NewJersey Resources NJR
United StatesUtilities · Utilities - Regulated GasUSD
59.86 USD (+17.5%)
7 analysts
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NewJersey Resources Corporation (NJR) is a regulated natural gas utility that distributes gas to residential, commercial, and industrial customers in New Jersey, and operates unregulated energy services and marketing businesses.
Key points
from its scores- ✓Attractive dividend8.0
- ✓Strong growth7.9
- ✓Favourable backdrop7.8
- ✕Little competitive advantage3.3
- !Somewhat demanding valuation5.0
AI analysis
bottom line, main risk, context and newsThe combination of a solid dividend and a reasonable valuation offers some appeal, but high leverage and rising interest rates limit the upside potential.
NJR shows average financial health (5.75) with high leverage (Net Debt/EBITDA of 5.11) and negative free cash flow conversion (-34.49%), but its valuation is reasonable (P/E 14.12) and it offers an attractive and sustainable dividend (net yield 3.92%, payout 52.63%). Revenue growth is strong (16.8%), although the quality of its moat is limited (ROIC 3.13%).
The main risk is its high leverage (Net Debt/EBITDA of 5.11) in a rising interest rate environment, which makes its debt service more expensive and pressures its regulated utility valuation.
Context and risks
NJR is a regulated gas utility in the United States. The rise in long-term interest rates (10-year Treasury at 5.28%) pressures its valuation due to its long-duration profile and high leverage (Net Debt/EBITDA of 5.11), making debt refinancing more expensive. The inherent regulatory risk of its gas tariff business is moderated by the institutional stability of its jurisdiction.
Is NewJersey Resources stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 14.1 | 19.1 | −26% |
| EV / EBITDA | 12.0 | 12.2 | −2% |
| Price / book | 2.0 | 1.9 | +1% |
| Price / sales | 2.3 | 2.6 | −11% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Utilities: 4.8).
Average analyst target: 59.86 USD, +17.5% versus the price.
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 14.1
- Forward P/E
- 14.8
- EV / EBITDA
- 12.0
- Price / book
- 2.0
- Price / sales
- 2.3
- PEG
- 2.17
- Market cap
- 5.1B USD
- Enterprise value
- 9.0B USD
Profitability
- ROE
- 14.5%
- ROA
- 4.5%
- ROIC (approx.)
- 3.1%
- Gross margin
- 39.2%
- Operating margin
- 9.1%
- Net margin
- 16.4%
- Free cash flow
- −259.4M USD
- FCF yield
- −5.0%
- Cash conversion
- −34%
Solvency
- Total debt
- 3.9B USD
- Net debt
- 3.8B USD
- Cash
- 34.0M USD
- EBITDA
- 752.2M USD
- Net debt / EBITDA
- 5.11
- Debt / equity
- 146.78
- Current ratio
- 0.66
- Quick ratio
- 0.25
Growth
- Revenue growth
- +16.8%
- EPS (TTM)
- 3.61 USD
- EPS (forward)
- 3.45 USD
Dividend
- Dividend yield
- 3.9%
- Payout
- 52.6%
Risk and market
- Beta
- 0.50
- Analyst consensus
- Buy (7)
- Target price
- 59.86 USD
- 52-week range
- 43.46 – 60.86
Recent news
All NJR news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about NewJersey Resources
Is NewJersey Resources stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%). Valuation score: 5.0 out of 10 (median for Utilities: 4.8). Average analyst target: 59.86 USD, +17.5% versus the price. This is not investment advice.
What score does NewJersey Resources get on MeridIAn Screener?
It scores 6.1 out of 10, rank 920 of 2,130 (better than 55% of the companies analysed). Its strongest category is Dividend (8.0) and its weakest, Quality / Moat (3.3). Analysis of 08/10/2026.
What is NewJersey Resources's P/E ratio?
Its P/E is 14.1: the share price equals 14.1 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 14.8.
How much is NewJersey Resources worth on the stock market?
Its market capitalisation is 5.1B USD and its enterprise value, debt included, is 9.0B USD.
How much debt does NewJersey Resources have?
Its net debt (debt minus cash) is 3.8B USD. That is 5.11 times its EBITDA; the Utilities median is 5.33.
Does NewJersey Resources pay a dividend?
Yes: its dividend yield is 3.92% and it pays out 53% of its earnings.
How has NewJersey Resources stock performed over the last year?
It has risen 15.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 43.46 and 60.86 USD. Past performance does not guarantee future results.
What do analysts think of NewJersey Resources?
7 analysts cover it; their average recommendation is “Buy” and their average target is 59.86 USD (+17.5% versus the price). It is an estimate, not market data.