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

Fundamentals

Established dividend payer with questionable 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


Market Performance


7 Day Return

-0.5%

NYSE:NJR

1.4%

US Gas Utilities

-0.7%

US Market


1 Year Return

-3.7%

NYSE:NJR

2.6%

US Gas Utilities

-0.5%

US Market

NJR underperformed the Gas Utilities industry which returned 2.6% over the past year.

NJR underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

NJRIndustryMarket
7 Day-0.5%1.4%-0.7%
30 Day-9.3%-1.2%-3.0%
90 Day-8.1%-1.7%0.9%
1 Year-1.4%-3.7%5.3%2.6%1.7%-0.5%
3 Year42.1%31.5%31.5%21.9%39.5%30.4%
5 Year98.6%72.6%75.1%52.8%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

29.71x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

New Jersey Resources's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

New Jersey Resources's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

New Jersey Resources is overvalued based on earnings compared to the US Gas Utilities industry average.

New Jersey Resources is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

New Jersey Resources is poor value based on expected growth next year.


Price Based on Value of Assets

New Jersey Resources is overvalued based on assets compared to the US Gas Utilities industry average.


Next Steps

Future Growth

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

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

New Jersey Resources's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

New Jersey Resources's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

New Jersey Resources's revenue growth is positive but not above the United States of America market average.

New Jersey Resources's earnings growth is positive but not above the United States of America market average.

New Jersey Resources's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if New Jersey Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

New Jersey Resources's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

New Jersey Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.

New Jersey Resources's 1-year earnings growth is negative, it can't be compared to the US Gas Utilities industry average.


Return on Equity

New Jersey Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

New Jersey Resources used its assets more efficiently than the US Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

New Jersey Resources's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is New Jersey Resources's financial position?


Financial Position Analysis

New Jersey Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

New Jersey Resources's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

New Jersey Resources's level of debt (91.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (74.8% vs 91.3% today).

Debt is not well covered by operating cash flow (11.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

2.73%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase New Jersey Resources before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

New Jersey Resources's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

New Jersey Resources's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of New Jersey Resources's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Larry Downes (62yo)

24.1yrs

Tenure

US$4,553,524

Compensation

Mr. Laurence Michael Downes, also known as Larry, has been the Chairman of the Board of New Jersey Resources Corporation since September 1996 and has been its Chief Executive Officer since July 1995. Mr. D ...


CEO Compensation Analysis

Larry's remuneration is about average for companies of similar size in United States of America.

Larry's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

The tenure for the New Jersey Resources management team is about average.


Board Age and Tenure

13.4yrs

Average Tenure

70yo

Average Age

The average tenure for the New Jersey Resources board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

New Jersey Resources individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$990,05714 Aug 19
Laurence Downes
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares22,000
Max PriceUS$45.00
SellUS$596,89317 May 19
David Trice
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,000
Max PriceUS$49.74
SellUS$50,17226 Mar 19
M. Howard
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$50.17
SellUS$148,90322 Mar 19
Jane Kenny
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$49.63
SellUS$1,746,32520 Mar 19
J. Strange
EntityIndividual
Role
Member of the Board of Directors
Director
Shares35,000
Max PriceUS$49.90
SellUS$103,31720 Mar 19
Patrick Migliaccio
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,068
Max PriceUS$49.96
SellUS$985,40020 Mar 19
David Trice
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$49.27
SellUS$47,91028 Nov 18
M. Howard
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$47.91

Ownership Breakdown


Management Team

  • Larry Downes (62yo)

    Chairman & CEO

    • Tenure: 24.1yrs
    • Compensation: US$4.55m
  • Glenn Lockwood (58yo)

    Executive Vice President

    • Tenure: 23.6yrs
    • Compensation: US$1.44m
  • Steve Westhoven (51yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$1.61m
  • Amanda Mullan (53yo)

    Senior VP & Chief HR Officer

    • Tenure: 4.3yrs
    • Compensation: US$965.37k
  • Pat Migliaccio (45yo)

    Senior VP & CFO

    • Tenure: 3.6yrs
    • Compensation: US$1.11m
  • Jaqueline Shea (55yo)

    VP & Chief Information Officer

    • Tenure: 3.2yrs
  • Richard Reich (44yo)

    Corporate Secretary & Assistant General Counsel

    • Tenure: 0.0yrs
  • Nancy Washington (55yo)

    Senior VP & General Counsel

    • Tenure: 2.4yrs
    • Compensation: US$851.87k
  • Laura Conover (51yo)

    Chief Communications Officer & Chief of Staff

    • Tenure: 1.8yrs
  • Roberto Bel

    Vice President – Treasurer & Investor Relations

    • Tenure: 0.6yrs

Board Members

  • Dave Trice (71yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: US$194.07k
  • Larry Downes (62yo)

    Chairman & CEO

    • Tenure: 24.1yrs
    • Compensation: US$4.55m
  • Don Correll (69yo)

    Lead Director

    • Tenure: 1.6yrs
    • Compensation: US$232.86k
  • George Zoffinger (71yo)

    Independent Director

    • Tenure: 23.6yrs
    • Compensation: US$221.88k
  • Bobby Evans (71yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: US$209.07k
  • J. Strange (75yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$209.07k
  • Sharon Taylor (64yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$226.86k
  • Steve Westhoven (51yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$1.61m
  • M. Howard (73yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: US$203.07k
  • Jane Kenny (68yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$209.77k

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$4.069b
  • Shares outstanding: 89.98m
  • 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 Analysis2019/08/18 23:42
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.