NYSE:NJR

Stock Analysis Report

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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

NJR

-4.3%

US Gas Utilities

-4.6%

US Market


1 Year Return

-33.2%

NJR

-25.3%

US Gas Utilities

11.5%

US Market

Return vs Industry: NJR underperformed the US Gas Utilities industry which returned -25.3% over the past year.

Return vs Market: NJR underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

NJRIndustryMarket
7 Day-2.0%-4.3%-4.6%
30 Day7.2%0.7%-0.9%
90 Day-6.8%-7.5%2.2%
1 Year-30.5%-33.2%-22.7%-25.3%14.0%11.5%
3 Year-28.1%-34.3%-12.7%-20.3%34.5%25.6%
5 Year11.9%-3.2%21.1%3.7%73.0%53.6%

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?

1.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NJR ($28.96) is trading below our estimate of fair value ($29.41)

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 good value based on its PE Ratio (16x) compared to the US Gas Utilities industry average (18.2x).

PE vs Market: NJR is good value based on its PE Ratio (16x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: NJR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NJR's PB Ratio (1.5x) is in line with the US Gas Utilities industry average.


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NJR's forecast earnings growth (11.5% per year) is above the savings rate (2.2%).

Earnings vs Market: NJR's earnings (11.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: NJR's revenue (7.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: NJR's revenue (7.7% per year) is forecast to grow slower than 20% 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 (12.3%).


Next Steps

Past Performance

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

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NJR has high quality earnings.

Growing Profit Margin: NJR's current net profit margins (8.3%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: NJR's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: NJR's earnings growth over the past year (24.5%) exceeds its 5-year average (6% per year).

Earnings vs Industry: NJR earnings growth over the past year (24.5%) exceeded the Gas Utilities industry 11.6%.


Return on Equity

High ROE: NJR's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is New Jersey Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NJR's short term assets ($521.1M) do not cover its short term liabilities ($902.3M).

Long Term Liabilities: NJR's short term assets ($521.1M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: NJR's debt to equity ratio (117.8%) is considered high.

Reducing Debt: NJR's debt to equity ratio has increased from 74.5% to 117.8% over the past 5 years.

Debt Coverage: NJR's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: NJR's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NJR's dividend (4.59%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: NJR's dividend (4.59%) is low compared to the top 25% of dividend payers in the US market (4.86%).


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 (69.1%), 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% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Steve Westhoven (52 yo)

1

Tenure

US$2,781,902

Compensation

Mr. Stephen D. Westhoven, also known as Steve, serves as Chief Operating Officer at NJR Energy Services Company. Mr. Westhoven has been Senior Vice President at NJR Energy Services Company since September ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.78M) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Westhoven
President1yrUS$2.78m0.15%
$ 4.0m
Patrick Migliaccio
Senior VP & CFO4.75yrsUS$1.50m0.023%
$ 640.9k
Nancy Washington
Senior VP & General Counsel3.58yrsUS$1.17m0.0013%
$ 36.1k
Amanda Mullan
Senior VP & Chief HR Officer5.5yrsUS$1.10m0.017%
$ 463.1k
Jacqueline Shea
VP & Chief Information Officer4.33yrsno data0.010%
$ 286.4k
Roberto Bel
Vice President?of?Treasury & Investor Relations1.75yrsno datano data
Glenn Lockwood
Executive Vice President24.75yrsUS$1.44mno data
Richard Reich
Corporate Secretary & Assistant General Counselno datano datano data
Rhonda Figueroa
Corporate Diversity Officer4.58yrsno datano data
Dennis Puma
Director of Investor Relationsno datano datano data
Amy Cradic
Senior VP and COO of Non-Utility Businesses0.58yrno data0.0051%
$ 142.5k

4.3yrs

Average Tenure

53yo

Average Age

Experienced Management: NJR's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Westhoven
President1yrUS$2.78m0.15%
$ 4.0m
David Trice
Independent Director16.58yrsUS$199.06k0.012%
$ 335.6k
Donald Correll
Independent Chairman0.75yrUS$245.06k0.0037%
$ 103.1k
James DeGraffenreidt
Independent Director0.92yrno data0.0014%
$ 40.0k
George Zoffinger
Independent Director24.75yrsUS$233.43k0.0031%
$ 85.3k
Robert Evans
Independent Director11.08yrsUS$214.06k0.035%
$ 979.3k
Thomas O'Connor
Independent Director3.42yrsUS$190.06kno data
Sharon Taylor
Independent Director7.92yrsUS$231.94k0.0064%
$ 176.7k
M. Hardwick
Independent Director0.17yrno datano data
M. Howard
Independent Director15.08yrsUS$208.06k0.021%
$ 571.5k
Jane Kenny
Independent Director14.08yrsUS$214.51k0.017%
$ 475.3k
Gregory Aliff
Independent Director1.42yrsUS$124.47kno data

5.7yrs

Average Tenure

68yo

Average Age

Experienced Board: NJR's board of directors are considered experienced (5.7 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 been diluted in the past year, with total shares outstanding growing by 6.6%.


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: 1922
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$2.778b
  • Shares outstanding: 95.93m
  • 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 Analysis2020/10/30 00:35
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.