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Market Cap

US$4.1b

Last Updated

2021/05/07 23:20 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: NJR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NJR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

NJR

1.5%

US Gas Utilities

-0.3%

US Market


1 Year Return

23.2%

NJR

11.9%

US Gas Utilities

50.2%

US Market

Return vs Industry: NJR exceeded the US Gas Utilities industry which returned 15.4% over the past year.

Return vs Market: NJR underperformed the US Market which returned 51.8% over the past year.


Shareholder returns

NJRIndustryMarket
7 Day3.7%1.5%-0.3%
30 Day5.2%4.4%2.2%
90 Day18.8%16.2%3.8%
1 Year28.2%23.2%15.8%11.9%52.7%50.2%
3 Year9.0%-0.8%11.7%1.8%63.4%53.1%
5 Year37.8%18.9%33.2%14.4%129.6%104.0%

Long-Term 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?

15.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NJR ($43.51) is trading above our estimate of fair value ($39.13)

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


Price To Earnings Ratio

PE vs Industry: NJR is good value based on its PE Ratio (15.2x) compared to the US Gas Utilities industry average (16.9x).

PE vs Market: NJR is good value based on its PE Ratio (15.2x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: NJR is poor value based on its PEG Ratio (16.6x)


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 (1.9x).


Future Growth

How is New Jersey Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NJR's forecast earnings growth (0.9% per year) is below the savings rate (2%).

Earnings vs Market: NJR's earnings (0.9% per year) are forecast to grow slower than the US market (15.4% per year).

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

Revenue vs Market: NJR's revenue is expected to decline over the next 3 years (-5.3% per year).

High Growth Revenue: NJR's revenue is forecast to decline over the next 3 years (-5.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NJR's Return on Equity is forecast to be low in 3 years time (11.9%).


Past Performance

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

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NJR has high quality earnings.

Growing Profit Margin: NJR's current net profit margins (14.1%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: NJR's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: NJR's earnings growth over the past year (58.2%) exceeds its 5-year average (8% per year).

Earnings vs Industry: NJR earnings growth over the past year (58.2%) exceeded the Gas Utilities industry 16.2%.


Return on Equity

High ROE: NJR's Return on Equity (16.2%) is considered low.


Financial Health

How is New Jersey Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NJR's short term assets ($609.2M) exceed its short term liabilities ($518.7M).

Long Term Liabilities: NJR's short term assets ($609.2M) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: NJR's debt to equity ratio (138.8%) is considered high.

Reducing Debt: NJR's debt to equity ratio has increased from 89% to 138.8% over the past 5 years.

Debt Coverage: NJR's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: NJR's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

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

3.06%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 08 2021Ex Dividend DateJun 15 2021Dividend Pay DateJul 01 202116 days from Ex DividendBuy in the next 38 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NJR's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: NJR's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

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: With its reasonably low payout ratio (45%), NJR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NJR's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Steve Westhoven (52 yo)

1.58yrs

Tenure

US$4,170,677

Compensation

Mr. Stephen D. Westhoven, also known as Steve, is Chief Executive Officer and President of New Jersey Resources Corporation since October 1, 2019 and October 1, 2018 respectively and has been its Director ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD4.17M) is about average for companies of similar size in the US market ($USD5.41M).

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


Leadership Team

Experienced Management: NJR's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: NJR's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: 1981
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$4.139b
  • Shares outstanding: 96.25m
  • Website: https://www.njresources.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/07 23:20
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.