Company Overview
New Jersey Resources Corporation operates as an energy services holding company primarily focused on the distribution of natural gas. This entity functions within the Utilities sector, specifically the Regulated Gas industry, where operations are typically subject to government oversight and rate regulations. The company's operational scale is significant, with a total market capitalization of $5.51B and annual revenue reaching $2.15B based on trailing twelve-month data. Supporting these operations, the organization employs 1376 individuals across its business units. These valuation and revenue figures indicate that New Jersey Resources Corporation holds a substantial position within the regulated utility landscape, reflecting a mature business model supported by a large workforce and multi-billion dollar revenue generation.
Financial Health
The company reported a revenue of $2.15B over the trailing twelve months, generating a net income of $326.80M and an EBITDA of $688.18M. The substantial gap between the $2.15B in revenue and the $326.80M in net income reveals a cost structure where significant expenses, likely including cost of goods sold and operating costs, consume a majority of top-line income before arriving at the bottom line. However, the EBITDA figure of $688.18M suggests a strong underlying cash generation capability before interest, taxes, depreciation, and amortization. Despite this, the free cash flow stands at -$281,286,368, which indicates a period where capital expenditures or other cash outflows exceeded the cash generated from operations, potentially impacting short-term financial flexibility. The company maintains a gross margin of 37.1%, which is typical for utility distribution but highlights the challenge of maintaining pricing power against rising input costs. The operating margin is reported at -7.5%, suggesting that operating expenses currently exceed operating revenue, a notable dynamic that requires careful management of overheads. In contrast, the profit margin stands at 15.2%, demonstrating that the company remains profitable on a bottom-line basis despite the negative operating margin. Regarding liquidity and leverage, specific figures for total cash and total debt are not available in the provided data, preventing a direct comparison of these specific balance sheet items. The debt-to-equity ratio is also not available, though the current ratio is 0.83, which indicates that current liabilities slightly exceed current assets, suggesting a tight working capital environment. Return on equity is 13.7%, while return on assets is 4.1%, metrics that reveal management's effectiveness in generating returns relative to the equity invested and the total asset base respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 16.90, while the forward P/E is 15.92. The difference between these two multiples implies that the market expects earnings growth in the future, as investors are willing to accept a lower multiple for anticipated earnings. The price-to-book ratio is 2.29, indicating that the stock trades at a premium of 129% over its book value, reflecting market confidence in the company's intangible assets and future cash flows. Alternative valuation metrics include a price-to-sales ratio of 2.56 and an EV/EBITDA that is not available in the current dataset. The 52-week high is $55.49 and the 52-week low is $43.46, providing a trading range context for the asset. Without the specific current share price, the exact percentage deviation from the high or low cannot be calculated, but the range defines the recent volatility boundaries. The beta value is 0.58, which signifies that the stock exhibits lower price volatility relative to the broader market, moving less than 42% as much as the overall market index.
Growth & Income
Revenue growth year-over-year is 23.0%, whereas earnings growth year-over-year is not available in the provided facts. The lack of reported earnings growth data prevents a direct comparison of earnings velocity against revenue velocity, though the significant revenue expansion suggests a growing top line. For dividend payers, the company offers a dividend yield of 3.5% with a payout ratio of 57.3%. This payout ratio suggests that the company retains approximately 42.7% of its earnings, which generally indicates a sustainable dividend policy provided earnings do not decline sharply. Since the specific earnings growth rate is not available to confirm the trajectory, the sustainability relies on the stability of the regulated utility business model. The overall growth and income profile is characterized by strong revenue expansion of 23.0% and a consistent dividend yield of 3.5% supported by a payout ratio under 60%.