New Jersey Resources Corporation (NYSE:NJR): A Fundamentally Attractive Investment
Attractive stocks have exceptional fundamentals. In the case of New Jersey Resources Corporation (NYSE:NJR), there’s is a financially-robust , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on New Jersey Resources here.
Established dividend payer with adequate balance sheet
In the previous year, NJR has ramped up its bottom line by 77%, with its latest earnings level surpassing its average level over the last five years. Not only did NJR outperformed its past performance, its growth also exceeded the Gas Utilities industry expansion, which generated a 35% earnings growth. This is what investors like to see! NJR’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. NJR seems to have put its debt to good use, generating operating cash levels of 0.27x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For those seeking income streams from their portfolio, NJR is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.5%.
Next Steps:
For New Jersey Resources, I’ve put together three important factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for NJR’s future growth? Take a look at our free research report of analyst consensus for NJR’s outlook.
Valuation: What is NJR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NJR is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NJR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
