NJR Stock Analysis — New Jersey Resources
Sector: Utilities
AI Verdict
NJR trades at 16.4x next year's earnings for just 2.9% expected EPS growth, so you're paying a premium the numbers don't yet support even with its regulated utility moat.
Competitive Moat
New Jersey Resources operates regulated natural gas utilities in a region with high barriers to entry due to infrastructure costs and state-level regulatory protection. Its defensibility comes from exclusive service territories and long-term rate agreements that limit competition.
Summary
NJR stands out for its regulated utility status and recent 30.1% revenue growth, an outlier in the utilities sector.
Where It Stands
NJR trades at 16.4x next year's earnings, just below the utilities sector median of 18x, with a 2.9% forward EPS growth expectation and a trailing PEG of 5.74 signaling expensive growth.
Key Metrics
- Trailing P/E: 16.9x
- Forward P/E: 16.4x
- PEG Ratio: 5.74
- Earnings Growth: +0.0%
- Revenue Growth: +0.3%
- Dividend Yield: 0.03%
- 52-Week High: $57.85
- 52-Week Low: $43.46
Analyst Consensus
8 Buy · 2 Hold · 0 Sell (10 analysts)
Bull Case
NJR's 30.1% trailing revenue growth is unusually high for a utility, suggesting operational momentum despite the modest 2.9% EPS growth outlook.
Bear Case
With a PEG of 5.74 and forward P/E of 16.4x, any P/E compression to the sector median of 18x would provide little upside given the low earnings growth forecast.
Catalyst to Watch
Watch for regulatory rate decisions or infrastructure expansion approvals, as these could materially affect future earnings expectations.