NYSE:SJW

Stock Analysis Report

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Executive Summary

SJW Group, through its subsidiaries, provides water utility services in the United States. More Details


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has SJW Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SJW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SJW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.1%

SJW

0.8%

US Water Utilities

2.8%

US Market


1 Year Return

-4.3%

SJW

13.4%

US Water Utilities

19.7%

US Market

Return vs Industry: SJW underperformed the US Water Utilities industry which returned 13.4% over the past year.

Return vs Market: SJW underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

SJWIndustryMarket
7 Day4.1%0.8%2.8%
30 Day6.1%2.5%8.0%
90 Day6.2%7.9%6.8%
1 Year-2.4%-4.3%15.4%13.4%22.4%19.7%
3 Year4.9%-1.0%52.3%43.8%47.3%37.5%
5 Year149.3%126.0%139.2%116.7%93.6%72.3%

Long-Term Price Volatility Vs. Market

How volatile is SJW Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SJW Group undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJW ($67.4) is trading below our estimate of fair value ($109.44)

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 (44.9x) compared to the US Water Utilities industry average (33.9x).

PE vs Market: SJW is poor value based on its PE Ratio (44.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: SJW is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: SJW is good value based on its PB Ratio (2.1x) compared to the US Water Utilities industry average (2.4x).


Next Steps

Future Growth

How is SJW Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJW's forecast earnings growth (13.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SJW's earnings (13.9% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: SJW's revenue (2.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SJW's revenue (2.3% 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 (8.2%).


Next Steps

Past Performance

How has SJW Group performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJW has high quality earnings.

Growing Profit Margin: SJW's current net profit margins (7.7%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: SJW's earnings have declined by 6.1% per year over the past 5 years.

Accelerating Growth: SJW's earnings growth over the past year (13.8%) exceeds its 5-year average (-6.1% per year).

Earnings vs Industry: SJW earnings growth over the past year (13.8%) exceeded the Water Utilities industry 10.8%.


Return on Equity

High ROE: SJW's Return on Equity (4.7%) is considered low.


Next Steps

  • Explore strong past performing companies in the Utilities industry.

Financial Health

How is SJW Group's financial position?


Financial Position Analysis

Short Term Liabilities: SJW's short term assets ($154.9M) do not cover its short term liabilities ($305.4M).

Long Term Liabilities: SJW's short term assets ($154.9M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: SJW's debt to equity ratio (164.9%) is considered high.

Reducing Debt: SJW's debt to equity ratio has increased from 109.3% to 164.9% over the past 5 years.

Debt Coverage: SJW's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: SJW's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is SJW Group current dividend yield, its reliability and sustainability?

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SJW's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SJW's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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: At its current payout ratio (84%), SJW's 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 (55.6% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Eric Thornburg (60 yo)

3yrs

Tenure

US$2,609,419

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 Dir...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD2.61M) is below average for companies of similar size in the US market ($USD4.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Thornburg
Chairman3yrsUS$2.61m0.034%
$ 660.4k
James Lynch
CFO & Treasurer10.08yrsUS$1.24m0.071%
$ 1.4m
Palle Jensen
Executive Vice President of San Jose Water Company3.58yrsUS$1.88m0.042%
$ 807.8k
Andrew Gere
President & COO of San Jose Water Company4.67yrsUS$2.62m0.061%
$ 1.2m
Maureen Westbrook
President of Connecticut Water Service0.92yrUS$2.98m0.016%
$ 307.4k
Kristen Johnson
Chief Administrative Officer1yrno datano data
Suzy Papazian
General Counsel & VP6.58yrsUS$869.42k0.046%
$ 882.5k
Liann Walborsky
Director of Corporate Communicationsno datano datano data
Andrew Walters
Chief Corporate Development Officer & Integration Executive1yrUS$696.62k0.044%
$ 845.3k
Wendy Avila-Walker
VP of Finance6.08yrsno data0.0086%
$ 165.1k
Willie Brown
Corporate Secretary & Assistant General Counselno datano datano data

3.6yrs

Average Tenure

57yo

Average Age

Experienced Management: SJW's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Thornburg
Chairman3yrsUS$2.61m0.034%
$ 660.4k
Mary Hanley
Director1.08yrsUS$21.20k0.0012%
$ 23.3k
Gregory Landis
Independent Director4yrsUS$190.00k0.012%
$ 236.7k
Carol Wallace
Director1.08yrsUS$19.70kno data
Robert Van Valer
Lead Independent Directorno dataUS$182.35k0.32%
$ 6.1m
Debra Man
Independent Director4.83yrsUS$180.50k0.016%
$ 301.2k
Heather Hunt
Director1.08yrsUS$22.70kno data
Carl Guardino
Director0.50yrno datano data
Katharine Armstrong
Independent Director11.83yrsUS$190.35k0.042%
$ 798.9k
Walter Bishop
Independent Director8.83yrsUS$205.35k0.041%
$ 786.2k
Daniel More
Independent Director5.58yrsUS$217.50k0.020%
$ 390.7k

3.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SJW's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SJW Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SJW Group
  • Ticker: SJW
  • Exchange: NYSE
  • Founded: 1866
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: US$1.925b
  • Shares outstanding: 28.56m
  • Website: https://www.sjwgroup.com

Number of Employees


Location

  • SJW Group
  • 110 West Taylor Street
  • San Jose
  • California
  • 95110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJWNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1972
76WBST (Boerse-Stuttgart)YesCommon StockDEEURFeb 1972

Biography

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 a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 00:40
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.