South Jersey Industries (SJI) makes a strong case for investment, given systematic investments to strengthen its infrastructure, ongoing customer additions and regular dividend payment.
South Jersey Indus (NYSE:SJI) showed a loss in earnings since Q3, totaling $102.19 million. Sales, on the other hand, increased by 85.72% to $485.76 million during Q4. In Q3, South Jersey Indus brought in $261.55 million in sales but lost $8.49 million in earnings. What Is Return On Capital Employed? Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q4, South Jersey Indus posted an ROCE of 0.06%. Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future. View more earnings on SJI ROCE is an important metric for the comparison of similar companies. A relatively high ROCE shows South Jersey Indus is potentially operating at a higher level of efficiency than other companies in its industry. If the company is generating high profits with its current level of capital, some of that money can be reinvested in more capital which will generally lead to higher returns and earnings per share growth. In South Jersey Indus's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions. Q4 Earnings Insight South Jersey Indus reported Q4 earnings per share at $0.62/share, which beat analyst predictions of $0.54/share. See more from BenzingaClick here for options trades from BenzingaBenzinga's Top Ratings Upgrades, Downgrades For March 4, 2021Earnings Scheduled For February 24, 2021© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.