.34 is on the high side and indicates that SJW has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.34, SJW is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.4
WACC7.5%
2.3 Liquidity
- SJW has a Current 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.
- SJW's Current ratio of 0.73 is on the low side compared to the rest of the industry. SJW is outperformed by 66.67% of its industry peers.
- A Quick Ratio of 0.73 indicates that SJW may have some problems paying its short term obligations.
- SJW has a worse Quick ratio (0.73) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.41% over the past year.
- SJW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.47% yearly.
- 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)12.41%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%38.89%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y9.27%
Revenue growth 5Y12.22%
Sales Q2Q%12.2%
3.2 Future
- SJW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
- 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 Year9.73%
Revenue Next 2Y7.67%
Revenue Next 3Y4.35%
Revenue Next 5Y4.23%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of SJW.
- SJW's Price/Earnings ratio is a bit cheaper when compared to the industry. SJW is cheaper than 73.33% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SJW is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.30, the valuation of SJW can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SJW is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- SJW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are more expensive than SJW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.52 |
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)3.64
PEG (5Y)1.11
EPS Next 2Y5.49%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.06%, SJW has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.91, SJW pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SJW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- SJW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.48%
EPS Next 2Y5.49%
EPS Next 3Y5.75%
SJW GROUP / SJW FAQ
What is the ChartMill fundamental rating of SJW GROUP (SJW) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SJW.
What is the valuation status for SJW stock?
ChartMill assigns a valuation rating of 2 / 10 to SJW GROUP (SJW). This can be considered as Overvalued.
How profitable is SJW GROUP (SJW) stock?
SJW GROUP (SJW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SJW GROUP (SJW) stock?
The Price/Earnings (PE) ratio for SJW GROUP (SJW) is 18.35 and the Price/Book (PB) ratio is 1.37.
Can you provide the financial health for SJW stock?
The financial health rating of SJW GROUP (SJW) is 0 / 10.