SJW (SJW) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: 2.94%
• Average Volume (3M): 277.35K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.30
• Revenue Growth: 12.34%
• EPS Growth: 11.78%
• Country: US
• Employees: 822
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Water
• EPS (TTM): 0.49
• Shares Outstanding: 34,182,945
• 10 Day Avg. Volume: 235,321
• 30 Day Avg. Volume: 277,354
• PEG Ratio: 1.70
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.53
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 7.88
• Enterprise Value/Ebitda: 2.98
• 1Y Price Target: $61.00
• Price Target Upside: 11.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: ―

SJW's overall stock score reflects strong financial performance and positive earnings call sentiment, supported by stable technical indicators. The consistent revenue growth, improved profitability, and strategic investments contribute significantly to this score. Despite some challenges, such as rising costs and geographical issues like the Texas drought, SJW is well-positioned within its industry. Valuation and technical analysis suggest reasonable pricing, with potential for growth, making it an attractive option for investors seeking stability in the regulated utilities sector.

Positive Factors

Earnings Growth

1Q25 adjusted EPS of $0.50 increased 39% YoY driven by the timing of rate relief primarily from the California general rate case.

Financial Performance

SJW maintained its $2.90-$3.00 2025 EPS forecast and reaffirmed its target 5%-7% non-linear EPS CAGR guidance.

Negative Factors

Financing Risks

There are financing risks, including a forecasted need for $425 million in equity over the 2025-2029 period, which is about 25% of the current market cap.

M&A Risks

There is risk to SJW if the Aquarion deal is not approved, as SJW is seen as the natural best alternative.

SJW Business Overview & Revenue Model

Company Description

SJW Group, through its subsidiaries, provides water utility services in the United States. It engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services. The company also provides non-tariffed services, including water system operations, maintenance agreements, and antenna site leases; contracted services and sewer operations to water utilities; and a Linebacker protection plan for public drinking water customers in Connecticut and Maine. Its water supply consists of groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District. The company offers water service to approximately 231,000 connections that serve approximately one million people residing in portions of the cities of San Jose and Cupertino, as well as in the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos; and adjacent unincorporated territories in the County of Santa Clara in the State of California. In addition, it provides water service to approximately 140,000 connections, which serve approximately 456,000 people in 81 municipalities with a service area comprising approximately 269 square miles throughout Connecticut and Maine, as well as approximately 24,000 connections that serve approximately 70,000 people in a service area comprising approximately 266 square miles in the region between San Antonio and Austin, Texas; and approximately 3,000 wastewater connections in Southbury, Connecticut. Further, the company owns undeveloped land in California and Tennessee; and owns and operates commercial buildings and warehouse properties in Tennessee. The company was formerly known as SJW Corp. and changed its name to SJW Group in November 2016. SJW Group was incorporated in 1985 and is headquartered in San Jose, California.

How the Company Makes Money

SJW generates revenue by charging customers for water and wastewater services based on consumption and service fees. These charges are regulated and approved by public utility commissions, ensuring they are fair and sufficient to cover operational costs and provide a reasonable return on investment. The company's earnings are also supported by infrastructure investments and maintenance, which are factored into the rate base and approved rates. Additionally, SJW may engage in strategic partnerships or acquisitions to expand its service areas and customer base, which can further contribute to its revenue streams.

SJW Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
766.66M	748.44M	670.36M	620.70M	573.69M	564.53M
	Gross Profit
435.35M	425.12M	388.43M	357.17M	318.57M	316.58M
	EBIT
178.49M	170.50M	149.44M	130.98M	111.16M	117.67M
	EBITDA
296.86M	289.38M	265.23M	246.82M	219.66M	215.77M
	Net Income Common Stockholders
98.82M	93.97M	84.99M	73.83M	60.48M	61.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.70M	11.11M	9.72M	12.34M	10.91M	5.27M
	Total Assets
4.73B	4.66B	4.35B	3.76B	3.49B	3.31B
	Total Debt
1.86B	1.83B	1.75B	1.66B	1.60B	1.54B
	Net Debt
1.84B	1.82B	1.74B	1.64B	1.58B	1.53B
	Total Liabilities
3.33B	3.29B	3.11B	2.64B	2.46B	2.39B
	Stockholders Equity
1.40B	1.37B	1.23B	1.11B	1.03B	917.16M
Cash Flow		Free Cash Flow
-203.65M	-185.11M	-99.89M	-78.04M	-123.77M	-110.92M
	Operating Cash Flow
187.49M	195.53M	190.83M	166.20M	130.04M	104.05M
	Investing Cash Flow
-350.58M	-340.10M	-322.27M	-244.33M	-260.00M	-214.26M
	Financing Cash Flow
182.24M	145.96M	128.82M	78.35M	132.81M	101.53M

SJW Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SJW, the sentiment is Negative. The current price of 54.56 is above the 20-day moving average (MA) of 54.03, above the 50-day MA of 53.32, and above the 200-day MA of 53.76, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 2.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SJW.

SJW Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJW	80 Outperform	$1.88B	18.40	7.49%	2.94%	12.34%	11.78%
ARTNA	75 Outperform	$346.94M	16.16	9.04%	3.66%	8.31%	21.97%
MSEX	72 Outperform	$1.01B	23.59	9.80%	2.40%	16.02%	18.29%
AWR	69 Neutral	$3.01B	24.10	13.95%	2.38%	6.79%	5.96%
Sector *	64 Neutral	$8.59B	10.39	4.24%	4.64%	4.07%	-13.04%
CWT	63 Neutral	$2.76B	20.34	8.67%	2.59%	3.83%	-8.75%
YORW	58 Neutral	$464.84M	23.61	8.63%	2.72%	3.45%	-19.90%

SJW Corporate Events

SJW Group Appoints Ann P. Kelly as CFO

On March 31, 2025, SJW Group announced the appointment of Ann P. Kelly as Chief Financial Officer and Treasurer, effective July 1, 2025, succeeding Andrew F. Walters, who will become the Chief Executive Officer. Ms. Kelly’s compensation package includes an annual base salary of $480,000, a target annual incentive of 55% of her salary, and a long-term incentive opportunity of $350,000, alongside a relocation reimbursement of up to $75,000.

SJW Group Announces New CEO and Leadership Changes

On February 26, 2025, SJW Group announced significant leadership changes effective July 1, 2025, as Andrew F. Walters will become the new Chief Executive Officer, succeeding Eric W. Thornburg, who will retire but continue as non-executive Chair of the Board. The Executive Compensation Committee outlined Walters’ compensation, including a base salary of $685,000 and various incentive opportunities. Additionally, Bruce Hauk will take on the role of President alongside his current position as Chief Operating Officer, and Kristen Johnson will become President of the Shared Services organization, with both receiving adjusted compensation packages.