NJR

New Jersey ResourcesNYSE:NJR Stock Report

Market Cap

US$3.4b

7D

-4.1%

1Y

28.4%

Updated

18 Sep, 2021

Data

Company Financials +
NJR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health1/6
Dividends6/6

NJR Overview

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

New Jersey Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for New Jersey Resources
Historical stock prices
Current Share PriceUS$34.92
52 Week HighUS$25.87
52 Week LowUS$44.41
Beta0.53
1 Month Change-7.10%
3 Month Change-14.73%
1 Year Change28.38%
3 Year Change-25.15%
5 Year Change0.20%
Change since IPO666.54%

Recent News & Updates

Sep 09
New Jersey Resources (NYSE:NJR) Will Pay A Dividend Of US$0.33

New Jersey Resources (NYSE:NJR) Will Pay A Dividend Of US$0.33

The board of New Jersey Resources Corporation ( NYSE:NJR ) has announced that it will pay a dividend of US$0.33 per...

Jul 18
New Jersey Resources (NYSE:NJR) Has Re-Affirmed Its Dividend Of US$0.33

New Jersey Resources (NYSE:NJR) Has Re-Affirmed Its Dividend Of US$0.33

New Jersey Resources Corporation ( NYSE:NJR ) has announced that it will pay a dividend of US$0.33 per share on the 1st...

Jul 15
New Jersey Resources (NYSE:NJR) Shareholders Will Want The ROCE Trajectory To Continue

New Jersey Resources (NYSE:NJR) Shareholders Will Want The ROCE Trajectory To Continue

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a...

Shareholder Returns

NJRUS Gas UtilitiesUS Market
7D-4.1%-3.4%-0.6%
1Y28.4%13.4%33.8%

Return vs Industry: NJR exceeded the US Gas Utilities industry which returned 12.7% over the past year.

Return vs Market: NJR underperformed the US Market which returned 33.6% over the past year.

Price Volatility

Is NJR's price volatile compared to industry and market?
NJR volatility
NJR Beta0.53
Industry Beta0.60
Market Beta1

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

Volatility Over Time: NJR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19811,156Steve Westhovenhttps://www.njresources.com

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 Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated retail natural gas services to approximately 558,000 residential and commercial customers in central and northern New Jersey; provides storage management services; and participates in the off-system sales and capacity release markets.

New Jersey Resources Fundamentals Summary

How do New Jersey Resources's earnings and revenue compare to its market cap?
NJR fundamental statistics
Market CapUS$3.37b
Earnings (TTM)US$182.64m
Revenue (TTM)US$2.02b

18.4x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NJR income statement (TTM)
RevenueUS$2.02b
Cost of RevenueUS$1.54b
Gross ProfitUS$487.09m
ExpensesUS$304.45m
EarningsUS$182.64m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.90
Gross Margin24.06%
Net Profit Margin9.02%
Debt/Equity Ratio142.7%

How did NJR perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

10.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NJR ($34.92) is trading below our estimate of fair value ($39.1)

Significantly Below Fair Value: NJR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NJR is poor value based on its PE Ratio (18.4x) compared to the US Gas Utilities industry average (17.2x).

PE vs Market: NJR is poor value based on its PE Ratio (18.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NJR is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NJR is overvalued based on its PB Ratio (2x) compared to the US Gas Utilities industry average (1.7x).


Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NJR's forecast earnings growth (14.9% per year) is above the savings rate (2%).

Earnings vs Market: NJR's earnings (14.9% per year) are forecast to grow faster than the US market (14.8% 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 (-4.3% per year).

High Growth Revenue: NJR's revenue is forecast to decline over the next 3 years (-4.3% 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 (13.2%).


Past Performance

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

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NJR has high quality earnings.

Growing Profit Margin: NJR's current net profit margins (9%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: NJR's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: NJR's earnings growth over the past year (23.1%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: NJR earnings growth over the past year (23.1%) underperformed the Gas Utilities industry 26.4%.


Return on Equity

High ROE: NJR's Return on Equity (10.9%) is considered low.


Financial Health

How is New Jersey Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NJR's short term assets ($518.3M) do not cover its short term liabilities ($613.6M).

Long Term Liabilities: NJR's short term assets ($518.3M) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: NJR's debt to equity ratio (142.7%) is considered high.

Reducing Debt: NJR's debt to equity ratio has increased from 102.5% to 142.7% over the past 5 years.

Debt Coverage: NJR's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: NJR's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

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

4.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NJR's dividend (4.15%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: NJR's dividend (4.15%) is in the top 25% of dividend payers in the US market (3.6%)


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 reasonable payout ratio (70%), NJR's dividend 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 (57.9% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Steve Westhoven (53 yo)

1.92yrs

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 ($USD4.17M) is about average for companies of similar size in the US market ($USD5.28M).

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 years average tenure).


Board Members

Experienced Board: NJR's board of directors are considered experienced (6.6 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 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$3.367b
  • Shares outstanding: 96.43m
  • Website: https://www.njresources.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.