We reaffirm our $46 fair value estimate and narrow moat rating for New Jersey Resources after the firm reported $1.41 per share of adjusted earnings in its second fiscal quarter.
NJR's customer base continues to grow faster than the national average and includes the wealthier regions of New Jersey.
Rising interest rates can be headwinds for utilities as higher debt costs slow earnings growth and dividend yields are less attractive compared with fixed-income alternatives.
|
Metric
|
NJR
|
NI
|
ATO
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.52 | 17.94 | 17.42 |
Price/Book Value | 1.91 | 1.60 | 1.51 |
Price/Sales | 2.41 | 2.41 | 4.27 |
Price/Cash Flow | 10.17 | 6.97 | 9.89 |
|
Metric
|
NJR
|
NI
|
ATO
|
|---|---|---|---|
Quick Ratio | 0.35 | 0.32 | 0.81 |
Current Ratio | 0.70 | 0.66 | 1.36 |
Interest Coverage | 3.27 | 2.68 | 7.81 |
|
Metric
|
NJR
|
NI
|
ATO
|
|---|---|---|---|
Return on Assets (Normalized) | 3.84% | 2.51% | 4.17% |
Return on Equity (Normalized) | 12.23% | 10.52% | 8.66% |
Return on Invested Capital (Normalized) | 6.77% | 5.28% | 6.03% |
|
1-Day Chart
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Price
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Morningstar Rating for Stocks
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