South Jersey Industries, Inc.
South Jersey Industries, Inc. Fundamental Analysis
South Jersey Industries, Inc. (SJI) shows weak financial fundamentals with a PE ratio of 19.50, profit margin of 9.01%, and ROE of 9.83%. The company generates $2.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SJI's fundamental strength across five key dimensions:
Efficiency Score
WeakSJI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSJI trades at attractive valuation levels.
Growth Score
ModerateSJI shows steady but slowing expansion.
Financial Health Score
WeakSJI carries high financial risk with limited liquidity.
Profitability Score
WeakSJI struggles to sustain strong margins.
Key Financial Metrics
Is SJI Expensive or Cheap?
P/E Ratio
SJI trades at 19.50 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SJI's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values South Jersey Industries, Inc. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.80 times EBITDA. This is generally considered low.
How Well Does SJI Make Money?
Net Profit Margin
For every $100 in sales, South Jersey Industries, Inc. keeps $9.01 as profit after all expenses.
Operating Margin
Core operations generate 13.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.83 in profit for every $100 of shareholder equity.
ROA
South Jersey Industries, Inc. generates $2.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
South Jersey Industries, Inc. produces operating cash flow of $344.83M, showing steady but balanced cash generation.
Free Cash Flow
South Jersey Industries, Inc. generates weak or negative free cash flow of $-326.90M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.67 in free cash annually.
FCF Yield
SJI converts -5.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SJI Stacks Against Its Sector Peers
| Metric | SJI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.50 | 19.75 | Neutral |
| ROE | 9.83% | 920.00% | Weak |
| Net Margin | 9.01% | 8803.00% | Weak |
| Debt/Equity | 1.80 | 1.80 | Neutral |
| Current Ratio | 0.67 | 1.53 | Weak Liquidity |
| ROA | 2.46% | -6162.00% (disorted) | Weak |
SJI outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews South Jersey Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income