NYSE:NJR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Average dividend payer with acceptable track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

NJR

-1.9%

US Gas Utilities

-2.6%

US Market


1 Year Return

-31.7%

NJR

-21.8%

US Gas Utilities

-13.3%

US Market

Return vs Industry: NJR underperformed the US Gas Utilities industry which returned -21.8% over the past year.

Return vs Market: NJR underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

NJRIndustryMarket
7 Day-2.3%-1.9%-2.6%
30 Day-12.8%-12.2%-15.2%
90 Day-22.2%-18.1%-22.2%
1 Year-29.7%-31.7%-19.6%-21.8%-11.5%-13.3%
3 Year-10.9%-17.7%-4.6%-11.8%13.2%5.7%
5 Year22.6%6.6%34.8%17.7%31.8%17.2%

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?

17.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NJR ($33.19) is trading above our estimate of fair value ($29.58)

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 (17.3x) compared to the Gas Utilities industry average (22.1x).

PE vs Market: NJR is poor value based on its PE Ratio (17.3x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NJR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

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


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?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NJR's forecast earnings growth (13.5% per year) is above the savings rate (1.7%).

Earnings vs Market: NJR's earnings (13.5% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: NJR's revenue (10.3% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: NJR's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NJR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NJR has high quality earnings.

Growing Profit Margin: NJR's current net profit margins (7.2%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: NJR's earnings have grown by 2.8% 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 (-11.9%) over the past year, making it difficult to compare to the Gas Utilities industry average (7.5%).


Return on Equity

High ROE: NJR's Return on Equity (9.4%) 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 ($692.6M) do not cover its short term liabilities ($805.5M).

Long Term Liabilities: NJR's short term assets ($692.6M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: NJR's debt to equity ratio (104.7%) is considered high.

Reducing Debt: NJR's debt to equity ratio has increased from 85.3% to 104.7% over the past 5 years.

Debt Coverage: NJR's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: NJR's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NJR's dividend (3.77%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: NJR's dividend (3.77%) is low compared to the top 25% of dividend payers in the US market (5.66%).


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 (63.1%), NJR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Steve Westhoven (51yo)

0.50

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 ($USD2.78M) is below average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Westhoven
President0.50yrUS$2.78m0.14% $4.5m
Patrick Migliaccio
Senior VP & CFO4.25yrsUS$1.50m0.020% $636.0k
Nancy Washington
Senior VP & General Counsel3.08yrsUS$1.17m0.0018% $57.1k
Amanda Mullan
Senior VP & Chief HR Officer5yrsUS$1.10m0.017% $536.1k
Jacqueline Shea
VP & Chief Information Officer3.83yrsno data0.012% $371.4k
Roberto Bel
Vice President?of?Treasury & Investor Relations1.25yrsno datano data
Laura Conover
Chief Communications Officer2.5yrsno datano data
Glenn Lockwood
Executive Vice President24.25yrsUS$1.44m0.21% $6.5m
Richard Reich
Corporate Secretary & Assistant General Counselno datano datano data
Rhonda Figueroa
Corporate Diversity Officer4.08yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: NJR's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Westhoven
President0.50yrUS$2.78m0.14% $4.5m
David Trice
Independent Director16.08yrsUS$199.06k0.012% $384.4k
Donald Correll
Independent Chairman0.25yrUS$245.06k0.0037% $118.0k
George Zoffinger
Independent Director24.25yrsUS$233.43k0.0031% $97.7k
Robert Evans
Independent Director10.58yrsUS$214.06k0.035% $1.1m
Thomas O'Connor
Independent Director2.92yrsUS$190.06kno data
Sharon Taylor
Independent Director7.42yrsUS$231.94k0.0064% $202.7k
M. Howard
Independent Director14.58yrsUS$208.06k0.017% $554.8k
Jane Kenny
Independent Director13.58yrsUS$214.51k0.017% $544.6k
Gregory Aliff
Independent Director0.92yrUS$124.47kno data

9.0yrs

Average Tenure

68.5yo

Average Age

Experienced Board: NJR's board of directors are considered experienced (9 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


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$3.172b
  • Shares outstanding: 95.57m
  • 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 Distribution, Clean Energy Ventures, Energy Services, and Midstream segments. The Natural Gas Distribution segment offers regulated retail natural gas services to approximately 547,600 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. The Clean Energy Ventures segment invests in commercial and residential solar projects located in New Jersey; and onshore wind projects. The Energy Services segment provides unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Midstream segment invests in natural gas transportation and storage facilities. The company offers heating, ventilation, and cooling services; holds commercial real estate properties; and provides solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. New Jersey Resources Corporation was founded in 1922 and is based in Wall, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:21
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.