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. SJW has a medium profitability rating, but doesn't score so well on its financial health evaluation. SJW is quite expensive at the moment. It does show a decent growth rate.
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.
- SJW had a positive operating cash flow in each of the past 5 years.
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.
- With a Return On Equity value of 6.87%, SJW is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- 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
- SJW has a worse Profit Margin (12.56%) than 73.33% of its industry peers.
- In the last couple of years the Profit Margin of SJW has grown nicely.
- 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 Gross Margin of 88.70%. This is amongst the best in the industry. SJW outperforms 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
- 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.
- Compared to 5 years ago, SJW has more shares outstanding
- The debt/assets ratio for SJW has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.77, 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 0.77, SJW is doing worse than 73.33% of the companies in the same industry.
- SJW has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.34, SJW is doing worse than 66.67% of the companies in the same industry.
| 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.
- Looking at the Current ratio, with a value of 0.73, SJW is doing worse than 66.67% of the companies in the same industry.
- 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
- The Earnings Per Share has grown by an nice 12.41% over the past year.
- Measured over the past years, SJW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.47% on average per year.
- Looking at the last year, SJW shows a quite strong growth in Revenue. The Revenue has grown by 11.65% in the last year.
- SJW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.22% yearly.
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.
- 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
- With a Price/Earnings ratio of 18.35, 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 73.33% of the companies listed in the same industry.
- SJW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, 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.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SJW indicates a somewhat cheap valuation: SJW is cheaper than 66.67% of the companies listed in the same industry.
- SJW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| 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 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%. 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 2.91.
- 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 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.