SJW Group (DE)
Find Ratings ReportsSJW GROUP's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the subsector, the revenue growth did not. SJW GROUP has very weak liquidity. Currently, the Quick Ratio is 0.40 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 11.03% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 171.34 | 171.37 |
EBITDA ($mil) | 63.49 | 75.8 |
EBIT ($mil) | 36.49 | 49.72 |
Net Income ($mil) | 18.95 | 33.5 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 9.72 | 12.34 |
Total Assets ($mil) | 4345.07 | 3632.62 |
Total Debt ($mil) | 1747.17 | 1655.9 |
Equity ($mil) | 1233.4 | 1110.87 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 37.05 | 44.23 |
EBITDA Margin | 37.05 | 44.22 |
Operating Margin | 21.3 | 29.01 |
Sales Turnover | 0.15 | 0.17 |
Return on Assets | 1.95 | 2.03 |
Return on Equity | 6.89 | 6.65 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.58 | 0.58 |
Debt/Capital | 0.59 | 0.6 |
Interest Expense | 17.23 | 15.9 |
Interest Coverage | 2.12 | 3.13 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 32.02 | 30.8 |
Div / share | 0.38 | 0.36 |
EPS | 0.59 | 1.09 |
Book value / share | 38.52 | 36.06 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 176764.0 | 138075.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 18.74 for the Utilities subsector and a discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.48 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.98. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the subsector average, indicating a premium. The valuation analysis reveals that, SJW GROUP seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SJW 21.31 | Peers 18.74 | SJW 9.55 | Peers 8.50 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. SJW is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SJW is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SJW 18.97 | Peers 14.78 | SJW 7.15 | Peers 1.44 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. SJW is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SJW trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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SJW 1.48 | Peers 1.98 | SJW 10.78 | Peers 132.20 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SJW is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SJW is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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SJW 2.72 | Peers 2.49 | SJW 8.00 | Peers 1.95 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SJW is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. SJW has a sales growth rate that significantly exceeds its peers. |
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