SJW GROUP (SJW) Stock Fundamental Analysis
NASDAQ:SJW - Nasdaq - US7843051043 - Common Stock - Currency: USD
Overall SJW gets a fundamental rating of 4 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. SJW also has an excellent dividend rating.
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.
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
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.
With a Return On Invested Capital value of 3.40%, SJW perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SJW is below the industry average of 5.70%.
The last Return On Invested Capital (3.40%) for SJW is above the 3 year average (3.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 6.75% | ||
| ROIC | 3.4% |
ROA(3y)1.88%
ROA(5y)1.65%
ROE(3y)6.46%
ROE(5y)5.74%
ROIC(3y)3.1%
ROIC(5y)2.99%
1.3 Margins
SJW's Profit Margin of 12.47% is on the low side compared to the rest of the industry. SJW is outperformed by 78.57% of its industry peers.
SJW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.62%, SJW is in line with its industry, outperforming 42.86% of the companies in the same industry.
SJW's Operating Margin has been stable in the last couple of years.
The Gross Margin of SJW (88.67%) is better than 92.86% of its industry peers.
SJW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.62% | ||
| PM (TTM) | 12.47% | ||
| GM | 88.67% |
OM growth 3Y2.25%
OM growth 5Y-0.74%
PM growth 3Y5.18%
PM growth 5Y5.38%
GM growth 3Y1.61%
GM growth 5Y0.57%
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.
SJW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SJW has been increased compared to 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 0.73, we must say that SJW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.73, SJW is doing worse than 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.32 is on the high side and indicates that SJW has dependencies on debt 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 | 0.73 |
ROIC/WACC0.45
WACC7.51%
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 perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
SJW has a Quick Ratio of 0.77. 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 (0.77) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
SJW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.93%.
SJW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.95% yearly.
The Revenue has been growing slightly by 7.69% in the past year.
Measured over the past years, SJW shows a quite strong growth in Revenue. The Revenue has been growing by 11.01% on average per year.
EPS 1Y (TTM)-12.93%
EPS 3Y7.65%
EPS 5Y5.95%
EPS Q2Q%3.54%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y5.9%
Revenue growth 5Y11.01%
Sales Q2Q%9.87%
3.2 Future
The Earnings Per Share is expected to grow by 5.47% on average over the next years.
The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y3.74%
EPS Next 2Y5.64%
EPS Next 3Y5.41%
EPS Next 5Y5.47%
Revenue Next Year9.95%
Revenue Next 2Y7.66%
Revenue Next 3Y5.55%
Revenue Next 5Y4.58%
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 stable.
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
SJW is valuated rather expensively with a Price/Earnings ratio of 17.99.
SJW's Price/Earnings ratio is a bit cheaper when compared to the industry. SJW is cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. SJW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.67, which indicates a correct 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 91.29. SJW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
SJW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SJW is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.03 |
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)4.81
PEG (5Y)3.02
EPS Next 2Y5.64%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.46%, SJW has a reasonable but not impressive dividend return.
SJW's Dividend Yield is a higher than the industry average which is at 3.57.
Compared to an average S&P500 Dividend Yield of 2.27, SJW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of SJW is nicely growing with an annual growth rate of 10.05%!
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)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.
SJW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.6%
EPS Next 2Y5.64%
EPS Next 3Y5.41%
SJW GROUP
NASDAQ:SJW (1/29/2025, 8:00:02 PM)
After market: 49.66 0 (0%)49.66
-1.01 (-1.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryWater Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.25%
Inst Owner Change-0.66%
Ins Owners8.24%
Ins Owner Change0.18%
Market Cap1.65B
Analysts74
Price Target65.62 (32.14%)
Short Float %1.88%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend1.53
Dividend Growth(5Y)10.05%
DP56.6%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)-3.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.71%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 16.67 | ||
| P/S | 2.29 | ||
| P/FCF | N/A | ||
| P/OCF | 8.9 | ||
| P/B | 1.24 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)2.76
EY5.56%
EPS(NY)2.98
Fwd EY6%
FCF(TTM)-4.95
FCFYN/A
OCF(TTM)5.58
OCFY11.24%
SpS21.71
BVpS40.11
TBVpS18.92
PEG (NY)4.81
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 6.75% | ||
| ROCE | 3.79% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 4.05% | ||
| OM | 22.62% | ||
| PM (TTM) | 12.47% | ||
| GM | 88.67% | ||
| FCFM | N/A |
ROA(3y)1.88%
ROA(5y)1.65%
ROE(3y)6.46%
ROE(5y)5.74%
ROIC(3y)3.1%
ROIC(5y)2.99%
ROICexc(3y)3.11%
ROICexc(5y)3%
ROICexgc(3y)3.8%
ROICexgc(5y)3.72%
ROCE(3y)3.51%
ROCE(5y)3.41%
ROICexcg growth 3Y-3.27%
ROICexcg growth 5Y-7.33%
ROICexc growth 3Y-1.54%
ROICexc growth 5Y-10.51%
OM growth 3Y2.25%
OM growth 5Y-0.74%
PM growth 3Y5.18%
PM growth 5Y5.38%
GM growth 3Y1.61%
GM growth 5Y0.57%
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 | 0.73 |
F-Score5
WACC7.51%
ROIC/WACC0.45
Cap/Depr(3y)251.4%
Cap/Depr(5y)249.16%
Cap/Sales(3y)41.92%
Cap/Sales(5y)41.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.93%
EPS 3Y7.65%
EPS 5Y5.95%
EPS Q2Q%3.54%
EPS Next Y3.74%
EPS Next 2Y5.64%
EPS Next 3Y5.41%
EPS Next 5Y5.47%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y5.9%
Revenue growth 5Y11.01%
Sales Q2Q%9.87%
Revenue Next Year9.95%
Revenue Next 2Y7.66%
Revenue Next 3Y5.55%
Revenue Next 5Y4.58%
EBIT growth 1Y0.39%
EBIT growth 3Y8.28%
EBIT growth 5Y10.19%
EBIT Next Year88.04%
EBIT Next 3Y33.24%
EBIT Next 5Y20.08%
FCF growth 1Y-85.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.73%
OCF growth 3Y22.39%
OCF growth 5Y15.89%