SJW Group
Market Cap
US$1.8b
Last Updated
2020/07/04 23:54 UTC
Data Sources
Company Financials +
Executive Summary
SJW Group, through its subsidiaries, provides water utility services in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and overvalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
11.3%
SJW
6.1%
US Water Utilities
4.0%
US Market
1 Year Return
-0.5%
SJW
7.3%
US Water Utilities
4.9%
US Market
Return vs Industry: SJW underperformed the US Water Utilities industry which returned 7.3% over the past year.
Return vs Market: SJW underperformed the US Market which returned 5% over the past year.
Shareholder returns
| SJW | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.3% | 6.1% | 4.0% |
| 30 Day | -0.7% | 0.4% | 1.3% |
| 90 Day | 15.5% | 13.3% | 29.5% |
| 1 Year | 1.4%-0.5% | 9.2%7.3% | 7.2%4.9% |
| 3 Year | 35.7%28.1% | 59.4%50.3% | 36.1%27.2% |
| 5 Year | 127.2%105.4% | 142.4%118.8% | 65.3%46.9% |
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
5 days ago | Simply Wall St
SJW Group (NYSE:SJW) Use Of Debt Could Be Considered Risky2 weeks ago | Simply Wall St
Why SJW Group’s (NYSE:SJW) Return On Capital Employed Looks Uninspiring1 month ago | Simply Wall St
SJW Group (NYSE:SJW) Has Gifted Shareholders With A Fantastic 129% Total Return On Their InvestmentValuation
Is SJW Group undervalued compared to its fair value and its price relative to the market?
90.51x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SJW ($63.44) is trading above our estimate of fair value ($29.65)
Significantly Below Fair Value: SJW is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SJW is poor value based on its PE Ratio (90.5x) compared to the Water Utilities industry average (34.4x).
PE vs Market: SJW is poor value based on its PE Ratio (90.5x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: SJW is poor value based on its PEG Ratio (5.2x)
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 (2.3x).
Next Steps
Future Growth
How is SJW Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
17.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SJW's forecast earnings growth (17.4% per year) is above the savings rate (2.2%).
Earnings vs Market: SJW's earnings (17.4% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: SJW's earnings are forecast to grow, but not significantly.
Revenue vs Market: SJW's revenue (6.2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: SJW's revenue (6.2% 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 (8.4%).
Next Steps
Past Performance
How has SJW Group performed over the past 5 years?
-6.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SJW has a large one-off loss of $12.6M impacting its March 31 2005 financial results.
Growing Profit Margin: SJW's current net profit margins (4.3%) are lower than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: SJW's earnings have declined by -6.3% per year over the past 5 years.
Accelerating Growth: SJW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SJW had negative earnings growth (-54%) over the past year, making it difficult to compare to the Water Utilities industry average (2.3%).
Return on Equity
High ROE: SJW's Return on Equity (2.3%) is considered low.
Next Steps
Financial Health
How is SJW Group's financial position?
Financial Position Analysis
Short Term Liabilities: SJW's short term assets ($128.8M) do not cover its short term liabilities ($238.4M).
Long Term Liabilities: SJW's short term assets ($128.8M) do not cover its long term liabilities ($2.1B).
Debt to Equity History and Analysis
Debt Level: SJW's debt to equity ratio (166.5%) is considered high.
Reducing Debt: SJW's debt to equity ratio has increased from 109.7% to 166.5% over the past 5 years.
Debt Coverage: SJW's debt is not well covered by operating cash flow (7.7%).
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?
2.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SJW's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: SJW's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (4.5%).
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 high payout ratio (174.1%), SJW's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SJW's dividends in 3 years are forecast to be covered by earnings (55.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Eric Thornburg (60yo)
2.67yrs
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 ($USD4.70M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.67yrs | US$2.61m | 0.034% $613.8k | |
| CFO & Treasurer | 9.75yrs | US$1.24m | 0.071% $1.3m | |
| Executive Vice President of San Jose Water Company | 3.25yrs | US$1.88m | 0.042% $760.3k | |
| President & COO of San Jose Water Company | 4.33yrs | US$2.62m | 0.061% $1.1m | |
| President of Connecticut Water Service | 0.58yr | US$2.98m | 0.0018% $32.4k | |
| Chief Administrative Officer | 0.67yr | no data | no data | |
| General Counsel & VP | 6.25yrs | US$869.42k | 0.045% $818.9k | |
| Director of Corporate Communications | no data | no data | no data | |
| Chief Corporate Development Officer & Integration Executive | 0.67yr | US$696.62k | 0.044% $802.1k | |
| VP of Finance | 5.75yrs | no data | 0.0081% $147.0k |
3.3yrs
Average Tenure
57yo
Average Age
Experienced Management: SJW's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.67yrs | US$2.61m | 0.034% $613.8k | |
| Director | 0.75yr | US$21.20k | 0.0012% $21.9k | |
| Independent Director | 3.67yrs | US$190.00k | 0.012% $222.8k | |
| Director | 0.75yr | US$19.70k | no data | |
| Lead Independent Director | no data | US$182.35k | 0.32% $5.7m | |
| Independent Director | 4.5yrs | US$180.50k | 0.016% $283.6k | |
| Director | 0.75yr | US$22.70k | no data | |
| Independent Director | 11.5yrs | US$190.35k | 0.042% $752.2k | |
| Independent Director | 8.5yrs | US$205.35k | 0.041% $740.0k | |
| Independent Director | 5.25yrs | US$217.50k | 0.020% $357.7k |
3.7yrs
Average Tenure
65.5yo
Average Age
Experienced Board: SJW's board of directors are considered experienced (3.7 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$1.809b
- Shares outstanding: 28.51m
- Website: https://www.sjwgroup.com
Number of Employees
Location
- SJW Group
- 110 West Taylor Street
- San Jose
- California
- 95110
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SJW | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1972 |
| 76W | BST (Boerse-Stuttgart) | Yes | Common Stock | DE | EUR | Feb 1972 |
| SJW * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Feb 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 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, subscription service line 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. Its water supply consists of groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District. The company offers water service to approximately 231,000 connections that serve approximately one million people residing in portions of the cities of San Jose and Cupertino, as well as in the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos; and adjacent unincorporated territories in the County of Santa Clara in the State of California. In addition, it provides water service to approximately 18,000 connections, which serve 54,000 people in a service area comprising 246 square miles in the region between San Antonio and Austin, Texas; and 137,000 connections that serve approximately 480,000 people in 80 municipalities in Connecticut and Maine, and approximately 3,000 wastewater connections in Southbury, Connecticut. Further, the company owns undeveloped land in California and Tennessee; and owns and operates commercial buildings and warehouse properties in Tennessee. The company was formerly known as SJW Corp. and changed its name to SJW Group in November 2016. SJW Group was founded in 1866 and is headquartered in San Jose, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 23:54 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.