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SJW

SJW GroupNYSE:SJW Stock Report

Last Price

US$68.31

Market Cap

US$2.0b

7D

0.2%

1Y

1.0%

Updated

21 Jan, 2022

Data

Company Financials +
SJW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health0/6
Dividends5/6

SJW Stock Overview

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

SJW Group Competitors

American Water Works Company

NYSE:AWK

US$29.5b

Essential Utilities

NYSE:WTRG

US$12.2b

American States Water

NYSE:AWR

US$3.4b

California Water Service Group

NYSE:CWT

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for SJW Group
Historical stock prices
Current Share PriceUS$68.31
52 Week HighUS$73.69
52 Week LowUS$58.01
Beta0.46
1 Month Change-2.97%
3 Month Change-0.60%
1 Year Change1.04%
3 Year Change16.77%
5 Year Change35.86%
Change since IPO1,404.07%

Recent News & Updates

Dec 06
SJW Group (NYSE:SJW) Has A Somewhat Strained Balance Sheet

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...

Nov 23

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.

Sep 02
Is SJW Group (NYSE:SJW) A Risky Investment?

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

SJWUS Water UtilitiesUS Market
7D0.2%-3.7%-4.0%
1Y1.0%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

Is SJW's price volatile compared to industry and market?
SJW volatility
SJW Average Weekly Movement3.4%
Water Utilities Industry Average Movement3.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1985748Eric Thornburghttps://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

How do SJW Group's earnings and revenue compare to its market cap?
SJW fundamental statistics
Market CapUS$2.04b
Earnings (TTM)US$55.74m
Revenue (TTM)US$569.65m

36.6x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SJW income statement (TTM)
RevenueUS$569.65m
Cost of RevenueUS$256.28m
Gross ProfitUS$313.37m
ExpensesUS$257.62m
EarningsUS$55.74m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.87
Gross Margin55.01%
Net Profit Margin9.79%
Debt/Equity Ratio156.7%

How did SJW perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.