DB:J4S

Stock Analysis Report

South Jersey Industries

Executive Summary

South Jersey Industries, Inc., through its subsidiaries, provides energy-related products and services.


Snowflake Analysis

Established dividend payer with limited growth.


Similar Companies

Share Price & News

How has South Jersey Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: J4S has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

J4S

2.1%

DE Gas Utilities

0.2%

DE Market


1 Year Return

n/a

J4S

10.1%

DE Gas Utilities

14.4%

DE Market

Return vs Industry: Insufficient data to determine how J4S performed against the German Gas Utilities industry.

Return vs Market: Insufficient data to determine how J4S performed against the German Market.


Shareholder returns

J4SIndustryMarket
7 Day2.8%2.1%0.2%
30 Day4.9%5.7%0.9%
90 Day9.6%8.1%4.6%
1 Yearn/a15.3%10.1%17.9%14.4%
3 Year4.8%-5.6%54.1%33.3%15.7%5.6%
5 Year44.6%20.3%58.1%18.1%23.4%6.5%

Price Volatility Vs. Market

How volatile is South Jersey Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is South Jersey Industries undervalued compared to its fair value and its price relative to the market?

34.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: J4S (€29.8) is trading above our estimate of fair value (€25.33)

Significantly Below Fair Value: J4S is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: J4S is poor value based on its PE Ratio (34.9x) compared to the Gas Utilities industry average (17x).

PE vs Market: J4S is poor value based on its PE Ratio (34.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: J4S is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: J4S is overvalued based on its PB Ratio (2.1x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is South Jersey Industries forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J4S's forecast earnings growth (17.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: J4S's earnings (17.9% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: J4S's earnings are forecast to grow, but not significantly.

Revenue vs Market: J4S's revenue is expected to decline over the next 3 years (-4% per year).

High Growth Revenue: J4S's revenue is forecast to decline over the next 3 years (-4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: J4S's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has South Jersey Industries performed over the past 5 years?

-26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J4S has high quality earnings.

Growing Profit Margin: J4S became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: J4S's earnings have declined by -26.9% per year over the past 5 years.

Accelerating Growth: J4S has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: J4S has become profitable in the last year, making it difficult to compare its past year earnings growth to the Gas Utilities industry (10.6%).


Return on Equity

High ROE: J4S's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is South Jersey Industries's financial position?


Financial Position Analysis

Short Term Liabilities: J4S's short term assets ($405.1M) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: J4S's short term assets ($405.1M) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: J4S's debt to equity ratio (225.1%) is considered high.

Reducing Debt: J4S's debt to equity ratio has increased from 137.5% to 225.1% over the past 5 years.

Debt Coverage: J4S's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: J4S's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: J4S has a high level of physical assets or inventory.

Debt Coverage by Assets: J4S's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is South Jersey Industries's current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: J4S's dividend (3.65%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: J4S's dividend (3.65%) is in the top 25% of dividend payers in the German market (3.57%)


Stability and Growth of Payments

Stable Dividend: J4S's dividends per share have been stable in the past 10 years.

Growing Dividend: J4S's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.3%), J4S's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: J4S's dividends in 3 years are forecast to be covered by earnings (67.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Mike Renna (51yo)

4.8yrs

Tenure

US$4,664,594

Compensation

Mr. Michael J. Renna, also known as Mike, has been the President of South Jersey Industries, Inc. since January 24, 2014 and has been its Chief Executive Officer since April, 2015. Mr. Renna served as the  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.66M) is above average for companies of similar size in the German market ($USD2.01M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Renna
President4.8yrsUS$4.66m0.12% $3.4m
Melissa Orsen
Senior VP2.1yrsUS$796.44k0.0011% $31.2k
David Robbins
Senior Vice President4.8yrsUS$2.09m0.045% $1.3m
Cielo Hernandez
Senior VP & CFO1.1yrsno data0.0012% $33.4k
Daniel Fidell
Vice President of Investor Relations0yrsno datano data
Marissa Travaline
Vice President of Communications0yrsno datano data
Steven Cocchi
Senior VP and Chief Strategy & Development Officer2.1yrsno data0.0064% $175.8k
Ann Anthony
VP, Treasurer & Acting Corporate Secretary11.4yrsno data0.0048% $133.2k

3.5yrs

Average Tenure

43yo

Average Age

Experienced Management: J4S's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Renna
President4.8yrsUS$4.66m0.12% $3.4m
Walter Higgins
Non-Executive Chairman of the Board4.8yrsUS$265.38k0.052% $1.4m
Frank Sims
Independent Director7.8yrsUS$196.61k0.094% $2.6m
Thomas Bracken
Independent Director16yrsUS$192.13k0.071% $2.0m
Sheila Hartnett-Devlin
Independent Director21.1yrsUS$191.88k0.029% $795.9k
Keith Campbell
Independent Director20.1yrsUS$181.88k0.064% $1.8m
Joseph Rigby
Independent Director3.8yrsUS$203.11k0.017% $463.7k
Victor Fortkiewicz
Independent Director9.3yrsUS$186.88k0.039% $1.1m
Sarah Barpoulis
Independent Director7.8yrsUS$210.61k0.031% $868.6k
Sunita Bhatia-Holzer
Independent Director8.3yrsUS$194.11k0.037% $1.0m

8.0yrs

Average Tenure

63yo

Average Age

Experienced Board: J4S's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.


Top Shareholders

Company Information

South Jersey Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: South Jersey Industries, Inc.
  • Ticker: J4S
  • Exchange: DB
  • Founded: 1910
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$2.982b
  • Listing Market Cap: US$2.764b
  • Shares outstanding: 92.17m
  • Website: https://www.sjindustries.com

Number of Employees


Location

  • South Jersey Industries, Inc.
  • 1 South Jersey Plaza
  • Folsom
  • New Jersey
  • 8037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
J4SDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

South Jersey Industries, Inc., through its subsidiaries, provides energy-related products and services. The company engages in the purchase, transmission, and sale of natural gas. It also sells natural gas and pipeline transportation capacity on a wholesale basis to residential, commercial, and industrial customers on the interstate pipeline system, as well as transports natural gas, which is purchased directly from producers or suppliers to their customers. As of December 31, 2018, the company had approximately 146.2 miles of mains in the transmission system and 6,567 miles of mains in the distribution system; and served 391,092 residential, commercial, and industrial customers in southern New Jersey. In addition, it markets natural gas storage, commodity, and transportation assets on a wholesale basis for energy marketers, electric and gas utilities, power plants, and natural gas producers in the mid-Atlantic, Appalachian, and southern regions of the United States. Further, the company develops, owns, and operates energy projects comprising natural gas fueled combined heating, cooling and power, and landfill gas-to-energy production facilities, as well as solar-generation sites. Additionally, it owns oil, gas, and mineral rights in the Marcellus Shale region of Pennsylvania; acquires and markets natural gas and electricity to retail end users, as well as provides total energy management services; and services residential and small commercial HVAC systems, and installs small commercial HVAC systems, as well as provides plumbing services and services appliances. South Jersey Industries, Inc. was founded in 1910 and is headquartered in Folsom, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:58
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.