SJW GROUP (SJW) Stock Fundamental Analysis
NASDAQ:SJW - Nasdaq - US7843051043 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SJW. SJW was compared to 14 industry peers in the Water Utilities industry. While SJW is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, SJW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SJW had positive earnings in the past year.
In the past year SJW had a positive cash flow from operations.
SJW had positive earnings in each of the past 5 years.
In the past 5 years SJW always reported a positive cash flow from operatings.
1.2 Ratios
SJW's Return On Assets of 2.02% is on the low side compared to the rest of the industry. SJW is outperformed by 73.33% of its industry peers.
SJW has a Return On Equity of 6.87%. This is amonst the worse of the industry: SJW underperforms 80.00% of its industry peers.
SJW has a Return On Invested Capital of 2.98%. This is in the lower half of the industry: SJW underperforms 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 5.08%.
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.
In the last couple of years the Profit Margin of SJW has grown nicely.
Looking at the Operating Margin, with a value of 22.78%, SJW is doing worse than 60.00% of the companies in the same industry.
SJW's Operating Margin has improved in the last couple of years.
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.
In the last couple of years the Gross Margin of SJW has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Based on the Altman-Z score of 0.77, we must say that SJW is in the distress zone and has some risk of bankruptcy.
SJW has a Altman-Z score of 0.77. This is in the lower half of the industry: SJW underperforms 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.
SJW has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: SJW underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.4
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.73 indicates that SJW may have some problems paying its short term obligations.
SJW has a Current ratio of 0.73. This is in the lower half of the industry: SJW underperforms 66.67% 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.
SJW has a Quick ratio of 0.73. This is in the lower half of the industry: SJW underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
SJW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.41%, which is quite good.
The Earnings Per Share has been growing by 16.47% on average over the past years. This is quite good.
SJW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.65%.
The Revenue has been growing by 12.22% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 5.45% on average over the next years.
Based on estimates for the next years, SJW will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
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
SJW is valuated rather expensively with a Price/Earnings ratio of 18.35.
Based on the Price/Earnings ratio, SJW is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, SJW is valued a bit cheaper.
SJW is valuated rather expensively with a Price/Forward Earnings ratio of 17.30.
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.
When comparing the Price/Forward Earnings ratio of SJW to the average of the S&P500 Index (21.70), we can say SJW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
SJW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SJW is cheaper than 73.33% of the companies in the same industry.
| 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
SJW has a Yearly Dividend Yield of 3.06%. 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 3.44.
Compared to an average S&P500 Dividend Yield of 2.42, SJW pays a bit more dividend than the S&P500 average.
| 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.
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%
54.86
-0.37 (-0.67%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change5.1%
Ins OwnersN/A
Ins Owner Change0.42%
Market Cap1.88B
Analysts80
Price Target63.24 (15.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)2.99%
PT rev (3m)2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)4.57%
Revenue NY rev (3m)4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 | ||
| P/S | 2.51 | ||
| P/FCF | N/A | ||
| P/OCF | 9.59 | ||
| P/B | 1.37 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)2.99
EY5.45%
EPS(NY)3.17
Fwd EY5.78%
FCF(TTM)-5.32
FCFYN/A
OCF(TTM)5.72
OCFY10.43%
SpS21.9
BVpS39.99
TBVpS19.75
PEG (NY)3.64
PEG (5Y)1.11
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 | 0.77 |
F-Score6
WACC7.5%
ROIC/WACC0.4
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)12.41%
EPS 3Y12.16%
EPS 5Y16.47%
EPS Q2Q%38.89%
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%12.2%
Revenue Next Year9.73%
Revenue Next 2Y7.67%
Revenue Next 3Y4.35%
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%