New Jersey Resources (NJR) AI Stock Analysis

• Market Cap: $5.01B
• Dividend Yield: 3.6%
• Average Volume (3M): 745.78K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.26
• Revenue Growth: 9.18%
• EPS Growth: 36.67%
• Country: US
• Employees: 1,372
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Gas
• EPS (TTM): 3.32
• Shares Outstanding: 100,289,420
• 10 Day Avg. Volume: 630,061
• 30 Day Avg. Volume: 745,785
• PEG Ratio: 0.41
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.67
• Price to Cash Flow (P/CF): -135.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $52.80
• Price Target Upside: 5.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

New Jersey Resources demonstrates strong profitability and a positive strategic outlook, supported by recent growth and regulatory successes. However, financial stability concerns, such as zero equity and negative cash flow, along with mixed technical signals, temper the overall assessment.

Positive Factors

Earnings Performance

The constructive outcome of the NJNG rate case settlement provides for better-than-expected contributions to NJR's earnings.

Financial Management

NJR's sale of its residential lease business simplifies its portfolio and captures a beneficial one-time gain, indicating strong financial management.

Regulatory Support

Approval of NJNG's expanded SAVEGREEN program indicates regulatory support for NJR's investment in state climate goals.

Negative Factors

Energy Services Contribution

There is a lower expected contribution from Energy Services, offsetting elevated NJNG expectations.

Non-Utility Earnings

Non-utility earnings growth is considered lower quality and may not significantly improve NJR's valuation.

Project Delays

Delays in NJR's CEV segment projects could hurt sentiment and threaten improved appreciation for NJR’s portfolio model.

New Jersey Resources Business Overview & Revenue Model

Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Storage and Transportation segment invests in natural gas transportation and storage facilities. It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

How the Company Makes Money

New 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.

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.

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.

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
163.10M	1.02M	954.00K	1.11M	4.75M	117.01M
	Total Assets
2.50B	6.98B	6.54B	6.26B	5.72B	5.32B
	Total Debt
562.42M	3.52B	3.29B	3.13B	2.76B	2.51B
	Net Debt
406.31M	3.52B	3.29B	3.13B	2.75B	2.40B
	Total Liabilities
1.73B	4.78B	4.55B	4.44B	4.09B	3.67B
	Stockholders Equity
768.92M	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

• Technical Analysis Sentiment: Positive
• Last Price: 49.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 49.97 is above the 20-day moving average (MA) of 48.60, above the 50-day MA of 47.89, and above the 200-day MA of 46.28, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 83.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NJR.

New Jersey Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPK	76 Outperform	$3.08B	25.40	9.00%	1.89%	17.72%	11.33%
SR	75 Outperform	$4.54B	18.87	7.76%	4.01%	-3.96%	11.40%
OGS	75 Outperform	$4.60B	19.66	7.59%	3.42%	-12.16%	-5.73%
NJR	71 Outperform	$5.01B	15.05	15.15%	3.60%	9.18%	36.67%
SWX	66 Neutral	$5.18B	26.13	5.84%	3.37%	-5.92%	29.47%
NWN	64 Neutral	$1.74B	21.27	5.91%	4.55%	-3.71%	-21.36%
Sector *	62 Neutral	$8.60B	12.04	6.29%	4.50%	3.04%	-9.39%

New Jersey Resources Corporate Events

New Jersey Resources Elects William Yardley to Board

On April 16, 2025, New Jersey Resources announced the election of William T. Yardley to its board of directors, effective July 1, 2025. Yardley, a seasoned leader in the energy sector, brings extensive experience in pipeline infrastructure and regulatory strategy, which is expected to enhance NJR’s strategic direction and strengthen its board. His appointment reflects NJR’s commitment to leveraging industry expertise to drive innovation and growth.

Spark’s Take on NJR Stock

According to Spark, TipRanks’ AI Analyst, NJR is a Neutral.

New Jersey Resources shows strong profitability and a positive outlook from recent earnings, supporting a moderately high score. However, financial stability issues, such as zero stockholders’ equity and negative free cash flow, along with mixed technical signals, temper the overall assessment.

To see Spark’s full report on NJR stock, click here.

New Jersey Resources Reports Strong Q1 2025 Growth

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.