NewJersey Resources Corporation
Find Ratings ReportsNEW JERSEY RESOURCES CORP's gross profit margin for the first quarter of its fiscal year 2024 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. NEW JERSEY RESOURCES CORP has very weak liquidity. Currently, the Quick Ratio is 0.17 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 7.45% 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 | Q1 FY24 | Q1 FY23 |
---|---|---|
Net Sales ($mil) | 467.21 | 723.57 |
EBITDA ($mil) | 176.11 | 209.47 |
EBIT ($mil) | 135.82 | 172.79 |
Net Income ($mil) | 89.41 | 115.92 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 2.74 | 2.41 |
Total Assets ($mil) | 6749.05 | 6610.09 |
Total Debt ($mil) | 3380.92 | 3377.74 |
Equity ($mil) | 2066.2 | 1922.8 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 37.69 | 28.95 |
EBITDA Margin | 37.69 | 28.94 |
Operating Margin | 29.07 | 23.88 |
Sales Turnover | 0.25 | 0.45 |
Return on Assets | 3.52 | 4.22 |
Return on Equity | 11.53 | 14.54 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 0.7 | 0.95 |
Debt/Capital | 0.62 | 0.64 |
Interest Expense | 31.47 | 29.49 |
Interest Coverage | 4.32 | 5.86 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 98.2 | 96.8 |
Div / share | 0.42 | 0.39 |
EPS | 0.91 | 1.19 |
Book value / share | 21.04 | 19.86 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 530251.0 | 530512.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 18.74 for the Utilities subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.98 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.98. The price-to-sales ratio is below both the S&P 500 average and the subsector average, indicating a discount. The valuation analysis reveals that, NEW JERSEY RESOURCES CORP appears to be valued on par with the investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NJR 17.11 | Peers 18.74 | NJR 6.63 | Peers 8.50 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. NJR is trading at a valuation on par with its peers. |
Discount. 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. NJR is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NJR 14.42 | Peers 14.78 | NJR 2.11 | Peers 1.44 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. NJR is trading at a valuation on par with 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. NJR trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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NJR 1.98 | Peers 1.98 | NJR -15.58 | Peers 132.20 | |||||||||||||||||||||
Average. 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. NJR is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, NJR 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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NJR 2.40 | Peers 2.49 | NJR -42.23 | 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. NJR is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NJR significantly trails its peers on the basis of sales growth. |
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