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1. Company Snapshot

1.a. Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services.The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation.The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets.


The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York.The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada.The Storage and Transportation segment invests in natural gas transportation and storage facilities.


It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities.The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

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1.b. Last Insights on NJR

New Jersey Resources Corporation's recent performance has been driven by strong quarterly results, with fiscal 2026 first-quarter earnings surpassing estimates, reaching $1.17 per share, beating the Zacks Consensus Estimate of $0.95 per share. The company also increased its net financial earnings guidance for fiscal 2026. Additionally, the company has made strategic investments, such as a $50,000 donation to Ducks Unlimited to protect and enhance coastal habitats. The company has a "Hold" rating from analysts, with a 1-year price target (MarketBeat). Leadership changes and a strong balance sheet support the company's growth strategy.

1.c. Company Highlights

2. New Jersey Resources Corporation's Fiscal 2026 First Quarter Earnings Surpass Expectations

New Jersey Resources Corporation reported a strong fiscal 2026 first quarter, with net financial earnings (NFE) of $118.2 million, or $1.17 per share, beating analyst estimates of $0.95 per share. Revenue growth was robust, driven by the company's diversified businesses, including New Jersey Natural Gas, Storage and Transportation, and Clean Energy Ventures. The company's adjusted funds from operations (FFO) to adjusted debt ratio is projected to remain around 20% for the next five years, indicating a strong balance sheet.

Publication Date: Feb -17

📋 Highlights
  • Increased NFEPS Guidance:: Raised fiscal 2026 guidance by $0.25/share to $3.28–$3.43/share after strong Q1 performance.
  • Capital Allocation:: $4.8–$5.2B in 5-year CapEx, with 60%+ allocated to New Jersey Natural Gas, including $119M in Q1 FY2026.
  • Earnings Growth Drivers:: Storage & Transportation (S&T) to double earnings by 2027 via recontracting and Leaf River capacity expansions.
  • Customer Growth Momentum:: 64% of FY2025 CapEx went to utility operations, supported by record natural gas sendouts and 50%+ solar capacity growth in CEV by 2027.
  • Hedging Strategy Payoff:: Natural gas stored at $2.20/decatherm vs. $135+ Citygate pricing during cold weather, mitigating costs for customers.

Business Unit Performance

The company's business units demonstrated promising growth prospects. New Jersey Natural Gas is expected to drive high single-digit rate base growth through 2030, while Storage and Transportation is set for accelerated growth, with earnings expected to more than double in the near term. Clean Energy Ventures added approximately 10 megawatts of capacity during the quarter and expects to grow in-service capacity by over 50% over the next two years. As Roberto Bel noted, "We've secured a long-term contract for the initial capacity expansion at our existing caverns, with the remaining phases supported by long-term fee-based contracts."

Capital Expenditures and Growth Prospects

The company deployed $119 million in capital expenditures during the quarter, with New Jersey Natural Gas representing approximately 70% of total CapEx. The company expects to spend $4.8 to $5.2 billion over the next five years, with more than 60% dedicated to the utility. The company's growth prospects are anchored by its regulated utility, with accelerated growth in storage and transportation. Analysts estimate next year's revenue growth at 2.7%.

Valuation Metrics

Using the current stock price, the company's P/E Ratio is 16.71, and the P/B Ratio is 2.21. The EV/EBITDA ratio is 13.01, indicating a moderate valuation. The Dividend Yield is 3.41%, providing a relatively stable income stream. The ROE is 13.39%, indicating a decent return on equity. These metrics suggest that the company's stock price may be fairly valued, but the growth prospects and dividend yield make it an attractive investment opportunity.

3. NewsRoom

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NewJersey Resources Corporation $NJR Shares Bought by Ameritas Advisory Services LLC

Feb -16

Source: defenseworld.net

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$122 Million Quarterly Profit and 7% to 9% Growth Target: Why NJR Stock Is a $34 Million Portfolio Bet

Feb -14

Source: fool.com

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Is NewJersey Resources (NJR) Stock Outpacing Its Utilities Peers This Year?

