New Jersey Resources Corporation
New Jersey Resources Corporation Fundamental Analysis
New Jersey Resources Corporation (NJR) shows moderate financial fundamentals with a PE ratio of 16.93, profit margin of 15.21%, and ROE of 13.39%. The company generates $2.2B in annual revenue with strong year-over-year growth of 13.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NJR's fundamental strength across five key dimensions:
Efficiency Score
WeakNJR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNJR trades at attractive valuation levels.
Growth Score
ExcellentNJR delivers strong and consistent growth momentum.
Financial Health Score
WeakNJR carries high financial risk with limited liquidity.
Profitability Score
WeakNJR struggles to sustain strong margins.
Key Financial Metrics
Is NJR Expensive or Cheap?
P/E Ratio
NJR trades at 16.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NJR's PEG of -5.69 indicates potential undervaluation.
Price to Book
The market values New Jersey Resources Corporation at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.92 times EBITDA. This is generally considered low.
How Well Does NJR Make Money?
Net Profit Margin
For every $100 in sales, New Jersey Resources Corporation keeps $15.21 as profit after all expenses.
Operating Margin
Core operations generate 22.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.39 in profit for every $100 of shareholder equity.
ROA
New Jersey Resources Corporation generates $4.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New Jersey Resources Corporation produces operating cash flow of $505.10M, showing steady but balanced cash generation.
Free Cash Flow
New Jersey Resources Corporation generates weak or negative free cash flow of $-218.89M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.17 in free cash annually.
FCF Yield
NJR converts -3.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NJR Stacks Against Its Sector Peers
| Metric | NJR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.93 | 19.72 | Better (Cheaper) |
| ROE | 13.39% | 908.00% | Weak |
| Net Margin | 15.21% | 8804.00% | Weak |
| Debt/Equity | 1.67 | 1.80 | Neutral |
| Current Ratio | 0.83 | 1.50 | Weak Liquidity |
| ROA | 4.13% | -6152.00% (disorted) | Weak |
NJR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews New Jersey Resources Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.52%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
94.71%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
106.58%
Industry Style: Defensive, Dividend, Income
High Growth