NYSE:NJR

Stock Analysis Report

Executive Summary

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

NJR

1.4%

US Gas Utilities

0.4%

US Market


1 Year Return

-5.5%

NJR

2.4%

US Gas Utilities

11.4%

US Market

Return vs Industry: NJR underperformed the US Gas Utilities industry which returned 2.4% over the past year.

Return vs Market: NJR underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

NJRIndustryMarket
7 Day2.6%1.4%0.4%
30 Day-1.6%-1.5%0.3%
90 Day-10.6%-0.3%-1.2%
1 Year-3.2%-5.5%4.9%2.4%13.9%11.4%
3 Year44.0%33.3%37.0%27.1%47.2%37.6%
5 Year79.1%56.0%70.8%49.5%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Jersey Resources undervalued compared to its fair value and its price relative to the market?

29.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NJR ($44.26) is trading above our estimate of fair value ($26.85)

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


Price To Earnings Ratio

PE vs Industry: NJR is poor value based on its PE Ratio (29.1x) compared to the Gas Utilities industry average (25.9x).

PE vs Market: NJR is poor value based on its PE Ratio (29.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NJR is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: NJR is overvalued based on its PB Ratio (2.5x) compared to the US Gas Utilities industry average (2.3x).


Next Steps

Future Growth

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

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NJR's forecast earnings growth (12.7% per year) is above the savings rate (2.7%).

Earnings vs Market: NJR's earnings (12.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: NJR's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NJR's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NJR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has New Jersey Resources performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NJR's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: NJR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NJR had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Gas Utilities industry average (-8.9%).


Return on Equity

High ROE: NJR's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: NJR has a higher Return on Assets than the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: NJR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is New Jersey Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NJR's short term assets ($510.0M) do not cover its short term liabilities ($582.0M)

Long Term Liabilities: NJR's short term assets (510.0M) do not cover its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: NJR's debt to equity ratio (91.3%) is considered high

Reducing Debt: NJR's debt to equity ratio has increased from 74.8% to 91.3% over the past 5 years.

Debt Coverage: NJR's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: NJR's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

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

Debt Coverage by Assets: NJR's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is New Jersey Resources's current dividend yield, its reliability and sustainability?

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NJR's dividend (2.82%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NJR's dividend (2.82%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.9%), NJR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NJR's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).


Next Steps

Management

What is the CEO of New Jersey Resources's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Steve Westhoven (51yo)

0yrs

Tenure

US$1,612,932

Compensation

Mr. Stephen D. Westhoven, also known as Steve, serves as Chief Executive Officer at New Jersey Resources Corporation. Mr. Westhoven has been President at New Jersey Resources Corp. since September 2018 and ...


CEO Compensation Analysis

Compensation vs. Market: Steve has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

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


Board Age and Tenure

13.6yrs

Average Tenure

70yo

Average Age

Experienced Board: NJR's board of directors are seasoned and experienced ( 13.6 years average tenure).


Insider Trading

Insider Buying: NJR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$990,05714 Aug 19
Laurence Downes
EntityIndividual
Role
Chairman of the Board
Chairman
Shares22,000
Max PriceUS$45.00
SellUS$596,89317 May 19
David Trice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceUS$49.74
SellUS$50,17226 Mar 19
M. Howard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$50.17
SellUS$148,90322 Mar 19
Jane Kenny
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$49.63
SellUS$1,746,32520 Mar 19
J. Strange
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares35,000
Max PriceUS$49.90
SellUS$103,31720 Mar 19
Patrick Migliaccio
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,068
Max PriceUS$49.96
SellUS$985,40020 Mar 19
David Trice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$49.27
SellUS$47,91028 Nov 18
M. Howard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$47.91

Ownership Breakdown


Management Team

  • Glenn Lockwood (58yo)

    Executive Vice President

    • Tenure: 23.8yrs
    • Compensation: US$214.52k
  • Steve Westhoven (51yo)

    President

    • Tenure: 0yrs
    • Compensation: US$1.61m
  • Amanda Mullan (53yo)

    Senior VP & Chief HR Officer

    • Tenure: 4.5yrs
    • Compensation: US$965.37k
  • Rhonda Figueroa (60yo)

    Corporate Diversity Officer

    • Tenure: 3.6yrs
  • Pat Migliaccio (45yo)

    Senior VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$1.11m
  • Jaqueline Shea (55yo)

    VP & Chief Information Officer

    • Tenure: 3.3yrs
  • Richard Reich (44yo)

    Corporate Secretary & Assistant General Counsel

    • Tenure: 0yrs
  • Nancy Washington (55yo)

    Senior VP & General Counsel

    • Tenure: 2.6yrs
    • Compensation: US$851.87k
  • Laura Conover (50yo)

    Chief Communications Officer

    • Tenure: 2yrs
  • Roberto Bel

    Vice President – Treasurer & Investor Relations

    • Tenure: 0.8yrs

Board Members

  • Dave Trice (71yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$194.07k
  • Larry Downes (62yo)

    Chairman

    • Tenure: 23.1yrs
    • Compensation: US$4.55m
  • Don Correll (69yo)

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: US$232.86k
  • George Zoffinger (71yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$221.88k
  • Bobby Evans (71yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$209.07k
  • J. Strange (75yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$209.07k
  • Sharon Taylor (64yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$226.86k
  • Steve Westhoven (51yo)

    President

    • Tenure: 0yrs
    • Compensation: US$1.61m
  • M. Howard (73yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$203.07k
  • Jane Kenny (68yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$209.77k

Company Information

New Jersey Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Jersey Resources Corporation
  • Ticker: NJR
  • Exchange: NYSE
  • Founded: 1922
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$3.983b
  • Shares outstanding: 89.98m
  • Website: https://www.njresources.com

Number of Employees


Location

  • New Jersey Resources Corporation
  • 1415 Wyckoff Road
  • Wall
  • New Jersey
  • 7719
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NJRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
NJ1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:42
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.