Feb -12

Source:

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New Jersey Resources: Consistency At The Core, Optional Growth At The Edges

Feb -08

Source: seekingalpha.com

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New Jersey Resources Corporation (NJR) Q1 2026 Earnings Call Transcript

Feb -03

Source: seekingalpha.com

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New Jersey Resources (NJR) Surpasses Q1 Earnings and Revenue Estimates

Feb -02

Source: zacks.com

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New Jersey Resources Reports Fiscal 2026 First-Quarter Results; Increases Net Financial Earnings Guidance for Fiscal 2026

Feb -02

Source: businesswire.com

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SG Americas Securities LLC Decreases Stock Holdings in NewJersey Resources Corporation $NJR

Jan -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.38%)

6. Segments

Natural Gas Distribution

Expected Growth: 6.5%

New Jersey Resources Corporation's 6.5% growth in Natural Gas Distribution is driven by increasing demand from residential and commercial customers, infrastructure expansion, and strategic acquisitions. Additionally, favorable regulatory environments, investments in energy efficiency, and a growing focus on clean energy solutions contribute to the segment's growth.

Energy Services

Expected Growth: 6.0%

New Jersey Resources Corporation's Energy Services segment growth of 6.0% is driven by increasing demand for natural gas infrastructure, strategic acquisitions, and expansion of energy efficiency programs. Additionally, favorable regulatory environments and growing adoption of clean energy solutions contribute to the segment's growth.

Clean Energy Ventures

Expected Growth: 8.0%

Clean Energy Ventures' 8.0% growth is driven by increasing adoption of renewable energy sources, favorable government policies and incentives, rising demand for energy storage solutions, and strategic investments in solar and wind projects. Additionally, New Jersey Resources Corporation's diversified energy portfolio and strong operational efficiency contribute to the segment's growth.

Storage and Transportation

Expected Growth: 5.5%

New Jersey Resources Corporation's Storage and Transportation segment growth of 5.5% is driven by increasing demand for natural gas infrastructure, strategic acquisitions, and expansion of existing pipeline networks. Additionally, favorable regulatory environments and growing adoption of clean energy sources contribute to the segment's growth.

Home Services and Other

Expected Growth: 6.8%

The 6.8% growth in Home Services and Other segment of New Jersey Resources Corporation is driven by increasing demand for energy-efficient solutions, strategic acquisitions, and expansion of service offerings. Additionally, favorable weather conditions, infrastructure investments, and a strong economy in New Jersey contribute to the segment's growth.

7. Detailed Products

Natural Gas Distribution

New Jersey Resources Corporation provides natural gas distribution services to residential, commercial, and industrial customers through its subsidiary, New Jersey Natural Gas.

Clean Energy Ventures

The company invests in and develops clean energy projects, including solar and wind farms, to generate renewable energy.

Energy Services

New Jersey Resources Corporation offers energy management services, including energy efficiency solutions and energy procurement, to commercial and industrial customers.

Home Services

The company provides home services, including heating and cooling system installations, maintenance, and repair, through its subsidiary, NJR Home Services.

Midstream Assets

New Jersey Resources Corporation owns and operates midstream assets, including natural gas transportation and storage facilities.

Energy Storage

The company invests in energy storage solutions, including battery storage systems, to support the integration of renewable energy sources.

8. New Jersey Resources Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for New Jersey Resources Corporation is moderate, as there are alternative energy sources available to customers, but the company's diversified energy portfolio and strong brand presence mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as New Jersey Resources Corporation is a large energy provider with a diverse customer base, making it difficult for individual customers to negotiate prices or terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as New Jersey Resources Corporation relies on a diverse range of suppliers for its energy resources, but the company's scale and market presence give it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low, as the energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as New Jersey Resources Corporation operates in a highly competitive energy market with several established players, leading to intense competition for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.30%
Debt Cost 4.45%
Equity Weight 37.70%
Equity Cost 7.12%
WACC 5.46%
Leverage 165.22%

11. Quality Control: New Jersey Resources Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ONE Gas

A-Score: 6.4/10

Value: 6.4

Growth: 4.4

Quality: 4.8

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Atmos Energy

A-Score: 6.3/10

Value: 4.9

Growth: 5.0

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
New Jersey Resources

A-Score: 6.3/10

Value: 6.3

Growth: 4.3

Quality: 4.4

Yield: 8.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
NiSource

A-Score: 6.2/10

Value: 5.3

Growth: 3.3

Quality: 4.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Southwest Gas Holdings

A-Score: 6.1/10

Value: 4.3

Growth: 5.2

Quality: 3.6

Yield: 7.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
New Fortress Energy

A-Score: 3.9/10

Value: 10.0

Growth: 6.4

Quality: 3.4

Yield: 3.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

53.51$

Current Price

53.51$

Potential

-0.00%

Expected Cash-Flows