Fact based stock research
New Jersey Resources (NYSE:NJR)
US6460251068
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
New Jersey Resources stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), New Jersey Resources (Gas Utilities, USA) shares have above-average financial characteristics compared with similar stocks. Shares of New Jersey Resources are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 57, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on New Jersey Resources's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company New Jersey Resources exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 57) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Gas Utilities |
| Index | Customer Focus US, Dividends USA, Employee Focus US, S&P MIDCAP |
| Size class | Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: New Jersey Resources
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
59 |
|
35 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 39 |
|
39 |
|
3 |
|
65 |
|
| SAFETY | ||||||||
| SAFETY | 32 |
|
37 |
|
45 |
|
57 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
48 |
|
90 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
37 |
|
18 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), New Jersey Resources (Gas Utilities, USA) shares have above-average financial characteristics compared with similar stocks. Shares of New Jersey Resources are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 57, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on New Jersey Resources's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company New Jersey Resources exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 57) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
59 |
|
35 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 39 |
|
39 |
|
3 |
|
65 |
|
| SAFETY | ||||||||
| SAFETY | 32 |
|
37 |
|
45 |
|
57 |
|
| COMBINED | ||||||||
| COMBINED | 48 |
|
35 |
|
4 |
|
67 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), New Jersey Resources shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for New Jersey Resources. Price-to-Profit (also referred to as price-earnings, P/E) is 65 which means that the stock price compared with what market professionals expect for future profits is lower than for 65% of comparable companies, indicating a good value concerning New Jersey Resources's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 32, which means that the stock price is lower as regards to invested capital than for 32% of comparable investments. On the other hand, Price-to-Sales is less favorable than 56% of alternatives (only 44% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 49% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on New Jersey Resources's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 49 |
|
76 |
|
66 |
|
44 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 39 |
|
59 |
|
49 |
|
65 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 28 |
|
47 |
|
20 |
|
32 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 57 |
|
33 |
|
42 |
|
51 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 38 |
|
59 |
|
35 |
|
45 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), New Jersey Resources shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for New Jersey Resources. Profit Growth, with a rank of 96 (better than 96% of its competitors), and Capital Growth, with a rank of 53, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 44, which means that, currently, professionals expect the company to grow less than 56% of its competitors, and Stock Returns are at a rank of 35. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 36 |
|
75 |
|
6 |
|
44 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 28 |
|
24 |
|
38 |
|
96 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
55 |
|
31 |
|
53 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 59 |
|
25 |
|
39 |
|
35 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 39 |
|
39 |
|
3 |
|
65 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company New Jersey Resources has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of New Jersey Resources is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for New Jersey Resources. Liquidity is at 80, meaning the company generates more profit to service its debt than 80% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 27, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 73% of its competitors. Leverage is also high at a rank of 42, which means that the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), New Jersey Resources has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 33 |
|
24 |
|
36 |
|
42 |
|
| REFINANCING | ||||||||
| REFINANCING | 57 |
|
23 |
|
33 |
|
27 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 15 |
|
88 |
|
63 |
|
80 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 32 |
|
37 |
|
45 |
|
57 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
4 |
|
47 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
95 |
|
89 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
79 |
|
88 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
28 |
|
49 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
48 |
|
90 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for New Jersey Resources from December 19, 2024.
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