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 with moderate growth potential.


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

-0.9%

SJI

-0.04%

US Gas Utilities

1.8%

US Market


1 Year Return

-8.7%

SJI

1.5%

US Gas Utilities

7.3%

US Market

Return vs Industry: SJI underperformed the US Gas Utilities industry which returned 1.5% over the past year.

Return vs Market: SJI underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

SJIIndustryMarket
7 Day-0.9%-0.04%1.8%
30 Day-0.6%-1.8%-0.7%
90 Day-3.0%-1.3%0.06%
1 Year-5.3%-8.7%4.0%1.5%9.7%7.3%
3 Year24.8%12.5%37.0%27.0%46.3%36.9%
5 Year34.1%11.8%71.9%50.3%64.5%46.5%

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 compared to its fair value and its price relative to the market?

39.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SJI ($32.07) is trading above our estimate of fair value ($20.11)

Significantly Undervalued: SJI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SJI is poor value based on its PE Ratio (39.1x) compared to the Gas Utilities industry average (25.5x).

PE vs Market: SJI is poor value based on its PE Ratio (39.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SJI is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SJI is good value based on its PB Ratio (2x) compared to the US Gas Utilities industry average (2.3x).


Next Steps

Future Growth

How is South Jersey Industries forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJI's forecast earnings growth (20% per year) is above the savings rate (2.7%).

Earnings vs Market: SJI's earnings (20% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SJI's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: SJI's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SJI's Return on Equity is forecast to be low in 3 years time (7.8%).


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

Earnings Trend: SJI's earnings have declined by -29.5% per year over the past 5 years.

Accelerating Growth: SJI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SJI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Gas Utilities industry (-8.9%).


Return on Equity

High ROE: SJI's Return on Equity (4.9%) is considered low.


Return on Assets

ROA vs Industry: SJI's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: SJI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is South Jersey Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SJI's short term assets ($429.0M) do not cover its short term liabilities ($1.6B)

Long Term Liabilities: SJI's short term assets (429.0M) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: SJI's debt to equity ratio (201.2%) is considered high

Reducing Debt: SJI's debt to equity ratio has increased from 129.2% to 201.2% over the past 5 years.

Debt Coverage: SJI's debt is not well covered by operating cash flow (7%).

Interest Coverage: SJI's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: SJI has a high level of physical assets or inventory.

Debt Coverage by Assets: SJI's 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?

3.59%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.5%markettop25%3.7%industryaverage2.5%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SJI's dividend (3.59%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SJI's dividend (3.59%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: SJI's dividends per share have been stable in the past 10 years.

Growing Dividend: SJI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (139.2%), SJI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SJI's dividends in 3 years are forecast to be covered by earnings (68.9% payout ratio).


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?

4.3yrs

Average management tenure


CEO

Mike Renna (51yo)

4.5yrs

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

Compensation vs. Market: Mike's total compensation ($USD4.66M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

4.3yrs

Average Tenure

47yo

Average Age

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


Board Age and Tenure

7.7yrs

Average Tenure

63yo

Average Age

Experienced Board: SJI's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$11,50020 Dec 18
Ann Anthony
EntityIndividual
Role
Treasurer
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

Ownership Breakdown


Management Team

  • Mike Renna (51yo)

    President

    • Tenure: 4.5yrs
    • Compensation: US$4.66m
  • Kathy McEndy (65yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.79m
  • Ann Anthony

    VP, Treasurer & Acting Corporate Secretary

    • Tenure: 11.1yrs
  • Dan Fidell

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Dave Robbins (56yo)

    Senior Vice President

    • Tenure: 4.5yrs
    • Compensation: US$2.09m
  • Marissa Travaline

    Vice President of Communications

    • Tenure: 0yrs
  • Melissa Orsen (43yo)

    Senior VP

    • Tenure: 1.8yrs
    • Compensation: US$796.44k
  • Steven Cocchi (41yo)

    Senior VP and Chief Strategy & Development Officer

    • Tenure: 1.8yrs
  • Cielo Hernandez (43yo)

    Senior VP & CFO

    • Tenure: 0.8yrs

Board Members

  • Walt Higgins (74yo)

    Non-Executive Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$265.38k
  • Frank Sims (68yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$196.61k
  • Tom Bracken (71yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$192.13k
  • Sheila Hartnett-Devlin (60yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$191.88k
  • Keith Campbell (64yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$181.88k
  • Joe Rigby (62yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$203.11k
  • Victor Fortkiewicz (67yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$186.88k
  • Mike Renna (51yo)

    President

    • Tenure: 4.5yrs
    • Compensation: US$4.66m
  • Sarah Barpoulis (54yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$210.61k
  • Sunita Bhatia-Holzer (57yo)

    Director

    • Tenure: 7.9yrs
    • 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$2.956b
  • 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 Analysis2019/10/17 23:43
End of Day Share Price2019/10/17 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.