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New Jersey Resources Corporation (NJR)
NYSE:NJR
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New Jersey Resources
(NYSE:NJR)
66Neutral
Positive Factors
Financial Performance
NJR's core regulated earnings are on track following the NJNG rate case conclusion.
Strategic Management
NJR's sale of its residential lease business simplifies its portfolio and captures a beneficial one-time gain, indicating strong financial management.
Negative Factors
Project Delays
Delays in NJR's CEV segment projects could hurt sentiment and threaten improved appreciation for NJR’s portfolio model.
New Jersey Resources (NJR) vs. S&P 500 (SPY)
Market Cap
$4.77B
Dividend Yield3.66%
Average Volume (3M)581.25K
Price to Earnings (P/E)14.4
Beta (1Y)0.39
Revenue Growth9.18%
EPS Growth36.67%
CountryUS
Employees1,372
SectorUtilities
Sector Strength84
IndustryRegulated Utilities
Share Statistics
EPS (TTM)3.32
Shares Outstanding100,289,420
10 Day Avg. Volume645,488
30 Day Avg. Volume581,253
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)N/A
Price to Sales (P/S)2.62
Price to Cash Flow (P/CF)-133.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$52.33Price Target Upside7.94% Upside
Rating ConsensusHold
Number of Analyst Covering4
New Jersey Resources Business Overview & Revenue Model
Company DescriptionNew Jersey Resources (NJR) is an energy services holding company that provides natural gas and clean energy services. Headquartered in Wall Township, New Jersey, NJR operates through several subsidiaries, including New Jersey Natural Gas (NJNG), NJR Energy Services, NJR Clean Energy Ventures, and NJR Home Services. The company's core offerings range from regulated natural gas distribution and retail energy services to investments in clean energy projects such as solar and wind generation.
How the Company Makes MoneyNew Jersey Resources generates revenue through multiple streams primarily revolving around its core operations in natural gas distribution and clean energy investments. The company's regulated utility subsidiary, New Jersey Natural Gas (NJNG), earns money by delivering natural gas to residential, commercial, and industrial customers in New Jersey, with income derived from regulated rates approved by the New Jersey Board of Public Utilities. NJR Energy Services contributes by providing unregulated wholesale energy services, capitalizing on market opportunities in natural gas storage, transportation, and management. NJR Clean Energy Ventures focuses on investing in and operating renewable energy projects, generating income through the sale of electricity produced by its solar and wind assets, as well as benefiting from federal and state incentives for clean energy. Additionally, NJR Home Services offers appliance installation, repair, and maintenance services, further diversifying the company's revenue streams. Strategic partnerships and investments in energy infrastructure and technology also play a role in enhancing NJR's financial performance.
New Jersey Resources Financial Statement Overview
Summary
New Jersey Resources has strong profitability metrics, with healthy profit margins on the income statement. However, the balance sheet reveals zero stockholders' equity, indicating potential financial distress, and negative free cash flow suggests cash flow sustainability issues.Income Statement
The income statement shows a solid gross profit margin of 45.61% for TTM, indicating efficient cost management. Net profit margin is strong at 18.21%, reflecting profitability. However, revenue growth has been inconsistent with a decline from previous years, which is a concern. EBIT and EBITDA margins are healthy at 28.51% and 40.23% respectively, supporting operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a concerning situation with zero stockholders' equity in the TTM, indicating potential financial distress. The absence of total debt in the latest period suggests a lack of leverage, but historical data shows significant debt levels. The equity ratio cannot be calculated due to missing equity data, presenting a challenge in assessing financial stability.60
Neutral
Cash Flow
The cash flow statement indicates a negative free cash flow for TTM, reflecting high capital expenditures. Operating cash flow exceeds net income, showing strong cash-generating capability. However, the free cash flow to net income ratio is negative, pointing to potential cash flow issues.70
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.82B | 1.80B | 1.96B | 2.91B | 2.16B | 1.95B | Gross Profit |
| 830.92M | 696.47M | 610.48M | 595.16M | 438.04M | 370.81M | EBIT |
| 519.40M | 458.10M | 407.00M | 406.48M | 288.35M | 228.91M | EBITDA |
| 731.15M | 671.52M | 594.06M | 565.01M | 433.52M | 370.36M | Net Income Common Stockholders |
| 331.68M | 289.77M | 264.72M | 274.92M | 201.10M | 163.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.91M | 1.02M | 954.00K | 1.11M | 4.75M | 117.01M | Total Assets |
| 7.19B | 6.98B | 6.54B | 6.26B | 5.72B | 5.32B | Total Debt |
| 3.58B | 3.52B | 3.29B | 3.13B | 2.76B | 2.51B | Net Debt |
| 3.58B | 3.52B | 3.29B | 3.13B | 2.75B | 2.40B | Total Liabilities |
| 4.88B | 4.78B | 4.55B | 4.44B | 4.09B | 3.67B | Stockholders Equity |
| 2.31B | 2.20B | 1.99B | 1.82B | 1.63B | 1.64B |
| Cash Flow | Free Cash Flow | ||||
| -62.33M | 427.41M | -61.93M | -274.95M | -233.66M | -256.69M | Operating Cash Flow |
| 387.67M | 427.41M | 478.99M | 323.48M | 390.95M | 213.48M | Investing Cash Flow |
| -476.01M | -569.07M | -538.63M | -590.61M | -622.12M | -994.02M | Financing Cash Flow |
| 101.65M | 141.76M | 59.70M | 262.54M | 117.78M | 895.90M |
New Jersey Resources Technical Analysis
Positive
48.48
Price Trends
46.54
Positive
46.76
Positive
45.22
Positive
Market Momentum
0.38
Negative
60.59
Neutral
26.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Positive. The current price of 48.48 is above the 20-day moving average (MA) of 46.91, above the 50-day MA of 46.54, and above the 200-day MA of 45.22, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 26.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJR.
