New Jersey Resources (NYSE:NJR) - Share price, News & Analysis

NJR fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	1/6
Financial Health	1/6
Dividends	3/6

NJR Stock Overview

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

Rewards

Trading at 8.3% below our estimate of its fair value

Earnings are forecast to grow 10.7% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.29% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (3.8%) are lower than last year (12.5%)

New Jersey Resources Competitors

Atmos Energy

NYSE:ATO

US$15.7b

Southwest Gas Holdings

NYSE:SWX

US$6.1b

ONE Gas

NYSE:OGS

US$4.6b

South Jersey Industries

NYSE:SJI

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for New Jersey Resources
Historical stock prices
Current Share Price	US$44.02
52 Week High	US$47.50
52 Week Low	US$34.41
Beta	0.57
1 Month Change	-3.87%
3 Month Change	9.23%
1 Year Change	1.97%
3 Year Change	-11.62%
5 Year Change	8.96%
Change since IPO	866.29%

Recent News & Updates

May 12

Returns At New Jersey Resources (NYSE:NJR) Appear To Be Weighed Down

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...

Apr 29

Estimating The Fair Value Of New Jersey Resources Corporation (NYSE:NJR)

In this article we are going to estimate the intrinsic value of New Jersey Resources Corporation ( NYSE:NJR ) by...

Shareholder Returns

	NJR	US Gas Utilities	US Market
7D	0.6%	-0.3%	-2.5%
1Y	2.0%	3.1%	-10.4%

Return vs Industry: NJR underperformed the US Gas Utilities industry which returned 3.1% over the past year.

Return vs Market: NJR exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is NJR's price volatile compared to industry and market?
NJR volatility
NJR Average Weekly Movement	3.6%
Gas Utilities Industry Average Movement	3.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

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.

About the Company

Founded	Employees	CEO	Website
1981	1,251	Steve Westhoven	https://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 natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and 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 Cap	US$4.23b
Earnings (TTM)	US$94.38m
Revenue (TTM)	US$2.49b

44.8x

P/E Ratio

1.7x

P/S Ratio

Is NJR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NJR income statement (TTM)
Revenue	US$2.49b
Cost of Revenue	US$2.03b
Gross Profit	US$458.32m
Other Expenses	US$363.94m
Earnings	US$94.38m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.98
Gross Margin	18.42%
Net Profit Margin	3.79%
Debt/Equity Ratio	146.4%

How did NJR perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

145%

Payout Ratio

Does NJR pay a reliable dividends?

See NJR dividend history and benchmarks

When do you need to buy NJR by to receive an upcoming dividend?
New Jersey Resources dividend dates
Ex Dividend Date	Jun 14 2022
Dividend Pay Date	Jul 01 2022
Days until Ex dividend	29 days
Days until Dividend pay date	46 days

Does NJR pay a reliable dividends?

See NJR dividend history and benchmarks

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NJR ($44.02) is trading below our estimate of fair value ($47.98)

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 (44.8x) compared to the US Gas Utilities industry average (21.9x).

PE vs Market: NJR is poor value based on its PE Ratio (44.8x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: NJR is poor value based on its PEG Ratio (4.2x)

Price to Book Ratio

PB vs Industry: NJR is overvalued based on its PB Ratio (2.4x) compared to the US Gas Utilities industry average (1.8x).

Future Growth

How is New Jersey Resources forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NJR's forecast earnings growth (10.7% per year) is above the savings rate (1.9%).

Earnings vs Market: NJR's earnings (10.7% per year) are forecast to grow slower than the US market (12.6% 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 (-0.3% per year).

High Growth Revenue: NJR's revenue is forecast to decline over the next 3 years (-0.3% 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 (13.6%).

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-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 (3.8%) are lower than last year (12.5%).

Past Earnings Growth Analysis

Earnings Trend: NJR's earnings have declined by 6.1% 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 (-61.4%) over the past year, making it difficult to compare to the Gas Utilities industry average (4%).

Return on Equity

High ROE: NJR's Return on Equity (5.3%) is considered low.

Financial Health

How is New Jersey Resources's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NJR's short term assets ($556.0M) do not cover its short term liabilities ($882.1M).

Long Term Liabilities: NJR's short term assets ($556.0M) do not cover its long term liabilities ($3.2B).

Debt to Equity History and Analysis

Debt Level: NJR's net debt to equity ratio (145.6%) is considered high.

Reducing Debt: NJR's debt to equity ratio has increased from 99.6% to 146.4% over the past 5 years.

Debt Coverage: NJR's debt is not well covered by operating cash flow (14%).

Interest Coverage: NJR's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.29%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: NJR's dividend (3.29%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: NJR's dividend (3.29%) is low compared to the top 25% of dividend payers in the US market (4.05%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (144.6%), NJR's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: NJR is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Utilities industry.

Management

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

2.9yrs

Average management tenure

CEO

Steve Westhoven (53 yo)

3.58yrs

Tenure

US$4,783,459

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 ($USD4.78M) is below average for companies of similar size in the US market ($USD6.90M).

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

Leadership Team

Experienced Management: NJR's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: NJR's board of directors are considered experienced (9.5 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30