| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 0/6 |
| Dividends | 5/6 |
SJW Stock Overview
SJW Group, through its subsidiaries, provides water utility services in the United States.
Rewards
Risk Analysis
SJW Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$68.31 |
| 52 Week High | US$73.69 |
| 52 Week Low | US$58.01 |
| Beta | 0.46 |
| 1 Month Change | -2.97% |
| 3 Month Change | -0.60% |
| 1 Year Change | 1.04% |
| 3 Year Change | 16.77% |
| 5 Year Change | 35.86% |
| Change since IPO | 1,404.07% |
Recent News & Updates
SJW Group (NYSE:SJW) Has A Somewhat Strained Balance Sheet
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
SJW Group: Not At This Price
SJW Group has exhibited volatility in earnings over the last four years. Earnings for FY-2020 were barely above FY-2017, despite additional share issues and borrowings to fund acquisitions. Based on analysts' estimates, the effect of acquisitions should start to be seen in EPS growth in future years. Weather patterns have caused water supply security concerns for the company, raising the prospect of purchased water impacting margins. Share price increase over the last six months has taken this stock well out of potential buy range.
Is SJW Group (NYSE:SJW) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Shareholder Returns
| SJW | US Water Utilities | US Market | |
|---|---|---|---|
| 7D | 0.2% | -3.7% | -4.0% |
| 1Y | 1.0% | 3.3% | 6.6% |
Return vs Industry: SJW underperformed the US Water Utilities industry which returned 3.3% over the past year.
Return vs Market: SJW underperformed the US Market which returned 6.6% over the past year.
Price Volatility
| SJW volatility | |
|---|---|
| SJW Average Weekly Movement | 3.4% |
| Water Utilities Industry Average Movement | 3.5% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: SJW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SJW's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1985 | 748 | Eric Thornburg | https://www.sjwgroup.com |
SJW Group, through its subsidiaries, provides water utility services in the United States. It engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services. The company also provides non-tariffed services, including water system operations, maintenance agreements, and antenna site leases; contracted services and sewer operations to water utilities in Connecticut; and a Linebacker protection plan for public drinking water customers, as well as offers repair or replace a leaking or broken water service line, curb box, curb box cover, meter pit, meter pit cover, and meter pit valve.
SJW Group Fundamentals Summary
| SJW fundamental statistics | |
|---|---|
| Market Cap | US$2.04b |
| Earnings (TTM) | US$55.74m |
| Revenue (TTM) | US$569.65m |
36.6x
P/E Ratio3.6x
P/S RatioIs SJW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SJW income statement (TTM) | |
|---|---|
| Revenue | US$569.65m |
| Cost of Revenue | US$256.28m |
| Gross Profit | US$313.37m |
| Expenses | US$257.62m |
| Earnings | US$55.74m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.87 |
| Gross Margin | 55.01% |
| Net Profit Margin | 9.79% |
| Debt/Equity Ratio | 156.7% |
How did SJW perform over the long term?
See historical performance and comparisonDividends
2.0%
Current Dividend Yield70%
Payout RatioValuation
Is SJW Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SJW ($68.31) is trading below our estimate of fair value ($193.79)
Significantly Below Fair Value: SJW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SJW is poor value based on its PE Ratio (36.6x) compared to the US Water Utilities industry average (35.9x).
PE vs Market: SJW is poor value based on its PE Ratio (36.6x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: SJW is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: SJW is good value based on its PB Ratio (2x) compared to the US Water Utilities industry average (2.8x).
Future Growth
How is SJW Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
11.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SJW's forecast earnings growth (11.7% per year) is above the savings rate (2%).
Earnings vs Market: SJW's earnings (11.7% per year) are forecast to grow slower than the US market (13.1% per year).
High Growth Earnings: SJW's earnings are forecast to grow, but not significantly.
Revenue vs Market: SJW's revenue (3.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: SJW's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SJW's Return on Equity is forecast to be low in 3 years time (7.4%).
Past Performance
How has SJW Group performed over the past 5 years?
-3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SJW has high quality earnings.
Growing Profit Margin: SJW's current net profit margins (9.8%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: SJW's earnings have declined by 3% per year over the past 5 years.
Accelerating Growth: SJW's earnings growth over the past year (30.4%) exceeds its 5-year average (-3% per year).
Earnings vs Industry: SJW earnings growth over the past year (30.4%) exceeded the Water Utilities industry 15.3%.
Return on Equity
High ROE: SJW's Return on Equity (5.6%) is considered low.
Financial Health
How is SJW Group's financial position?
Financial Position Analysis
Short Term Liabilities: SJW's short term assets ($155.5M) do not cover its short term liabilities ($267.3M).
Long Term Liabilities: SJW's short term assets ($155.5M) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: SJW's net debt to equity ratio (155.3%) is considered high.
Reducing Debt: SJW's debt to equity ratio has increased from 106.8% to 156.7% over the past 5 years.
Debt Coverage: SJW's debt is not well covered by operating cash flow (8.5%).
Interest Coverage: SJW's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Balance Sheet
Dividend
What is SJW Group current dividend yield, its reliability and sustainability?
1.99%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SJW's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: SJW's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: SJW's dividends per share have been stable in the past 10 years.
Growing Dividend: SJW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (70.3%), SJW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SJW's dividends in 3 years are forecast to be covered by earnings (58.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Eric Thornburg (61 yo)
4.17yrs
Tenure
US$3,213,749
Compensation
Mr. Eric W. Thornburg has been Chief Executive Officer, President and Director at SJW Group since November 06, 2017 and has been its Chairman of the Board since April 25, 2018. Mr. Thornburg serves as Dire...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD3.21M) is about average for companies of similar size in the US market ($USD3.73M).
Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: SJW's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: SJW's board of directors are considered experienced (3.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SJW 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 4.4%.
Top Shareholders
Company Information
SJW Group's employee growth, exchange listings and data sources
Key Information
- Name: SJW Group
- Ticker: SJW
- Exchange: NYSE
- Founded: 1985
- Industry: Water Utilities
- Sector: Utilities
- Implied Market Cap: US$2.037b
- Shares outstanding: 29.83m
- Website: https://www.sjwgroup.com
Number of Employees
Location
- SJW Group
- 110 West Taylor Street
- San Jose
- California
- 95110
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:36 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.