NewJersey Resources Corporation Common Stock (NJR)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 13.7% above cost of capital
• Revenue growth of 23.9% demonstrates strong top-line momentum
• Attractive 3.4% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

NewJersey Resources Corporation Common Stock is a small-cap utilities company valued at $5.7 billion. The business generates $2.2 billion in annual revenue with a 5.7% net margin. From a quality standpoint, NewJersey shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is reasonably priced at 17.5x earnings, with trades above its Graham Number with a negative 34% margin. Growth dynamics show revenue growing at 23.9% and profit growth of -6.7%. The 3.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

NewJersey's 24% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer