NewJersey Resources Corporation Common Stock (NJR)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look first for a durable business at a fair price. New Jersey Resources is a regulated natural gas distributor serving parts of New Jersey, plus clean energy, energy services, and storage/transportation. The regulated utility franchise is the core competitive advantage: customers generally have no alternative pipeline, and demand is steady. The numbers show a steady earner: in FY2025, the fiscal year ended 2025-09-30, revenue was $1.4B, net income $335.6M, and diluted EPS $3.33, up from FY2024, the fiscal year ended 2024-09-30, when revenue was $1.2B, net income $289.8M, and diluted EPS $2.92. FairStock classifies it as a STALWART, based on 15.5% annual profit growth and 10.1% revenue growth over five years. But quality is mixed. FairStock's ROE is 14.45%, yet ROCE is only 4.50%, suggesting the utility earns thin returns on total capital. Debt/equity is 1.47, and trailing free cash flow is -$156.4M, a -3.0% FCF yield. The Piotroski F-Score is 1/9 and Altman Z-Score 0.89 - weak signs that would make Graham cautious. Valuation: at the 2026-10-13 close of $51.85, FairStock's P/E is 14.36 and P/B 1.99. Its Graham Number is $46.02, so the margin of safety is -12.67%; the price is above that conservative value. The 3.75% dividend yield and beta 0.51 add defensive appeal, but the payout depends on continued regulated returns and external financing. In sum, a steady utility with a narrow moat, but leverage and negative free cash flow mean I would demand a wider discount than today's price offers.

In plain English: New Jersey Resources sells natural gas and related energy services, mostly in New Jersey. The business earns steady profits and pays a dividend, but it carries a lot of debt and currently spends more cash than it generates. At the recent price of $51.85, the stock looks a little expensive compared with what it earns and owns.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer