Last Updated: 16 Sep 2024
Executive Summary
NewJersey Resources Corporation (NJR), a leading energy services provider, presents a compelling investment opportunity. With a market capitalization of $4.72 billion, strong financial performance, and a dividend yield of 3.78%, NJR offers a balance of growth and income potential.
Company Overview
NJR is a diversified energy company with operations in regulated gas distribution, retail and wholesale energy services. The company serves over 500,000 gas customers in New Jersey and provides energy services to approximately 2.5 million customers in the Northeast.
Fundamental Analysis
Revenue: NJR's revenue has grown steadily in recent years, reaching $1.73 billion in the last twelve months.
Earnings: The company's earnings per share (EPS) have also increased, with a trailing EPS of $2.38.
Profitability: NJR maintains healthy profit margins, with a profit margin of 13.6% and an operating margin of -0.07%.
Balance Sheet: NJR has a strong balance sheet with a debt-to-equity ratio of 0.46.
Dividend: The company pays a quarterly dividend of $0.42 per share, resulting in an annual dividend yield of 3.78%.
Technical Analysis
Trend: NJR has been trading within a range between $48.22 and $37.81 in the past year.
Moving Averages: The stock's 50-day moving average is currently at $45.47, while the 200-day moving average is at $43.51.
Support and Resistance: $48.22 acts as a resistance level, while $37.81 provides support.
Short Term Outlook
NJR is expected to continue its positive momentum in the short term. The company's strong financial performance and favorable industry outlook suggest that the stock price could move towards its analyst target price of $48.75.
Long Term Outlook
NJR's long-term growth prospects are promising. The company's investments in renewable energy and energy efficiency initiatives position it well for future growth. Additionally, the company's regulated gas distribution business provides a stable base of revenue.
Analyst Recommendations
Analysts have a positive outlook on NJR. Three analysts have rated the stock as a "Strong Buy," while four have rated it as a "Hold." The average analyst target price is $48.75.
Conclusion
NewJersey Resources Corporation is a well-positioned energy services provider with a strong track record of financial performance and a compelling dividend yield. The company's short-term and long-term growth prospects make it an attractive investment opportunity for both income-oriented and growth-oriented investors.
