We’ve recently updated our valuation analysis.

New Jersey Resources Valuation

Is NJR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NJR?

Other financial metrics that can be useful for relative valuation.

NJR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA14.7x
PEG Ratio3.7x

Price to Earnings Ratio vs Peers

How does NJR's PE Ratio compare to its peers?

The above table shows the PE ratio for NJR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.3x
BIPC Brookfield Infrastructure
18.4xn/aUS$4.8b
SWX Southwest Gas Holdings
31.5x18.7%US$4.6b
SR Spire
17.2x9.0%US$3.5b
NFG National Fuel Gas
10.1x14.1%US$5.7b
NJR New Jersey Resources
17.4x4.7%US$4.8b

Price-To-Earnings vs Peers: NJR is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (19.3x).


Price to Earnings Ratio vs Industry

How does NJR's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a

Price-To-Earnings vs Industry: NJR is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the Global Gas Utilities industry average (14x)


Price to Earnings Ratio vs Fair Ratio

What is NJR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NJR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.5x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: NJR is good value based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).


Share Price vs Fair Value

What is the Fair Price of NJR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NJR ($49.6) is trading above our estimate of fair value ($38.03)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NJR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$49.86
US$46.67
-6.4%
12.7%US$59.00US$40.00n/a9
Nov ’23US$45.11
US$44.78
-0.7%
11.9%US$56.00US$40.00n/a9
Oct ’23US$38.70
US$46.63
+20.5%
10.3%US$56.00US$41.00n/a8
Sep ’23US$44.74
US$46.50
+3.9%
10.5%US$56.00US$41.00n/a8
Aug ’23US$45.76
US$45.75
-0.02%
11.2%US$56.00US$40.00n/a8
Jul ’23US$45.49
US$46.25
+1.7%
10.8%US$56.00US$40.00n/a8
Jun ’23US$45.90
US$46.25
+0.8%
10.8%US$56.00US$40.00n/a8
May ’23US$43.16
US$46.13
+6.9%
11.5%US$56.00US$39.00n/a8
Apr ’23US$47.17
US$45.25
-4.1%
12.1%US$56.00US$39.00n/a8
Mar ’23US$42.60
US$43.50
+2.1%
12.6%US$56.00US$37.00n/a8
Feb ’23US$40.05
US$43.38
+8.3%
12.7%US$56.00US$37.00n/a8
Jan ’23US$41.06
US$42.75
+4.1%
13.8%US$56.00US$36.00n/a8
Dec ’22US$37.37
US$42.63
+14.1%
14.0%US$56.00US$36.00US$48.568
Nov ’22US$38.80
US$42.88
+10.5%
13.7%US$56.00US$36.00US$45.118
Oct ’22US$35.60
US$43.25
+21.5%
12.9%US$56.00US$38.00US$38.708
Sep ’22US$38.00
US$43.25
+13.8%
12.9%US$56.00US$38.00US$44.748
Aug ’22US$38.52
US$43.13
+12.0%
9.2%US$50.00US$39.00US$45.768
Jul ’22US$40.52
US$43.38
+7.0%
8.6%US$50.00US$39.00US$45.498
Jun ’22US$43.08
US$43.25
+0.4%
6.3%US$47.00US$39.00US$45.908
May ’22US$41.95
US$41.71
-0.6%
7.7%US$45.00US$37.00US$43.167
Apr ’22US$39.93
US$42.50
+6.4%
12.2%US$53.00US$37.00US$47.178
Mar ’22US$40.29
US$41.75
+3.6%
12.5%US$53.00US$37.00US$42.608
Feb ’22US$35.66
US$40.38
+13.2%
13.6%US$53.00US$36.00US$40.058
Jan ’22US$35.55
US$37.71
+6.1%
19.9%US$53.00US$28.00US$41.067
Dec ’21US$33.23
US$37.57
+13.1%
20.0%US$53.00US$28.00US$37.377

Analyst Forecast: Target price is lower than the current share price.


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