New Jersey Resources Risk Analysis
New Jersey Resources disclosed 33 risk factors in its most recent earnings report. New Jersey Resources reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Jersey Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.80B | 21.25 | 9.00% | 2.25% | 5.90% | 11.85% | |
76 Outperform | $6.98B | 12.98 | 12.22% | 4.62% | -14.01% | ― | |
75 Outperform | $4.40B | 19.14 | 7.59% | 3.54% | -12.16% | -5.73% | |
66 Neutral | $4.77B | 14.39 | 15.15% | 3.66% | 9.18% | 36.67% | |
65 Neutral | $6.73B | 82.82 | -0.36% | 2.75% | -10.64% | -102.62% | |
65 Neutral | $11.91B | 15.60 | 6.55% | 4.41% | 7.00% | 0.55% | |
64 Neutral | $1.67B | 20.51 | 5.91% | 4.70% | -3.71% | -21.36% |
* Utilities Sector Average
Performance Comparison
NJR
New Jersey Resources
48.48
7.31
17.76%
ATO
Atmos Energy
148.66
35.01
30.81%
NFG
National Fuel Gas Company
74.19
24.44
49.13%
NWN
Northwest Gas
41.48
5.57
15.51%
UGI
UGI
32.38
8.35
34.75%
OGS
ONE Gas
73.53
12.81
21.10%
New Jersey Resources Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: 1.78% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The call reflects a generally positive outlook with NJR starting Fiscal 2025 strongly, driven by strategic initiatives and financial growth. While there are some challenges, such as uncertainties in meeting EPS expectations and pending regulatory matters, the company's achievements in sustainability, financial performance, and growth initiatives create an optimistic sentiment.Highlights
Strong Start to Fiscal 2025
NJR began Fiscal 2025 with significant progress across business segments, including a successful rate case, the launch of the $386 million SAVEGREEN energy efficiency program, and advancements in the solar project pipeline.
Revenue Growth and Financial Performance
Reported NFEPS of $1.29 per share in Q1, up from $0.74 per share last year, reflecting higher NFE from NJNG and Clean Energy Ventures.
Clean Energy Ventures Expansion
Successfully placed 11 megawatts of commercial solar projects into service and have an additional 63 megawatts under construction, with a robust pipeline of over 1 gigawatt.
Strong Balance Sheet and Liquidity
Projected adjusted funds from operations to adjusted debt ratio between 18% and 20% for fiscal 2025, maintaining a strong balance sheet and financial flexibility.
Sustainability and Innovation Initiatives
Issued NJR's fiscal 2024 Corporate Sustainability Report highlighting record investments in energy efficiency and advancements in carbon capture technology.
Lowlights
Challenges in Meeting EPS Expectations
While maintaining guidance, there is concern about meeting the EPS range for 2025 due to uncertainties, particularly in the winter season.
Pending Regulatory Approvals
The Adelphia Gateway Section 4 rate case is still pending, with expected resolution later in 2025, creating uncertainty in the timeline for financial realization.
Company Guidance
During the New Jersey Resources Fiscal 2025 First Quarter Conference Call, the company provided guidance highlighting a strong start to the fiscal year. The company outlined its fiscal 2025 NFEPS guidance of $3.05 to $3.20 per share, which exceeds their long-term growth rate of 7-9%. Notable achievements include the approval of a new base rate that supports recovery of $850 million investments, resulting in a $3.2 billion rate base. The SAVEGREEN energy efficiency program, the largest in New Jersey natural gas history, was launched with a budget of $386 million, running through June 2027. Clean Energy Ventures is advancing with a solar project pipeline over 1 gigawatt. The company also plans capital expenditures ranging from $1.3 billion to $1.6 billion for fiscal years 2025 and 2026, aligned with its long-term growth targets. NJR's first quarter NFEPS was reported at $1.29 per share, up from $0.74 per share the previous year, reflecting strong performance across its business segments.New Jersey Resources Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
New Jersey Resources Reports Strong Q1 2025 Growth
Positive
Feb 3, 2025
On February 3, 2025, New Jersey Resources reported its fiscal 2025 first-quarter results, highlighting significant financial growth and regulatory achievements. NJNG received approval for a $157 million annual base rate increase effective November 21, 2024, and a new $385.6 million energy efficiency program, SAVEGREEN®, commenced on January 1, 2025. The sale of Clean Energy Ventures’ residential solar portfolio for $132.5 million notably boosted net financial earnings, leading to a consolidated net income of $131.3 million compared to $89.4 million in the same quarter of the previous year. The company maintained its fiscal 2025 earnings guidance and emphasized its strong market position and infrastructure value, with expectations of continued financial performance across its segments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.