54.86 USD
-0.37 (-0.67%)
54.86 USD
0 (0%)
Overall SJW gets a fundamental rating of 3 out of 10. We evaluated SJW against 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.
- SJW had a positive operating cash flow in the past year.
- SJW had positive earnings in each of the past 5 years.
- Each year in the past 5 years SJW had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.02%, SJW is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
- 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.
- Looking at the Return On Invested Capital, with a value of 2.98%, SJW is doing worse than 73.33% of the companies in the same industry.
- SJW had an Average Return On Invested Capital over the past 3 years of 2.84%. This is below the industry average of 4.99%.
- The last Return On Invested Capital (2.98%) for SJW is above the 3 year average (2.84%), which is a sign of increasing profitability.
| 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.
- The Operating Margin of SJW (22.78%) is worse than 60.00% of its industry peers.
- In the last couple of years the Operating Margin of SJW has grown nicely.
- SJW has a better Gross Margin (88.70%) than 86.67% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SJW is destroying value.
- The number of shares outstanding for SJW has been increased compared to 1 year ago.
- The number of shares outstanding for SJW has been increased compared to 5 years ago.
- SJW has a better debt/assets ratio than last year.
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.
- 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 worse Debt to Equity ratio (1.34) than 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
- 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.
- The Current ratio of SJW (0.73) is worse than 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 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.
- The Earnings Per Share has been growing by 16.47% on average over the past years. This is quite good.
- The Revenue has grown by 11.65% in the past year. This is quite good.
- 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
- 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.
- 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.
- 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
- The Price/Earnings ratio is 18.35, which indicates a rather expensive current valuation of SJW.
- Compared to the rest of the industry, the Price/Earnings ratio of SJW indicates a somewhat cheap valuation: SJW is cheaper than 73.33% of the companies listed in the same industry.
- SJW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 17.30 indicates a rather expensive valuation of SJW.
- 66.67% of the companies in the same industry are more expensive than SJW, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SJW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SJW is valued a bit 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 SJW does not grow enough to justify the current Price/Earnings ratio.
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%.
- Compared to an average industry Dividend Yield of 2.93, SJW pays a bit more dividend than its industry peers.
- SJW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 paid a dividend for at least 10 years, which is 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.
- 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.