📊 NJR Key Takeaways
Is New Jersey Resources Corp. (NJR) a Good Investment?
NJR demonstrates strong fundamental health with net income growing 15.8% YoY while generating robust free cash flow of $289.3M, indicating profitable operational leverage. The company maintains healthy interest coverage of 7.6x and a solid operating margin of 44.4%, supporting financial stability despite leverage of 1.24x debt-to-equity, which is reasonable for the regulated utility sector.
Profitability is improving with double-digit YoY EPS and net income growth and strong operating and net margins. However, cash generation is weak relative to earnings, liquidity is tight (sub-1x current ratio), and capex-driven negative FCF alongside modest interest coverage constrains financial flexibility. Fundamentals look stable for a regulated gas distributor, but leverage and cash conversion temper near-term upside.
New Jersey Resources Corp. Key Strengths (NJR)
- Earnings growth (15.8% YoY) exceeding revenue growth (9.9% YoY) indicates improving operational efficiency and margin expansion
- Exceptional free cash flow generation of $289.3M with 26.7% FCF margin demonstrates cash conversion quality and capacity for dividends/debt service
- Strong interest coverage ratio of 7.6x combined with solid operating margin of 44.4% shows financial resilience and debt serviceability
- Solid YoY EPS and net income growth
- High operating and net margins indicating efficient operations
- Large asset base supporting regulated returns and growth projects
NJR Stock Risks: New Jersey Resources Corp. Investment Risks
- Current ratio of 0.94x below 1.0 indicates potential near-term liquidity pressure, though typical for utilities with stable contractual cash flows
- Debt-to-equity ratio of 1.24x represents elevated leverage; susceptibility to rising interest rates or credit market stress
- Regulated utility sector subject to regulatory and political risks affecting rate structures and capital recovery
- Negative free cash flow due to high capex and weak OCF
- Tight liquidity with current/quick ratio at 0.83x
- Leverage and modest interest coverage (2.8x) heighten refinancing risk
Key Metrics to Watch
- Free Cash Flow sustainability and growth trajectory
- Debt-to-equity ratio and interest coverage trends
- Operating margin maintenance during revenue cycles
- Capital expenditure requirements and funding sources
- Operating cash flow vs net income (cash conversion)
- Interest coverage
New Jersey Resources Corp. (NJR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NJR Profit Margin, ROE & Profitability Analysis
NJR vs Utilities Sector: How New Jersey Resources Corp. Compares
How New Jersey Resources Corp. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is New Jersey Resources Corp. Stock Overvalued? NJR Valuation Analysis 2026
Based on fundamental analysis, New Jersey Resources Corp. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
New Jersey Resources Corp. Balance Sheet: NJR Debt, Cash & Liquidity
NJR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: New Jersey Resources Corp.'s revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.71 reflects profitable operations.
NJR Revenue Growth, EPS Growth & YoY Performance
NJR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $569.2M | $122.5M | $2.02 |
| Q1 2026 | $359.0M | $122.5M | $1.21 |
| Q3 2025 | $209.9M | -$11.6M | $-0.12 |
| Q2 2025 | $433.2M | $89.4M | $1.22 |
| Q1 2025 | $321.2M | $89.4M | $0.91 |
| Q3 2024 | $199.3M | $1.5M | $0.02 |
| Q2 2024 | $384.4M | $89.4M | $1.13 |
| Q1 2024 | $321.2M | $89.4M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
New Jersey Resources Corp. Dividends, Buybacks & Capital Allocation
NJR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for New Jersey Resources Corp. (CIK: 0000356309)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NJR
What is the AI rating for NJR?
New Jersey Resources Corp. (NJR) has a Combined AI Grade of A from Claude (A) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NJR's key strengths?
Claude: Earnings growth (15.8% YoY) exceeding revenue growth (9.9% YoY) indicates improving operational efficiency and margin expansion. Exceptional free cash flow generation of $289.3M with 26.7% FCF margin demonstrates cash conversion quality and capacity for dividends/debt service. ChatGPT: Solid YoY EPS and net income growth. High operating and net margins indicating efficient operations.
What are the risks of investing in NJR?
Claude: Current ratio of 0.94x below 1.0 indicates potential near-term liquidity pressure, though typical for utilities with stable contractual cash flows. Debt-to-equity ratio of 1.24x represents elevated leverage; susceptibility to rising interest rates or credit market stress. ChatGPT: Negative free cash flow due to high capex and weak OCF. Tight liquidity with current/quick ratio at 0.83x.
What is NJR's revenue and growth?
New Jersey Resources Corp. reported revenue of $1.1B.
Does NJR pay dividends?
New Jersey Resources Corp. pays dividends, with $95.6M distributed to shareholders in the trailing twelve months.
Where can I find NJR SEC filings?
Official SEC filings for New Jersey Resources Corp. (CIK: 0000356309) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NJR's EPS?
New Jersey Resources Corp. has a diluted EPS of $3.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NJR's fundamental grade?
Based on our AI fundamental analysis in May 2026, New Jersey Resources Corp. has a A grade with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NJR stock overvalued or undervalued?
Valuation metrics for NJR: ROE of 12.9% (sector avg: 10%), net margin of 31.5% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is NJR's AI grade for 2026?
Our dual AI analysis gives New Jersey Resources Corp. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NJR's free cash flow?
New Jersey Resources Corp.'s operating cash flow is $589.3M, with capital expenditures of $300.0M. FCF margin is 26.7%.
How does NJR compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 31.5% (avg: 12%), ROE 12.9% (avg: 10%), current ratio 0.94 (avg: 0.8).