NYSE:SJI

Stock Analysis Report

South Jersey Industries

Executive Summary

South Jersey Industries, Inc., through its subsidiaries, provides energy-related products and services.

Snowflake

Fundamentals

Average dividend payer and overvalued.


Similar Companies

Share Price & News

How has South Jersey Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

NYSE:SJI

1.1%

US Gas Utilities

0.2%

US Market


1 Year Return

-4.9%

NYSE:SJI

3.1%

US Gas Utilities

-0.7%

US Market

SJI underperformed the Gas Utilities industry which returned 3.4% over the past year.

SJI underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

SJIIndustryMarket
7 Day1.6%1.1%0.2%
30 Day-4.7%-1.6%-2.7%
90 Day-5.2%-2.5%1.6%
1 Year-1.4%-4.9%5.8%3.1%1.6%-0.7%
3 Year14.5%3.2%30.9%21.4%40.0%30.9%
5 Year32.0%10.1%74.7%52.5%53.8%36.8%

Price Volatility Vs. Market

How volatile is South Jersey Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is South Jersey Industries undervalued based on future cash flows and its price relative to the stock market?

38.39x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

South Jersey Industries is overvalued based on earnings compared to the US Gas Utilities industry average.

South Jersey Industries is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

South Jersey Industries is poor value based on expected growth next year.


Price Based on Value of Assets

South Jersey Industries is good value based on assets compared to the US Gas Utilities industry average.


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

South Jersey Industries's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

South Jersey Industries's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

South Jersey Industries's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

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

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


Earnings per Share Growth Estimates


Future Return on Equity

South Jersey Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has South Jersey Industries performed over the past 5 years?

-29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

South Jersey Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

South Jersey Industries has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

South Jersey Industries has become profitable in the last year making it difficult to compare the US Gas Utilities industry average.


Return on Equity

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


Return on Assets

South Jersey Industries used its assets less efficiently than the US Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is South Jersey Industries's financial position?


Financial Position Analysis

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

South Jersey Industries's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

South Jersey Industries's level of debt (201.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (129.2% vs 201.2% today).

Debt is not well covered by operating cash flow (7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.6x 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 0.1x debt.


Next Steps

Dividend

What is South Jersey Industries's current dividend yield, its reliability and sustainability?

3.81%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase South Jersey Industries before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

South Jersey Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

South Jersey Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

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 not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Mike Renna (51yo)

4.3yrs

Tenure

US$4,664,594

Compensation

Mr. Michael J. Renna, also known as Mike, has been the President of South Jersey Industries, Inc. since January 24, 2014 and has been its Chief Executive Officer since April, 2015. Mr. Renna served as the  ...


CEO Compensation Analysis

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

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


Management Age and Tenure

2.9yrs

Average Tenure

47yo

Average Age

The tenure for the South Jersey Industries management team is about average.


Board Age and Tenure

7.5yrs

Average Tenure

63yo

Average Age

The tenure for the South Jersey Industries board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$11,50020 Dec 18
Ann Anthony
EntityIndividual
Role
Secretary
VP, Treasurer & Acting Corporate Secretary
Shares400
Max PriceUS$28.75
BuyUS$137,31818 Dec 18
Walter Higgins
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares4,546
Max PriceUS$30.21
BuyUS$99,89214 Dec 18
Michael Renna
EntityIndividual
Role
Chief Executive Officer
President
Shares3,270
Max PriceUS$30.55
BuyUS$99,24719 Nov 18
Michael Renna
EntityIndividual
Role
Chief Executive Officer
President
Shares3,220
Max PriceUS$30.82
BuyUS$49,31729 Aug 18
Sunita Bhatia-Holzer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max PriceUS$32.88

Ownership Breakdown


Management Team

  • Mike Renna (51yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$4.66m
  • Kathy McEndy (65yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 4.2yrs
    • Compensation: US$1.79m
  • Ann Anthony

    VP, Treasurer & Acting Corporate Secretary

    • Tenure: 0.0yrs
  • Dan Fidell

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Dave Robbins (56yo)

    Senior Vice President

    • Tenure: 4.3yrs
    • Compensation: US$2.09m
  • Marissa Travaline

    Vice President of Communications

    • Tenure: 0.0yrs
  • Melissa Orsen (43yo)

    Senior VP & General Counsel

    • Tenure: 1.6yrs
    • Compensation: US$796.44k
  • Steven Cocchi (41yo)

    Senior VP and Chief Strategy & Development Officer

    • Tenure: 1.6yrs
  • Cielo Hernandez (43yo)

    Senior VP & CFO

    • Tenure: 0.6yrs

Board Members

  • Walt Higgins (74yo)

    Non-Executive Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$265.38k
  • Frank Sims (68yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$196.61k
  • Tom Bracken (71yo)

    Director

    • Tenure: 15.5yrs
    • Compensation: US$192.13k
  • Sheila Hartnett-Devlin (60yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$191.88k
  • Keith Campbell (64yo)

    Director

    • Tenure: 19.6yrs
    • Compensation: US$181.88k
  • Joe Rigby (62yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$203.11k
  • Victor Fortkiewicz (67yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$186.88k
  • Mike Renna (51yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$4.66m
  • Sarah Barpoulis (54yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$210.61k
  • Sunita Bhatia-Holzer (57yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$194.11k

Company Information

South Jersey Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: South Jersey Industries, Inc.
  • Ticker: SJI
  • Exchange: NYSE
  • Founded: 1910
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$2.903b
  • Shares outstanding: 92.16m
  • Website: https://www.sjindustries.com

Number of Employees


Location

  • South Jersey Industries, Inc.
  • 1 South Jersey Plaza
  • Folsom
  • New Jersey
  • 8037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
J4SDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

South Jersey Industries, Inc., through its subsidiaries, provides energy-related products and services. The company engages in the purchase, transmission, and sale of natural gas. It also sells natural gas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:43
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.